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.
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.
Leave a Reply