TEA NEWS

Kenya: Spirited fight by multinationals as climate change cuts tea volumes

India has raised concerns at the European Union’s decision to classify dye-making chemical anthraquinone as a pesticide, calling it a non-tariff barrier that has hit tea exports to the trade bloc. The government has asked the EU to share the scientific basis for setting the maximum residue level for imported tea, its sampling and testing methodology, and the international standards on which such assessment is based.

Tea farmers also need to be educated on best practices like pruning, the correct type of fertilizer to use and correct methods of harvesting, he adds. If the prices continue to deteriorate, listed tea companies such as Williamson, Kapchorua, Limuru and Sasin will all be affected as over half of their incomes come from tea farming, Manyinsa says. But the seasonal time of the glut means there are still grounds for optimism in these shares, he adds. “Farmers remain confident of the recovery.”

More than half the consignment of green leaf supplied at the Mombasa tea auction remained unsold last week following the setting of a reserve price by KTDA. Termed as a bold step to assure a consistent and better returns to farmers by the new management at the Kenya Tea Development Agency (KTDA), the move has taken off to a false start with buyers shunning the high reservation price.

GOOD DEMAND WITH IMPROVED UPTAKE ON KTDA TEAS

Sri Lanka’s fertiliser policy has caused a stir among tea buyers eager to find out if stocks will continue to pour in while exporters believe it’s only a matter of time before Sri Lanka could lose markets that generates a total of US$1.2 billion in annual revenue.

The tea industry is bracing for a decline in exports to the tune of 30-40 million kg this year as compared to 2020, due to the availability of low-cost varieties in the global market and amid trade restrictions in countries that have traditionally been strong importers, industry sources said.

The Kenya Tea Development Agency (KTDA) has set the minimum reserve price for processed tea at the Mombasa auction in an unprecedented move aimed at cushioning smallholder farmers.

Nahashon Ngari, representing Mununga Tea Factory, Ndia Constituency, said the initiative was aimed at cushioning smallholder farmers adding, “Setting standard tea prices will guard farmers from incurring losses.” CS Peter Munya had raised the alarm over declining tea prices at the auction.

IMPROVED DEMAND ON PLANTATION WITH KTDA SELLING ONLY 14% AT RESEVERVE LEVELS

Tea Prices Set To Go Up Despite Low Production

GOOD DEMAND AT IRREGULAR RATES BP1 : East KTDA easier 5/28 cts with selected lines firm to dearer 2/4 cts, Coloury and good leaf West KTDA firm to dearer 2/6cts, others easier 2/10cts Nandi dearer 6/12 cts, Limuru and Kericho firm to dearer 2/16 cts, Uganda steady to easier 2/5 cts. PF1 : East KTDA dearer 4/12 cts, West KTDA dearer 2/10 cts, Nandi dearer 4/16 cts, selected Limuru and Kericho dearer 2/4 cts others easier 2/10 cts, selected Uganda firm to dearer 2/10 cts others easier 2/8 cts. IMPROVED DEMAND AT IRREGULAR RATES PD : East KTDA dearer 4/10 cts, West KTDA dearer 2/6 cts. Nandi firm, Limuru firm to 2 cts dearer. Kericho irregularly firm. Uganda firm to 5 cts dearer. D1 : East KTDA dearer up to 10 cts, West firm to 2 cts dearer. Nandi and Limuru barely steady to 3cts easier Kericho firm. Uganda dearer 2/6 cts. SELECTIVE DEMAND PF : Limuru easier 10 cts, Kericho easier 5/10 cts, Uganda firm to dearer 8 cts. FNGS : East KTDA irregularly easier 10/20 cts to dearer 4/6 cts on selected types, West KTDA mostly easier 5/10 cts, Nandi irregularly dearer 30cts, Limuru firm, Kericho easier 5/8 cts, Uganda firm to dearer 4 cts. Dust : East KTDA dearer 2/8, West KTDA easier 6/10 cts, Limuru dearer 4 cts, Kericho irregularly dearer 4/6 cts with poor leaf types easier 5 cts, Uganda dearer 5 cts.