Rwanda earns Rwf3.5b from tea exports in June

Tea export evenues increased to $5.2m (about Rwf3.5b) in June, up from $4.4m in May despite the dry weather conditions the country has been experiencing, according to the National Agricultural Export Board (NAEB).Jean Damascene Gasarabwe, the head of tea division at the board, said they were optimistic tea export earnings would improve in October because of the next rainy season.“In total, slightly more than 2,000 tonnes of made tea were produced in June, up from 1,700 tonnes in May,” he said in an interview with the Business Times yesterday.Tea production in June dropped to 1,738 tonnes, down from 2,268 tonnes in May.Gasarabwe attributed the decline to the dry season, which led to a 30 per cent drop in output. He revealed that the government projects to double tea production by 2017.Tea export volumes stood at 22,563 tonnes last year from 20,300 tonnes in 2011.Also, owing to relatively good prices last year, export revenues from tea increased from $61.1m in 2011, to $63.9m in 2012. Rwanda’s tea has steadily acquired international acclaim and attracted a commendable amount of foreign direct investments, the most recent by Scotland’s second-richest man, Sir Ian Wood, who earlier this year announced plans to inject £7.5m in the sector.Most of the tea (60 per cent) is sold 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 export countries are Pakistan, Sudan, Russia, Egypt, Nigeria, the UK, Ireland, Afghanistan and the United Arab Emirates.Rwanda’s tea sector consists of 11 factories and six tea projects with an average annual production of 23,000 metric tonnes of dry tea.The tea sector employs over 50,000 farmers who earn between Rwf123 and Rwf155 per kilo they sell to tea companies.Meanwhile, a three-day tea convention will later this month be held in Kigali. It will bring together over 200 delegates from the East African Tea Trade Association (EATTA) mainly tea sector stakeholders. Producers, brokers, tea packers and warehousemen, tea buyers and scholars from East and Central Africa will also attend. It is also expected to attract foreign direct investments into the sector and showcase Rwanda as a global player in the tea industry and other sectors, such as trade logistics, financing and insurance.“The after-benefits will be huge for players in the tea industry as many will be able to network and make new contact markets for themselves,” said Brian Ngwiri, marketing manager for the East African Tea Trade Association (EATTA).