Tea rakes in K6bn in nine months

Revenue from tea, Malawi’s second foreign currency earner after tobacco, have jumped 7.4 percent to $18.8 million (K6.2 billion) in nine months this year, according to figures from the Tea Association of Malawi (Taml).

This is a leap from $17.5 million (K5.7 billion) recorded during the same period last year, the figures from the Taml quoted by the Reserve Bank of Malawi (RBM) show.

The earnings are from 11.2 million kilogrammes of the beverage sold at the Limbe Auction Floors at an average price of $1.69 per kilogramme, slightly above the 11 million kg auctioned during the same period last year at an average price of $1.60 per kg.

But the report says that tea auction in September 2012 alone peaked at 350 000 kg, an increase of 45.9 percent over the same period last year.

“The higher volume of sales is on account of increased production owing to favourable weather conditions,” says the report.

Early this month, the Tea Research Foundation for Central Africa (TRFCA) director Dr Albert Changaya said tea production will likely slump this year due to climate change with estimates putting output at 43 million kg compared to 45 million kg last year.

Last year, tea’s revenue in 2011 dropped 1.8 percent to K10.7 billion (about $35m) out of 45 million kilogrammes sold.

This is compared to K11 billion (about $36m) achieved in 2010 out of 48.4 million kg of the crop exported to South Africa, United Kingdom and Kenya.

The slump in tea output last year was blamed on unfavourable weather conditions which resulted in delayed rains in tea growing districts of Thyolo and Mulanje.

But in the year, the prices remained firm with the average price recorded at $1.60 (K528) per kg between January and December compared to $1.59 (K524.70) per kg over the same period the year before.

Experts say the outlooks show that prices will continue to remain favourable on the global market.

According to figures from Central Africa Tea Brokers Limited, South Africa bought more tea in 2011, accounting for 41.8 percent of all tea export from the previous year’s 36 percent. UK accounted for 29.1 percent last year, a rise from 23 percent in 2010, according to the figures.