Mombasa tea auction trades 6.5 million kgs

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The Mombasa tea auction traded 6.5 million kgs of made tea sourced from four East African countries, where Kenya's growers under KTDA factories and independent producers offered 5.2 million kgs.

In last week's market, KTDA-managed factories netted Sh1.015 billion following the auction of 2,927,145 kgs, as the market offered better payment compared to the Sh795 million generated last week.

According to a report by EATTA. Smallholder factories continued to reap better returns as 26 factories achieved premium prices of above Sh388.29 ($3) per kg, with Mununga factory leading with Sh438.6 per kg, Kimunye Sh432.15, Githongo Sh430, Rukuriri Sh426.99, among others.

 KTDA Holding Chairman Enos Njeru said the reduced production of green leaf has forced the prices of the commodity at the auction to appreciate, as the farmers continue producing quality teas.

“Since the fertilisers have arrived, farmers will start application; thus, expect increased production in the year,” said Mr Njeru.

EATTA Managing Director George Omuga said that in the week, Rwandan tea achieved a better price of Sh406.35 per kg, Kenya Sh297.99 per kg, Burundi Sh190.92 per kg, and Uganda Sh167.7 per kg.

“In the auction, 45 buyers participated, where Global Tea bought 1.2 million kgs, followed by LAB International 669,490 kgs, Cofftea 580,896 kgs, Mitchell Cotts 483,308 kgs, among others,” said Omuga.

At the same time, in the coffee auction, the farmers generated Sh541.7 million through the Nairobi Coffee Exchange (NCE) after the sale of 10,797 bags of coffee across various grades.

At the close of the weekly market, the NCE report said a bag of coffee traded at Sh40,413.83, with New KPCU selling 2,089 bags of coffee, followed by Alliance Berries Limited with 2,008 bags.

In the market, the coffee brokers marketed 894 bags of grade AA, 3,442 of grade AB, and 2,679 bags of grade C, among other grades.

Twenty-four buyers participated in the market, where six bought 75 percent of the offers, led by Ibero Kenya, which purchased 2,130 bags, followed by Kenyacof with 1,689 bags.