in Short
Kenya: overproduction drives tea prices down
Good rains resulted in high tea production in Kenya. Added to this is the rapid expansion of the areas sown. Admittedly, the volume of small tea producers under the leadership of the Kenya Tea Development Agency (KTDA) decreased slightly (from 0.7% to 615 million kg in the last half of 2020, compared to 619.5 million kg recorded in S2, 2019), however, the average price per kilo of KTDA tea in Mombasa has fallen significantly (14% to US $ 2.18 from US $ 2.54 year-on-year). This is the third consecutive year that prices have fallen due to a surplus in world supply, according to FAO forecasts.