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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
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ContentsContents
Introduction
Performance
Selling proposition
Conclusion
TEA BOARD OF KENYA2
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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
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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
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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
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Tea Growing AreasTea Growing Areas
East of Rift:LimuruKiambuMeru
West of Rift:KerichoKisiiNandi
TEA BOARD OF KENYA6
Nandi
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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)
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Global Performance : PRODUCTIONGlobal Performance : PRODUCTION
China, 35%
Others, 25%
WORLD TEA PRODUCTION (2009)
TEA BOARD OF KENYA8
India, 25%Kenya, 8%
Sri- Lanka, 7%
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Global Performance : ExportsGlobal Performance : Exports
Kenya, 22%others, 29%
WORLD TEA EXPORTS (2009)
TEA BOARD OF KENYA9
China, 19%
Sri-Lanka, 18%
India, 12%
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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
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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.
TEA BOARD OF KENYA11
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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)
TEA BOARD OF KENYA12
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
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Re Re –– Positioning Kenya TeaPositioning Kenya Tea
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)
TEA BOARD OF KENYA13
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.)
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Re Re –– Positioning Kenya TeaPositioning Kenya Tea
Concerns • Projected changing world consumption
patterns
• Bulk exports
• Hidden Product
• Traditional marketing channels
TEA BOARD OF KENYA14
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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).
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Re Re –– Positioning Kenya Tea cont…Positioning Kenya Tea cont…
TEA BOARD OF KENYA16
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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
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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
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Thank You
TEA BOARD OF KENYA19
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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