Rwanda’s tea export receipts decline

Rwanda’s tea export earnings and volumes have dropped. The country’s export volumes in May 2013 were 1,735 tonnes worth $4.4m, down from 2,151 tonnes worth $5.3m in April, which was a drop of over $900,000 (about Rwf594m). This was despite the average price for tea being higher at $4.5 per kilo in May compared to $3 in April. However, there was an increase in tea output, with 2,268 tonnes produced last month from 2,222 tonnes in April. In January, the country produced 2,723 tonnes. Jean Damascene Gasarabwe, the National Agricultural Export Development acting head of the tea division, attributed the decline in tea export revenue to low prices on the global market and the varying grades of the teas that were auctioned over the month. He, however, expects June receipts to improve. Rwanda sells most (60 per cent) of its teas at the Mombasa auction, with a small percentage being bought by individual buyers (37 per cent), while 3 per cent of the tea is sold locally.Its main buyers are Pakistan, Sudan, Russia, Egypt, Nigeria, the UK, Ireland, Afghanstan and the United Arab Emirates. The tea sector employs over 60,000 people directly and about 200,000 others are involved in the tea value chain, Gasarabwe noted. There are about 42 tea farmers.Meanwhile, the National Agricultural Export Development has started a campaign to promote tea drinking. Gasarabwe said the drive was aimed at encouraging Rwandans to take tea, saying it has health and financial benefits when compared with other beverages like beer. “We will continue to sensitise people about its benefits to widen the local market. We are optimistic that with the growing development, many more people will start drinking tea,” he said.