Average tea prices at the weekly Mombasa auction have remained below the preferred 2-dollar mark for nine weeks running, amid increased global production of the commodity. This week's auction was marked with increased and strong inquiry from Egyptian packers with more support from Sudan while Yemen and other Middle Eastern countries lent more interest. Last month, Kenya Tea Development Agency noted persistent high production and a global oversupply, which it said had pushed down the average tea prices for its 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 pandemic.

Source: The Star May 08, 2021 08:37 UTC