Kenya's tea output fell 11.4 percent in the first half of the year due to extreme weather conditions, the tea board said on Wednesday, with full-year production projected to decline 5 percent compared to 2011. The tea board said 2012 output was expected to fall to 360 million kg, down from 377 million kg recorded in 2011, mainly due to lower production in the first half of the year.
But with average tea prices increasing to around $3 per kg at auctions, up from $2.97 in the first half of 2011, the loss of earnings is expected to be minimal. "We project that the level of earnings will stay the same as we had last year," Sicily Kariuki, managing director of the Tea Board of Kenya, told Reuters.
Tea exports from the east African country, the world's leading black tea exporter, fell to 207.77 million kg from 211.7 million kg in the six months to the end of June. Overall tea output fell to 158.17 million kg for the first half of the year, down from 178.4 million kg recorded during the same period in 2011.