TEA BROKERS EAST AFRICA LIMITED

Telephone: +254 41 2221953 / 4 Tea Trade Centre Fax: +254 41 231 4480 Nyerere Avenue Mobile: +254 735 221953 / 729 403507 PO Box 87296 - 80100 Mombasa E-mail: [email protected] www.tbeal.net

Tea Market Report: Sale 21 of 24th - 26th May, 2021

There was good general demand Current and Future Fresh Auction Offerings for the 193,240 packages

(12.80m/kgs). 8.02%remained Sale 21 Sale 21 Sale 22 Sale 23 24 - 26 May'21 26 - 27 May'20 31 May - 2Jun'21 7 - 9 Jun'21 unsold. Country MG SG MG SG MG SG MG SG Kenya 123,420 13,300 120,780 12,690 122,220 12,660 127,780 13,680 15,180 8,580 17,480 8,820 16,980 8,920 16,518 9,066 1,200 260 2,600 2,740 1,680 1,519 1,840 980

Leaf Grades Rwanda 6,360 1,120 4,800 820 7,560 1,160 6,840 1,100 Burundi 1,880 320 2,520 300 1,640 360 1,280 400 Zambia 0 0 0 0 0 0 0 0

Offerings: 107,020 packages 0 0 0 0 0 0 0 0 Madagascar 0 0 0 0 0 0 0 0 (7.00m/kgs). 7.36% were unsold. Zimbabwe 0 0 0 0 0 0 0 0

D R Congo 0 0 0 0 0 0 0 0 Mozambique 0 0 0 538 0 0 0 0 The Best BP1s in the market met Ethiopia 0 0 220 580 0 0 0 0 a strong enquiry and appreciated Reprints 19,740 1,880 15,320 1,197 18,379 1,600 9,440 1,560 148,040 23,580 148,400 26,488 150,080 24,619 154,258 25,226 by USC8 - USC94 and substan- Total 171,620 174,888 174,699 179,484 tially more closely following qual- ity with Brighter varieties irregular varying between steady to above last prices to easier by USC4 - USC8 and some teas USC18 dearer to easier by a simi- lar level. Medium categories remained without bids. ranged between USC9 - USC10 above previous week’s rates to Best PF1s on offer held firm to easier by USC6 - USC76. Lower USC16 below last prices with Mediums saw an irregular interest Brighter categories firm to and varied between steady to USC2 easier while Medium USC10 dearer to easier by USC4 types advanced by USC2 - - USC28 and a few invoices were USC10 but a few lines shed up unsold with Plainer descriptions to USC3 with quality. Lower varying between firm to USC11 Medium sorts varied between

CTC Quotations and Highest Prices (USC) USC4 - USC11 above last prices to easier by USC2 - USC6. BP1 PF1 Plainer types saw better absorp- 218 - 560 217 - 292 Best tion at firm to USC12 above last 198 - 318 215 - 238 Good prices but a few invoices lost Good Medium 190 - 268 210 - 229 value with quality. Medium 174 - 218 170 - 216

Lower Medium 124 - 187 120 - 194 Plainer 090 - 176 080 - 182

TBEA’s Mombasa Tea Market Report : Sale 21 of 24th - 26th May, 2021 Page 2

DUST Grades Secondary Grades

Offerings: 60,760 packages (4.50m/kgs) with Offerings: 25,460 packages (1.30m/kgs) and 7.24% unsold. 12.35% were unsold.

Best PDUSTs on offer saw an irregular enquiry In the secondary catalogues, BPs were about ranging between steady to USC4 dearer follow- steady with PFs firm. Clean well sorted coloury ing quality to easier by up to USC10 while Fannings gained with similar DUSTs dearer. Brighter types advanced by USC8 - USC17. Me- Other Fannings appreciated while DUSTs held dium categories varied between firm to USC6 value. BMFs were well absorbed. above previous week’s levels to easier by up to USC7 with improved Lower Medium varieties Markets appreciating by USC22 - USC30 but others shed USC2 - USC16. Plainer sorts saw an irregular Kazakhstan and other CIS Nations showed more activity and ranged between firm to USC17 and strong support with strong interest from Egyp- above last prices to easier by up to USC6 where sold. tian Packers and were forceful while Yemen, other Middle Eastern countries and UK increased

activity. Pakistan Packers, Sudan, Russia and The Best DUST1s available were heavily dis- Bazaar showed good enquiry with some interest counted by up to USC52 but a few improved col- from Iran while Afghanistan were quieter. Local oury sorts gained up to USC7 with Brighter types Packers were active in line with price. Somalia advancing by USC6 - USC8 while Medium cate- showed good activity at the lower end of the mar- gories met improved support appreciating by ket. USC6 - USC18. Lower Mediums advanced by USC6 - USC30 where sold while Plainer de- scriptions gained USC3 - USC13 but some in- voices eased by up to USC4 with a few teas re- maining unsold.

