Smallholder tea factories make Sh1 billion at auction

Small-scale tea holder factories fetched Sh1 billion after the sale of 4,403,251kg.

In the market analysis, the Mununga tea factory sold 108,200kg, fetched Sh38.5 million, and Rukuriri tea factory 94,722kg for Sh29,174,376 at the rate of Sh356 and Sh308 per kilogramme, respectively.

In the Tea Brokers East Africa Limited (TBEAL) report, Ngere factory sold 122,260kg and the highest which earned the growers Sh36,188,960. 

In the west of the rift, the Kobel tea factory was ranked the least after it sold 5,992kg for Sh838,880, while Momul tea factory led after the auction of 92,860kg for Sh22.1 million.

The report further added that other factories that sold their tea at the premium prices were Kimunye, Kathangariri, Gathuthi, Kiegoi, Mungania, Gacharage, Ngere and Gitugi.

In the market, Njunu sold 65,286kg, Nduti 65,600, Kanyenya ini 71,683kg. 

KTDA Zone six Board Member Enos Njeru said it was impressive that tea produced from Embu county continued to attract the market, pleading with the farmers to continue increasing production.

 In the tea sector, the stakeholders are working on encouraging the farmers to pluck the quality green leaf,” said Njeru.

In Murang’a, Ngere tea factory Chairman James Githinji said the KTDA management was working hand in hand with the factory directors in the country strategizing on production of quality tea.

Githinji said he was pleased that buyers are increasingly attracted by Kenya's tea owing to its strong aroma.

“The farmers are visited by the agriculture extension officers, focusing on production of the best produce for the local and international market,” said Githinji.

 Peter Koromo, a tea value chain expert, says Kenya’s tea has continued attracting the market owing to the close cooperation between the key players.

“Since last year, the players Tea Board of Kenya, KTDA Holding, and Ministry of Agriculture have been holding meetings that have educated the farmers on plucking quality green leaf, and the eradication of the hawking menace,” he said.

The market report further indicates that in auctions held on April 7 and April 8, Kenya auctioned 6,208,102 kgs from the Ktda factories and the independent tea producers. 

Uganda sold 378,020kg, Tanzania 147,084kg, and Rwanda 664,773kg.

In the buyers category, Global Tea bought 17,261kg, James Finalys Mombasa 16,980kg, LAB International 15,540kg, Mombasa Coffee 14,540kg, KTDA backed Chai Trading 8,280kg.

In the market, United (EA) Warehouses bought 20kg and ranked as the least buyer.