Market News

First-half tea production up 14pc on good weather

Workers at a tea estate in Kericho.
Workers at a tea estate in Kericho. FILE PHOTO | NMG 

Tea production in the first half of the year rose 14 per cent compared to a corresponding period last year, boosted by good weather in the first quarter.

Tea Directorate said the volume produced between January and June rose to 230 million kilos against 200 million kilos recorded last year.

“The increase was largely attributed to the onset of the long-rain season, which was experienced in major tea growing zones,” says the directorate in its monthly report.

The average price for the six months was, however, lower at Sh276 a kilo compared with Sh300 for the same quantity in the corresponding period of 2017.

In June 28 million kilos were sold through the auction against 23 million recorded in the same month of 2017.

Prices at the auction have been dismal in the last six months in the wake of high volumes. The prices touched a low of Sh230 in last week’s auction.

The auction had started on a high of Sh270 in the first sale of the year but in the last two months has oscillated between a two- and three-year low.