Farmers, firms net Sh800m from coffee auction
Business
By
Boniface Gikandi
| Mar 14, 2024
Deputy President Rigathi Gachagua rings the bell during the re-opening of the Nairobi Coffee Exchange Auction brokers’ maiden sale at Wakulima House Nairobi on 15 August 2023. [DPCS]
Kenya's coffee fetched Sh817.3 million at the Nairobi Coffee Exchange (NCE) from the sale of 20,281 bags, down from Sh1.3 billion raised during last week's auction.
Tuesday’s auction attracted 20 buyers and received fewer bags c="https://www.standardmedia.co.ke/business/business/article/2001484995/nairobi-coffee-exchange-surge-in-auction-volumes-signals-sector-recovery#google_vignette">ompared to last week's <26,328 bags of the commodity.
In the auction, marketing agents Alliance Berries Ltd, Kirinyaga Slopes, and New Kenya Planters Cooperative Union (NKPCU) delivered 13,629 bags.
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NCE Acting Chief Executive Lisper Ndung’u said in the auction the marketing agents, including Alliance Berries Ltd, sold 4,450 bags that fetched Sh187.4 million; Kirinyaga Slopes 5,267 bags for Sh216.5 million, and NKPCU 3,922 bags for Sh159.2 million.
“In the marketing of the premier grades at the auction, 4,725 bags of AA fetched Sh232 million for 9,073 bags of AB Sh367.1 million, and 3,199 bags of grade C sold for Sh99,963.6 million,” said Ms Ndung’u.
The produce was collected from 907 coffee cooperative societies and estates in the counties.
In the market analysis, the Kii factory in Kirinyaga allied to Kirinyaga Slopes sold 13 bags with each fetching Sh64,357 ($463).
At Gathiru-ini factory affiliated with Alliance Berries Ltd 89 bags of AA fetched Sh49,345 ($355) per bag of 50kg.
The buyers led by Kenyacof bought 5,359 bags of coffee at Sh209.7 million, followed by C Dorman's 3,784 bags for Sh168.4 million, Ibero Kenya's 3,878 bags for Sh134.8 million, Sasini's 2,276 bags for Sh94.4 million, among others.
Kigumo MP Joseph Munyoro, a Coffee Tea Parliamentary Group (COTEPA) member, said the farmers are interested in better income from their produce.
“There is a need for the government to explore new markets for our coffee to attract more returns to the farmers,” said Mr Munyoro.
Kenya Coffee Producers Association Chairman Peter Gikonyo said there is a need for the farmers to sell their coffee through the government-backed platform.
“In the last three months, the number of coffee bags sold at the NCE ="https://www.standardmedia.co.ke/article/2000125238/kenyan-top-grade-coffee-prices-climbs-in-latest-salebusiness">has been on the rise<, with farmers getting better income based on their grades,” said Mr Gikonyo.