Kenya's tea production fell 7 percent in the first quarter of 2009 to 65.8 million kg due to dry weather, the Tea Board of Kenya said on Tuesday. The regulator expects slightly higher earnings this year compared with the 62 billion shillings ($788.5 million) it brought in 2008. Tea is Kenya's second largest foreign exchange earner.
"Tea production for the first quarter of 2009 registered a drop of 7 percent to stand at 65.8 million kgs from 70.7 million kgs recorded in January-March 2008," it said. "Production for the period was also lower compared to 108.7 million kgs registered in first quarter of 2007." East Africa's largest economy is the world's biggest black tea exporter.
The board said dry conditions east of the Rift Valley saw output in that area drop 41 percent to 23.3 million kg in the first quarter from 40 million kg in the same period in 2008. Tea production west of the Rift Valley, however, rose 38 percent to 42.4 million kg from 30.7 million kg in the first quarter last year.
"Due to lower supply occasioned by dry weather conditions experienced in the first quarter of the year, there was fairly good demand for Kenya tea at the auction," the board said. "A total of 59.4 million kgs was sold compared to 56.5 million sold in the same period of 2008," it said in a report. Total export volume rose 14 percent to 93.8 million kg from 82.2 million kg in the same period last year. It said Egypt was the leading export destination.