Tanzania tea export dwindles at Mombasa auction
Tanzania’s tea export earnings through the Mombasa tea auction were lower on account of a decrease in unit volume.
This is despite the rise in price in September compared with the corresponding month last year.
The country was expected to earn US$669,972.52 from selling 416,132 kilos at an average price of $1.61 a kilo in September. In similar period a year earlier, it earned $933,493.77 from 587,103 kilos sold at an average of $1.59.
The Africa Tea Brokers Limited has noted that 465,011 kilos were offered in September, significantly less that the 690,817 kilos offered during the corresponding period last year.
The decline in sales was attributed to irregular demand. According to the report, major buyers of Tanzania’s tea were Global Tea Commodities (K), Van Rees, L.A.B International (K) Ltd and Abbas Traders Limited.
The market handled a total of 24.278 million kilos, of which 21.991 million kilos were purchased at an average of $2.95 a kilo in September this year against 25.352 million kilos, of which 20.469 million were sold at an average of $2.57.
Egyptian Packers were dominant in the first three auctions, but interest waned in the final fortnight while Pakistan Packers showed more activity in the first two weeks but was thereafter less active, particularly in the final sale.
Interest from Afghanistan improved in the second week and was dominant in closing the month less active while enquiry from Sudan eased through the month.
The UK showed less interest but was more active in the last three sales, whereas, Somalia was quite active at the lower end of the market with less interest.
Yemen and other Middle Eastern countries lent strong support in the first week and maintained enquiry, which eased in the last week while Kazakhstan(CIS) lent more support and was strong.
There was some interest from Bazaar but was quiet at the opening and the closing sales of the month with Russia inactive and only showed some interest while Egyptian Government Sector was subdued.
The Mombasa auction is the second largest tea market in the world after Colombo. Kenya is the third largest tea-producing country after China and India.
Countries selling their tea through the Mombasa auction include Tanzania, Uganda, Rwanda, Burundi, Madagascar, Mozambique, Malawi and the Democratic Republic of Congo.
Tanzania tea production has increased to 34,165 tonnes in 2008/09 season from 32,698 tonnes in 2008/08. The crop grows well on mountains with more rains.
Tea production is expected to increase to 35,000 tonnes this year from 34,165 tonnes last year as high quality tea had been planted.
According to a report by Tea Board of Tanzania, local sales and consumption of blended and packed tea stood at 4,253 tonnes worth Sh21.273 billion in 2007/08 marketing season against 4,737 tonnes worth Sh18.644 billion in season earlier.
There are three main tea-growing areas in Tanzania namely southern Highland Zone (Mufindi, Njombe, and Rungwe Districts), the North East Zone (Lushoto, Korogwe and Muheza District) and Northwest Zone (Bukoba, Muleba district).
There are 5 licensed blending and packing factories namely: Afri Tea and Coffee LTD, Chai Bora LTD (Mafinga -Iringa), Promasidor Tanzania (PTY) Ltd (DSM), International Food Packers LTD (Tanga) and Zanzibar Tea Packers LTD (Zanzibar).
Currently Tanzania is the forth-major tea producer in Africa after Kenya, Uganda and Rwanda. It produces about 32,000 tones per annum, and constitutes about 1.0 percent of World Tea production.
It has a total of 22,721.55 ha (Estates 11,272.10 ha and 11,449.45 ha Smallholder farmers) of land planted with tea. Large private tea estates cover 50 per cent while out growers, including smallholders, cover 50 per cent.
Source – The Citizen