KENYA TEA INDUSTRY PERFORMANCE HIGHLIGHTS FOR July 2019

Production

Tea production for the month of July 2019 decreased to 31.45 Million Kgs compared to 35.27 Million Kgs recorded during the corresponding month of 2018. Lower production was attributed to less precipitation recorded in the tea growing regions particularly in the West of Rift, consequent to which the region’s output declined from 26.52 Million Kgs to 23.90 Million Kgs. Production within the East of Rift decreased marginally from 8.75 Million Kgs to 7.55 Million Kgs. Notably, owing to cold and wet weather conditions experienced in all tea growing areas, production for the month of July was however lower than that of June 2019, which stood at 42.42 Million Kgs. Across the sub-sectors, production within the Smallholder sub-sector recorded a marginal decline from 16.84 Million Kgs to

16.13 Million Kgs while that of the Plantation sub-sector decreased from 18.43 Million Kgs 15.32 Million Kgs.

Cumulative production for the period Jan-July was 8.34% lower to stand at 244.06 Million Kgs against 266.27 Million Kgs recorded during the corresponding period of 2018 owing to severe hot and dry weather conditions and late onset of the Long rains experienced during the first quarter of the year as well as depressed rainfall conditions during the month of April and May. West of Rift region was the most affected with output having dropped by 9.39%.The decline in the East of Rift over the seven months period was 6.26%.

Table 1: Production b Sub-Sector and Re ion 2019 vis-à-vis 2018

Sector Re ion Jul 2019 Jul 2018 Variance   Jan -Jul 2019 Jan -Jul 2018 Variance +1- Var.(%)
Plantation West of Rift 14, 154.759   – 3,137,421 -18.14%       -8.95%
East of Rift 1,168,120   25,532 2.23%     1411450 -1.72%
Total   18,434,768 – 3,111 ,889 -16.88%       -8.43%
                 
Smallholder West of Rift 9,745,418 9,233.981 511 ,437 5,540/0 63,384,259 70,471 ,068   -10.06%
East of Rift   7,609,411   -16.02% 75,779.858 81 5,457.944 -6.72%
Total 16,135,613 16,843,392 707,779 -4.20% 139,164,117 151   -8.27%
Plantation Smallholder                  
West of Rift 23,900,177     -9.90%       -9.39%
East of Rift 7,558,315 8.751 ,999 – 1,193,684 -13.64%       -6.26%
Total 31 35,278,160   -10.83%       -8.34%

TEA SALES

AUCTION

During the month of July, 32.05 Million kgs of Kenyan tea was sold through Mombasa Auction against 33.79 Million kgs recorded in same period of last year. The average tea auction prices for Kenyan tea for the month USD 1.99 per Kg which was lower compared to 2.49 recorded in July 2018.

The Average Auction price for the period January- July 2019 stood at USD 2.20 per Kg compared to 2.71 per kg for the same period of last year.

EXPORTS

The total export volume for the month of July 2019 was 40.59 Million Kgs compared to 31.52 Million Kgs recorded same period of last year, representing a 29% increase. During the month, Kenya tea was shipped to forty six (46) export destinations compared to forty one (41) destinations for the same period of last year. Amongst these markets, Pakistan was the leading export destination for Kenyan tea having imported 15.31 Million Kgs, accounting for 38% of the total export volume. Other key export destinations for Kenyan tea were Egypt (6.31

Million Kgs), UK (4.30 Million Kgs), Sudan (2.18 Million Kgs), Yemen (1.61 Million Kgs), UAE (1.28 Million Kgs), Russia (1.12 Million Kgs), Kazakhastan (1.01 Million

Kgs), Afghanistan (0.98 Million kgs) and Saudi Arabia (0.59 Million Kgs).

Amongst the emerging markets that recorded significantly higher tea imports from Kenya included Chile,lndonesia, India, China, Netherlands, Japan, Ireland, Somalia, Chad, Malaysia, USA, Mauritius and Germany.

The total export volume for the period January-July 2019 stood at 292.60 Million

Kgs compared to 273.09 Million Kgs recorded same period of last year.

LOCAL SALES

Local tea Sales for July 2019 stood at 2.85 Million Kgs against 3.75 Million Kgs for the corresponding period of 2018 while cumulative tea sales for the seven months upto July 2019 was 24.12 Million Kgs against 23.71 Million Kgs for the same period of last year.

