Tea volumes, price drop at Mombasa auction
Posted Tuesday, June 3 2014 at 01:00
Price drop. The tea price dropped to Shs3,886 last week, down from Shs4,295 last year.
The volume of Ugandan tea sold at the Mombasa auction has dipped, leaving farmers as the biggest losers. According to the latest tea market report by Africa Tea brokers Limited, some 1.1 million kilogrammes of tea were sold last week, down from 1.3 million kilogrammes at the same time last year.
The same report shows that Uganda’s average tea price dropped to Shs3,886 (about $1.52) last week, down from Shs4,295 (about $1.68) at the same time last year. The decline in both volume and value implies that Ugandan tea farmers will find difficulties in fulfilling their financial obligations.
Uganda exports more than 90 per cent of its tea through Mombasa. In Kenya, the world’s leading exporter of black tea where the commodity is the top foreign exchange earner, tea prices shot up.