Coffee earnings dip on low volumes at auction market

The Kenyan coffee auction is experiencing low volume as the harvesting season nears an end.

The weekly market earned Sh684.98 million after the sale of 14,486 bags of coffee as the main crop harvest comes to an end, compared to the last week's auction of 21,846 bags that fetched Sh1.1 billion. 

Unlike in the past, the number of bags of Grade AA and AB presented in the auction has decreased drastically, with lower grades controlling the market.

In the Tuesday auction, coffee brokers delivered 3,078 bags of quality grades of AA and AB, compared to 5,597 bags of last week.

Nairobi Coffee Exchange (NCE) indicates that the highest price was achieved by the Riakiberu factory in Mathioya, which netted Sh54,956 per bag.

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NCE chief executive Lisper Ndung’u said in the period between October and February the coffee fetched the best price at the auction.

“As the volumes decrease at the market marks the end of the main crop and from next month more coffee is expected at the market,” she said.

 Ms Ndung’u added that farmers are encouraged to continue in the production of the quality coffee that attracts international buyers.

She explained that seven coffee brokers participated in the auction led by the Kirinyaga Slopes 5,027 bags, New KPCU 3,224 bags, KCCE 1,546 bags, Alliance Berries Limited 2,126 bags, and CEBBA 323 bags, among others.

Peter Gikonyo, a veteran farmer, said coffee from Meru and the entire Eastern region is expected to flood the market in May.

“The main season in Murang’a, Kiambu, Embu, Nyeri and Nyeri is coming to an end thus low business at the auction,” said Gikonyo a farmer at Gaturi society. 

In the dealers’ category, Ibero Kenya Ltd emerged as the dominant buyer, purchasing 4,170 bags valued at Sh189. 55 million, Louis Dreyfus Company 2,511 bags at Sh9475 million, and C. Dorman 1,289 bags for Sh69.53 million.

 Jabali The  Coffee bought three bags valued at Sh214,204.