the kenyan tea sector
DESCRIPTION
The Kenyan Tea Sector. PRESENTATION BY: SICILY K. KARIUKI (Mrs.), MBS. MANAGING DIRECTOR TEA BOARD OF KENYA May 2010. Format of presentation. Introduction Kenya’s Tea Sector Industry Performance Key Issues Opportunities Emerging Global issues Conclusion - PowerPoint PPT PresentationTRANSCRIPT
The Kenyan Tea Sector
PRESENTATION BY:
SICILY K. KARIUKI (Mrs.), MBS.
MANAGING DIRECTOR
TEA BOARD OF KENYA
May 2010
Format of presentation
TEA BOARD OF KENYA
Introduction
Kenya’s Tea Sector
Industry Performance
Key Issues
Opportunities
Emerging Global issues
Conclusion
Sicily Kariuki … The journey so far
2
INTRODUCTION – Kenya’s Tea Sector
TEA BOARD OF KENYA
Brief on TBK Established on 13th June 1950 under the Tea Act (Cap 343).
Core Mandate RegulatingPromotionResearch Others
Vision To make Kenya tea the preferred tea in the
world
Mission To promote the efficient production and
marketing of high quality tea to the domestic and international
markets
3
TEA BOARD OF KENYA4
East of Rift
West of Rift
Growing areas
Sector Stakeholders
TEA BOARD OF KENYA
GOK
FOREIGN DIPLOMAT
IC MISSIONS
KENYAN DIPLOMAT
IC MISSIONS
TEA COUNCILS/ORGANIZA
TIONSGOVERNM
ENT AGENCIE
S
GENERAL
PUBLIC
THE MEDIA
TRADERS
GROWERS/ FARMERS
5
Sector’s Importance
TEA BOARD OF KENYA6
Employment
Forex Earnings
Rural Wealth Distribution
F & B linkages
R & D
6
Marketing Channels
TEA BOARD OF KENYA7
Major Export Destinations
Egypt
United Kingdom
Pakistan
Afghanistan
Sudan
TEA BOARD OF KENYA8
Emerging Markets
TEA BOARD OF KENYA9
Russia/CIS
Iran
Poland
China
United Arab Emirates
West Africa
South Africa
Kenya and East African Community
9
Sector Performance
TEA BOARD OF KENYA10
3rd largest producer of Tea (2009)
Largest Global Exporter (22%)
Predominantly a Black CTC tea producer (99.9 %)
2nd Largest Tea Auction in the world.
10
Production (2005 – 2009)
TEA BOARD OF KENYA11
2005 2006 2007 2008 2009280
290
300
310
320
330
340
350
360
370
380
328
311
369
345
314
YEAR
PR
OD
UC
TIO
N I
N M
ILL
ION
KG
S
Global Position (2009)
TEA BOARD OF KENYA12
Kenya; 22%
China; 19%
Sri-Lanka; 18%
India; 12%
Others, 29%
Industry Performance
TEA BOARD OF KENYA13
-
50,000
100,000
150,000
200,000
250,000
300,000
350,000
400,000
450,000
1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009
PR ODUC T ION E XPOR TS C ONS UMPT ION
Production, export and domestic consumption (MT)
TEA BOARD OF KENYA14
2005 2006 2007 2008 20090
50
100
150
200
250
300
350
400
450
0
10
20
30
40
50
60
70
80
349
313
345
383
342
42.8
47.2
43.1
62.1
69.6
EXPORT TREND 2005-2009
EXPORT VALUE
YEAR
VO
LU
ME
(M
ILL
ION
KG
S)
VA
LU
E (
BIL
LIO
N K
SH
S)
Industry Performance
TEA BOARD OF KENYA1515
Industry Performance
2005 2006 2007 2008 20090.00
0.50
1.00
1.50
2.00
2.50
3.00
1.57
2.03
1.76
2.33
2.72
AUCTION PRICE TREND (2005-2009)
YEAR
UN
IT P
RIC
E
(US
D P
ER
KG
)
16
Key Issues
TEA BOARD OF KENYA17
Commoditized exports
Hidden product
Share of throat competition
Low investment in R & D and Market Development
Perception/consumer preference/convenience
Limited product range
High CoP
TEA BOARD OF KENYA18
Opportunities
Domestic/ Regional Market potential
International Emerging Markets
Value addition and branding
Eco – tourism
Leveraging on ICT
Leveraging on health platform
Product diversification
18
Emerging Global issues
TEA BOARD OF KENYA19
Supply Vs Demand (to grow more tea or not?)
Price volatility
Non-Tariff Barriers and Bilateral Agreements
Competition
Environmental concerns (e.g. degradation,
carbon
footprint, water footprint etc)
19
Conclusion
TEA BOARD OF KENYA
Potential not fully tapped
More investment needed
Innovation a pre-requisite
Lessons from past bad experiences e.g. Coffee
Thank You
20
Sicily Kariuki … The journey so far
TEA BOARD OF KENYA21
Contacts
THE TEA BOARD OF KENYATea Board House
Naivasha Road off, Ngong RoadP.O. Box 20064- 00200 Nairobi KenyaTel: (+254 20) 3874445/6 / 3872497
Wireless: (+254 20) 2536869 | 2536886Fax: (+254 20) 3862120 / 3876337
Email: [email protected]