Coffee prices have rebounded 65 per cent in the latest sale, with the impressive performance coming on the back of quality beans following the resumption of the auction last month.
A market report by Nairobi Coffee Exchange (NCE) indicates a 50-kilogramme bag fetched Sh17,400 up from Sh10,500 it attracted last week.
According to the NCE, the rally resulted from an increase in the volume of good beans as the short-term crop from Eastern Kenya started flowing to the market.
“We continue to witness an increase in quality of coffee that is being traded at the auction and this is the reason why this week we had an impressive performance in terms of price,” said chief executive Daniel Mbithi. NCE anticipates the trend will continue in the coming weeks.
The main crop from central Kenya is expected at the auction later in the year. The price of coffee at the auction had dipped to as low as Sh10,000 for the 50-kilogramme bag following a decline in quality as the main crop season from Mount Kenya ended ahead of June.
Kenya’s earnings from coffee dropped by Sh1.3 billion between October and March compared with the same period last year, on account of low international prices and reduced volumes at the auction.
The rebound is likely to encourage counties fighting to revive the crop including Nyeri, Murang’a and Meru.
Kenya plans to raise the amount of coffee roasted locally from five to 10 per cent annually over the next five years even as production remains low.
The government will also start paying farmers part of earnings on monthly basis, down from six months after the regulator began piloting the new payment system aimed at luring growers back to the once vibrant sub-sector.