Coffee farmers earn Sh650 million from weekly auction

Business
By Boniface Gikandi | Aug 14, 2024
Nairobi Coffee Exchange (NCE) Chairman Mr Kenneth Gitonga and Chief Executive Officer Ms Lisper Ndung'u analyising some coffee beans ahead of a weekly auction. [Boniface Gikandi, Standard]

Coffee buyers at the weekly auction purchased Sh650.7 million produce at the Nairobi Coffee Exchange (NCE).

The 19 buyers purchased the produce delivered in the market by nine brokers from 784 cooperatives and estates led by Alliance Berries Limited and Meru Union.

During the online market, Maganjo factory affiliated with Rumukia Cooperative in Mukurwe ini, Nyeri achieved the highest price of Sh48,504 for each of 35 bags of AAG grade at the auction.

Other factories that achieved the best prices in the auction are Kanyari, Mweru, Mukiria, and Mugambone for their quality grades produced and marketed by Alliance Berries and NKPCU.

NCE Chief Executive Officer Lisper Ndung'u said nine coffee brokers led by Alliance Berries Limited participated in the market, as they delivered 12,574 bags of AA and AB grades that generated Sh502.8 million.

The buyers, Ms Ndungu said, are interested in the quality grades, thus the need for the growers to produce the best to attract the market.

"Taylor Winch bought 3,988 bags, Louis Dreyfus 3,873 bags, Ibero Kenya 3,458 bags. Other dealers were C-Dorman 1,857 bags, Jowam Coffee 1,129 bags, and Kenyacoff 888 bags," she said.

Cooperative Principal Secretary Patrick Kilemi said the ongoing reforms are designed to streamline the coffee sector to benefit the growers.

Mr Kilemi said the government was working towards supporting the farmers through the Cherry Advance Fund to allow them access cheaper credit facilities charged at three percent.

"As the government, we are particularly proud of the achievements of the NCE working committee and secretariat in implementing the Direct Settlement System (DSS)," he said.

"In the last eight months, the cooperatives through the DSS received over Sh21 billion from the coffee market," said the PS.

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