Malawi tea output, revenue fall on dry spell

18 March 2010, Reuters
URL: http://af.reuters.com/article/investingNews/idAFJOE62E0MI20100315

Lilongwe:  Malawi's tea output fell more than 40 percent between January and February while revenue dipped by over 25 percent compared with the same period last year due to a dry spell, an industry group said on Monday.

"During the same period (January to February) last year, we sold 3.6 billion Malawi kwacha, but this year we have earned 2.6 billion so far," TAML chief executive Clement Thindwa said.  "The revenue is on 10 million kgs... lower than the 17 million kgs produced during the same period last year."

He said a dry spell had hit Malawi's southern region, where tea is mainly grown, cutting output and revenue.  Thindwa said his association expected both output and revenues to fall further this year.

Malawi is Africa's second largest tea producer after Kenya and is ranked twelveth in the world.  According the Malawi Confederation of Chambers of Commerce and Industry (MCCI), the country's annual tea exports stand at around 43 million kg, contributing three percent of global tea earnings.  Last year, the country produced 52 million kilogrammes.

A persistent dry spell and an army worm outbreak in January destroyed about 35,000 hectares of crops, threatening the food security of more than 120,000 families.