Commodities

Fall in premium coffee beans ends price rally

coffee2
geraldandae

Summary

  • Coffee prices at the auction declined five percent this week, halting the upward trend that has been witnessed since October last year in what the auction attributes to a decline in number of premium grades.
  • A 50-kilo bag of the beverage fetched Sh34,335 in this week’s trading down from Sh35,970 in the previous sale at the Nairobi Coffee Exchange (NCE).
  • According to NCE, the prime grades moved from 93 percent previously to 87 percent in the latest sale held on Tuesday.

Coffee prices at the auction declined five percent this week, halting the upward trend that has been witnessed since October last year in what the auction attributes to a decline in number of premium grades.

A 50-kilo bag of the beverage fetched Sh34,335 in this week’s trading down from Sh35,970 in the previous sale at the Nairobi Coffee Exchange (NCE).

According to NCE, the prime grades moved from 93 percent previously to 87 percent in the latest sale held on Tuesday.

The rising prices were boosted by a new crop from central Kenya, high demand for the commodity ahead of Christmas and higher international prices towards the end of last year.

The direct sale prices of coffee will now be determined by the value of the local sales at the auction for the same grades to ensure that farmers earn more from their produce as the government moves to implement the directive.

The move will see farmers get the highest price for their produce that is sold directly to international market and deter a current situation where they earn less for high quality coffee sold through the direct window.