Economy

Coffee earnings up Sh1bn at year end

coffee

Earnings from coffee increased by Sh1 billion in the last quarter of the year, helped by increased volumes at the auction. FILE PHOTO | NMG

Earnings from coffee increased by Sh1 billion in the last quarter of the year, helped by increased volumes at the auction.

The Nairobi Coffee Exchange (NCE) indicates the value of the beverage increased from Sh21.5 billion in corresponding period last year to Sh22.5 billion in the review period.

The growth was recorded despite a 14.34 per cent decline in price. The value per bag dropped from Sh20,000 last year to Sh17,000 for a 50-kilo bag in the current quarter.

“Volumes increased by 22 per cent from 85,349 kilos sold in 2017 to 104,026 this year as more coffee from Western and Rift Valley regions came in early to the market, helping to lift the prices,” says the report.

Monthly coffee earnings dropped to a 12-year low, with the average price of a 50-kilogramme bag declining by 19.74 per cent from Sh20,229 in October 2017 to Sh16,237.6 in corresponding period this year.

High volumes of the produce this year and low international prices affected prices at the auction.

Currently, 90 per cent of the Kenyan coffee is traded at the NCE before accessing the export market, with only 10 per cent finding its way to the international market through direct sales.

Industry stakeholders reckon that lack of a direct market denies farmers a lucrative income should they have procured direct sales other than going through the many chains to sell their crop at the NCE.