Irish tea buys up 50pc on Brexit

Traders at the Tea Trade Centre in Mombasa in the past. FILE PHOTO | NMG

What you need to know:

  • Volumes of tea bought by Ireland in nine months to August rose to 2.9 million kilos from 1.9 million kilos in corresponding period last year, an increase of 52 percent.

Kenyan tea export to Ireland has grown in recent months as a result of direct purchases, in the wake of the looming Brexit and uncertainties at the border point with the European Union (EU).

The UK is a major re-exporter of tea and buys the commodity from Kenya for resale to other countries, with Dublin one of its major buyers.

Data from the Tea Directorate indicate volumes of tea bought by Ireland in nine months to August rose to 2.9 million kilos from 1.9 million kilos in corresponding period last year, an increase of 52 percent.

The figures also indicate the numbers went up in the nine months to September this year to reach a high of 3.1 million kilogrammes from two million kilos in similar period last year, a growth of 50 percent.

“Brexit could be a motivation for increase in direct purchases of tea by Ireland; it is one of the factors that could have led to increase in purchases,” says East Africa Tea Traders Association managing director Edward Mudibo.

At present, goods and services are traded between the two countries with a few restrictions. That is because the UK and Ireland are part of the EU single market and customs union, so products do not need to be inspected for customs or standards.

But after Brexit, all that could change — the two parts of Ireland could be in different customs and regulatory regimes, which could mean products being checked at the border.

The EU had indicated it would involve Northern Ireland alone remaining in the EU's single market and customs union, leaving Great Britain (England, Scotland and Wales) free to strike trade deals.

EMERGING MARKETS

Mr Mudibo said Ireland’s tea consumption is among the highest in the world with a per capita of two kilogrammes.

“Irish people are good takers of tea and perhaps they want more of it from Kenya, which is known for producing one of the best beverages,” he said.

The Directorate has listed Ireland as one of the emerging markets whose purchases from Kenya have gone up.

Britain was supposed to have exited the EU membership at the end of last month but it got an extension to January.

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