EA Tea Trade Association projects drop in earnings

Written By: Benson Rioba

Tea farmers should brace for lower prices next year if the economic turmoil continues in Sudan, Pakistan and Iran, which are key markets for Kenyan produce.

KBC Radio_KICD Timetable

To help the situation, East African Tea Trade Association Managing Director Edward Mudibo is proposing that the government removes taxes and levies on tea to cushion farmers from low prices.

A section of rift valley MPs are calling for reorganisation or dissolution of the Kenya Tea Development Agency for what they term as underhand deals in the tea trade that has seen earnings drastically reduce.

Also Read  Kirinyaga farmers ready to plant BT cotton

However, players in the tea trade say tea prices are dictated by market forces at the Mombasa tea auction which is transparent with minimal room for price manipulations.

Get breaking news on your Mobile as-it-happens. SMS ‘NEWS’ to 20153

The East African Tea Trade Association predicts much lower tea prices next year due to economic challenges that key tea markets are facing.

Also Read  National, county governments sign MOU on affordable housing

Iran is under US sanctions that have restricted trade with other countries.

This coupled with currency devaluations in Pakistan and Sudan as well as Brexit uncertainty is projected to hurt tea prices.

Also Read  Trade CS backs Free Trade Area to boost exports by 5pc

Those in the tea value chain are calling on the government to consider removing taxes and levies on tea to reduce the cost of production and cushion farmers from low prices.

Even though factories have in recent years been encouraged to embrace production of orthodox tea, less than ten KTDA affiliated producers are processing the high value tea.


Tell Us What You Think