Coffee traded in a weekly auction nets Sh.1.8 billion

The Nairobi Coffee Exchange auctioned a volume of coffee, generating Sh.1.8 billion for farmers and estates.

According to the NCE report, 34,855 bags of 50 kilos each were traded, a 6 percent decrease from the 37,204 bags that were auctioned in last week’s sale.

The average price per bag of 50 kilos fell by 7 percent to Sh. 43, 590, down from Sh. 46,824 per bag in last week’s sale.

This average price translates to Sh. 866 per kilogram of clean coffee, with a farmer expected to be paid at Sh. 107 per kilogram of delivered coffee.

Gachatha Factory of Nyeri County secured the highest price of Sh. 57,690 per 50-kilo bag for 43 bags of grade AA coffee.

Coffee of premium grades of AA and AB comprised 21,487 bags, representing 62 percent of total traded volume.

Alliance Berries leads other brokers in trading the highest volume at 13,564 bags, followed by Kirinyaga Slopes with 4,068 bags, New KPCU with 3,692 bags, KCCE-MA with 3,684 bags, and Minnesota Marketers with 2,831 bags.

Other brokers who participated in the auction include Cebba Trading 2,841, Kipkelion 877, Murang’a Union 696, Kiambu Coffee Union 710, United Eastern Kenya 829, Mt Elgon 465 and Meru Union 598 bags.

In the category of buyers, Ibero Kenya Ltd led by purchasing 10,682 bags at Sh. 578 million, C. Dorman bought Ltd 6,044 bags at Sh. 356 million, Louis Dreyfus Company got 3, 564 bags 166 million, Sasini (K) Ltd. 3,180 bags at Sh. 165.6 million and Taylor Winch ltd 3,161 bags at Sh. 156 million.

NCE Chief Executive Officer Lisper Ndung’u acknowledged increased production of high-quality coffee, saying the premium grades have helped farmers get better earnings.

Ms Ndungu called upon cooperative societies to provide extension services to farmers so as to boost yields and quality of coffee.

“This auction reinforces the strength of Kenya’s coffee sector. The demand for our high-quality beans remains strong, but we must continue improving quality and market access to ensure farmers receive the best value for their produce.

“The prevailing impressive prices of the commodity were witnessed 15 years ago,” said the CEO in a statement.

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

By Bernard Munyao