CTC Quotations and Highest Prices (USC)

PD D1 Best 220 - 304 180 - 258 Good 218 - 246 176 - 220 Good Medium 214 - 229 178 - 212 Medium 174 - 212 156 - 194 Lower Medium 102 - 240 104 - 212

Plainer 092 - 194 074 - 175

Secondary Quotations (USC)

BP/BP2 PF/PF2 FNGS1/FNGSDUST / DUST2 BMF

Best/Good 177 - 246 189 - 190 099 - 198 080 - 216 074 Good Medium / Medium 114 - 188 090 - 140 Lower Medium 106 - 162 096 - 166 069 - 168 070 - 108 070 - 081 Plainer 098 - 140 078 - 157 068 - 149 074 - 119 068 - 076

TBEA’s Mombasa Tea Market Report : Sale 21 of 24th - 26th May, 2021 Page 3

Average Auction Hammer Quantities and Prices by Country ` Country of Main Secondary Total Total for Corresponding Sale for Origin Last Year

Pkgs Kgs USC Pkgs Kgs USC Pkgs Kgs USC Pkgs Kgs USC Kenya 124,540 8,627,495 201 12,440 622,102 110 136,980 9,249,597 195 113,580 7,781,526 194 Uganda 15,440 989,589 134 7,980 391,444 94 23,420 1,381,033 123 20,800 1,228,136 123 Tanzania 1,220 67,738 119 200 8,860 76 1,420 76,598 114 3,300 184,280 122 Rwanda 7,140 488,240 279 1,340 86,480 183 8,480 574,720 264 4,020 279,381 245 Burundi 2,640 164,996 192 360 19,008 119 3,000 184,004 184 2,320 146,937 216 Zambia ------Malawi ------Mozambique ------Madagascar ------Zimbabwe ------D R Congo ------Ethiopia - - - . ------60 3,593 150

Total 150,980 10,338,058 197 22,320 1,127,894 110 173,300 11,465,952 189 144,080 9,623,853 186

Previous Sale's Quantities and Prices Total for Corresponding Sale for Sale Number Main Secondary Total Last Year Sale 20/21 143,300 9,867,761 193 23,620 1,177,157 103 166,920 11,044,918 184 159,959 10,582,130 188 Sale 19/21 134,580 9,268,248 191 21,600 1,073,006 102 156,180 10,341,254 182 152,438 10,036,243 192 Sale 18/21 133,221 9,195,888 193 23,798 1,193,544 102 157,019 10,389,432 183 162,552 10,644,523 194 Sale 17/21 132,120 9,092,153 195 24,300 1,199,365 103 156,420 10,291,518 185 155,270 10,260,814 207 Sale 16/21 134,080 9,242,564 194 26,979 1,351,097 104 161,059 10,593,661 183 170,167 11,330,641 212 Sale 15/21 136,273 9,417,817 194 23,101 1,146,114 103 159,374 10,563,931 184 195,481 12,963,406 205

Average Auction Hammer Prices by Grade and Country

……………………………………………………………………………………………………………………………………… Country of Current Sale's……………………. Prices per Grade Corresponding Prices per Grade for Last Year Origin BP1 PF1 PD D1 BP/2 PF/2 D/2 F/1 BMF Av BP1 PF1 PD D1 BP/2 PF/2 D/2 F/1 BMF Av Kenya 208 201 202 185 135 137 99 120 72 195 197 201 191 193 157 139 112 121 54 194 Uganda 141 130 142 122 127 108 95 98 71 123 130 131 139 136 129 103 86 87 53 123 Tanzania 96 118 122 - 98 78 74 76 70 114 118 133 143 113 - 115 80 84 55 122 Rw anda 340 243 254 217 210 190 149 146 74 264 357 230 243 240 204 180 118 164 - 245 Burundi 184 203 186 172 - - 116 120 - 184 234 232 201 198 - - 130 146 - 216 Zambia ------Malaw i ------Mozambique ------Madagascar ------Zimbabw e ------D R Congo ------Ethiopia ------150 ------150

216 198 196 176 164 125 104 112 72 189 192 198 183 180 152 122 106 107 54 186

Previous Sale's Prices per Grade Corresponding Prices per Grade for Previous Year Sale Number BP1 PF1 PD D1 BP/2 PF/2 D/2 F/1 BMF Av BP1 PF1 PD D1 BP/2 PF/2 D/2 F/1 BMF Av Sale 20/21 201 198 191 171 144 119 99 102 76 184 194 207 186 186 159 122 99 108 57 188 Sale 19/21 200 194 189 172 158 121 96 104 71 182 213 210 191 187 161 130 104 101 55 192 Sale 18/21 207 198 189 170 166 117 96 100 72 183 210 211 195 193 159 139 104 107 56 194 Sale 17/21 207 201 190 173 170 116 100 101 73 185 224 220 214 209 160 142 107 114 58 207 Sale 16/21 201 201 189 173 167 118 97 104 73 183 226 223 219 219 158 142 114 117 56 212 Sale 15/21 204 202 188 169 164 117 102 95 73 184 215 221 211 209 146 127 105 107 56 205

TBEA’s Mombasa Tea Market Report : Sale 21 of 24th - 26th May, 2021 Page 34

Average Auction Prices and Quantities by Country

Previous Sale Year To Date 2021 Last Year Year To Date 2020 Variance Year Sale 20/21 Sale 20/20 To Date Country Kgs USC Kgs USC Kgs USC Kgs USC Kgs USC Kenya 9,351,752 191 181,493,748 197 9,094,665 196 183,655,029 210 -2,161,282 -13 Uganda 1,383,301 114 27,920,233 120 1,346,582 120 26,337,620 116 1,582,613 4 Tanzania 100,388 98 1,887,094 98 94,112 93 3,553,089 114 -1,665,995 -16

