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| Bulk Sales Bad for Kenya Tea, Warns Report |
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Kenya risks losing its export market share if it continues to sell tea in bulk. A new study by the Kenya Industrial Research and Development Institute (Kirdi) urges that tea value addition be taken seriously to boost the crop. "Bulk packaging is a major hindrance to earning in the sector, and it only creates employment in other countries where packaging is done," its report launched in Nairobi yesterday says. It adds that although Kenya produces some of the best-quality tea in the world, the growers' earnings have not improved. The document blames the current laws, saying that they hinder value-adding manufacturing. Little value addition "There is very little value addition in the country, and a majority of Kenyan consumers are not even aware they consume what is grown and processed by them," it adds. Kenya is the third largest tea producer in the world, and accounts for about 20 per cent of the world's total exports after India and Sri Lanka. The crop is also Kenya's leading foreign exchange earner, accounting for 28 per cent of the total export earnings. The Opportunity Study on Investment in Packaging of Kenyan Tea report also wants Kenyan tea to have an identity through branding. "A logo whose usage is only restricted to those packaging Kenyan tea could be introduced," the study suggests. Covered production The study which covered production, processing and consumption, underscores the need to for pesticide-free tea in line with the ISO standards. "This is necessary because our packers end up being scrutinised more by any prospective importer to ascertain the quality of the tea," it adds. The lack of ISO standards, it says, could be exploited by foreign companies who blend Kenyan tea with other cheap brands before resale. To solve the problem, the study calls for a reduction in taxes on packaging machinery. "The Government should consider tea a raw material so that machinery imports and other inputs may attract low duties like in the other agricultural sectors," said Dr Felix Muhindi of Kirdi at the launch. Source: allafrica.com Aug 09, 05 |
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