9 August 2017

East Africa: Regional Tea Exports Increase

Latest records from Mombasa auction show that tea registered a 6.2 per cent rise in exports posted to the global market.

According to the East African Tea Export Auctions, latest trading on the July 24 and 25, shows that six of the 10 regional players exported 7.4 million kilogramme bags, up from 6.9 million kilogrammes exported around the same time last year.

The report further shows that production increased from 7.5 million kilogramme bags exported last year to 8.2 million kilogramme bags offered in the same period this year.

"There was good but irregular demand for the 127,020 packages (8,224,195 kilos) available in the market with prices easing as the sale progressed and 12.91 per cent packages remained without bids," the report showed.

Country performance

Kenya, the leading producer, offered a total of 6.2 million kilogramme bags, up from 5.7 million bags the previous year. Out of this, Kenya exported 5.6 million kilogramme bags, up from 5.3 million the country exported the previous year.

Uganda, the second leading producer in the region, offered 1.1 million kilogramme bags, the same amount it offered the previous year. The country also exported 1 million kilogramme bags the same amount it exported the previous year.

Rwanda

Rwanda exported 380,000 kilogrammes up from 290,000 it exported around the same time last year. Other countries which participated in the trading were Burundi, Tanzania and DR Congo.

Reaction

Reacting to this performance, the Executive Secretary of the Uganda Tea Association (UTA), Mr George William Ssekitoleko, said: "We have seen increased production of tea in even which were not traditionally tea growing areas like Kabale."

He added that although the country experienced a prolonged dry season last year, this year the growing areas have received some reasonable rain which has seen the crop flourish.

Revenue

In 2016, the country's revenue earnings were pegged at $80 million (Shs288 billion) according to UTA.

In 2015, Uganda exported 55 million kilogrammes, earning the country Shs$76 million (Shs273 billion).

Uganda

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