Rwanda 503,348 252 10,270,017 262 373,782 254 10,363,339 297 -93,322 -35 Burundi 130,968 182 2,748,259 207 131,618 216 3,407,622 232 -659,363 -25 Zambia ------0 0 Malawi ------0 0 Mozambique ------127,162 64 -127,162 -64 Madagascar 4,814 92 98,943 101 - - - - 98,943 101 Zimbabwe ------0 0 D R Congo ------0 0 Ethiopia - - 108,333 141 33,814 100 296,257 144 -187,924 -3 Total 11,474,571 184 224,526,627 190 11,074,573 187 227,740,118 202 -3,213,492 -12

Mombasa Weekly Average Auction Quantities and Prices 2016—2021

m/Kgs USC 14.00 350

12.00 300

10.00 250

8.00 200

6.00 150

4.00 100

2.00 50

0.00 0 2016 2017 2020 2021

Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec Total Kgs USC Kgs USC Kgs USC Kgs USC Kgs USC Kgs USC Kgs USC Kgs USC Kgs USC Kgs USC Kgs USC Kgs USC Kgs USC

2021 40.8 194 49.9 195 55.7 192 44.7 183 33.4 182 224.5 190 2020 44.4 217 47.4 203 56.5 192 46.9 205 42.5 189 53.0 181 42.3 176 34.6 192 39.1 194 33.3 192 36.1 190 40.6 187 516.8 193 2019 52.2 209 44.1 203 37.8 202 47.9 206 25.6 218 30.7 190 44.0 179 31.3 192 30.6 208 42.5 222 37.0 219 30.2 210 454.0 204 2018 50.7 278 35.0 282 30.3 265 40.6 252 39.9 246 38.0 239 44.9 233 33.6 223 32.9 223 42.9 225 39.5 219 30.1 213 458.4 243 2017 41.7 284 26.5 286 25.6 273 29.2 272 39.9 275 31.5 289 32.4 283 27.8 275 32.9 286 41.9 291 36.3 283 31.9 266 397.6 281 2016 38.4 256 37.4 238 41.8 224 36.1 204 45.4 212 35.3 227 29.9 231 32.8 219 24.5 222 25.2 222 37.2 250 24.0 251 407.9 229 2014 26.3 256 32.0 224 30.7 209 29.4 206 37.2 196 38.4 191 37.1 205 25.6 203 34.3 189 29.6 191 35.3 190 34.3 189 390.2 203

TBEA’s Mombasa Tea Market Report : Sale 21 of 24th - 26th May, 2021 Page 5

Exchange Rates (2019(2019----2021)2021)

During the week the Kenya Shilling traded between KES 107.30-108.25 and reached 108.25 at its lowest end week. Expecta- tions are that the Kenya Shilling against US Dollar will trade at the level of 107.00 - 108.00 in the coming week. (These figures are given as a guide and readers are advised not to use them as a basis for business transactions )

Auction Quantities

This Week Year To Date 2021 Year To Date 2020 Variance Year Country Sale 21/21 To Date Offerings Packages Kgs Packages Kgs Packages Kgs Packages Kgs Kenya 136,720 9,247,492 2,853,649 192,927,873 2,737,597 194,111,009 116,052 -1,183,136 Uganda 23,760 1,394,864 512,786 29,653,414 453,286 27,702,440 59,500 1,950,974 Tanzania 1,460 75,692 39,800 2,030,339 67,309 3,919,752 -27,509 -1,889,413 Rwanda 7,480 514,235 155,180 10,604,844 155,339 11,028,106 -423,262 -159 Burundi 2,200 134,031 47,920 2,984,340 52,280 3,508,114 -4,360 -523,774 Zambia 0 0 0 0 0 0 0 0 Malawi 0 0 0 0 0 0 0 0 Mozambique 0 0 0 0 2,382 150,214 -2,382 -150,214 Madagascar 0 0 2,020 99,835 0 0 2,020 99,835 Zimbabwe 0 0 0 0 0 0 0 0 D R Congo 0 0 0 0 0 0 0 0 Ethiopia 0 0 0 0 4,900 307,607 -4,900 -307,607 3,473,093 240,727,242 Total 171,620 11,366,314 3,611,355 238,300,645 138,262 -2,426,597 Sellers’ Main Grade Quantities (in Packages)

Origin BP 1 PF 1 PD D 1 Total

S 21 S 22 S 23 S 21 S 22 S 23 S 21 S 22 S 23 S 21 S 22 S 23 S 21 S 22 S 23 KTDA 17760 19920 17800 57440 54160 53800 21400 22200 23000 10840 11280 9660 107440 107560 104260 Unilever Tea 1080 800 1000 440 440 640 440 440 700 160 360 200 2120 2040 2540 James Finlay 40 40 40 120 160 120 240 400 240 0 0 0 400 600 400 Eastern Produce 200 200 320 900 820 1,060 420 680 680 200 200 240 1720 1900 2300 Others (K) 4120 40 40 80 160 80 120 120 120 80 80 40 4400 400 280 Uganda 80 4919 40 80 160 160 9000 120 160 40 4020 80 9200 9219 440 Tanzania 360 400 600 920 1200 1440 500 480 400 200 280 280 1980 2360 2720 Rwanda 5160 5040 4520 5880 5880 5520 2240 2640 2480 1080 1120 1120 14360 14680 13640 Burundi 1480 1480 1480 1960 2000 1800 560 600 520 320 280 360 4320 4360 4160 DR Congo 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 Malawi 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 Zimbabwe 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 Madagascar 80 80 80 0 0 0 0 0 0 20 20 20 100 100 100 Mozambique 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 Zambia 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 Ethiopia 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0

