The price of Kenyan coffee dropped to the lowest point this year after shedding 26 percent this week, reversing the better price seen in the previous sale.
A market report by the Nairobi Coffee Exchange (NCE) shows a 50-kilogramme bag of coffee fetched Sh7,700 on Tuesday, down from Sh10,400 average last week. Officials at NCE say the price went down on account of low quality beans.
The trading saw Kenya’s premium coffee grade AA decline to Sh10,100 from Sh14,200 recorded previously for a 50-kilogramme bag.
The coffee offered for sale was of lower quality compared to what was sold previously as the main crop season comes to an end. Low quality coupled with depressed international prices of the commodity in the world market pushed the value much lower than expected by stakeholders.
The price of coffee in the world market has been declining since last November when it hit a low of 113 cents a pound before sliding further this week to 93 cents per pound.
Kenya’s earnings from coffee dropped by Sh2.5 billion in March compared with the corresponding period in 2018 as low international prices resulting from a glut impacted on farmers’ earnings.
Data from the Coffee Directorate indicated farmers earned Sh7.8 billion last month against Sh10.4 billion realised in the same period last year