The price of Kenya’s coffee at the auction dipped further this week, shedding 13 per cent on Tuesday as trading continued to respond to falling international value of the commodity.
A market report by the Nairobi Coffee Exchange (NCE) indicates that a 50-kilogramme bag of coffee fetched Sh13,500 in the weekly trading, down from Sh15,600 in the previous sale.
In last week’s trading, coffee lost 14 percent of its value from the previous sale. This is the lowest price to be recorded since the beginning of the year.
The trading also saw Kenya’s premium coffee grade AA recorded much lower price this week at Sh18,000 down from 22,300 last week for a 50-kilogramme bag.
The NCE says the auction is getting enough volumes of high quality coffee, which would have helped to maintain high prices.
The exchange 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.
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 last week to 98 cents per pound.
Earnings from coffee dropped 13 percent in the four months to January compared to the same period last year on account of low prices for Arabica at the international market.
The Coffee Directorate data show farmers earned $41 million (Sh4.1 billion) in four months to January against $47.7 million (Sh4.77 billion) last year.
Kenya has one of the best coffees in the world, which is highly sought by roasters for blending with other low-quality beans from other regions.
However, Kenya’s production has significantly dropped when compared with its peers in the region with Uganda, which was at par with the country in the previous years now widening the gap.