South Africa

East Africa: Uganda's Tea Attracts Lowest Price Among EAC States

Uganda's tea continues to attract the lowest price compared to other East African member states that sell the commodity through the Mombasa Auction.

According to data from the Mombasa Auction, Uganda's tea sold lower than that of Kenya, Rwanda and Burundi.

For instance, according to the January 12 and 13 auctions, a kilogramme of Uganda's tea was sold for $1.3 (Shs4,810), far below Kenya's $2.38 (Shs8,806).

This was also lower than $3.23 (Shs11,951), which Rwanda earned per kilogramme and $2.47 (Shs9,139) for Burundi.

Tea export receipts, according to data from Bank of Uganda, have also slightly declined by 4 per cent.

According to Bank of Uganda annual performance for the period ended November 2020, Uganda earned $84.2m (Shs311b), which was lower than the $87.6m (Shs322b) earned in the same period between 2018 and 2019.

The drop, according to experts resulted from a decline in auction prices at the Mombasa Auction.

Mr Elly Twineyo, the Uganda Export Promotion Board executive director, yesterday said: "Tea responds to season and the drop in prices could have resulted from the auction at Mombasa during the period in review."

Prices of tea have relatively been low since mid-day 2018.

'Covid equally affected movement of tea by land to reach the auction. This saw less volumes exported to Mombasa," Mr Twineyo said.

Tea is one of Uganda's leading exports, exported through to global markets through the Mombasa Auction.

During the last auction period, the region sold more than 10.1 million kilogrammes down from 10.2 million sold the previous year.

Of this, Uganda contributed 1.5m kilogrammes up from 1.3m sold the previous year. Kenya, the region's market leader, sold over 7.7m kilogrammes down from 8.1m Kilogrammes sold the previous year.

During the period Kenya's tea prices at the Mombasa auction remained stable, maintaining a high of at least four months. Kenya's good price saw the volume of tea withdrawn from the auction floor decline marginally from 14 per cent in the previous sale to 13 per cent during Tuesday trading.

Football news:

Cavani has returned to training and is likely to play against Crystal Palace
Fabio Capello, Juventus played Rugby against the Port. Only Ronaldo and Chiesa can make a difference in this squad
Neymar: I posted how I was recovering from my injury, and I didn't get any messages saying, Wow, what a professional. No
Ole Gunnar Solscher: The work of the judges is very difficult and without additional pressure. We have to make their decisions
Joan Laporta: I'm sure Messi won't stay at Barca if I don't win the election. He gives the club 30% of revenue
Trent had idolized Gerrard since he was a kid, and he was in a fairy tale: he got Steven's care and the captain's armband. The story of a great relationship
Hazard's recovery from the injury is delayed. He probably won't play against Atletico on March 7