The average price of top grade Kenyan tea fell for the first time in four weeks to $4.17 per kg at auction this week from $4.20 per kg last week, traders said on Tuesday.
The east African nation is the world’s biggest exporter of black tea and the crop is the largest foreign exchange earner, bringing in $1.27 billion last year.
Mombasa-based Africa Tea Brokers (ATB) said in a market report that Best Broken Pekoe Ones TEABP1-BEST-KE sold at $4.00-$4.34 per kg, down from $4.30-$4.10 per kg last week.
Best Pekoe Fanning Ones TEAPF1-BEST-KE fetched $3.78-$4.18 per kg compared with $4.02-$3.78 per kg at the previous sale.
The Tea Board of Kenya said 113,928 packages were offered for sale, with 20.1 percent going unsold. Last week, 112,725 packages were offered with 21.1 percent left unsold.
Buyers from Afghanistan lent strong support, ATB said. There was less activity from Pakistan, Iran and Sudan, while importers from Egypt, Kenya’s biggest buyer, showed improved demand.
The tea board has said export earnings were expected to rise 1 percent year-on-year to 110 billion shillings ($1.30 billion) in 2012, despite a forecast drop in production.
Reuters
