Tea prices at the Mombasa auction increased by 3.7 per cent in last week’s auction, a trend showing less tea being rejected by local and international buyers.
Market data shows that the impressive trend has also reflected in a marginal surge of prices of teas from Kenya Tea Development Agency (KTDA)-managed factories.
During the week, Sale 31 average price increased to $1.95 (Sh211.965) when compared to Sale 30, which stood at $1.88 (Sh204.356).
The total volume traded for Sale 31 was 484,063 kilos more than Sale 30. East African Tea Trade Association (EATTA) data indicates that out of the total tea offered for sale 77.45 per cent was bought by local and international buyers.
Edward Mudibo, EATTA Managing director said buyers rejected 22.55 per cent of the total tea offered for sale in the auction.
“There was a much-improved demand for the 182,500 packages (11,951,444 kilos) available for sale, 141,340 packages (9,287,405 Kilos) were sold and 22.55 per cent packages remained unsold,” said Mudibo.
Improved marginally Prices of tea from KTDA-managed factories improved marginally selling at an average of $2.43 (Sh264.141) per kg compared to $2.29 (Sh248.923) at the previous auction.
At the auction held on August 2, KTDA-managed factories offloaded 84 per cent of all teas offered at the market, down
from 87 per cent sold the previous week as the market continues to positively embrace the minimum price regime that was introduced last month.
The tea is sold at $1.90 (Sh190) prior to the introduction of the minimum reserve price, indicating the market is warming to the new regime
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