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Tea stocks to lose 2b in revenue
Sure
#1 Posted : Monday, March 05, 2012 3:33:00 PM
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Kenya may have lost close to 2billion that it earns from the weekly tea auctions in foreign exchange following a boycott by the East Africa Tea Trade Association. The association boycotted the auction to protest introduction of a 46 cents levy charged on every Kilo of tea by the gover.

See Gazette Jan 27 and became effective Feb 27, 2012.

See story on Saturday Standard on page 29.

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#2 Posted : Monday, March 05, 2012 3:51:49 PM
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Joined: 5/27/2008
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1. As far as I know the levy was reversed.
2. Can you see Kapchorua, Finlays, East Africa Produce, KTDA pulling out their tea bushes because of US$ 0.46/kilo (i.e KRA have them by the balls)
VituVingiSana
#3 Posted : Tuesday, March 06, 2012 7:10:50 PM
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The tea does not go to waste... It gets sold on a different day...
Greedy when others are fearful. Very fearful when others are greedy - to paraphrase Warren Buffett
sparkly
#4 Posted : Tuesday, March 06, 2012 11:00:13 PM
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Location: Enk are Nyirobi
VituVingiSana wrote:
The tea does not go to waste... It gets sold on a different day...

True that, its sitting in the warehouses at mombasa. The risk is increased warehousing costs and loss of revenue for the brokers.
Life is short. Live passionately.
VituVingiSana
#5 Posted : Wednesday, March 07, 2012 10:59:21 AM
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sparkly wrote:
VituVingiSana wrote:
The tea does not go to waste... It gets sold on a different day...

True that, its sitting in the warehouses at mombasa. The risk is increased warehousing costs and loss of revenue for the brokers.

I agree with the cost of warehousing & supply chain problems (coz tea is harvested regularly) but revenue for the brokers is not a loss to the Tea producers.
Greedy when others are fearful. Very fearful when others are greedy - to paraphrase Warren Buffett
The Merchant
#6 Posted : Wednesday, March 07, 2012 12:36:16 PM
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Location: KENYA
The fee was reversed....unless it was imposed again????
sparkly
#7 Posted : Wednesday, March 07, 2012 2:03:03 PM
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Joined: 9/23/2009
Posts: 8,083
Location: Enk are Nyirobi
VituVingiSana wrote:
sparkly wrote:
VituVingiSana wrote:
The tea does not go to waste... It gets sold on a different day...

True that, its sitting in the warehouses at mombasa. The risk is increased warehousing costs and loss of revenue for the brokers.

I agree with the cost of warehousing & supply chain problems (coz tea is harvested regularly) but revenue for the brokers is not a loss to the Tea producers.


True. Just noting what the brokers stand to lose.
Life is short. Live passionately.
FUNKY
#8 Posted : Wednesday, March 07, 2012 2:30:37 PM
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Joined: 4/30/2010
Posts: 1,635
"Last week's regular sessions, usually held on Monday and Tuesday, were called off over a row about a new tax to be imposed on Kenyan tea, but resumed on Wednesday after the dispute was resolved."
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