The Tea Board of Kenya (TBK) plans to increase local tea consumption by 100 per cent in the next three years, Managing Director Mrs Sicily Kariuki has said. The board hopes to raise consumption from the current 17.6 million kilogrammes to 33 million within the period.
She said the move is aimed at cushioning the multi-billion shilling sector from price fluctuations due to global oversupply. The prices have declined marginally over the last five years due to an oversupply estimated at 100 million kilogrammes and near-stagnant tea consumption.
“According to the UN Food and Agricultural Organisation, supply is projected to grow by an estimated 1.8 per cent in the next decade,” Kariuki said during the launch of a tea consumption promotion campaign in Nairobi, on Wednesday. “This situation may lead to declining global tea prices and has prompted most producer countries to aggressively engage in tea promotion to increase and sustain domestic tea consumption.”
FAO says demand will grow by 1.3 per cent in an industry where production stood at 3.5 billion kilogrammes last year against 3.4 billion kilogrammes that were consumed.
During 2005/06 period, the country produced 310 million kilogrammes of tea that accounted for 10 per cent of the global tea supply.
Kenya exports 95 per cent of its tea and is one of the leading exporters of black tea to countries such as Pakistan and Egypt.
TBK, in conjuction with tea packers will spend Sh15 million on the campaign for the next seven months.
Kariuki lamented that local consumption, which accounts for only five per cent of the total production was too low.
“This reality leaves the industry in a vulnerable position and the stakeholders have embarked on a sustained and intensive generic promotion to increase domestic consumption,” she said.
The campaign is also aimed at fighting off competition posed by other beverages.