Coffee earnings at weekly auction hits Sh. 2 billion

Some 33,673 bags of coffee traded at Nairobi Coffee Exchange (NCE) on Tuesday earned farmers’ cooperative societies and coffee estates Sh. 2.04 billion.

In the auction that took place at Wakulima House in Nairobi, the average price rose by 4 percent to Sh. 49,464 per 50 kg bag, up from Sh. 47,527 realized in last week’s sale 17.

This average price translates to Sh. 994.5 per kilo of clean coffee, with farmers expected to be paid Sh. 122.

The highest price achieved was Sh. 59,279.9 per 50 kg bag, a 3 percent increase from Sh. 57,600 recorded in the previous sale.

This top price was secured by coffee from the Mutuya Factory which is part of Gititu Farmers’ Cooperative Society in Kiambu County.

The factory sold 27 bags equivalent to 1,650 kgs of grade AA coffee. This represents a significant improvement from last season’s peak of Sh. 50,626 per bag from the same cooperative, suggesting promising market conditions this season.

The Kiaga factory got Sh57,663 for each of the 29 bags of AA grade, Kieni factory achieved a price of Sh57, 084 for each of the 78 bags of AA grade followed by Kiamabara Sh.56,309, and Kangocho Sh56,309 among others.

Premier grades of AA and AB traded comprised 23,839 bags, representing 71 percent of total traded volume.

Thirteen brokers participated in the sale, with Alliance Berries Ltd leading the market by selling 15, 005 bags at Sh. 905.1 million.

Kirinyaga Slopes Brokerage Company sold 4,661 bags at Sh. 293 million followed by KCCE marketing agency which traded 3,454 bags fetching Sh217.7 million, Minnesota sold 2,741 bags followed by New KPCU which traded 2,529 bags.

In the category of dealers, Louis Dreyfus Company led a group of 17 buyers who purchased all available coffee during this sale.

The company bought 9,758 bags at Sh. 584.08 million, C. Dorman Ltd purchased 7,911 bags at Sh. 503.5 million and Ibero Kenya Ltd got 4,898 bags at Sh. 285.5 million.

NCE Chief Executive Officer Lisper Ndung’u lauded farmers’ efforts in producing coffee of high quality, saying the premier qualities at the auction attracts many international buyers.

“During this week’s auction there were 9,286 bags of grade AA and 14,553 bags of grade AB that attracted both local and international buyers. The high quality cherry saw the earnings cross past Sh. 2 billion,” said the CEO.

The auction, she noted, reinforces the strength of Kenya’s coffee sector observing that the demand for local high-quality beans remains strong. “But we must continue improving quality and market access to ensure farmers receive the best value for their produce,” she said.

“The prevailing impressive prices of the commodity were witnessed 15 years ago,” She added.

Ms Ndung’u emphasized the importance of transparency and direct market linkages in strengthening Kenya’s coffee trade.

By Bernard Munyao