Published By : 11 Jul 2016 | Published By : QYRESEARCH
Britain’s exit from the European Union has proved costly for Kenyan exporters. The slumping of pound against dollar is costing a loss of US$79,000 per day to these fresh-produce exporters. Since the last week of June, pound has weakened about 12% against the dollar. According to the Fresh Produce Exporters Association of Kenya, the slump in the pound has been hurting the Kenyan exporters of vegetables, fruits, and flowers to the U.K. A majority of these exporters have their biggest customers in the U.K. As the freight charges are being paid in dollars and payments are being received in pounds, the Kenyan exporters are facing huge losses.
Kenyan Tea Exporters can set up Direct Trade Links with European Nations
However, the tea exporters in Kenya might fare better from Britain’s decision to exit the EU. According to the East African Tea Trading Association, the Kenyan tea exports might take away Britain’s share in the export market as the country re-exports tea to other European nations. Kenya is the largest exporter of black tea across the globe and can set up direct trading links with European nations rather than depending upon the U.K.
The London-based International Tea Committee has revealed that 65,460 metric tons of tea is exported from Kenya every year. This volume is about half of the total volume of tea bought by the U.K. from overseas market. Blenders repackage the tea leaves imported from Kenya with tea from other locations and re-export about 17% of the overall imported tea to countries such as Spain, France, Germany, and the Netherlands. The export of tea earned revenue worth US$1.23 bn for Kenya last year. This crop is majorly grown by small-scale farmers in the country.