The KENYA INSTITUTE for PUBLIC POLICY RESEARCH and ANALYSIS No. 3/2017-2018 Supporting Sustainable Development through Research and Capacity Building Promoting Purple Tea to Enhance Diversification in Kenya’s Tea industry John Nyangena, Hannah Wang’ombe and Augustus Muluvi, Policy Analysts, KIPPRA The discovery of purple tea by the Tea Research Institute in 2011 provided an opportunity for diversification and increased competitiveness of Kenyan tea. Purple tea has higher yields, is more adaptive to drought, and can fetch up to ten times more than processed green tea at the international market. To harness the full benefits of purple tea, more effort is needed to reduce the cost of setting up specialized factories, developing the necessary technical capacity for processing, and address current market barriers. Introduction anthocyanins, the same antioxidants that give color to foods such as blueberries, cranberries, grapes, In 2016, tea accounted for 40% of the marketed and even red cabbage or eggplants. The clone agricultural production and contributed 25% of total thrives on highlands 1500-2500 meters above sea export earnings amounting to US$ 1.25 billion. In level on rich volcanic soils. addition, the tea sector provides livelihoods to over Currently, Kenya exports approximately 60 tonnes 600,000 smallholders who contribute approximately of purple tea to Japan, China, North America and 60% of total tea production. However, the industry and Europe. While the prices for ordinary tea have suffers from low earnings and low diversification. been falling in the international market, prices for Over 95% of Kenya tea is black tea produced using purple tea have been rising. Locally, a kilogramme traditional methods of cut-tear–curl (CTC) teas which of purple tea can fetch up to Ksh 2,600, which is 10 gives it a robust taste. The product is mainly used times more than processed green tea which fetches for blending lower quality teas from other countries, Ksh 200 per kilogramme. A well established bush and only 14% of tea exported is value added; the can yield up to 2.5 kilogrammes of leaves in a year remaining is sold in bulk form. Global market for as opposed to 1.5 kilogrammes for green tea. In black CTC is saturated, competition is stiff, and addition, purple tea is known to withstand adverse auction prices are highly volatile, leading to declining weather conditions such as drought and frost as earnings. well as disease and pests. The discovery of clone TRFK 306/1 of purple tea was Besides economic gains, its rich flavour in oxidized in line with the aspirations of Vision 2030 that Kenya form enables purple tea to have multiple health needs to diversify its tea products and add value to benefits. For example, drinking purple tea helps enhance productivity and boost economic growth in anti-obesity through the inhibition of lipase, the in the agricultural sector. While development of enzyme that breaks down fats in the body, and Kenya’s purple tea is still at the infancy, it is projected providing anti-aging benefits to the skin. In addition, that its production has the potential to create new it has low caffeine content, is highly refreshing and markets and generate up to US$ 60 million over the has a unique thirst-quenching flavour, and has no next 3-5 years and comprise up to 5% of Kenya’s tea additives or no known allergens. export market. The production of a unique specialty product such as purple tea offers great promise in Research has shown that the anthocyanins and transforming Kenya’s tea industry and boosting the catechins contained in purple tea are useful in sub-sector’s competitiveness as well as earnings to breaking down free radicals in the body and in farmers and the country at large. reducing inflammation in the body cells. Further, anthocyanins are essential health-boosting antioxidants which help fight free radicals in the Benefits of Purple Tea body, therefore reducing the risk of hypertension and cardiac arrests. Anthocyanin extractives are further Purple tea derives its name from its distinctive, used as drug supplements, preservatives and in the purple-reddish leaves associated with high levels of KIPPRA Policy Brief No. 3/2017-2018 1 production of fast-moving consumer goods such as Germany. However, entry into these markets faces healthcare products, foods and confectionaries. market barriers, including international standards especially on quality, and food safety requirements. Other challenges facing the tea sector in general Challenges Facing Purple Tea identified by the study include high cost of labour and energy, limited incentive for production of A recent study by KIPPRA identified capacity gaps other types of tea, small size of land and hence low in the tea value chain in general and specifically productivity among small scale farmers, and lack of for the speciality teas. The gaps include insufficient a clear programme targeting tea promotion, among numbers of tea specialists, statisticians, market others. researchers and policy experts. The gaps exist in institutions mandated to promote tea production, processing, marketing and research, among others. Scaling Up Purple Tea Production At the national level, the country does not have an operational tea policy while at the counties there Kenya would gain immensely from purple tea by is lack of a clear legal and regulatory framework to adopting the following key measures: effectively support the tea sector. 1. The Tea Directorate should enhance cottage The current production of purple tea in the country is factories to raise the productive capacity in the low. Only a small proportion of farmers are engaged country. There is need to reduce the acreage in its production. The majority of farmers are for licensing speciality tea factories from 250 reluctant to adopt purple tea mainly due to expected hectares to cater for small scale production. The income loss if they were to replace their black tea small scale farmers also need to be encouraged, bushes. Although the time it takes before the plant through incentives, to replace their existing black is fully established is much less than in the case of tea bushes. black tea (3 compared to 5 years), the loss of income 2. The Tea Directorate should partner with during the waiting period discourages them, since technical institutions to build the capacity for skill they have no other sources of income to support development on tea extracts to fully benefit from their livelihoods. the diverse products. The processing capacity Processing purple tea requires specialized plant, of the various factories should be enhanced to equipment and technical know-how. Most of the maximize on the benefits. This will contribute to factory capacities in the country consist of wilting, the overall growth of value addition in the tea bruising, oxidation, rolling and drying processes industry. needed to produce black CTC tea. The processing 3. Purple tea requires aggressive marketing of purple tea requires additional processes, strategies through investments in promotion specifically for fixation, yellowing and curing which and market intelligence. There is need for requires dedicated lines for production. Currently, of international negotiations to rationalize the all the 66 Kenya Tea Development Authority (KTDA) standards in the existing markets for tea. This tea factories, only Kangaita tea factory in Kirinyaga will include creation of a Kenyan tea brand County has a production line that can process purple in the international market with geographical tea. indications to enhance competitiveness. To Marketing of purple tea is a challenge both locally promote the marketing of purple tea, the East and internationally. Domestically, the annual per African Tea Trade Association (EATTA) is capita consumption of black tea is estimated at 0.47 considering expanding its auction to purple, kilogrammes. The consumption of purple tea is even green and other teas. EATTA has commenced much less due to inadequate knowledge about the a feasibility study to this initiative. Further, the variety. Internationally, Japan is the main market for Purple and Specialty Tea Association of Kenya purple tea. Other markets include USA, China and recently committed to supporting and promoting the interests of producers, buyers, exporters and other participants along the value chain. . About KIPPRA Policy Briefs For More Information Contact: KIPPRA Policy Briefs are aimed at a wide dissemination of the Kenya Institute for Public Policy Research and Analysis Institute’s policy research findings. The findings are expected to Bishops Road, Bishops Garden Towers stimulate discussion and also build capacity in the public policy P.O. Box 56445-00200, Nairobi making process in Kenya. Tel: 2719933/4 Cell: 0736712724, 0724256078 KIPPRA acknowledges generous support from the Government Email:admin@kippra.or.ke of Kenya, the African Capacity Building Foundation (ACBF), and Website: http://www.kippra.org the Think Tank Initiative of IDRC, who have continued to support Twitter: @kipprakenya the Institute’s activities over the years. 2 KIPPRA Policy Brief No. 3/2017-2018