29 th AUGUST, 2019

Table 3: Ken a Tea Ex   orts b Destination Jul 2019 vis-à-vis Jul 2018
DESTINATION     2019 – QUANTITY (KGS)   2018 – QUANTITY (KGS)   QUANTITY diff %AGE variance
PAKISTAN EGYPT             723,346 65 0/6
UK                
SUDAN     2,189,371   1, 197,087   992,284  
YEMEN UAE         364,600   441,100 923,842 253%
RUSSIA     1,127,501       768,961  
KAZAKHSTAN AFGHANISTAN     984,516   657,983   353,029  
SAUDI ARABIA     598,179   672,744   74,565 — 110/0
CHILE     556,457   243,660   312,797 128%
INDONESIA     444,520   119,948   324,572 271%
INDIA     386,396   90,618   295,778 326%
CHINA     372,706   115,492   257,214 223%
NETHERLANDS     351,524   121,780   229, 744 189%
IRAN     347,617   479,298   131,681  
JAPAN     322,400   128,900   193,500 150%
IRELAND     309,676   116,378   193,298 166%
SOMALIA     305,012   75,773   229,239 303%
JORDAN     260,000   262,000   2,000 -1%
UKRAINE     233,425   247,786   14,361  
CHAD     206,699   45,900   160,799 350%
SOUTH SUDAN     200,357       200,357  
POLAND     170,188   589,992   419,804 -71%
MALAYSIA     169,059   82,957   86, 102 104%
TURKEY     152,128   323,053   170,925 -53%
USA     139,251   90,822   48,429  
ERITREA     130,000       130,000  
SWITZERLAND     92,090   653,260   561,170 -86%
NIGERIA     85,000   403,200   318,200 -79%
MAURITIUS     77,500   45,000   32,500 72%
SOUTH AFRICA     74,440       74,440  
GERMANY     72,140   27,200   44 , 940 165%
UZBEKISTAN     67,514       67,514  
EPZ     60,000       60,000  
OMAN     47,136   73,875   26,739 -36%
SRI LANKA     41,600   130,214   88,614  
QATAR     41,041       41,041 0%
SINGAPORE     28,400   26,000   2,400 9%
MYANMAR     25,873       25,873  
BELGIUM     25,200       25,200  
TAIWAN     18,000       18,000 0%
CANADA     16,328   108,640   92,313 -85%
MACAU     10,000       10,000  
BRAZIL     6,000       6,000  
ITALY     4,600       4,600  
CHECH REP         50   50  
DJIBOUTI         14,000   14,000 0%
GEORGIA         4,960   4,960  
GUINEA         5,472   5,472 0%
HONG KONG         11,500   11,500 0%
MOROCCO         6,580   6,580 0%
NEW ZEALAND         248,264   248,264 0%
                 
TOTAL     40,597,748   31,528,749   9,068,999 29%
Table 3: Ken a Tea Ex orts b Destination Jan- Jul 2019 vis-à-vis Jan- Jul 2018  
DESTINATION PAKISTAN         2019 – QUANTITY (KGS) 2018 QUANTITY (KGS) QUANTITY diff   %AGE variance
EGYPT           36,927,444     _60/0
UAE SUDAN             2,767,957    
RUSSIA YEMEN         10,377,744 9, 186,360 -649,750    
AFGHANISTAN KAZAKSTAN           4,667,746 -895,068 115,519   -11%
IRAN SAUDI ARABIA         3,791,904   75 612,700    
SWITZERLAND POLAND         2,916,145   752,300 -852,753   -23%
NIGERIA IRELAND         2,474,914   -307,838 755,411   44%
NETHERLANDS SOMALIA         2,124,776 790,886 -546, 740   169% -22%
INDIA JORDAN           956,397 984,291 290,157   103%
CHINA TURKEY           611,053 944,665 -893,635   155%
JAPAN INDONESIA             12,603   10/0
USA CHILE         1,421,796 1,269,463 1,125,716 1,888,600 143,158 -619,137 -713,282   -33% -39%
MALAYSIA           752,764 328,335    
UKRAINE         936,312 927,868 8,444   1Yo
BANGLADESH         874,627 152,772 721,855   473%
CHAD         751,058 404,993 346,065    
SOUTH AFRICA         584,456 363,673 220,783    
CANADA         554,964 416,994 137,970    
QATAR         524,859   524,859    
OMAN         452,255 208,976 243,279   116%
SRI LANKA         448,383 487,165 -38,782   -8%
GERMANY         419,668 409,420 10,248   3%
UZBEKISTAN         392,464 410,596 -18,132   -40/0
ERITREA         259,920 169,204 90,716    
SOUTH SUDAN         200,357 173,097 27,260   160/0
DJIBOUTI         183,375 373.236 -189,861   -51%
MAURITIUS         179,500 96,465 83,035   86%
GHANA         149,432 327,240 -177,808   -54%
SINGAPORE         126,995 76,268 50,727   67%
MYANMAR         112,143 8,099 104,044   1285%
NEW ZEALAND         101,360 407,932 -306,572    
VIETNAM         88,000 130,312 -42,312   -32%
BEIGIUM         82,800 17,840 64,960   364%
TAIWAN         77,790 168,715 -90,925   -54%
EPZ         74,034 5,645,738 -5,571,704   -99%
HONG KONG         56,700 141,411 -84,711    
AZERBAIJAN         27,903 42,706 -14,803   -35%
KYRGYZSTAN         23,809 21,347 2,462    
BRAZIL         21,000 110,269 -89,269   -81%
GIBRALTAR         20,696   20,696   0%
BURKINA FASO         20,696   20,696   0%
AUSTRALIA         17,190 2,292 14,898   650%
GUINEA         16,416 21,888     •50/0
ITALY         16,100 18,288 •,188    
PALAU         15,332   15,332   0%
ARGENTINA         12,000   12,000    
MACAU         10,000 7,500 2,500   33%
LITHUANIA         8,986 7,500 1,486    
MOROCCO         8,071 29,496 -21,425   -73%
MOZAMBIQUE         7,800   7,800   0%
IVORY COAST         5,174   5,174   0%
CZECH REPUBLIC         300 150 150   0%
BOTSWANA           100 -100   0%
BULGARIA           5,156 -5,156   0%
COMOROS           3,125 -3,125   0%
D R CONGO           16,409     0%
DUTY FREE SHOPS           1,476 -1,476   0%
FRANCE           218 -218   0%
GEORGIA           28,610 -28,610   0%
GREECE           4,660 -4,660   0%
GRENANDA           24,830 -24,830   0%
IRAQ           2 -2   0%
ISRAEL           4,074 -4,074   0%
KOREA           616 -616   0%
KUWAIT           3,054 -3,054   0%
LATVIA           9,400 -9,400   0%
LIBERIA           90 -90    
MALI           3 -3    
NORWAY   896 -896  
RWANDA   2,027 -2,027  
SEYCHELLES   3,360 -3,360 00/0
TANZANIA   50,687 -50,687  
UGANDA   31,506 -31,506 00/0
         
TOTAL       7%