The weekly coffee prices declined marginally during the second last sale of the season as the auction plans to take a one-month break as the main crop period comes to an end.
Market report from the Nairobi Coffee Exchange (NCE) indicates that the price of a 50-kilogramme bag dropped to $226 (Sh26,080) down from $228 (Sh26,311) in the previous sale.
The price of the commodity has been on a constant decline since February as the high-quality beans from the main crop dwindles, cutting down on demand.
“The quality has gone down now as we come to the end of the season that is why the prices shave been declining,” said Daniel Mbithi, chief executive officer of NCE.
The auction is set to go on recess in May as the main crop season comes to an end with only one trading remaining in the current season.
The main crop season started in November last year with the crop sustaining the market up to this month when the ratio of high-quality beans started dwindling.
The auction will now be banking on the short-season crop from eastern and parts of western Kenya when it resumes in June, which will sustain the auction up to November when the main crop coffee is expected to hit the market again.
In the latest trading, Kenya’s top-grade coffee –AA declined to $279 (Sh32,196 from $299 (Sh34,385) in the previous sale while grade AB fetched $263 (Sh30,350) from $291 ( Sh33,465 in the previous auction.
These top grades are normally in high demand in the world market. The country has one of the best coffees in the world that is highly sought after by roasters for blending with other low quality from other regions.
The government through the coffee reforms is trying to address the selling of raw coffee by encouraging value addition.