The price of coffee declined marginally in last week’s trading, marking the first drop since July when the auction resumed from a one-month recess on declining international prices.
A market report by the Nairobi Coffee Exchange (NCE) indicates that a 50-kilogramme bag of coffee fetched Sh10,506 down from previous Sh10,609.
Officials at NCE say the value has been affected by a decline in prices at the New York Coffee Exchange.
The price at New York has fallen to a low of 95 cents per pound as of last week from a previous high of 106 cents.
“Kenya sells over 95 percent of its coffee to international market, which determines the value of the crop locally, which marginally affected the value of the local commodity,” said NCE chief executive officer Daniel Mbithi.
Low quality coffee coupled with depressed international prices (90 cents per pound) of the produce in the world market pushed down the value of at the auction in the last three months.
Coffee earnings dropped by Sh3 billion in the seven months to July.
The crop earned the country Sh10.5 billion at the end of last month, down from Sh13.5 billion that was realised in the same period last year or a 21 percent decline.