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Decrease of coffee volume traded at weekly auction earns Sh 1.5 billion
Coffee volume traded at Nairobi Coffee Exchange (NCE) on Tuesday earned farmers and estates Sh. 1.5 billion.
A total of 28,454 bags of coffee were auctioned marking a 16 percent decrease from 34,008 bags that were traded in last week’s sale 21 of the coffee year.
Average price per bag of 50 kilos fell slightly to sh.44,203.50 down from sh.45,108 realized in the previous sale.
Kamoko factory, which is affiliated with Othaya Cooperative Society, secured the best price after selling each of 51 bags of grade AA at Sh. 59,572.
Other factories that earned impressive prices in the auction include Kathima Sh. 55,577, Ndima Sh. 54,802 and Gathaithi Sh. 54,543 per bag of 50 kilos.
In the category of brokers, Alliance Berries Ltd. led other 12 brokers after trading highest volume of 11,603 bags which netted Sh. 602 million, Kirinyaga Slopes sold 5,322 bags getting Sh. 320.5 million; Minnesota Coffee Marketers Ltd. sold 3,254 bags fetching Sh. 170 million; New KPCU traded 2,759 bags at Sh. 158 million and KCCE auctioned 2,803 bags at Sh. 161.2 million.
Coffee of grades AA and AB comprised 17,107 bags, representing 60 percent of the total traded volume.
The auction which was conducted at Wakulima House in Nairobi attracted 25 buyers with Ibero Kenya Ltd. purchasing the highest volume of 7,700 bags.
Ibero was followed by Louis Dreyfus Ltd., which purchased 4,300 bags; Taylor Winch bought 3,800 bags and Sasini Company got 3,400 bags among others.
According to NCE, CEO Ms Lisper Ndung’u, market concentration remained significant, with the top five brokers including Alliance Berries, Kirinyaga Slopes, Minnesota Marketers, New KPCU and KCCE-MA accounting for more than 80 percent of coffee traded in the auction.
Ms Ndung’u said the increased number of local and international buyers reflected continued strong demand for Kenyan coffee at the weekly auction at the NCE.
She called upon cooperative societies to invest hugely on production of high-quality coffee as it attracts many international buyers and fetches impressive prices.