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  • Dec 29th, 2005
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Kenya's 2005 tea output is expected to hit a record high of 328 million kg due to better rainfall in major growing areas, the Tea Board said on Wednesday.

It said the industry, Kenya's biggest foreign currency earner, recorded improved performance between January and November with 298 million kg of tea produced, a three percent rise on the same period last year.

"With the production for December projected at about 30 million kg, the total crop for this year is expected to hit an all-time high of about 328 million kg," the board said in a statement.

The forecast came as President Mwai Kibaki announced an emergency package of $40 million to stave off starvation in the north, where a three-month drought has killed dozens of people and hundreds of livestock.

But one trader from a leading brokerage in Mombasa said the dry spells had little impact on the main tea-growing regions based in western Kenya.

"The thing is that the ground in most growing areas is still wet. The water tables are maintained," the trader, who declined to be named, added.

He noted that the failure of the short rains would curtail output in December.

"Thirty million kg is low for December...but we shall still see it," he said.

Kenya, which is one of the world's three leading growers of black tea together with India and Sri Lanka, produced 324.6 million kg in 2004.

Sri Lanka said earlier this month it was on course for a record 320 million kg crop.

Kenya's tea board said during the first 11 months of 2005, export volume increased by 3.9 percent to 317 million kg worth 38.9 billion shillings ($538 million).

However, the export price fell by 6.0 percent to 123 shillings per kg from 130 shillings, largely because of the local currency's appreciation against the dollar.

Copyright Reuters, 2005


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