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Kenya Drought to Influence UK Tea Prices by 40pc

Peter Musila 2 years ago

Tea has for decades been a major cash crop grown in the country and one of the key foreign exchange earners.

Notably, most of the tea produced is black tea, with green tea, yellow tea, and white tea produced on order by major tea producers.

However, tea production in the country has gone down in the last few months due to drought. This has seen exports for the substantial commodity decrease significantly.

Britain exports 50 percent of its tea from Kenya. Recently, the number has predicted to have reduced by 12 percent something which has been attributed to droughts.

In the event when such a decrease in supply occurs, prices are expected to rise, with costs of Kenyan tea scheduled to increase by up to 20 percent. The knock-on effect could see global prices of tea rise by as much as 40 percent.

If the markets decide to pass the price increase to the consumers, then that will see the price of a box of 60 teabags that usually cost £2.60 rising to £3.64.

Kenya has been a significant exporter of tea to the UK in which its decrease is set to affect the markets primarily. In 2017, the UK imported 62,222 tonnes from Kenya, 17k from India, 3.7k from Tanzania and 11k from Malawi.

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