Total 30360 32919 25920 67820 64980 64620 34920 27680 28300 12940 17640 12000 146040 143219 130840

TBEA’s Mombasa Tea Market Report : Sale 21 of 24th - 26th May, 2021 Page 6

Buyer Purchases of Teas Offered by Grade (in Packages)

BUYER % Total BP1 PF1 PD D1 BP2 PF2 D2 FNGS BMF - 1 JAMES FINLAY MOMBASA LIMITED 11.28 21,840 1,400 5,840 10,880 1,800 320 140 1,460 2 GLOBAL TEA & COMMODITIES KENYA LTD. 11.13 21,560 1,920 12,160 4,560 2,320 520 80 3 LAB INTERNATIONAL KENYA LTD 7.86 15,220 440 4,340 8,020 2,320 100 4 CARGILL KENYA LTD 7.64 14,800 2,400 8,520 3,600 280 5 CHAI TRADING COMPANY LTD 7.16 13,860 1,400 8,960 1,100 960 120 1,180 140 6 SSOE (KENYA) LIMITED 5.43 10,520 3,520 3,780 1,480 900 340 100 280 120 7 COFFTEA AGENCIES LTD 4.95 9,580 4,520 2,140 340 340 1,600 640 8 DEVCHAND KESHAVJI (K) LTD 3.52 6,820 6,740 80 9 VAN REES KENYA LIMITED 3.51 6,800 1,280 2,240 1,680 840 240 20 500 10 M J. CLARKE LTD 3.43 6,640 1,040 3,060 900 100 40 1,500 11 MOMBASA COFFEE LTD 3.42 6,620 160 480 3,600 1,960 420 12 STANSAND (A) LTD 2.82 5,460 4,160 280 580 440 13 ABBAS TRADERS LTD 2.31 4,480 520 920 1,280 560 300 20 180 60 640 14 EMPIRE KENYA (EPZ) LTD 1.96 3,800 2,080 880 120 480 80 160 15 INDO-AFRICAN TEA CO. (K) LTD. 1.67 3,240 1,640 1,480 40 80 16 AL EMIR LIMITED 1.51 2,920 40 2,640 160 40 20 20 17 RANFER TEAS KENYA LTD 1.47 2,840 1,040 1,000 120 400 120 160 18 IMPERIAL TEAS (EPZ) LTD 1.41 2,740 720 80 20 300 300 240 860 220 19 SHAKAB EXPORT & IMPORT CO. LTD 1.35 2,620 200 1,960 40 120 100 80 20 100 20 ALIBHAI RAMJI (MSA) LTD 0.78 1,520 1,400 80 40 21 CHAMU SUPPLIES LIMITED 0.70 1,360 320 440 120 160 120 100 100 22 PWANI HAULIERS 0.70 1,360 20 80 1,260 23 GOLD CROWN FOODS (EPZ) LTD 0.52 1,000 80 20 160 60 320 360 24 AIMCO ENTERPRISES LTD 0.48 920 180 740 25 LINDOP & COMPANY (KENYA ) LTD 0.32 620 360 180 80 26 GREEN LEAF TRADING CO. LTD 0.28 540 40 500 27 SUMMER LINER CO. LTD 0.25 480 80 200 180 20 28 TRANS-ATLANTIC TRADING Co. LTD 0.25 480 200 100 180 29 LULA TRADING COMPANY 0.24 460 20 80 360 30 DRINCO INTERNATIONAL LIMITED 0.21 400 400 31 SARDIA INTERNATIONAL CO. LTD 0.21 400 120 280 32 TROPICAL CROPS & COMMODITIES 0.14 280 40 40 20 140 40 33 KIRINDO TRADERS LIMITED 0.11 220 80 40 20 80 34 MCLEOD RUSSEL AFRICA LIMITED 0.07 140 40 40 40 20 35 RIOTANA TRADING LIMITED 0.07 140 80 60 36 AFRIBRIDGE TRADE EXPORTERS LTD 0.06 120 120 37 TEAVANA TEA STORE LTD 0.05 100 100 38 AFRO TEAS LTD 0.04 80 40 40 39 DELSTA TEA LIMITED 0.04 80 80 40 JAWAI TEA LIMITED 0.04 80 80 41 TANZIIL TRADING LIMITED 0.04 80 80 42 AL KHALIFA ENTERPRISES LTD 0.02 40 40 43 SELINE INVESTIMENTS LIMITED 0.01 20 20 44 TRUST TEA TRADERS EAST AFRICA LTD 0.01 20 20

Total Sold 89.49 173,300 24,120 72,360 40,760 13,740 2,340 3,140 3,280 8,240 5,320 Withdraw n 0.03 60 40 20

