Sh3.31bn tea sold in month- report
Tanzania sold tea worth Sh3.31 billion ($2.55 million) at the Mombasa auction last month.It sold 1.369 million kilos out of 1.493 million offered in the month. According to reports by Africa Tea Brokers Limited, a kilo was sold at an average of $1.86.
In February 2009, Tanzania offered 1.422 million kilos, but 1.141 million kilos were sold at an average of $1.38 a kilo.Primary grade tea was sold at an average of $2.15 a kilo last month, more than $1.62 in February 2009. Secondary grade tea was traded at an average of $1.28 against $1.05 during the same period.
Major tea buyers of Tanzania’s tea are Global Tea Commodities (K), Van Rees, LAB International (K) Ltd and Abbas Traders Limited.
The Mombasa auction, which is second largest tea market in the world after Colombo, handled 33.154 kilos of which 31.589 million kilos were purchased at an average price of $2.94 a kilo last month.
In February last year, 28.83 million kilos were offered but 23.867 million kilos were sold at an average of $2.12 a kilo.Kenya is a leading tea producer in the world. It accounted for 75 per cent of total market supply last month and 72.6 per cent in February 2009.
It sold tea at an average price of $3.13 a kilo last month, higher than $2.28 in February 2009.Kenya’s tea varieties have high qualities and subsequent prices.Other countries which sell tea through the Mombasa auction are Uganda, Rwanda, Burundi, Madagascar, Mozambique, Malawi and the Democratic Republic of Congo.
Last month, Pakistani and Egyptian packers were dominant in the first two auctions. They were both active but at lower levels in the third week.Afghanistan lent strong support in the first two auctions, easing in the third week but re-entered with more interest in the last sale. Yemen and other Middle Eastern countries also lent strong support.
There was more interest from Kazakhstan in the first two weeks but thereafter activity waned. Sudan showed a little interest in the first two auctions and subsequently lent more activity with some activity from Russia, but was selective in the next auction with interest waning in the final week.
The UK was selective and showed a little more interest in the first two weeks lending more enquiry in the last sale.
Bazaar was out bid in the last two auctions but showed more activity in the first two weeks. Somalia was more active at the lower end of the market.
Source – The Citizen