Kenya diversifies tea markets to boost exports

According to the Tea Board of Kenya, whilst exports increased in two of the top traditional tea markets — Pakistan and Egypt — sales to the UK declined due to change of preference, particularly amongst the youth.

Exports to Pakistan last year rose by 12 % to 90.3 million kilogrammes compared to 80.8 million kilogrammes in 2011, earning the country Sh24.5 billion compared to Sh21.8 billion the previous year. Egypt registered 88.8 million kilogrammes worth Sh22.8 billion compared to the previous year’s 79.9 million kilogrammes worth Sh20.6 billion.

Experts in the sector have been championing for market diversification to cushion the industry from possible shocks due to market concentration that has traditionally revolved around the top three countries.

The emerging markets are mostly in Asia, Europe, and Africa. Although their quantities remain lower than the traditional outlets, the percentage growth is encouraging.

“We have seen increased exports to newly-emerging markets due to shifting preferences from orthodox to CTC black tea bag market segment and enhanced promotion,” said the Tea Board of Kenya managing director, Ms Sicily Kariuki.

Kenya is known for its curl, tear, and cut or CTC black tea in the international market.

Black tea consumption is expected to grow at the rate of 1.8 % every year, which is almost equal to its production. Projections indicate demand for black tea will be at par with supply by 2021 if no over-reaction to current firm prices is experienced.

Kenya is projecting to earn Sh4 billion more, to bring total export earnings to Sh116 billion this year.

Among the countries that registered significant growth include Russia, with 20.5 million bags compared to 17.4 million bags in 2011, representing a 18% growth.

Somalia recorded 37% growth with 5.1 million kilogrammes, compared to 3.7 million recorded in 2011. Tea exports to TurkeyAdidas Glitch Skin