Tea factories earn Sh919 million from Mombasa auction

A worker picks tea on a farm. [File, Standard]

The smallholder tea factories netted Sh919,557,408 after the auction of 2,592,128 kg of made tea through the Mombasa Tea Auction in the weekly market, compared to Sh965,313,591 last week.

In the auction, factories continued to get lucrative prices following the low offers presented despite the high demand for the commodity in the market ahead of the cold season, based on the El Niño rains. 

In the market, factories that sold their tea at high prices are Githongo Sh477.3 ($3.70), Mununga Sh452.79 ($3.51), Gathuthu Sh439.89($3.41), Rukuriri Sh429.57($3.33), Ngere Sh425.7($3.30), Mungania Sh425.7($3.330), among others.

KTDA Holding National Chairman Enos Njeru says the improved pricing of the locally processed tea in the international market followed the buyers' confidence in the produce.

“In the week, the farmers owned factories offered 2.5 million kgs, with the stakeholders championing the continued plucking of the quality green leaf at the farm level to enable processing,” said Njeru.

A report by the ETTA Managing Director, George Omuga indicates that in the week, Kenya sold 5,021,795 kgs of made tea that generated a total of Sh1,502,922,807.6, which was shared by the KTDA-managed factories and the independent producers.

The market, he explained, attracted 48 buyers who shared the available commodity offered by the tea farmers in the four East African countries.

“Rwandese tea dominated the market fetching a price of Sh414.09 ($3.21 per kg) for the consignment of 242,800 kgs, Kenya Sh299.28 ($2.32) per kg Uganda Sh171.57 ($1.33) per kg for 766,466 kgs, and Burundi Sh197.37 ($1.53) per kg for 31,891 kgs,” said Omuga.

In the buyers category, Global Tea bought 1,331,908 kgs, LAB International 608,542 kgs, and Aditya Birla 555,711 kgs.