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Commodities

Coffee prices rebound at Nairobi exchange

Daniel Mbithi
Nairobi Coffee Exchange CEO Daniel Mbithi. FILE PHOTO | NMG 

Coffee prices continued on an upward trend this week with the 50-kilo bag rising Sh2,000 on account of high volume of quality beans at the auction.

A market report by the Nairobi Coffee Exchange (NCE) indicates a 50-kilo bag on average went up to Sh20,500 from Sh18,360 in this week’s auction.

The prices have rebounded after a string of poor performances in the last couple of weeks as the volume of good coffee from eastern Kenya declined.

NCE chief executive officer Daniel Mbithi says inflow of good quality coffee from western Kenya coupled with that of Mt Kenya has increased at the auction, pushing up the price.

“We are now getting huge quantities of coffee from western Kenya and Kiambu and this has played a major role in boosting the prices,” said Mr Mbithi.

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NCE had anticipated the price of the commodity would rise in the coming weeks.

The auction is expecting more of the main crop from central Kenya in the coming days as the short term beans from eastern Kenya come dry out from the market.

Monthly earnings dropped to a 12-year low with the average price of a 50-kilogramme bag declining 19.74 percent to Sh16,237.6 last month from Sh20,229 in October 2017.

High volumes of the produce this year and low international prices affected farmers’ earnings.

Kenya’s coffee is majorly traded at the New York Coffee Exchange and any change in price affects the local sales.

The country seeks 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.

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