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- Tea Production in Kenya
- Company Performance 2016
- 2017 and longer term prospects
Tea Production in Kenya Company Performance 2016 2017 and longer - - PowerPoint PPT Presentation
Tea Production in Kenya Company Performance 2016 2017 and longer - - PowerPoint PPT Presentation
Tea Production in Kenya Company Performance 2016 2017 and longer term prospects WORLD TEA PRODUCTIO:2015&2016 Major Tea Producing Countries-Million Kgs 2500 2000 1500 1000 500 0 China India Kenya Sri Lanka Turkey
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WORLD TEA PRODUCTIO:2015&2016
China India Kenya Sri Lanka Turkey Vietnam Indonesia Japan Argentina 2015 2230 1191 399 328 230 165 129 82 83 2016 2350 1239 473 292 253 165 126 77 84 500 1000 1500 2000 2500
Major Tea Producing Countries-Million Kgs
2015 2016
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Pakistan Egypt
Kenya 27% China 19% Srilanka 16% India 12% Vietnam 7%
- thers
19%
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Pakistan 29% Egypt 19% UK 10% UAE 7% Afghanistan 7% Sudan 5% Russia 4% Yemen 3% Kazakhstan 2% Others 14% PAKISTAN EGYPT UK UAE AFGHANISTAN SUDAN RUSSIA YEMEN KAZAKHSTAN 0thers
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378 370 432 445 399 473 200 250 300 350 400 450 500 2011 2012 2013 2014 2015 2016 '000 tonnes Year 19% increase
- vs. 2015
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2011 2012 2013 2014 2015 2016 2.99 3.18 2.53 2.16 2.98 2.36
2.99 3.18 2.53 2.16 2.98 2.36 1.00 1.50 2.00 2.50 3.00 3.50
21% lower vs. 2015
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88.87 84.52 86.13 88.08 98.59 102.29
55 60 65 70 75 80 85 90 95 100 105 11 12 13 14 15 16
Ksh/US$
4% increase Vs 2015
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11 12 13 14 15 16 266 270 218 190 294 241
70 120 170 220 270 320
18% decrease Vs 2015.
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- Kenyan production 19% above 2015.
- US$ tea prices decreased by 21% from 2015
- Kenyan shilling depreciated by 4%
- Price in ksh decreased by 18%.
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– Market challenges- instability in key export markets. – Volatility in tea auction prices. – Variability of climatic conditions – Currency fluctuations – Wage inflation and pressure to provide employment
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2011 2012 2013 2014 2015 2016 628 651 689 770 692 711
100 200 300 400 500 600 700 800 900
+3% Vs 2015
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2011 2012 2013 2014 2015 2016 102.5 116.0 104.2 92.3 122.4 103.9
20 40 60 80 100 120 140
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2011 2012 2013 2014 2015 2016 163 178 151 120 174 146
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40 60 80 100 120 140 160 180 200
16%Vs 2015
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2011 2012 2013 2014 2015 2016 Shs / Kg 23.9 26.9 27.6 26.8 28.9 36.5
5 10 15 20 25 30 35 40
26%Vs 2015
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5 15 25 35 45 55 65 75 85 95 105 115 125 135 145 155
2011 2012 2013 2014 2015 2016
60 147 42 2 8
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- Higher crop
- Lower Price
- Bio Assets
Value Loss of 5M
Low crop, High Price Bio Assets Value +22 m Higher crop, Low Price Bio Assets Value gain of 13.5M down from 98.5m in 2013.(decrease by 85M) 1. Price decline by 16% 2. Cost increase due to general inflation and higher Electricity costs.
Low crop, High Price, Bio Assets Value +99 m
- Low crop
- Higher Price
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- Crop 3% higher compared to 2015
- Lower US$ prices than 2015
- Decrease in profitability driven by low prices, and
increase in cost of sales.
- Cost increases remain a cause for concern.
– Wages – Electricity – dependence on KPLC
- No dividend is recommended for 2016
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- 2017 Q1 experienced prolonged drought
that adversely impacted on production.
- 2017 crop expected to be lower than 2016
- Currency volatility expected
- We expect 2017 tea market prices to be in
line with long term averages.
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- Continued focus on costs management
- Continually improve tea quality
- Growth
– 9.64 ha replanted in 2016 – 12 ha to be replanted in 2017
- Maintenance of Rainforest Alliance certification
- Continued focus on employee social welfare.
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Continued focus on employees’Safety, Health & Security Improvement in social infrastructure ▪ Maintenance of houses & facilities ▪ Engagement with pupils of Rongai Primary school in LTC
- n safety & security
for boys and girls
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2015 May view
NTD 12.6Ha (field 65) was planted in 2015 and will fully mature in 2018
2016 May view 2017 May view
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