Kenya’s top grade tea price edges higher to $ 3.56 per kilo

Monday, 21 May 2012 00:00 - - {{hitsCtrl.values.hits}}

Reuters: The average price of the top grade Kenyan tea inched higher to $3.56 per kg at the auction last week, from $3.53 per kg the previous week traders said.

The east African nation is the world’s largest exporter of black tea and the crop is one of its largest hard currency earners, bringing in $1.27 billion last year.

Africa Tea Brokers (ATB) said in a market report that Best Broken Pekoe Ones sold at $3.81-$3.30 per kg compared with $3.85-$3.20 at the previous sale.

Best Pekoe Fanning Ones went for $3.56-$3.46 per kg compared with $3.60-$3.32, ATB added.

“Strong general demand prevailed for the 5,126,270 kilos (81,415 packages) on offer,” ATB said, adding that 10.56 per cent of the tea on offer did not get buyers.

Pakistan Packers were the dominant buyers. Yemen and other Middle East nations also took part in the auction, ATB said.

Regulator Tea Board of Kenya expects production to pick up starting this quarter, after a 14 per cent year-on-year fall in output for the first three months of the year, thanks to heavy rains in the country.

The weekly auction in the port city of Mombasa also handles tea from other regional producers like Burundi and Tanzania.