Tea total revenues fall short of earlier targets

Although the government owned tea companies have registered an increase in revenues from their sales, the general performance of the sector is projected to fall short of its earlier targets according to Rwanda Tea Authorities (OCIR-THE). With tea authorities still compiling statistics from private tea companies, it is evident that the total revenues will range between $47-48 million shy of the $54 million targeted in 2009.

Although the government owned tea companies have registered an increase in revenues from their sales, the general performance of the sector is projected to fall short of its earlier targets according to Rwanda Tea Authorities (OCIR-THE).

With tea authorities still compiling statistics from private tea companies, it is evident that the total revenues will range between $47-48 million shy of the $54 million targeted in 2009.

“Last year, the entire sector did not meet its earlier target of $54 million and this is attributed to severe drought and pests which led to less production,” said Anthony Butera the Director General of OCIR-THE.

Last year, Rwanda Tea Authority (OCIR-THE) raised $28.3 million through its sale from its five companies. OCIR-THE had also earned some $27.5 million in 2008 from the sale of six companies.

The total production for last year fell to 20,000 tonnes of made tea from an estimated of 24,000 tonnes.
In 2008, Rwanda fetched $45 million from 19,600 tones of made tea.

However, prices on international market were alsomore  favorable than the previous two years with a kilogram of made tea buying at an average of $2.6.

However, with the East African Community (EAC) partner states harmonizing their budgets and financial years, the industry is set to improve its exports.

The EAC budget and financial year whose implementation started in July last year and ends in June this year has seen OCIR-THE revising its target as well
Under the EAC financial year, OCIR-THE envisages that the regulating institution will achieve its earlier target of 24,000 tonnes and $54 million as revenue receipts.

RDB officials said recently that the country’s exports last year fell by 25 percent, a decrease that is largely been attributed to the world economic crisis.

Ends

Have Your SayLeave a comment