Transcript The tea board of Kenya - Welcome to RICH.CO.KE

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
Sicily Kariuki … The journey so far
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TEA BOARD OF KENYA
INTRODUCTION – Kenya’s Tea Sector
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Brief on TBK
Established on 13th June 1950 under the Tea
Act (Cap 343).
Core Mandate
Regulating
Promotion
Research
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
TEA BOARD OF KENYA
Growing areas
East of Rift
West of Rift
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TEA BOARD OF KENYA
Sector Stakeholders
GROWERS/
FARMERS
GOK
PROCESSORS/
FACTORIES
TRADERS
FOREIGN
DIPLOMATIC
MISSIONS
THE MEDIA
TBK
GENERAL PUBLIC
GOVERNMENT
AGENCIES
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KENYAN
DIPLOMATIC
MISSIONS
TEA COUNCILS/
ORGANIZATIONS
TEA BOARD OF KENYA
Sector’s Importance
Employment
Forex Earnings
Rural Wealth Distribution
F & B linkages
R&D
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TEA BOARD OF KENYA
Marketing Channels
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TEA BOARD OF KENYA
Major Export Destinations
Egypt
United Kingdom
Pakistan
Afghanistan
Sudan
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TEA BOARD OF KENYA
Emerging Markets
Russia/CIS
Iran
Poland
China
United Arab Emirates
West Africa
South Africa
Kenya and East African Community
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TEA BOARD OF KENYA
Sector Performance
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.
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TEA BOARD OF KENYA
Production (2005 – 2009)
380
369
370
PRODUCTION IN MILLION KGS
360
350
345
340
330
328
320
314
311
310
300
290
280
2005
11
2006
2007
YEAR
2008
2009
TEA BOARD OF KENYA
Global Position (2009)
Kenya, 22%
Others, 29%
China, 19%
India, 12%
Sri-Lanka,
18%
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TEA BOARD OF KENYA
Industry Performance
Production, export and domestic consumption (MT)
450,000
400,000
350,000
300,000
250,000
200,000
150,000
100,000
50,000
1995
1996
1997
1998
1999
2000
P R O D U C T IO N
13
2001
2002
E XPOR TS
2003
2004
2005
2006
2007
2008
2009
C O NS U MP T IO N
TEA BOARD OF KENYA
Industry Performance
EXPORT TREND 2005-2009
450
80
350
EXPORT
349
383
VALUE
345
69.6
62.1
342
60
313
VOLUME (MILLION KGS)
70
300
50
47.2
250
43.1
42.8
40
200
30
150
VALUE (BILLION KSHS)
400
20
100
10
50
0
0
2005
2006
2007
2008
2009
YEAR
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TEA BOARD OF KENYA
Industry Performance
AUCTION PRICE TREND (2005-2009)
3.00
2.72
UNIT PRICE (USD PER KG)
2.50
2.33
2.03
2.00
1.76
1.57
1.50
1.00
0.50
0.00
2005
2006
2007
2008
2009
YEAR
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TEA BOARD OF KENYA
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Key Issues
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
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TEA BOARD OF KENYA
Opportunities
Domestic/ Regional Market potential
International Emerging Markets
Value addition and branding
Eco – tourism
Leveraging on ICT
Leveraging on health platform
Product diversification
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TEA BOARD OF KENYA
Emerging Global issues
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)
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TEA BOARD OF KENYA
Conclusion
Potential not fully tapped
More investment needed
Innovation a pre-requisite
Lessons from past bad experiences e.g. Coffee
Thank You
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TEA BOARD OF KENYA
Sicily Kariuki … The journey so far
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TEA BOARD OF KENYA
Contacts
THE TEA BOARD OF KENYA
Tea Board House
Naivasha Road off, Ngong Road
P.O. Box 20064- 00200 Nairobi Kenya
Tel: (+254 20) 3874445/6 / 3872497
Wireless: (+254 20) 2536869 | 2536886
Fax: (+254 20) 3862120 / 3876337
Email: [email protected]
www.teaboard.or.ke