Tea production volumes and quality in East Africa have dipped due to unpredictable weather patterns resulting from climate change, now blamed for the rise in resistant pests and diseases.
The East African Tea Trade Association (Eatta) says exports have gone down from 517 million kilos in 2022 to 482 million kilos in 2023, a 6.8 percent decline.
Addressing the 6th edition of the Africa Tea Convention and Exhibition in Kigali this week, Eatta managing director George Omuga also blamed increased production costs, economic and geopolitical factors, social dynamics, and the mismatch between supply and demand.
“These challenges underscore the urgent need for us to develop and implement sustainable, climate-resilient adaptation measures to mitigate the impacts of climate change in the tea sector,” Mr Omuga said, adding that the development of climate-resilient cultivars -- those resistant to drought, pests, diseases, and frostbites -- will be crucial for the survival of the tea sector.
As a result of unpredictable weather, countries have had inconsistent yields, with dropping figures at the Mombasa Tea Auction.
Such variables have seen low-quality tea at the auction, leading to over 100 million kilos unsold stock in 2023 and forcing regulators to suspend the $2.43 per kilo minimum price.
The Mombasa auction is held weekly and handles a variety of teas, from Kenya, Uganda, Tanzania, Rwanda, Burundi, Democratic Republic of Congo, Malawi, Madagascar, Mozambique, and Ethiopia, making it highly attractive to international buyers.
This year’s convention was themed: “Harmony in the Cup: Promoting Tea for People and the Planet.”
Eatta chairman Arthur Sewe said 315 companies from across East, Central and Southern Africa have invested in the sector hence the need for creating an enabling business environment that maintains global standards and delivers tea to customers in the most profitable way.
“We will engage in high-level discussions and capitalise on invaluable networking opportunities with industry leaders, researchers, financiers, and other key players,” Mr Sewe said.
Low-quality tea and alleged mismanagement have continued to rock the world’s second-largest market for black tea, Mombasa.
The beverage business continues to grapple with stagnant tea stocks, driven by the high volumes of the commodity carried over from previous years, reaching three times more above international requirements.
The recent announcement that more than 119 million kilos were rolled over to this year has placed the market in a bind after it exceeded the 40 million-kilo minimum stock recommended in a stable tea international market.
Market data by Eatta shows that the price of Rwandan tea is $4.02 a kilo in the sale held on September this year, against Kenya’s tea at $2.21, Burundi’s at $2.24, Uganda’s at $1.27 and Tanzania’s at $1.15 for the same quantity.
The value of Rwandan tea has been on an upward trend since the beginning of the year, on the back of high demand. Data indicates by the end of financial year 2018/2019, Rwandan tea producers had exported 30.573 metric tonnes, from which they generated $83,552,108 and the country targets to increase its total export volume to 65,099 metric tonnes by the end of this year targeting to generate $209 million.
