The volume of tea produced in the country during the first half of this year has dropped 11.4% to 158.1 million kilograms  down from the 178.4 million kilograms  produced during the same period last year.

The Tea Board of Kenya has attributed the decline in production to poor weather conditions (drought and frost attacks) experienced during the first quarter of the year. However in the month of June, production went up to 30 million kilograms, a 3.8% increment on the 28.9 million kilograms in May. The high production in the month has been attributed to the  light rainfall in the western areas of the Rift Valley region.

The tea Industry regulator expects overall production at the end of the year to drop to 360million kilograms compared to 377 million kilograms recorded in 2011.  However despite this decline, production of over KES 110 billion by the end of the year will be expected due to high prices in the international market.

In June this year, 16.7 million kilograms of processed Kenyan tea were sold through the Mombasa auction at an average price of KES 252 (USD 3) compared to the 23.5 million kilograms sold in June 2011, with farmers earning between KES 14 and 15 for a kilogram of the green produce. The board says the high price was attributed to the low supply that has been recorded in key producing countries across the world, save for China, Bangladesh and Indonesia.

Over 80% of exports of Kenyan tea go to Egypt, Pakistan, The United Kingdom, Russia and Sudan. Egypt maintained the leading position as Kenya's tea destination in June, having imported 6.3 million Kgs of local tea, equivalent to 21%of all Kenyan tea exported. Pakistan follows at 5.5 million kilograms, then UK with 3.9 million kilograms, Russia 2.9 million kilograms and Sudan 2.3 million kilograms. Among the five leading destinations, the Russian market recorded the highest increase in Kenyan tea imports, at 86%.

Emerging markets which include United Arab Emirates (UAE), Kazakhstan, Djibouti and Indonesia also depicted the same growth. The board projects 420 million kilograms of tea to be exported by the end of the year, slightly down from 421 exported last year.

Locally, consumption of tea went down to 8.5 million Kgs from 9.97 million kilograms in the first six months of last year.