22 percent less tea offered at market

MOMBASA - Less tea from Rwanda Tanzania, Uganda, Burundi, and the Democratic Republic of Congo (DRC) was offered for sale at the Mombasa auction last month as compared with the similar month a year ago. According to the African Tea Brokers, 29 million kilos were offered against 23.319 million kilos during the period. A total of 20.748 million kilos were sold at an average of $2.67 a kilo last month compared with 27.843 million kilos at an average price of $2.40. Major buyers were Global Tea Commodities, James Finlay Mombasa, LAB International (K), Lipton Limited and Abbas Traders Limited. Tanzania offered 0.909 million kilos but 0.793 million kilos were purchased at an average price of $1.52 a kilo last month compared with 1.351 million kilos of which 1.183 million kilos were sold at an average price of $1.65 in July 2008. That was below the average market price of $2.67 a kilo. The situation was attributed to relatively poor quality. Globally, the stronger activity seen towards the end of June continued in the first two sales of July due to interest shown by major markets Karachi Bazaar and Afghanistan. The buoyancy in the auctions was mainly experienced due to the differential in prices between the lower types and improved quality of plainer and medium descriptions. The lower tendencies in the final sales were the result of a further price adjustment and the absence of two of the major buyers in the last sale. In the first sale of the month there was strong general demand for the 6.57 million kilos at dearer rates for all categories on offer. Pakistan packers were dominant in the first two sales and thereafter maintained interest while Egyptian packers lent strong support but interest waned at lower levels in the third week with more activity from Afghanistan and Pakistan in the first two auctions but were quiet in the remaining period. There was more support from Yemen and other Middle Eastern countries, lending strong activity in the last sale while the UK was less active on two occasions but showed more interest in the remaining auctions. Sudan was more active with more enquiries from Kazakhstan, which was maintained in the last two weeks while Russia was quiet in the first week but active in the next two sales. The Egyptian public sector was subdued but Somalia was active at the lower end of the market. Ends

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22 percent less tea offered at market