Nation Confident of U.S.$60 Million in Tea Exports Despite Low Volumes

Berna Namata

2 May 2011

Nairobi — Rwanda expects to fetch at least $60 million from its tea this year buoyed by increased international commodity prices.

Tea has become one of Rwanda’s main exports by value with its revenue increasing from $48.2 million in 2009 to $58 million in 2010. According to Rwanda Tea Development Authority, the value of tea has increased largely due to recovery of global prices while the volume has fallen slightly due to harsh weather conditions experienced from July to October last year.

“The rains were so scarce during those months: The yields are expected to be less than those we experienced in the previous year. But because of slightly better prices we many get around $60 million this year,” the tea agency’s director general Anthony Butera said. Mr Butera noted that in the first three months of this year, tea earnings hit a record high of $8 million signaling higher revenue for the rest of the year.

“If we can get that in the April, May June quarter, we may exceed the $60 million mark. Currently prices are at an average of $2.7 – $2.8 per kilogramme,” he said. Last year’s prices were $2.5-$2.6 per kilogramme.

Low productivity

Mr Butera warned that productivity is still low with the output generally lower than elsewhere in the region.

“Currently our average harvest is 7,000-8,000 kilogrammes of green leaf per hectare per annum compared with Kenya which can go up to 17,000 per hectare per annum,” he said. To boost productivity, Rwanda Tea Development Authority has set up a fertiliser fund mainly funded by tea factories and farmers to facilitate purchasing and distribution of fertilisers at subsidised prices. The authority’s target is to increase tea plantation yields to 9,000kg by the end of June. In addition, it is investing in encouraging tea growers to practice better farming methods.

Currently tea plantations cover 17,000 hectares. According to the 2008 Rwanda Tea Strategy, government intends to generate wealth by selling a high quality range of branded Rwandan teas with some added value through partnerships with new and existing buyers in Europe, US and the Middle East.

Currently, Rwanda sells its standard teas in bulk form at auction, mostly to Asian buyers and a small but growing number of European and Middle Eastern buyers.

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