Unsold 10.48 20,299 4,120 6,820 3,640 3,220 120 639 360 1,120 260 % Unsold 15 9 8 19 5 17 10 12 5 Grand Total 100.00 193,659 28,280 79,180 44,400 16,960 2,460 3,779 3,640 9,380 5,580

Sale 20/21 90.00% 166,920 23,300 65,360 41,920 12,720 2,520 3,280 2,900 9,140 5,780 Sale 19/21 83.32% 156,180 22,940 59,800 38,980 12,860 1,640 3,680 3,320 6,840 6,120 Sale 18/21 83.38% 157,019 19,700 59,641 42,220 11,660 1,880 3,860 2,960 9,160 5,938 Sale 17/21 85.85% 156,420 19,800 62,180 37,700 12,440 1,860 3,920 2,660 9,620 6,240 Sale 16/21 84.08% 161,059 19,980 61,860 38,820 13,420 1,820 4,180 3,200 11,819 5,960 Sale 15/21 81.65% 159,374 18,460 63,620 38,733 15,460 2,120 4,460 2,680 8,300 5,541

Page 78

Other Tea Auction Centres ` akarta: at Sale 20 held on the 19th May, Auction Offerings 2021. Today's e-auction comprised of J Week 20 Week 21 Week 22 Week 23 7,340 psacks which included 820 psacks CTC teas. As usual, almost all the teas offered Centre 18-May 25-May 02-Jun 08-Jun were unsold leaving buyers to negotiate final Mombasa 185,040 193,240 194,678 190,484 prices after the auction. There was wide- Limbe 12,400 10,680 8,820 - spread good general demand w ith the im- Colombo 7.9m/kgs 7.6m/kgs - - Jakarta 8,180 7,520 7,860 - proved West Java teas meeting keen interest. Prices remained fully firm to dearer. Major Calcutta 64,364 63,224 - - bidders apart from Unilever, included those for Guwahati 62,123 - - - Russia, the UK and the USA, and Chittagong 26,569 36,321 32,417 - Total 267,743 211,440 211,358 190,484 Afghanistan. olombo: at Sale 19 held on 18th and ing upto Tk.10/-. Medium varieties met with demand. Popular varieties and good liquoring C 19th May, 2021, The 1.2Mkg of Ex Estate less demand and prices declined by Tk.10/- to finer grades initially sold at fully firm levels and teas on offer met with lower demand. Select Tk.15/- over last w ith fair w ithdrawals. Plain as the sale progressed the market was dearer best Western High Grown BOPs together w ith teas saw some demand but also eased further by 6-8c and sometimes more. Plainer sorts the below best and plainer varieties declined whilst BLF saw some interest and were about witnessed better enquiry and selling at fully from last w eek’s levels. Select best Western steady to occasionally easier. FANNINGS : firm to dearer levels. Buying pattern : Major High Grow n BOPFs too w ere lower, the below Best and good Fannings were well supported blender AVT was active. KSCSC w as inactive. best and plainer sorts too declined to a greater at easier rates but Medium and Plainer types Best mediums fetched with fair support from extent. Nuwara Eliya BOPs w ere selectively were easier following less demand. BLF teas regional packeters. Domestic buyers were less dearer, the BOPFs w ere firm on last levels. saw some interest around last levels. CTC active in their purchases. Exporters were se- Udapusselllaw a BOPs were easier, the DUST : 5,664 packages of Current Season lective. BOPFs too followed a similar trend. Uva BOPs and 20 packages of Old Season teas on offer were easier following quality, the BOPFs too met w ith a good demand. Good liquoring va- alcutta: at Sale 20 held on 20th May, were easier from last week’s levels. Low rieties were an easier market and sold at a C 2021. CTC Leaf : There was good de- Grown CTC BP1s were easier, the High and drop of Tk.8/- to Tk.10/- follow ing quality. mand. Best and good Assams sold at firm to Medium sorts too w ere irregularly lower. Low Others particularly CDs showed a sharp de- dearer rates on competition. Other varieties were a steady market. Bulk of the Dooars sold Grown CTC PF1s w ere firm to a little lower at cline in levels with fair withdrawals. Plain and times, the High and Mediums too declined BLF teas saw some interest and sold at at steady levels. Dust: There was good de- from last w eek’s levels. The 3.4Mkg of Low around last levels. Blenders lent strong sup- mand. Bulk of the Assams were irregularly Grown teas which were on offer met w ith fair port with fair interest from the Loose tea buy- easier. The nominal w eight of Dooars was demand. Select best and best OP1s were ers. COMMENTS: There w as slightly more steady. M/s Hindustan Unilever was active in both markets on brighter liquoring Assams. M/s firm. Well-made BOP1s attracted better inter- activity from the Major Blenders but Loose tea est, others met w ith fair demand. Select best buyers were more selective. Best and good Unilever Exports showed interest on larger OP / OPAs were firm, others were lower. Bold varieties were readily absorbed at lower levels brokens along w ith useful active from other Pekoes were irregularly lower to last. Pekoe1s ranging between Tk.205/- to Tk.212/- and export accounts. M/s Tata Consumer Products appreciated following quality. In the Small Leaf sometimes more follow ing competition. How- were active in the leaf market on well-made teas in the medium categories as well as on segment, select best BOP.SP / BOPF.SP and ever, there were more withdrawals this week. BOPFs met w ith good demand. Select best Dusts were an easier market. good liquoring larger Assam brokens. They and best BOPs were dearer. FBOPs met w ith operated on good & medium Assams in the good demand. Select best FBOPF1s w ere ochin : at Sale 19 held on 12th May, dust market. Western segments were firm, others declined a few rupees. FBOPFs C 2021. CTC Leaf : Good demand. Brokens active on brighter liquoring Assams. There was and fannings were selling at fully firm to good support from the local & internal seg- attracted fair demand. All Premium Flow ery teas met w ith good demand. Iran, Russia and dearer levels by 1-2c and sometimes more. ments on the Dooars. ORTHODOX : There was the C.I.S. countries lent fair support, whilst Buying pattern : Good demand from Internal good demand. Whole leaf & brokens sold Turkey w as selective. Libya and Iraq lent fair and Upcountry buyers. Export buyers were around last levels. Fannings were irregularly active. ORTHODOX Leaf : Good demand. support. easier. Exporters were the mainstay. Well-made high grown whole leaf, brokens hittagong: at Sale 02 held on 17th May, sold at barely steady levels. Medium w hole uw ahati: at Sale 20 held on 19th May, C 2021. CTC LEAF : 19,574 packages of leaf and bolder brokens also sold at irregular G 2021 w ith 81,456 packages of tea on Current Season and 676 packages of Old to easier levels whilst smaller brokens tended offer. Market: CTC There was good demand. Season teas on offer met w ith a fair demand. steady to dearer. Buying pattern: CIS/Middle Good, best and better medium Assams at firm BROKENS : A few well made Brokens met East exporters were active. Upcountry buyers to dearer rates. Medium Assams, Cachars and with a good demand at lower rates often eas- lent support on whole leaf grades. Dust Fair BLF teas w ere generally around last levels. Buying Pattern: TCPL/HUL lent fair support, the former more on the good liquoring teas. Western India buyers were active. Buyers for other upcountry destinations lent fair support. There w as very little export enquiry. Market: DUST There was good demand for the good and best Assams at firm to dearer rates. De- mand w as only fair for the remainder Assams, Cachars and BLF teas at barely steady to eas- ier rates. Buying Pattern: TCPL/HUL/ w estern India buyers lent fair support. Exporters bought very little.

