Annual tea projections to fall by 11 percent

The annual production and exports from the tea sector for this year will fall short of the initial target set by a whooping 11 percent according to the information availed by Rwanda tea authority (OCIR-THE). Anthony Butera, the Director General of OCIR-THE, says the shortfall will result from the prolonged drought that affected tea farmers during the greater part of the year. “In addition to the drought, production will be affected by pests that destroyed the crops this year,” added Butare.However, the good news is that with this decline both production and revenues for this year are likely to surpass what the country earned last year. According to the tea authorities, this year’s production was estimated at 24,000 tones of made tea while the revenue receipts that would be obtained stood at $54 million. In comparison to last year, the country fetched US$45 million from 19,600 tones of made tea. Two months to the close of the year, ocir-the says that the US$54 million target will fall to US$48 million while the total production will also reduce from 24,000 tones to 20,000 tones. Despite the decrease in both production and revenues, the prices on the international market have been better compared to last year. Butera said that the current tea prices on the international market are better compared to the prices last year same period. The average price for a kilogram of tea is US$2.5 while last year same period a kilogram of tea would go for US$2.3. However, with the East African Community member states harmonising their budgets and financial year, the industry is set to improve its exports. The EAC budget and financial year whose implementation started in July this year and ends in June next year has seen Ocir-THE revising its target. Under the EAC financial year, OCIR-THE envisages to achieve what it had initially set to achieve, 24,000 tonnes and $54 million as revenue receipts. Ends

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Annual tea projections to fall by 11 percent