Tea earnings drop 31 percent
Malawi’s tea earnings up to end-October 2013 dropped by about 31 percent to $13.5 million (about K6 billion) compared to $19.7 million (about K8.9 billion) realised in a corresponding period last year.
The Reserve Bank of Malawi (RBM) October 2013 economic review released this week has noted that cumulative tea sales—one of Malawi’s forex earners apart from tobacco and sugar—for the year as at end-October 2013 amounted to 7.3 million kilogrammes, a decline of 37.1 percent from 11.6 million kilogrammes sold in a similar period last year.
The RBM has, however, noted that cumulative average prices stood at $1.85 per kilogramme compared to $1.70 per kilogramme fetched last year.
“Tea sales through the Limbe auction market rose to 0.6 million kilogrammes during October 2013 compared to 0.4 million kilogrammes auctioned in October 2012.
“Average tea prices during the review month stood at $1.67 per kilogramme, lower than $2.02 per kilogramme fetched in a corresponding month in the previous year,” reads the report in part.
Government recently pledged its support to the tea industry on its plans to develop the Limbe Tea Auction into a regional tea market hub for neighbouring Zambia, Mozambique and Zimbabwe.
Experts have noted that the setting up of the regional market will increase the number of buyers, raise competition, improve domestic prices and eventually boost production.
Recently, Tea Association of Malawi (Taml) chief executive officer Clement Thindwa was quoted in The Nation saying Africa’s tea industry could sustain itself and advance at a faster pace if growers produce high quality tea, engage in value addition and diversify the types of beverages grown for maximum returns.
Although cumulative tea earnings to end-October have declined, available data indicates that the total value of exports is projected to slightly rise to $1.4 billion (about K630 billion) in 2013 as compared to $1.3 billion (K585 billion) in 2012.
The rise in Malawi’s exports is explained by an increase in tobacco revenue, the country’s major foreign earner which rose to $361.7 million (K163 billion) compared to $177.8 million (K80 billion) earned in 2012.
Tobacco production for the 2012/13 rose to 168.7 million kilogrammes, from 79.8 million kilogrammes produced in 2012, explained by good prices fetched in the preceding season that encouraged farmers to shift to production of the crop.
Sugar, another important crop cumulatively earned $59 million (K27 billion) compared to $57.8 million (K26 billion) in the previous period.
