Tea prices at the Mombasa auction declined further on the back of low demand at the weekly trading.
The value of the beverage in the latest sale declined to $2.27 (Sh265.6) from $2.29 (Sh267) in the previous sale, to remain below the government-set reserve price of $2.43 a kilo, which largely applies to the Kenya Tea Development Agency (KTDA).
The KTDA teas account for over 70 per cent of the total volumes traded at the auction and the lack of demand for this beverage has had a negative effect on the overall price of the tea at the auction, leading to high withdrawals.
Thirty per cent of the total teas that were offered for trading at the auction in the latest sale were withdrawn by the sellers on account of lower prices. The minimum tea price has seen traders at the auction opt for cheaper teas from other regional countries, giving a wide berth to expensive Kenyan beverages because of the reserve price.
The value of tea has sold below the minimum price for the last 16 weeks, a move that will negatively impact farmers’ earnings at the end of this financial year.
Read also; Tea Prices Fall Short of Sell Reserve Price at Mombasa Auction.
