Coffee price declines as good beans supply falls

The price of coffee at the Nairobi Exchange has declined by 22 per cent in this week’s sale as low quality beans continue to push down the value.

A market report from Nairobi Coffee Exchange (NCE) indicates a 50-kilogramme bag on average sold at Sh14,111 on Tuesday, down from Sh18,156 in the previous sale.

Lately, coffee has been registering lower prices attributed to poor quality of beans as the main crop season ends.

NCE chief executive Daniel Mbithi said the situation is expected to persist until the auction breaks for recess.

“The prices came down due to the low quality beans on offer. This is because we are approaching the end of the main season and most of the better qualities have already been sold,” said Mr Mbithi.

The auction has been enjoying high volumes of good quality beans from central Kenya in the last three months.

It is likely to break on recess next month due to low volumes that cannot sustain the market.

Coffee earnings had improved by 63 per cent in February compared with a similar period in 2016 on the back of higher international prices and increased volumes at the auction.