Tea industry in Kenya is constantly weakening in the global market; the revenue saw a decrease by 9.1% in the third quarter of 2021 versus the amount in the same period in 2020, according to Kenya Nation Bureau of Statistics (KNBS).
The report of the third quarter of 2021 Balance of Payments by the bureau declared that gains from tea export shrank from Sh30.5 billion in in the third quarter of 2020 to Sh27.7 billion in the equivalent period in 2021.
KNBS said the drop is chiefly due to a cut in export, falling from 138.6 thousand metric tons to 124.5 thousand metric tons.
The profits have also seen a cutback as opposed to other quarters in 2021; in the second quarter tea exports brought in Sh32.2billion into Kenya and the first quarter’s earnings were Sh35.8billion. The deterioration in one of the top exports in Kenya was remarkable and therefore the agriculture ministry got involved to protect battered farmers who endured losses, regulating a low selling price.
In August 2021, Ministry of Agriculture set a minimum selling price of $2, following a critical decline in tea cost in a decade.
The price recovered for a period of 2 months after the minimum price was introduced, reaching a five-year high of Sh256. In October, however, it bounced back again.
The second half of the 2021-22 monetary year will hopefully bring better profits for tea farmers following the government reforms.
Meanwhile, national exports in the third quarter of 2021 were worth Sh160.2 billion, a rise of 10.6%, versus the equivalent quarter of 2020, worth Sh144.8billion.
The rise was primarily due to the country’s exports of agriculture, apparel items, edible supplies, as well as titanium ores. Considerable rises were seen in the exports of non-food industrial products (a jump by 20.5%) and consumer products (by 16.3%).