Global tea prices slip 13.7pc on increased production in Kenya

Wednesday May 15 2019

Harvesting tea in Tanzania’s Southern Highlands

Harvesting tea in Tanzania’s Southern Highlands Zone. PHOTO | FILE 

By Halili Letea @hletea

Dar es Salaam. Global tea prices fell by 13.7 per cent in March, this year, compared to the corresponding period last year following an increase in production.

The Bank of Tanzania Monthly economic review for April 2019 has indicated that the average world tea price went down to $2.7 a kilo during the year ending March 2019 compared to $3.1 in March 2018.

Similarly, the price of tea at the Mombasa auction also fell by 17.1 per cent to $2.4 from $2.9 during the period under review.

“Prices of tea declined on account of higher production, particularly in Kenya,” notes the BoT report.

Earnings from tea exports were $45.2 million in the year ended in December 2018 compared to $49.0 million in December 2017.

The report adds that the value of tea exports fell due to low prices.


Reports from the Ministry of Agriculture show that tea production was up by 26.1 per cent to 27,000 tonnes in the year 2016/17 compared with 34,000 tonnes in the year 2017/18.

Correspondingly, month on month average world price of tea fell by 1.3 per cent to $2.4 on March while at the Mombasa auction, the price was down by 1.4 per cent to $2.1.

Njombe Region is the largest producer of tea in the country, thanks to an inclusive agricultural initiative supported by Njombe OutGrowers Service Company (NOSC), the brainchild of partners for the Southern Agriculture Growth Corridor of Tanzania (Sagcot).