Commodities

Tea prices at 3-year high

tea

A woman picks tea at Embomos in Bomet. FILE PHOTO | NMG

geraldandae

Summary

  • The value of tea at the Mombasa auction rallied to a three-year high last week, firming a trend of gains that could translate to a good earnings season for farmers.
  • The beverage continued on a streak of impressive prices, hitting Sh244 a kilo on average from Sh234 last week.

The value of tea at the Mombasa auction rallied to a three-year high last week, firming a trend of gains that could translate to a good earnings season for farmers.

The beverage continued on a streak of impressive prices, hitting Sh244 a kilo on average from Sh234 last week, to mark the highest value and give farmers hopes of good pay in 2021/22 after a bad season last year.

A series of good prices witnessed in the recent sales saw the volume of tea withdrawn from the trading floor remain constant at 24 when compared with the previous sale as traders anticipate an even better value in the coming auctions.

“There was a good general demand for 127,099 packages (8.3 kilos) available for sale with 95,501 packages (6.2 million) being sold,” said East African Tea Traders Association.

The prices at the auction have been going up for the last two months as the minimum price set by the government continues to have a positive impact on earnings.