The volumes of tea produced in the country have over the past five years steadily declined with earnings also dwindling as a result of poor output.
Statistics from Tea Association of Malawi (Taml) show that volumes of tea offered for both the domestic and export markets have gone down with total export standing at 30.8 million kilogrammes in 2015 down from 42.9 million kilogrammes in 2005.
Exports to the United Kingdom have been declining since 2005 from 14.5 million kilogrammes to 10.6 million kilogrammes in 2015 while the United States is now only getting 847,560 kilogrammes from 3.5 million.
Taml Chief Executive Officer Clement Thindwa has described the developments as worrisome for the Malawi economy. Tea is Malawi’s second major foreign exchange earner after tobacco.
Thindwa said the sector has been producing 39,000 metric tonnes, but 2015, the sector recorded the lowest production ever.
“In 2015 the tea sector recorded its lowest production in history and it might get worse if the weather patterns remain the same,” he said.
Thindwa further said earnings from tea now hover around K23 billion down from K26 billion realised in past seasons.
“Am not an alarmist, but looking at the trends, it is worrisome and not favourable. The situation naturally threatens the future of the industry which is the largest formal labour employer in the private sector. As you might be aware, we are also having disruptions in terms of transportation in Mozambique which is forcing us to re-route our exports to more expensive routes and this coupled with generally the climate change and the rising cost of production, tea exports have generally been hit,” said Thindwa.
Malawi’s average tea output is 46,000 metric tonnes, a record output of 52.2 metric tonnes was hit in 2009.
Tea contributes eight percent to the gross domestic product and employs over 60,000 people.
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