TBEA’s Mombasa Tea Market Report : Sale 21 of 24th - 26th May, 2021 Page 8

News Articles of Interest

hanced market transparency and sustain- ability. He also spoke about the impor- tance of policies for sustainable produc- tion that target smallholder growers. The production and processing of tea provide employment and income to millions of smallholder farmers and workers in devel- oping countries. Smallholder tea growers are responsible for 60 percent of world tea production. “Tea is a significant source of ingredients, incomes and inspirations and can help alleviate some of the burden resulting from the economic downturn, Monday 24th May 2021 ment contributing to such objectives as particularly for the rural poor,” the Direc- ending poverty, eradicating hunger, and Global demand for tea increased during tor-General noted pointing to the need to enhancing the sustainable management COVID-19 pandemic improve the smallholders’ business eco- and utilisation of natural resources. He re- system. For example, in light of the cur- Global demand for tea has seen a remark- affirmed FAO’s continuous support and able increase during the COVID-19 pan- rent pandemic and its impact on tea trade commitment to working with all partners for demic, providing a new momentum to and tea supply chains, it is crucial to adopt a better future for the tea sector “from field new business models and technologies to build a sustainable and resilient tea sector to cup”. while preserving its unique character of ensure access to markets for smallholder Source: https://www.kbc.co.ke/global- bringing people together. farmers in this new reality. The Director- General referred to the International Day demand-for-tea-increased-during-covid-19- This was a key takeaway from a FAO- as an excellent opportunity to renew pandemic/ hosted virtual high-level event to mark the International Tea Day 2021. “Celebrating global commitment to building an inclu- Saturday 22nd May 2021 tea is celebrating peace, culture and sive, sustainable and resilient tea sector. Smallholder tea farmers to own direct During the event, the participants extolled hope,” said FAO Director-General QU shareholding in KTDA the numerous health benefits that tea of- Dongyu in his opening remarks. Adding Individual smallholder tea farmers affiliated fers, including its anti-inflammatory, anti- that: “Tea can play an important role in our with the Kenya Tea Development Agency journey to build back better. Being the oxidant and weight loss effects. World per capita consumption of tea increased by 3 Holdings PLC (KTDA Holdings PLC) will most widely consumed drink in the world percent over the last decade, driven by now own direct shareholding of the com- after water, tea brings people together to pany alongside their respective 54 Tea rising per capita income and population share stories and ways of life.” Despite the growth in developing and emerging mar- Factory Companies, further cementing their key role tea plays in ensuring rural in- kets. The observance held on 21st May ownership and proprietorship in the organi- comes, livelihoods and food security, the zation. The move follows the resolutions of sector faces a number of challenges, the 2021 brought together the world’s top tea exporting and importing countries as well the KTDA Holdings shareholders, at a Spe- Director-General warned. He reminded the as major producing countries. The partici- cial General Meeting (SGM) held in April audience that tea can only be produced in pants echoed the Director-General’s call this year, to amend the company's Articles narrowly defined agro-ecological condi- to boost sustainable tea production, ad- of Association to enable the allotment of tions, and therefore, the impact of climate the company's shares to individual farmers dress the challenges the smallholders change and extreme weather events is under a new category of shareholders face and untap the sector’s full potential in one of the most pressing issues that re- building back better. The high-level speak- known as "Tea Farmers." Each of the 54 quires urgent attention. Other major ers included Inam Karimov, Minister for Tea Factory Companies, through their re- stressors for the tea sector include in- spective portions of their 5 million bonus Agriculture, Azerbaijan; TANG Renjian, creasing competitiveness in the beverage share issue, assigned their shares to their sector and declining returns for small- Minister for Agriculture and Rural Affairs, China (via video message); Stefano Patu- tea farmers, completing the passage to scale farmers. In addition, global trade of anelli, Minister for Agricultural, Food and having the tea farmers become direct own- tea in 2020 was affected by logistics is- ers in KTDA Holdings PLC. The farmers Forestry Policies, the Republic of Italy (via sues and measures imposed to contain video message); Hamadi Boga, Principal were assigned the shares as ordinary the COVID-19 pandemic. However, in- shares, based on the leaf delivery supplied Secretary for Crops Development and creasing in-home consumption of tea more Agricultural Research, Ministry of Agricul- between July 1, 2019, and June 30, 2020. than offset declining out-of-home con- KTDA Factories have, in the last two years ture and Irrigation, the Republic of sumption in many instances. During the Kenya; Maneesh Gobin, Attorney General, of 2018/2019 and 2019/2020, assigned first weeks of lockdown in several coun- Minister for Agro-Industry and Food Secu- approximately Kshs. 1.5 billion in dividends tries, in-home tea sales surged, increasing to their farmers. The tea farmers will now rity, Mauritius; Anup Wadhawan, Com- by 75 percent in some consuming coun- be direct beneficiaries of dividends from merce Secretary, India; Shabnam Weber, tries. The Director-General reflected on President, Tea and Herbal Association, the profits of KTDA Holdings PLC derived the need to balance growth and sustain- Canada. Closing the high-level segment, from its income and that of its subsidiaries. ability at all stages of the tea value chain. FAO Chief Economist Máximo Torero Cul- To achieve this, he called for greater sus- tainability, through strategies for climate len stressed that tea lies at the heart of …/9 the 2030 Agenda for Sustainable Develop- change adaptation and mitigation, en-

