Tea production down, exports up Frw4m

Tea production in Rwanda is down in the first half of this year, but export receipts have increased almost Frw4 million. In the first six months of this year, 10.9 million kilograms of tea were produced, a slight decrease in the same period last year when 11.6 million kilograms were produced. However export receipts have risen to almost $25.5 million (Frw13.8 billion) compared to $18 million (Frw9.7 billion) for the same period last year.

Monday, July 21, 2008
The Rwanda Tea Authority hired a tea expert to help improve marketing and promotion at estates such as this one in Gisovu.

Tea production in Rwanda is down in the first half of this year, but export receipts have increased almost Frw4 million.

In the first six months of this year, 10.9 million kilograms of tea were produced, a slight decrease in the same period last year when 11.6 million kilograms were produced.

However export receipts have risen to almost $25.5 million (Frw13.8 billion) compared to $18 million (Frw9.7 billion) for the same period last year.

The Rwanda Tea Authority (OCIR-THE) attributes this to higher prices received from increased direct sales to buyers rather than via the auction in Mombasa.

The increase in export receipts can also be attributed to the decrease in tea production in Kenya since the beginning of this year, the Authority said.

The Authority also said that Rwanda struggles to provide the consistency of tea quality and level of supply service desired by buyers.

It has since, with the help of consulting firm On The Frontier Group, hired Sethi Sanjay, a tea expert from Dubai, to improve the marketing and promotion of its teas.

Sanjay will help the country’s tea industry by developing blended and packaged Rwanda single-origin teas that can sell in the Middle Eastern, European and the United States markets.

Sanjay will also help develop a quality mark and logo, which will help to ensure that buyers are increasingly satisfied and that long-term stable relationships can be developed.

"Rwanda is famous among international tea importers and tasters as producing high quality tea, but consumers are not aware of this quality as Rwanda tea is blended with other teas in tea bags,” a statement from OCIR-THE says.

"It is hoped that the expert will help Rwanda to understand how its own high-quality teas can be sold as single-origin teas in large consuming countries especially the Middle East.”

Sanjay will provide training to tea blenders and cuppers, distributors and marketers.

Tea is the third largest export earner for Rwanda after mining and tourism.

Last year its export receipts were US$32 million (Frw17.3 billion), up from US$23 million (Frw 12.4 billion) in 2003. OCIR-THE is targeting US$90 million (Frw48.7 billion) by 2012.

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