June tea export earnings rise to $29.7m

Rwanda’stea export earnings increased to $29.7 million in first week of June, up from $28.7 million at the end of May, a new report from the National Agriculture export Board (NAEB) has indicated. This is against the back drop of declining tea prices at the Mombasa auction. Prices dropped marginally from $2.88 per kilogramme last week to $2.86 per kilogramme. Overall, tea prices have dropped to $2.86 in a period of 12 months from $2.92 previously. The decline is attributed to an increase in tea production globally. Statistics from NAEB indicate that the country’s production capacity increased from 11,707 tonnes to 12,190 tonnes over the period. The report also indicates that out of the 584 tonnes produced, 362 tonnes were sold through auction, fetching over $1.04 million. A kilo was sold at an average price of $2.87. George William Kayonga, the NAEB chief executive officer, attributed rise in value of Rwanda’s tea exports to increased productivity and good quality of the country’s tea leaves. Corneille Ntakirutimana, the NAEB head of tea division, said they are focusing on quality and value-addition to ensure the sector stays profitable. “Due to price fluctuations, we ensure standards to stay competitive. We also keep sector players regularly informed about market trends so that they respond accordingly,” Ntakirutimana told Business Times yesterday. Projections Recently, the NAEB unveiled a new strategy to increase exports at an average annual growth rate of 24 per cent. The strategy will see annual tea export receipts increase to a tune of $94.9 million by 2018 from $ 65.7 million in 2013. The export body also plans to distribute over 43 million tea seedlings within the next one and a half years. The initiative could see the country’s annual tea export earnings double to $147 million by 2017, according to NAEB. So far, over 13.7 million tea seedlings have been planted across the country.

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June tea export earnings rise to $29.7m