Africa Tea Brokers Limited – A Brief History
Africa
Tea Brokers Limited was the pioneer broker of the Kenya Tea Export Auction
system, which was initiated in November 1956 in Nairobi.
Starting off on a very small scale, only limited quantities of secondary
grades were auctioned fortnightly. The
bulk of Kenya’s tea
production at that time was being consigned to the London Auction with the United Kingdom
being the most important importer of tea in the world.
Producers subsequently considered it worthwhile
offering additional quantities in the auctions.
Initially, only a few international buying concerns opened offices in Kenya but as quantities increased, the incentive
to others was apparent and more international buyers were attracted and the
spread of interest from markets other than the UK built up. It was then decided by both producers and
active buyer members of the East African Tea Trade Association that as tea was
warehoused and shipped from Mombasa,
it would be beneficial and easier to control if the export auctions were moved
to the port of Mombasa. This transpired in 1969 and by this time the
auctions were held weekly, with progressively increasing quantities being
printed in Africa Tea Brokers catalogues.
Containerized shipments introduced in the late
seventies, created further interest from international tea buyers who soon
realized the advantages of quick and safe shipment to destination. The conversion of packing to easily
palletized paper sacks stretch-wrapped and containerized for shipment has been
an additional incentive to exporters.
The introduction of bidding in US dollars in
October 1992 also proved a further strong incentive to producers offering tea
in the Mombasa Auctions and additional quantities not
only from Kenya but also
from Uganda, Burundi, Rwanda,
Tanzania, Zaire, Malawi,
Democratic Republic of Congo, Zambia,
Zimbabwe, Ethiopia, Mozambique
and Madagascar have been
attracted to Mombasa. This allows payment for teas sold in US
dollars ten working days from the date of sale and obviates any devaluation in
local rates and ensures rapid payment in a stable currency.
Mombasa is now the largest CTC auction
centre in the world, offering upto 9.5 million kgs per week and sometimes more during peak periods.
N J M WILSON
CHAIRMAN &
MANAGING DIRECTOR