TBEA’s Mombasa Tea Market Report : Sale 21 of 24th - 26th May, 2021 Page 9

News Articles of Interest continued …

The farmers will now collectively own five million ordinary also widened the pool of persons eligible to be elected as shares, with the Factory Companies where the same tea farm- representatives of the factory corporate shareholders within ers are shareholders holding 24 million ordinary shares in the twelve zones, which now include sitting and former tea KTDA Holdings PLC. Among the new tea farmer category are factory directors. The amended articles also provide for the hundreds of institutions registered as tea farmers and supply possibility of engaging election management institutions in leaf to their factories, spread out in all the 12 KTDA zones in carrying out elections of directors. Other significant changes 17 counties in the country. The institutions include Catholic to the articles include the requirement that shareholders must Churches, PCEA Churches, AIPCA Churches, AIC Churches, approve any disposal of company property exceeding the FPFK Churches, AGC Churches, SDA Churches, Secondary value of one percent (1%) of the value of the total value of Schools, Primary Schools, a Seminary, Mission Hospitals, Self KTDA Holdings PLC. The shareholders have safeguarded Help Groups, Cooperative Societies, Nyayo Tea Zone Corpo- their property and would require full explanation at a General ration, Prisons Department, University of Kabianga and sev- Meeting for any disposals of such kind. The shareholders also eral companies. These institutions join the 620,000 plus indi- approved the future passage of the listing of KTDA in the Nai- vidual tea farmers spread out in the said locations Amongst robi Securities Exchange. To safeguard the farmer from un- the new changes include a seat on the board of KTDA Hold- scrupulous share buyers, the shareholders locked the trad- ings directly elected by the shareholders at the company's ability of the allotted shares for ten years. This practice has Annual General Meeting. The farmers would be elected on previously been done by other institutions to safeguard share- one term, three-year basis from one of the 12 zones, which holders' interests. In a circular issued within the week, tea will rotate amongst them. The farmer director representative farmers have been requested to visit their buying centers to will sit alongside the directors elected to represent the factory know their respective share allotments. companies from the zones. Other significant changes to the This is a significant milestone in the governance of the Ken- company articles passed by the shareholders include voting yan smallholder tea industry. Source: https://www.the- for all company directors on the floor at the Annual General star.co.ke/news/2021-05-23-smallholder-tea-farmers-to-own- Meetings. This new process does away from the previous direct-shareholding-in-ktda/ nomination where only directors of factories in a zone were involved in the zonal nomination exercises. The company adopted a directors' election process similar to companies under the Capital Markets Authority, where elections are car- ried out on the floor of the AGM. The amended articles have

TBEA’s Mombasa Tea Market Report : Sale 21 of 24th - 26th May, 2021 PagePage 10 8

