Malawi tea prices jump on Kenya fears

BLANTYRE – Prices of Malawi’s tea have risen sharply on fears of a slump in Kenya fuelled by drought in east Africa, a senior industry official said yesterday.

Tea is the second largest foreign exchange earner in this southern African country after tobacco, and contributes nine per cent of Malawi’s total exports. Leading commercial producer Eastern Produce Malawi Limited said Malawi’s tea was fetching around 240 US cents per kg on the global market, up from 115 cents a year ago.”The drought in Kenya has led to an increase in the prices,” said Eastern Produce Managing Director Rick Tilley.Drought is expected to drive Kenya’s tea production down by 16 per cent in 2006 to 276 million kg from 328 million in 2005, the Tea Board of Kenya says.Malawi is the second largest tea producer in Africa after Kenya.The southern African country produced about 40 000 tonnes last year, when drought reduced output from 50 000 in 2004.Officials have yet to post estimates for 2006.-Nampa-ReutersLeading commercial producer Eastern Produce Malawi Limited said Malawi’s tea was fetching around 240 US cents per kg on the global market, up from 115 cents a year ago.”The drought in Kenya has led to an increase in the prices,” said Eastern Produce Managing Director Rick Tilley.Drought is expected to drive Kenya’s tea production down by 16 per cent in 2006 to 276 million kg from 328 million in 2005, the Tea Board of Kenya says.Malawi is the second largest tea producer in Africa after Kenya.The southern African country produced about 40 000 tonnes last year, when drought reduced output from 50 000 in 2004.Officials have yet to post estimates for 2006.-Nampa-Reuters