Kenya Ranked Second Largest Tea Exporter In The World
Kenya was the second largest tea exporter in the world in 2022 with its earnings estimated to be over Ksh200 billion.
In the ranking compiled by software trading company, Contago, based on trade statistics, Kenya was only beaten by China which had earnings estimated at Ksh330 billion.
Kenya, which was referred to as Africa’s tea jewel, was noted to be among the major producers of black tea, which is being sought out by many countries.
Notable countries Kenya topped were Germany (Ksh36 billion) and the United Kingdom (Ksh19.4 billion) which were ranked at positions seven and 10 respectively. However, it must be noted that these countries are not major tea producers which means their output cannot be compared with a large producer like Kenya.
“Leading the pack is China, with an export value of approximately $2.08 billion. Known as the birthplace of tea, China’s diverse climate and rich cultural heritage have made it a powerhouse in tea production and export. The country’s vast range of teas, from green to oolong, continues to captivate the global market.
“Kenya follows as the second-largest exporter, with exports worth around $1.39 billion. Kenya’s tea industry is a critical component of its economy, and the country is renowned for its robust, aromatic black teas, which are highly sought after worldwide,” read the report in part.
According to the data, Pakistan was Kenya’s main destination for Kenya’s tea followed by Egypt.
The United Kingdom, the United Arab Emirates, Yemen, Iran, Russia, and Sudan followed in that order.
Kenya is reported to have exported 410 million kilograms to its key trade partners across the globe. In 2021, Kenya exported only 388 million kilograms.
Reports by the Tea Board of Kenya (TBK) suggest that the country made more earnings in 2023 owing to the favourable weather conditions that were witnessed in the second half of the year.
Production for October was also much more enhanced compared to 48.30 million kgs recorded in September and 45.57 million Kgs in August this year.
“Improved production was attributed to wet weather conditions experienced in several parts of the country during October, which was a continuation from September over several parts of the country,” the Tea Board of Kenya (TBK) noted in its latest report for 2023.
The Dollar Factor
The depreciation of the Shilling could also play in Kenya’s favour given that the exports are paid for in dollars.
For instance, despite a slump in production witnessed between February and March 2023 (63.21 million kilograms), Kenya made Ksh29.7 billion in comparison with a similar period in 2022, where Kenya earned 26.9 billion despite having more yields (87.42 million kilograms).
Between February to March 2022, the dollar traded at an average of Ksh113. In the same period in 2023, the dollar traded at an average of Ksh127.
By WASHINGTON MITO
Source-https://www.kenyans.co.ke/news
Kenya Ranked Second Largest Tea Exporter In The World
