Malawi’s tea production fell sharply in the third quarter of the year, yet export earnings from the crop increased, according to new data from the Reserve Bank of Malawi (RBM).
Tea output declined to 4.7 million kilogrammes between July and September, down from 13.4 million kilogrammes in the previous quarter, marking one of the lowest quarterly production levels in recent years. The RBM attributed the drop largely to adverse weather conditions, including prolonged dry spells and erratic rainfall that affected tea-growing regions, as well as ongoing cost pressures faced by producers.
Despite the steep fall in volumes, Malawi earned more from tea exports during the period. Higher international prices helped offset the decline in production, lifting overall export receipts. Global tea markets have seen firmer prices in recent months due to supply constraints in key producing countries and sustained demand from major importing markets.
Tea remains one of Malawi’s most important foreign exchange earners, alongside tobacco, sugar and coffee. The increase in export revenue offered some relief to the country’s balance of payments at a time when Malawi continues to grapple with foreign currency shortages and rising import costs.
Industry players, however, warn that the sharp fall in output highlights structural challenges facing the sector, including climate vulnerability, rising input costs, ageing tea bushes and limited investment in irrigation and replanting. They caution that without sustained productivity improvements, future earnings could come under pressure even if prices remain favourable.
The RBM noted that maintaining export competitiveness will depend on stabilising production, improving resilience to climate shocks and supporting value addition across the tea value chain, as Malawi seeks to strengthen agricultural exports and overall economic recovery.
