Kenya’s tea production fell in January to 17 800 tonnes, half that recorded in the same month last year, owing to a searing drought that has put millions across East Africa in the danger of starvation, the Tea Board of Kenya said on Tuesday.
”The effect of drought in tea-growing regions has resulted in withering of vulnerable tea bushes, temporary closure of tea factories and under-utilisation of factory processing capacity,” TBK said in statement.
”Tea production for January 2006 recorded a 47% drop from 34,1-million kilogrammes recorded the same month last year to 17,8-million kilogrammes” last month, it said.
Production was expected to drop again in February and March as a result of the prolonged dry spell predicted by meteorologists.
”Consequently, this year’s tea production is projected to drop by about 16% from 328-million kilogrammes recorded last year to 276-million kilogrammes,” the board said. In 1997 and 2000, production plummeted by 14 % owing to dry weather.
Last month, Kenya exported 29,7-million kilogrammes valued at 3,7-billion shillings ($51,3-million) compared to 27,2-million kilogrammes worth 3,4-billion shillings ($47,2-million) sold in the same month last year.
Pakistan, the United Kingdom, and Afghanistan were the three top buyers of Kenyan tea.
Officials from the hortculture, floriculture, tea, coffee, manufacturing, tourism and fishing sectors have meanwhile urged the Kenyan government to intervene and stop the strengthening of the shilling and against the dollar.
The Kenyan shilling currently stands at at 71,9 to the dollar.
”We are in danger of loosing export gains due to the prevailing strong shilling,” they said in a joint statement.
”We propose that the government move expeditiously to ensure that the exchange rate upholds with this economic objective,” they said.
If the shilling is left to strengthen, the said the sectors will lose about 15-billion shillings ($208,3-million) annually.
”Maintaining a strong shilling will result in decreased exports which will wipe out a significant prorpotion of the export sector and lead to a decrease in tourist arrivals,” said the statement.
But the Central Bank of Kenya has insisted that it would let market forces control the exchange rate. – Sapa-AFP