Blog Archive

Friday, December 01, 2006

Kenya beats India in smallholder Tea Investments!

Officials from Assam (a state in India where Tea Growing is big business) wants to "copy" the ideas & innovations of the KTDA & smallholders in Kenya.

KTDA should be extremely circumspect since India - the world's largest tea producer - is aggressively pursuing Kenya's traditional export markets e.g. Pakistan.

Furthermore, the Indians have started buying out "Brand Names" e.g. Tata Tea - listed on the Bombay Stock Exchange - bought Tetley's in the UK... this gives them a leg up since there is more money in the value-added side of the business.

China & Vietnam are also gearing up Tea production. When Vietnam started producing Robusta coffee, they became a huge producer within a short time frame. China has become the #3 exporter of tea & could exceed Kenyan exports by 2010. It scares me to think Kenya will start importing Chinese tea in a few years!

Kenya needs add value to the "raw" tea by investing the Tea Industry. This is not easy but there has to be a concerted effort spearheaded by the government but ultimately run by the private sector.

KTDA factories are farmer/shareholder owned & if these "shares" were floated I feel financing costs would drop enabling factory upgrades & best practices.

Don't let the Indians (Vietnamese or Chinese) take away this hard-earned advantage!

27 comments:

Anonymous said...

kenya needs to buy starbucks,nestle and all those downstream companies we need to figure out how to buy them and move production to kenya

Baltic Amber said...

ati buy starbucks??? what on earth are you guys talking about?

what kenya needs to do is improve it's marketing plan and open up retail stores that sell it's tea exclusively.

starbucks is really just a retail outfit. they don't grow their own coffee. they buy it from countries like kenya and sell it a premium price.

kenya needs to copy colombia. they've established high end coffee shops in america called juan valdez that sell exclusively colombian coffee.

they need to go retail. sell the brand.

coldtusker said...

Pesa tu - Kenya can't "afford" to buy the firms you mentioned!

Plus PRIVATE SECTOR needs to buy these firms (if possible) but the govt needs to facilitate the process...

KE - I agree... that makes more sense... Starbucks & Caribou are entrenched in the coffee business so it is Tea where Kenya can make an impact!

I vision a "Tea Shop" that sells Kenyan crafts, music & ads for Kenyan safaris!

Baltic Amber said...

starbucks is a publicly traded company. if you want to "buy" it, you can always buy their shares.

Anonymous said...

Kenya doesn't have enough "cash" to buy Starbucks! Market value is $27 Billion.

The whole country would have to be mortgaged. The NSE entire market value is about $11 Billion!

Anonymous said...

so whats the difference between buying starbucks and setting up a competitor. KE bana you always contradict urself and make wild pronouncements. anyway - buying starbucks and nestle doesnt necessarily mean buying 100% what it means we get to excercise some control or share in the profit i mean if we cant bear=t them lets join the and make some money on downstream

Anonymous said...

well i gonna go wid kenyan enterpreneur on this you all don know what u talking about....best possible way is open an exclusive kenyan tea brand it market it and voila we go.....stubacks first of all is known 4 premium coffee...so forget buying wont market ur tea..brand a tea kingdom make it premium and u are halfway there....don worry about the quantity either..ever wondered why gucci things are higly sought because they control their numbers and market them diffrently like limited edition....on the other hand giordano produces millions but similar copies but still gucci will be more profitable so its not the quantity its the marketing strategy....

Anonymous said...

its not that colombian coffee is superior than kenyan but this guys seriousy market their coffee...they even play with pple mind one of their best coffee is called Nairobi its an upmarket brand served in top restraunts and even on some of the most luxurious premium cabin in airlines like emirates..singapole airlines etc most people think its a coffee from kenya or ethiopian highlands...we need a new marketing strategies....

Anonymous said...

well in most starbacks outlets kenyan coffee is the most expensive
so guys all we have done is let someone control our goldmine...

Baltic Amber said...

ANNON:

what wild pronouncments???
your comment is so off the mark I wouldn't even know where to begin!!!

ct:

please explain it to them. i don't have the patience.

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