Regional Weather Conditions and World Crop

Sudan, and south-western Ethiopia. enya: Murang’a: Rainy during the K day and sunny intervals. There • Light rainfall of less than 30 mm is ex- were 71 mm of rainfall spread through 4 pected in much of Uganda, Rwanda, Burundi, wet days of the week. The highest and parts of southern and northern Tanzania, lowest temperatures were 28˚c & 10˚c western and coastal Kenya, southern and respectively. Crop intake slightly northern Somalia, parts of western and dropped to an average of 94.3 ton- southern Ethiopia, southern Sudan, and parts nes/day on a six day plucking cycle. of eastern, northern and western South Su- dan. Nyeri: The week received some 11.4 mm of rainfall received over 3 wet days. • Dry conditions are expected in central The highest and lowest temperatures The trouble with weather forecasting Tanzania, much of Kenya, eastern and south- were 22˚c & 12˚c respectively. Crop is that it is right too often for us to ern Ethiopia, central Somalia, Djibouti, Eri- intake averaged 55.2 tonnes /day on a ignore it and wrong too often for us to trea, and much of Sudan. six day plucking cycle. rely on it. Note: 1 mm of rainfall is equivalent to Meru: Was mostly sunny and dry. No 1 litre of rainfall per square meter. rainfall was recorded throughout the week. The highest and lowest tempera- tures were 25˚c & 14˚c respectively. growing regions. Fort Portal area received rop production Kenya: Crop produc- Crop intake decreased to an average of 48mm (81mm), Hoima received 13mm C tion declined slightly. However, with 58.5 tonnes/day on a six day plucking (28mm) Kibale 17mm (15mm). the onset of the long rains, there should be cycle. Bushenyi’s rainfall continued at low levels a gradual but steady increase in crop pro- Sotik: The week had sunny mornings of 4mm (3mm). Average temperatures duction in both east of the rift and west of and showers in the afternoons.The area were highs of 30° Celsius and lows of 15° the rift. registered 29.1mm of rainfall in one day Celsius. Crop volumes increased. of the week. The highest and lowest temperatures were 26˚c & 14˚c respec- Uganda: Crop volumes increased, with the Weekly Rainfall Forecast 26th May to tively. Factory utilization remained as at fairly good precipitation received in most of 2nd June. the tea growing areas. This is likely to con- last week’s levels Rainfall Forecast 26th May - 2nd tinue in the near future. Kericho: The week under review was partly cold in the mornings, with reduced June. afternoon showers compared to the pre- Headline: Heavy to very rainfall ex- Malawi: Crop intake remains healthy. vious week. An average of 46.2 mm pected over Jimma, Illubabor and rainfall was recorded. Average tempera- Sheka regions of Ethiopia. Reduction tures were highs of 21° Celsius and in rainfall is expected in most regions lows of 11° Celsius. Crop volumes went down by 17% compared to previous of Eastern Africa. week’s levels mainly due to less pluck- • Heavy to very heavy rainfall over 200 ing days after a public holiday(Eid-Ul- mm (top 10% to 5% on record) is expected Fitr). in a few areas of Ethiopia (Jimma, Illubabor Crop is expected to maintain current and Sheka). levels due to the cold weather conditions • coupled with hail storms. Moderate to heavy rainfall between 50 - ganda : Generally there was fair 200 mm is expected in central and western South Sudan, a few regions in south-western U rainfall activity throughout the tea

Production over World Production from Main Producing Countries over the Past Twelve Months calendar years Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec Total + / - Variance 2020 2019 0.3 1.2 1.9 2.4 8.7 11.7 12.2 11.3 12.1 13.4 10.5 7.0 0.3 0.1 90.7 94.6 North India - 2.2 46.9 23.9 75.6 116.5 140.7 142.9 163.8 155.6 127.6 53.4 49.1 15.7 1,033.4 1,170.6 South India 16.1 15.3 19.6 15.1 20.8 22.0 20.3 16.8 24.1 20.2 21.4 18.1 51.0 10.4 219.4 218.7 23.1 22.3 28.4 20.3 28.4 26.8 26.3 22.4 21.9 23.4 24.8 28.5 73.8 20.7 275.9 298.1 Kenya 48.9 43.3 48.7 49.7 47.0 46.4 36.6 38.5 43.4 48.3 47.7 54.4 140.9 (17.7) 570.6 459.0 Uganda 5.8 4.5 5.6 6.1 6.2 5.8 4.8 3.9 5.3 6.7 5.8 5.9 66.4 0.0 28.3 59.7 Tanzania 3.8 2.8 3.4 3.3 2.5 1.7 1.2 0.8 1.7 2.7 2.5 2.2 28.6 0.0 28.6 33.9 Rwanda 3.2 3.0 3.4 3.1 2.9 2.8 2.1 1.6 1.7 2.5 3.3 3.5 9.6 (0.1) 33.2 32.2 Malawi 7.0 7.2 8.0 6.4 2.8 1.4 1.1 1.3 2.8 2.1 1.4 5.3 28.6 1.6 45.2 48.3 Total 98.6 93.3 155.0 6.4 188.8 229.3 240.5 235.6 237.5 4.6 245.0 178.3 353.3 30.7 2,325.3 2,415.1 Variance (6.8) (2.7) 29.1 (117.8) 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 (98.2) Monthly figures in "BLACK" are for 2021 whilst figures in "BLUE" are for 2020

TBEA’s Mombasa Tea Market Report : Sale 20 of 17th - 19th May, 2021 Page 11

Mombasa Auction—Weekly Sale Average Prices (All teas) 2021