Tea farmers selling their produce to KTDA-managed factories recorded improved earnings in the July to mid-October period as volumes sold increased.
Average prices for the commodity from KTDA-managed factories increased to USD2.65(Sh320.65) in the period compared to USD2.55(Sh308.55) for a similar period last year.
Auction data shows that the factories have also sold more volumes this year, with the amount of shipped teas being 41 per cent higher than last year, which comes amidst a 13 per cent drop in farm production as sustained low precipitation affects farmers’ output.
Greenleaf deliveries by farmers to 71 KTDA-managed factories dropped to 197 million kilos in the July-September period compared to 225.8 million kilos last year.
“Prices at the auction have been fairly steady with a positive outlook expected for the coming weeks despite the market challenges faced with the Russia-Ukraine war and the flooding disaster that recently hit Pakistan,” KTDA Group CEO Wilson Muthaura.
Prices for KTDA-managed factories continue to outperform the aggregate Mombasa auction based on excellent quality and reforms instituted by the Agency, including the introduction of a USD2.43(Sh294.03) reserve price for each kilo.
Factories are expected to curb their production costs and consistently produce high-quality tea that fetches good prices in the market.