Daily Management Review

Kenya to launch the world's first tea futures


06/16/2016


INTL FCStone Inc. company, headquartered in New York, held talks about launch of tea derivatives with representatives of the tea industry in Kenya, said senior vice president of INTL FCStone for developing countries Stewart Ponder. Nairobi Stock Exchange has supported such a proposal.



Neil Palmer (CIAT) via flickr
Neil Palmer (CIAT) via flickr
"The ability to hedge price risk would be a significant victory for the farmers", -  said Terrence Adembesa, Head of Derivatives department at Nairobi Security Exchange.

According to the Food and Agriculture Organization (FAO), tea is the most widely consumed beverage in the world after water.

In terms of production of tea leaves (399 ths. tons in 2015), Kenya is second only to China and India, but ranks first in the world in the export of black tea. The country holds the world's largest tea auction in the port city of Mombasa.

Revenues from Kenya tea exports in 2015 totaled $ 1.2 billion, this is the second largest source of foreign currency earnings for the country.

Global exchange trade futures contracts on various food products, including orange juice, coffee, pork, but futures on tea does not exist because of complexities of tea standardization, FAO said.

Price fluctuations on tea reduce the attractiveness of its production for farmers, says Kenyan Tea Development Agency industry. The average price of tea leaves at auction in Mombasa dropped this year by 22% to $ 2.25 per 1 kg against the increase of 34% in 2015. 

source: bloomberg.com






Science & Technology

A City Is Can Be Converted To A Living Organism, Showcases China’s Huawei

Workers Would Be Helped To Lift More By These Robotic Vests

British Parliament to assess impact of e-cigarettes

Wind energy will provide 30% of Europe's needs by 2030

A Major Platform For Artificial Intelligence Is Its Mobile Devices: Apple

Rumor: Apple will release a budget version of iPhoneX

With China Set To Dominate, 1 Billion Could Be Using 5G By 2023

Deutsche Telekom unveils next gen 5G mobile antennas in Europe

Diamonds are now the new gold

Expert Body Says Driving In A Driverless Car In An Inebriated Condition Or On Drugs Should Be Legalized

World Politics

World & Politics

Japan demands to lift embargo on food from Fukushima

Bernard Arnault clarifies on Le Monde’s “Paradise Paper” report

South Korea and the U.S. present a united front against the North Korean leadership

Europe is preparing an alternative to NATO

Ten smartest cities in the world

Parties of Germany seek a common ground to create a coalition

Special counsel Robert Mueller’s Russian probe could see its first arrest today

Losing Steam Is North Korea’s Relationship With China – The Former’s Sole Ally