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Kenya's tea production is expected to dip to 320 million kg this year compared to a record 324 million kg in 2004 after bad weather hit production in the first three months of the year, the Tea Board of Kenya said on Monday. "Going by the first quarter tea production figures, the total output for the year is expected to reach 320 million kilogram's, which is slightly less than last years' record production of 324 million kilogram's," the board's chief executive Stephen Nakano said in a statement.
The total production for the first quarter of 2005 dropped to 84.8 million kg versus 88.1 million kg recorded in the same period last year.
The board said it expects production to rise in the next few months, lifted by improved rainfall.
"Total tea production is expected to peak during the April-June period as the long rains have started in all the tea growing regions and meteorologists forecast that these regions are likely to receive near normal to above normal rainfall," Nakano said.
Kenya is one of the world's three largest producers of black tea together with India and Sri Lanka.
Tea, mostly grown by smallholder farmers, is Kenya's leading foreign exchange earner. The board said tea exports and earnings in the first quarter of 2005 eased compared to the previous year. A total of 89.4 million kg worth 10.9 billion Kenya shillings ($142.2 million) was exported in first three months of 2005 compared to 90.1 million kg worth 11.7 billion shillings the same period last year.
"The decline in value was attributed to slackened demand occasioned by carryover stocks emanating from last year's bumper production and the strengthening of the shilling," Nakano said..

Copyright Reuters, 2005

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