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Low prices and depressed demand impact Kenya’s tea sector
The global tea industry may continue to face challenges in the next financial year with hike in wages and its impact on prices, as production returns to normal. Irungu Nyakera, Chairman of the Kenya Tea Sector Lobby joins CNBC Africa for more.
Tue, 16 Feb 2021 10:20:56 GMT
Disclaimer: The following content is generated automatically by a GPT AI and may not be accurate. To verify the details, please watch the video
AI Generated Summary
- Export volumes have been growing due to favorable weather conditions, but prices have hit a five-year low at auction.
- Kenyan farmers face challenges such as low tea prices, high production costs, and lack of market diversification.
- Efforts are being made to boost market access, increase farmer earnings, and address governance issues in the tea sector.
Kenya's tea sector is facing a number of challenges as the global tea industry continues to grapple with low prices and depressed demand. Despite the pandemic not significantly affecting the picking and processing of tea in the country, issues have arisen in the global supply chain, impacting sales and prices. Irungu Nyakera, Chairman of the Kenya Tea Sector Lobby, highlighted the difficulties faced by farmers as they navigate through these tough times. Export volumes have been increasing over the years due to favorable weather conditions, but prices have been on a downward trend, reaching a five-year low at auction. This has put pressure on farmers to explore new markets and improve marketing strategies to stay competitive.
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