advertisement

Commodities

Coffee prices up slightly on the back of quality beans

Harvested coffee in Nyeri. FILE PHOTO | NMG
Harvested coffee in Nyeri. FILE PHOTO | NMG  

Coffee prices at the weekly auction registered a two per cent marginal increase in Tuesday’s sale as quality crop in the market continues to push up prices.

Market report from the Nairobi Coffee Exchange shows a 50 kilo bag of coffee traded at Sh23,587 in the latest sale compared with Sh23,072 that it fetched on average last week.

The price of coffee has been increasing since the auction resumed from a one-month recess in July, helped by quality beans from farmers in eastern Kenya.

The improved prices can also be attributed to the shortage of the crop in the market resulting from bad weather that has cut down production.

Coffee earnings as at the end of August 2017 increased by 10 per cent due to high demand from roasters, according to NCE. NCE in a report said the crop earned Kenya Sh15.3 billion in the year ending August compared with Sh13.9 billion in the corresponding period in 2016.

About 85 per cent of the Kenyan coffee is sold through the auction with the remaining percentage sold directly to overseas buyers.

The government has been pushing for direct sales to enable growers earn more from their crop as this would eliminate middlemen who exploit farmers.

advertisement