Burundi Tea Prices Rise in July as Drought Cuts Output

Burundi tea prices rose slightly in July from
the previous month, spurred by strong demand
due to dwindling volumes in the region,
a tea board official said on Monday.

The country's state-run tea board (OTB)

said the average export price was

$2.63 per kg against $2.42 in June.

"There is now a low quantity of tea in

the market while demand from buyers

continues to be high.

This has of course had a positve impact

on prices," said OTB's Remy Ndayininahaze.

The volume of tea from East Africa has fallen

due to drought, especially in Kenya,

the world's leading exporter of black tea,

Ndayininahaze told Reuters.

"Kenya's production influences the market.

When output is low, tea prices go up in

most producing countries," he said.

The board said one PD grade, for instance,

sold at $2.72 at last week's auction

in Mombasa, Kenya, compared with

the reserve price of $2.66 per kg.

In the same auction, buyers offered

$1.82 for a DUST grade, higher than

the value price of $1.47, OTB said in a report.

The tea board said earnings over

Jan-July 2009 were $8.9 million from

selling a total 3,934 tonnes.

In the first seven months of 2008,

the country received $8.7 million

from selling 3,994 tonnes.

OTB expects 2009 overall earnings

to reach $15 million, compared with

$13.7 million in 2008.

It forecasts 2009 output at 7,500 tonnes,

up from 7,000 tonnes last year,

partly due to good rains and

increased use fertilizers on farms.

Burundi exports 80 percent of its tea

through the Kenyan port city

of Mombasa at a weekly auction.

Tea is the country's second hard

currency earner after coffee and

supports some 300,000 smallholder

farmers in the small country

of 8 million people

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             J-L K.
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--
             J-L K.
Procurement Consultant
Gsm:    (250) (0) 78-847-0205 (Mtn Rwanda)
Gsm:    (250) (0) 75-079-9819 (Rwandatel)
Home:  (250) (0) 25-510-4140
    P.O. Box 3867
  Kigali - RWANDA
    East AFRICA
jlkayisa@yahoo.com
http://facebook.com/kayisa
Blog: http://cepgl.blogspot.com
Skype ID: kayisa66