Coffee farmers earn Sh1 billion at Nairobi auction

Business
By Boniface Gikandi | Mar 06, 2024
The average price of a 50-kilogram bag dropped by 20 per cent to Sh33,118 from the previous Sh41,397.5. [Kibata Kihu, Standard]

The Nairobi Coffee Exchange (NCE) registered a slight decline after trading 26,328 bags of coffee earning the farmers in estates and cooperatives Sh1 billion compared to the Sh1.3 billion that was recorded last week.

The auction also registered a 13 per cent decrease in the number of coffee bags delivered from the previous week which had 30,272 bags.

In a report on the performance of the trading, the average price of a 50-kilogram bag dropped by 20 per cent to Sh33,118 ($232) from the previous Sh41,397.5 ($290) per 50kg bag.

The best factories that sold their coffee above Sh58,800 ($400) are Kii, Karinga, Karatu, Karithathi, and Gatagua.

Kii from Kirinyaga County registered the highest price of Sh71,089.5 ($498) per 50kg bag.

Murang'a-based Gatagua Coffee Society delivered 59 bags of AA for the auction, where each fetched Sh59,669.5 ($418).

NCE acting Chief Executive Officer Lisper Ndung'u in her report said in the performance at the trading Alliance Berries Limited delivered 6,621 bags that fetched $1,898,658.38, Kirinyaga Slopes 6,914 bags that generated $2,092,040 and NKPCU 5,11 bags for $1,454,426.74.

"We are anticipating more coffee deliveries in the coming weeks as the harvesting is going on in some counties," said the NCE official.

In the provision of the premier grades delivered by the marketing agents, there were 6,182 bags of AA, AB 11,825 bags, and C - 3,895 bags

In the buyers category, there were 24 players and the leading five were, C Dorman, Taylor Winch, Kenyacof, Ibero, and Sasini.

Kenya Coffee Producers Association Chairman Peter Gikonyo said the auction platform has continued attracting many players since October last year.

Gikonyo said the association has been holding meetings with the farmers educating them on the need to embrace the auction platform.

"In the recent past the activities at the auction have been impressive and many farmers can follow," said Gikonyo.

Coffee Trading Expert Henry Kinyua noted that in the sale, 18,007 bags delivered were of the premier grades of AA and AB.

"Sixty-eight per cent of the grades at the exchange were of the premier quality and we encourage the farmers to nurture their crops for the best quality," said Mr Kinyua.

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