tea board presentation for emerging … board house naivasha road off, ngong road p.o. box...

Opening Emerging Markets for Kenyan Opening Emerging Markets for Kenyan TeaTea

PRESENTATION BY:PRESENTATION BY:

SICILY K. KARIUKI (Mrs.), MBS SICILY K. KARIUKI (Mrs.), MBS SICILY K. KARIUKI (Mrs.), MBS SICILY K. KARIUKI (Mrs.), MBS

MANAGING DIRECTOR MANAGING DIRECTOR

TEA BOARD OF KENYATEA BOARD OF KENYA

OCT. 2010OCT. 2010

ContentsContents

Introduction

Performance

Selling proposition

Conclusion

TEA BOARD OF KENYA2

INTRODUCTION INTRODUCTION -- Overview of the TBKOverview of the TBK

Brief on TBK Established on 13th June 1950 under the Tea

Act (Cap 343).

Core Mandate Regulating tea growing and manufacture

Promotion of Kenya Tea.

Carrying out research on tea through TRFK.

Collecting and disseminating information

relating to tea

Vision To make Kenya tea the preferred tea in the

TEA BOARD OF KENYA

Vision To make Kenya tea the preferred tea in the

world

Mission To promote the efficient production and

marketing of high quality tea to the

domestic and international markets

3

Sector Institutional FrameworkSector Institutional Framework

Ministry of

AGRICULTURE

Smallholders(KTDA-managed)

Tea Trade

Auction

Buyers

PRODUCTIONPOLICY,

REGULATORY& RESEARCH

TRADE

EATTA Members:

TheThe

TEA BOARDTEA BOARD

of Kenyaof Kenya

Tea Trade:

Plantation(KTGA Members)

Large/Medium

Tea ResearchFoundation of Kenya

Other-Nyayo Tea ZonesDevelopment Corp.

ExternalTea Promotion Agents

(Councils & Associations)

Buyers

Brokers

Packers

Warehousemen

TEA BOARD OF KENYA4

Tea Sector StakeholdersTea Sector Stakeholders

GOK

TEA PROCESSORS/

FACTORIES

FOREIGN DIPLOMATIC

MISSIONS THE MEDIA

TEA TRADERS

GROWERS/ FARMERS

TEA BOARD OF KENYA

TBKKENYAN

DIPLOMATIC MISSIONS

TEA COUNCILS/ORGANIZATIONSGOVERNMENT

AGENCIES

GENERAL PUBLIC

5

Tea Growing AreasTea Growing Areas

East of Rift:LimuruKiambuMeru

West of Rift:KerichoKisiiNandi

TEA BOARD OF KENYA6

Nandi

Production and Planted Area trendProduction and Planted Area trend

200

250

300

350

400

PR

OD

UC

TIO

N (M

ILLIO

N K

GS

)

80,000

100,000

120,000

140,000

160,000

180,000

PLA

NTE

D A

RE

A (H

EC

TA

RE

S)

PRODUCTION PLANTED AREA

TEA BOARD OF KENYA7

0

50

100

150

2000 2001 2002 2003 2004 2005 2006 2007 2008 2009

YEAR

PR

OD

UC

TIO

N (M

ILLIO

N K

GS

)

-

20,000

40,000

60,000 PLA

NTE

D A

RE

A (H

EC

TA

RE

S)

Global Performance : PRODUCTIONGlobal Performance : PRODUCTION

China, 35%

Others, 25%

WORLD TEA PRODUCTION (2009)

TEA BOARD OF KENYA8

India, 25%Kenya, 8%

Sri- Lanka, 7%

Global Performance : ExportsGlobal Performance : Exports

Kenya, 22%others, 29%

WORLD TEA EXPORTS (2009)

TEA BOARD OF KENYA9

China, 19%

Sri-Lanka, 18%

India, 12%

Export Markets 2009Export Markets 2009

DESTINATION QUANTITY

KGS

EGYPT 75,391,513

UK 64,179,439

PAKISTAN 54,638,689

AFGHANISTAN 33,443,074

SUDAN 25,476,533

RUSSIA 13,518,878

TEA BOARD OF KENYA10

YEMEN 13,330,704

U.A.E 12,782,620

KAZAKHSTAN 9,122,806

POLAND 4,623,521

OTHERS 35,973,770

TOTAL342,481,547

Selling proposition Selling proposition -- Why Kenya Tea?Why Kenya Tea?

