The East African Tea Trade Association (EATTA) has announced the immediate suspension of the minimum reserve tea prices for Kenyan teas. This decision is aimed at stabilizing the market and supporting tea farmers amidst a period of declining prices. The suspension was communicated via a circular dated October 8, 2024, and follows directives from the Tea Board of Kenya and the Minister of Agriculture.
In the statement, EATTA clarified that the suspension was based on a letter from the Tea Board of Kenya, reference TBK/ADM/01/2024, which directed the suspension after consultations with key stakeholders in the tea industry. “This suspension takes place with immediate effect,” the circular reads.
The reserve price, which was imposed in 2022 to protect the tea market from price fluctuations, had become a focal point in stabilizing tea prices. However, the need for its suspension reflects the current economic realities of the tea market, where prices have continued to decline.
In addressing the tea value chain players, EATTA emphasized the importance of maintaining transparency in transactions and fair pricing to safeguard farmers. “The buyers should offer prices that provide a reasonable return to the farmers,” the association stated, urging members to follow proper trading practices to ensure that prices do not fall below production costs.
The statement also highlighted key actions to be followed during this period, including ensuring that teas offered through the Direct Sale Overseas (DSO) window should be sold at prices above the prevailing auction prices. Additionally, tea producers were advised to maintain high standards in agricultural and manufacturing practices. “The tea producers are required to observe good agricultural and manufacturing practices to ensure the quality of all teas offered for sale meet the market requirements,” EATTA noted.
EATTA Managing Director George Omuga called for cooperation among stakeholders to ensure the success of the suspension and the overall stability of the market.
