Tea companies and smallholder farmers face big shocks in earnings decline owing to lower prices, according to researchers at the
The cash crop has been
"Lower prices and export earnings, which reflect shifts in global demand and supply patterns, are having a negative impact on both plantations and smallholders... Kapchorua,
The three companies are listed at the Nairobi Securities Exchange.
Data from the
Prices tumbled to
The earnings were lower than a year earlier by nearly a fifth, the lowest in five and a half years. Tea export revenue shrunk by 17.3 per cent to
"Reduced tea earnings will constrain export growth in 2014, although higher inflows from coffee and other sectors will offset the shortfall," the EIU forecast.
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