Tea prices slide for third week on reduced demand – The Star Kenya
•This comes after hitting an eight-month high of $2.46 (Sh301.72) in the first week of November.
•The highest price remains the $2.62 (Sh318.72 at that time’s exchange rate) recorded in February, which was a four-year high.
Tea prices at the Mombasa Auction have dropped for the third consecutive week, albeit by small margins, with this week recording reduced demand in most categories.
This comes after hitting an eight-month high of $2.46 (Sh301.72) in the first week of November, with the strong dollar to the shilling earning farmers more.
A kilo this week fetched $2.28 (Sh279.64) down from $2.32 (Sh284.55) last week, $2.34 (Sh287) the previous week and $2.43 (Sh298.04) the previous week.
“There was a reduced demand in most categories on offer with prices irregular following quality for the 221,580 packages (14,896,114.00 kilos) available for sale,” the East African East African Tea Trade Association (EATTA) notes in its market report.
Of the volumes availed for trade, 145,240 packages (9,646,501.00 kilos) were sold with 34.45 per cent of packages remaining unsold.
Pakistan Packers, Bazaar, and Afghanistan lent strong support with Yemen and other Middle Eastern countries maintaining good inquiry.
Kazakhstan, other CIS states and UK were more selective while Sudan, Egyptian Packers and Iran reduced activity, EATTA notes.
“Russia were less active while Local Packers maintained interest. Somalia maintained activity at the lower end of the market,” EATTA managing director Edward Mudibo said.
The highest price however remains the $2.62 (Sh318.72 at that time’s exchange rate) recorded in February, which was a four-year high.
$2.16 (Sh262.76) is the lowest price so far this year which is way above last year’s average price of $1.61 (Sh141.11), meaning farmers are set for higher earnings this year as demand of the commodity in the export markets remain stable.
The shilling has this year so far shed some eight per cent against the dollar, giving farmers dealing in export cash crops more returns.
They include horticulture farmers, coffee and tea among other produces.
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