First-quarter Tea exports prices drop due to Corona

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According to data from the Tea Directorate, exports to Egypt and the United Kingdom drop by 10 percent each while Pakistan had the largest fall of 15 percent, highlighting the reduced demand that has negatively impacted prices.

The volume exported to Pakistan, which is Kenya’s main market for tea, saw a decline to 42 million kilos from 49.3 million recorded in the previous quarter. Egypt had a drop of 2.8 million, while the United Kingdom recorded a decline of 1.3 million kilos.

“Lower prices at the auction were attributed to increased supply coupled depressed demand in the global tea markets occasioned by disruption and restrictions of movement due to the Covid-19 pandemic,” said the directorate.

Edward Mudibo, the managing director of the East African Tea Traders Association (Eatta) stated that the rise in demand at the auction had previously been driven by panic buying, which has now gone down.

“In the last eight weeks at the auction have registered a mixed bag. In the latest auction, they have been down on account of reduced demand, but it is important to note that volumes withdrawn from the auction floor have gone down,” he said.

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The Author of this Article is a registered Financial & Investment Analyst with Institute of Certified Investment and Financial Analyst. If your require more information Email: info@finsolutions.co.ke or +254 780216631

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