1. Favourable weather, all year leaf availability

2. No pesticides or agro-chemicals;

3. Good husbandry practices and selection of high quality varieties;

4. Skillful processing practices- No additives, preservatives or artificial colouring -realization of highest quality;highest quality;

5. Commitment to Global Food Safety, environmental and social standards;

6. Market Compliance-Adherence to Global Standards (ISO 22000, HACCP, ETP, Fair Trade, Rain forest Alliance e.t.c);

7. Efficient Marketing Infrastructure.


Re Re –– Positioning Kenya TeaPositioning Kenya Tea

Concerns • Over reliance on 5 key markets

• Dominance of CTC : Oversupply of black CTC in

the world market

3,700

3,800

3,900

4,000

MIL

LIO

N K

GS

WORLD PRODUCTION VS. COMSUMPTION TREND (2005-2009)


3,100

3,200

3,300

3,400

3,500

3,600

3,700

2005 2006 2007 2008 2009

MIL

LIO

N K

GS

YEAR

PRODUCTION CONSUMPTION


Concerns • Declining global prices

1.85

1.631.66

1.92

2.84

1.611.69

1.521.49

1.711.58

1.65

1.45

2.051.98

1.88

2.12

1.611.561.621.611.57

2.03

1.76

2.35

2.73

1.50

2.00

2.50

3.00

Au

ctio

n U

nit

Pri

ce (

US

D/K

g.)

KENYA TEA AUCTION PRICE TREND (1980-2009)


1.331.371.521.491.44

1.341.45

1.56

0.00

0.50

1.00

1.50

1980

1981

1982

1983

1984

1985

1986

1987

1988

1989

1990

1991

1992

1993

1994

1995

1996

1997

1998

1999

2000

2001

2002

2003

2004

2005

2006

2007

2008

2009

Au

ctio

n U

nit

Pri

ce (

US

D/K

g.)


Concerns • Projected changing world consumption

patterns

• Bulk exports

• Hidden Product

• Traditional marketing channels


WAY FORWARDWAY FORWARD

Tea Promotional Strategy 2008-2012

Focus is on :

a) Market Share Retention.

b) Niche opportunities.

c) Development of emerging markets.

d) Use of Non-traditional Promotional &

Marketing Channels:

• Diaspora Synergies other Agencies

TEA BOARD OF KENYA

• Diaspora Synergies other Agencies

• Tea Tours

• E-Auction

e) Product Diversification.

f) Value-addition & Product Branding (Mark-of-

Origin & GI).

g) Local Generic Promotion Campaign (LGPC).

15

Re Re –– Positioning Kenya Tea cont…Positioning Kenya Tea cont…


Partnering with Kenyan DiasporaPartnering with Kenyan Diaspora

� Natural Tea Ambassadors for awareness creation

� Participation in Diaspora Centered Missions and

Activities;

� Market Intelligence;

� Exploitation of potential market opportunities:

Importers

TEA BOARD OF KENYA

Marketing Reps

Agents

Distributors

Joint Ventures

� Acting as Market Intermediaries

17

conclusionconclusion

Drawing on success stories e.g. China and India

Diaspora Linkages is a vital component of the industry’s Promotional Strategy.

New constitution offers tremendous opportunity for Kenyan Diaspora;

Role of Tea Board of Kenya:

TEA BOARD OF KENYA

Role of Tea Board of Kenya:

Provide information & Statistics

Facilitation & Linkages

18

Thank You


Our contactsOur contacts

THE TEA BOARD OF KENYA

Tea Board House

Naivasha Road off, Ngong Road

P.O. Box 20064- 00200 Nairobi Kenya

Tel: (+254 20) 3874445/6 / 3872497

Wireless: (+254 20) 2536869 | 2536886

Fax: (+254 20) 3862120 / 3876337

Email: [email protected]

www.teaboard.or.ke

tea board presentation for emerging … board house naivasha road off, ngong road p.o. box...

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