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Commodities

Coffee prices in further decline at weekly auction

Coffee prices
Coffee for auction at the Nairobi Coffee Exchange. FILE PHOTO | NMG 

The price of Kenya’s coffee declined further this week at the auction, losing 13 percent on Tuesday’s sale.

This followed a similar trend in the global prices.

A market report by the Nairobi Coffee Exchange (NCE) indicates that a 50-kilogramme bag of coffee fetched Sh11,500 in the weekly trading, down from Sh13,300 in the previous sale.

In last week’s trading, coffee lost its value by the same percentage point marking the lowest price to be recorded since the beginning of the year.

The trading also saw Kenya’s premium coffee grade AA lose marginally this week to Sh16,100 down from Sh16,200 that was recorded last week for a 50-kilogramme bag.

The NCE had last month said the good prices were expected to hold up to this month as the main crop from central Kenya continues to get to the market.

World market

The price of coffee in the world market has been on the decline since last November when it hit a low of 113 cents a pound before sliding further this week to 98 cents per pound.

This comes at a time when Kenya is hosting the International Coffee Council in Nairobi, where stakeholders are discussing a range of issues, including the falling prices.

Kenya has one of the best coffees in the world, and is highly sought by roasters for blending with low quality coffees from other regions.

President Uhuru Kenyatta acknowledged during the meeting that Kenya produces some of the best coffee in the world but regretted that the premium prices the Kenyan coffee fetches in the global market do not trickle down to the farmer.

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