Neil Palmer (CIAT) via flickr
"The ability to hedge price risk would be a significant victory for the farmers", - said Terrence Adembesa, Head of Derivatives department at Nairobi Security Exchange.
According to the Food and Agriculture Organization (FAO), tea is the most widely consumed beverage in the world after water.
In terms of production of tea leaves (399 ths. tons in 2015), Kenya is second only to China and India, but ranks first in the world in the export of black tea. The country holds the world's largest tea auction in the port city of Mombasa.
Revenues from Kenya tea exports in 2015 totaled $ 1.2 billion, this is the second largest source of foreign currency earnings for the country.
Global exchange trade futures contracts on various food products, including orange juice, coffee, pork, but futures on tea does not exist because of complexities of tea standardization, FAO said.
Price fluctuations on tea reduce the attractiveness of its production for farmers, says Kenyan Tea Development Agency industry. The average price of tea leaves at auction in Mombasa dropped this year by 22% to $ 2.25 per 1 kg against the increase of 34% in 2015.
source: bloomberg.com
According to the Food and Agriculture Organization (FAO), tea is the most widely consumed beverage in the world after water.
In terms of production of tea leaves (399 ths. tons in 2015), Kenya is second only to China and India, but ranks first in the world in the export of black tea. The country holds the world's largest tea auction in the port city of Mombasa.
Revenues from Kenya tea exports in 2015 totaled $ 1.2 billion, this is the second largest source of foreign currency earnings for the country.
Global exchange trade futures contracts on various food products, including orange juice, coffee, pork, but futures on tea does not exist because of complexities of tea standardization, FAO said.
Price fluctuations on tea reduce the attractiveness of its production for farmers, says Kenyan Tea Development Agency industry. The average price of tea leaves at auction in Mombasa dropped this year by 22% to $ 2.25 per 1 kg against the increase of 34% in 2015.
source: bloomberg.com
