Kigali, July 8 - Rwanda's earnings from tea exports grew by 44 percent in the first half of 2008 compared with the same year-ago period due to higher auction prices, an industry official told Reuters on Tuesday.
The higher income was also partly due to a rise in production volumes this year. In the first half of 2008, output grew by 17 percent to 11,000 tonnes from 9,400 tonnes during the same year-ago period.
Tea earnings climbed to $26 million over January-June 2008 compared to $18 million in the same period last year.
"Prices at Mombasa were relatively high mainly due to low production from Kenya this year," said Anthony Butera, Director General of the Rwanda Tea Authority, adding that average tea prices stood at $2.2 per kg from $1.7 per kg in 2007.
A weekly sale in Kenya's port city of Mombasa sells tea from Rwanda, Uganda, Tanzania, Burundi, Zambia, Madagascar, Malawi, Mozambique and the Democratic Republic of Congo. But about 75 percent of the volume originates from Kenya.
Kenya's production in 2008 is expected to fall to 335 million kg from 369 million in the previous year on low rains.
Though insufficient rainfall affected output in Rwanda's northern farms and hailstorms hit plantations in the west, Butera said 2008's target of 23,000 tonnes would be met.
The western province is Rwanda's biggest tea producer.
Earnings from tea are projected to rise to $42 million in 2008 compared to $36 million in the previous year.
Butera said farmers' extensive use of fertilisers and modern farming methods were already yielding better production volumes.
Butera said the government was reviving privatisation of tea plantations whose sale had been suspended for nearly two years. He said the three factories of Kitabi, Gishakura and Gisovu would be sold off before the end of 2008.
"Due diligence of three factories is already under way and we should start negotiations later this month with prospective buyers," Butera said.
The government currently owns six tea factories and plans to set up another five jointly with private investors. Individuals own another five.