Earnings from tea by farmers are expected to be low this year as auction prices continue to be subdued at the weekly auction, with the year entering the sixth month. Kenya Tea Development Agency has also noted persistent high production and a global oversupply has pushed down the average tea prices for its 54 managed factories. The low prices so far signal low earnings for farmers, who last year were cushioned by a stronger dollar against the shillings as prices remained low. Last year, average tea auction prices fell by six per cent compared to the previous year, blamed on the high production and a depressed market occasioned by the Covid-19 pandemic. 2020's full-year average price was $1.80 (Sh194.13), which was lower compared to 2019, when it fetched an average $2.05 (Sh221.09) at the auction.

Source: The Star June 04, 2021 10:30 UTC