Commodities

Coffee prices at Nairobi auction decline on bean quality concerns

coffee-pic

Farmer William Nyakundi spreads coffee berries at a drying station at Nyosia Farmers’ Cooperative Society in Kegati, Kisii County on August 10, 2021. PHOTO | ONDARI OGEGA | NMG

geraldandae

Summary

  • Coffee prices fell by three percent during this week’s auction, records show, hurt by lower-quality produce offers by producers.
  • The price of grade AA, which is the top premium, dropped marginally by a dollar when compared with last week despite the volumes having nearly doubled from what was offered previously.
  • Currently, the price of coffee at the New York Exchange, which is used as a benchmark for all the world prices, is at a high of over 200 cents per pound from 144 in April.

Coffee prices fell by three percent during this week’s auction, records show, hurt by lower-quality produce offers by producers.

Data by the Nairobi Coffee Exchange (NCE) indicates that the price of the commodity dropped to Sh33,440 on average per 50-kilogramme bag when compared with Sh34,430 that it fetched in the previous sale.

The decline is attributed to the declining quality of the beans as the current crop season comes to an end.

The auction has been registering a marginal decline in value in the last couple of sales with Nairobi Coffee Exchange blaming it on fewer offers of premium grade coffee.

The price of grade AA, which is the top premium, dropped marginally by a dollar when compared with last week despite the volumes having nearly doubled from what was offered previously.

The auction is facing a shortage of quality beans as the short crop season is nearly coming to an end with the impressive earnings being lifted by high global prices.

The main season crop is expected to hit the market starting next month with high global prices forecasted to lift farmers’ earnings.

Currently, the price of coffee at the New York Exchange, which is used as a benchmark for all the world prices, is at a high of over 200 cents per pound from 144 in April when the auction was going for recess, in what has also helped to keep the prices up.

The crop coming to the auction at the moment is being supplied from eastern and parts of western Kenya and it is supposed to run the auction to November when the main season’s produce is expected to get to the market.

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