Sisal earnings fall in rush for TZ imports

Transacted value of Kenya’s sisal fell last year, depressed by low priced imports from neighbouring Tanzania.

The Directorate of Fibre Crops said earnings from the commodity dropped to Sh3.8 billion last year from Sh3.94 billion in the previous year. The fall in total value was notable because production of the crop increased to 23,187 tonnes from 22,549 in the previous season.

Interim head of the directorate Naomi Kamau said Tanzania, which is the second leading producer of the fibre after Brazil, offered relatively low prices of the commodity to the world market, leading to depressed prices across the board.

“Tanzania supplied fibre to the world market at a much lower price in the world market, leading to slumping in the price of the produce,” says Ms Kamau.

Ms Kamau said Tanzania also forced Kenyan sellers to lower their price in order to remain competitive. “Buyers preferred buying the Tanzanian sisal to Kenyan one because it was cheaper compared to ours and this forced traders to lower their selling price per unit to compete effectively,” she said.

According to the directorate, a kilo of sisal in the international market in 2018 was Sh164, down from Sh175 that was realised a year earlier.

A slump in international price also pressured down the fibre price locally to Sh70 per kilogramme last year from Sh75 in the previous year.

This resulted from traders selling their sisal locally due to lower cost at the international market, hence leading to high supply.

More than 80 percent of sisal fibre is exported to more than 30 destinations worldwide, with China, Saudi Arabia, Nigeria and Morocco leading the pack.

About 20 percent of the sisal is used locally in the manufacturing of various products in the four weaving factories in the country.