Tanzania’s tea export earnings have dropped from US$6.5 million to $5.5 million in the last quarter of 2009.

The director-general Tea Board of Tanzania (TBT), Benedict Assenga, told the East African Business Week    this week in Dar es Salaam that between July-September 2009, a total of 2.9 million kilograms of tea was exported compared to 3.6 million kgs exported during the same period in the previous year.

 “The average exchange rate last year was Tsh1, 291 per US$ 1 as compared to average exchange rate of Tsh1, 152 per US$ 1 in last year,” Mr Assenga explained.

Mr Assenga said as a result, tea exports decreased by 702, 131 kgs equivalent to 19.7 per cent in 2009. He said foreign earnings decreased by $1,033,851, equivalent to 15.8 per cent compared to 2008.

“It is the main reason for the increase in average price of made tea per kg during the period, “ Mr Assenga said of the decrease.   

The average price for Tanzanian made tea sold through Mombasa auction for the period July-September 2009 was $ cents 152 compared to an average price US$ cents 106 per kg during the same period the previous year.

Mr Assenga said 1,620 tonnes and 2,564 tonnes of tea was sold through Mombasa auction in 2009 and 2008 respectively, the quantity of made tea was,

TBT statistics show that during July-September last year, a total of 717,187 kgs  of loose tea was purchased from the processing factories at the cost of Tsh1,280,162,933 as compared to 535,058 kgs at a cost of Tsh680,049,814 purchased during the same period the previous year.

The amount of blended and packed tea sold in the domestic market during the period of July-September 2009 was 1.2 million kgs, which earned Tsh6,491,257,169. During the same period in 2008, a total of 1,067,159 kgs of blended and packed tea was sold in the local market at a value of Tsh4,863,589,173.

“This shows that in 2009 there has been an increase in the amount of blended and packed tea, which has resulted to the increase in amount of cash earned by 106,386 kgs and Tsh1,627,667,996,” he elaborated.

The TBT director general further said there was no blended and packed tea exported, adding similar trend was observed in the previous year.

Nonetheless, Kenya Tea Packers (KETEPA) imported 1,000kgs of blended and packed tea worth Tsh3,394,866 in 2009 compared to 1,810 kgs worth Tsh5,834,477.30 imported during the similar period the previous year.

The TBT boss said that the national made tea production during the period of July-September 2009 was 3,528,147 kgs compared to 3,916,795 kgs produced during the same period in the previous year.

Statistics further show that in 2009, Estate farms produced 2,374,390 kgs as compared to 2,583,917 kgs produced in last year, while smallholder farmers produced 1,153,757 kgs of tea in 2009 compared to 1,332,878 kgs produced in last year.

The decrease in production has been attributed to unfavorable weather condition, especially poor rainfall in most tea growing areas.