TEA NEWS

STEADY DEMAND AT MOSTLY EASIER RATES

The East African Tea Trade Association(EATTA) has moved to court seeking suspension of more sections of the newly enacted Tea Act arguing that they are discriminatory and unconstitutional.

Speaking during a meeting to sensitize farmers on new regulations farmers said that although they fully support the move, it would be counterproductive to let those behind their loss go scot-free. “As farmers, we are delighted by the new regulations but we would appreciate if directors who have stolen our funds be brought to book through prosecution in the court of law so that we can recover what is rightfully ours,” said Patrick Ndirangu a lawyer and a tea farmer in Chinga.

•The Mombasa tea auction was started in 1956 to take care of the interests of the tea sector in Africa. The auction is the largest in the world and it is managed by the East African Tea Traders Association. •President Uhuru Kenyatta will commission it in April.

Multinational tea companies have won the first round of their battle to stop the introduction of levies on their produce after the High Court suspended some sections of the Tea Act.

A weak shilling to the US Dollar however cushioned local farmers. In Summary •This is the third year in a row that prices have declined due to global supply surplus above the market demand. •The high tea production in Kenya is mainly as a result of favourable weather conditions.

The Ministry of Agriculture has given multinational companies and the Kenya Tea Development Agency (KTDA) a two-month window to close direct sales of tea amid a court case that has temporarily stopped the implementation of the new Tea Act.

GOOD GENERAL DEMAND AT EASIER RATES

GOOD DEMAND STRONG ON QUALITY

The year 2020 had ignited hopes for growers of plantation commodities with prices displaying a rise with volatility. However, the positive developments have been dampened in direction of the year-end on account of uptrends within the provide facet. Tea prices have been on the rise since July as a result of provide points, which have been thought-about as a requisite for the sustenance of the sector.

The Kenya Tea Development Agency (KTDA) has raised concerns on some provisions of the new Tea Act 2020. This is even as KTDA acknowledged that the new law opened a new chapter for the development of the tea sub-sector and proved beneficial to the smallholder tea farmer.

Despite Kenya continuing to post increase in its output of black tea, the overall global production till October this year , the period for which official data is available, is trailing behind last year essentially because of a sharp fall in India’s production.