Boon for coffee farmers as traded volumes at NCE rise, prices jump 36pc
Prices at Nairobi Coffee Exchange (NCE) increased by 35.7 per cent this week as volumes equally picked up. A market report by NCE shows that during the period international buyers offered high prices.
The report for Sale 23 indicated that farmers’ earnings increased to Sh1.3 billion compared to Sh958 million returned during last week’s auction.
Henry Kinyua, a coffee value chain expert explained that licensing of new mills in Kiambu County is one of the key contributing factors to the increase for both prices and volumes.
During this week, volumes increased by 29 per cent 29 per cent to 33,470 bags from 25,930 bags of clean coffee traded in Sale 22 last week.
In terms of quality, Kinyua observed that farmers are delivering high quality beans thus fetching premium prices in the market. According to the report, the average price increased to $245.84 (Sh32, 205.04) from $ 237 (Sh31, 047) per bag achieved last week. This average price is equivalent to Sh99 per kilo of Cherry at the trading floor.
Total earnings
“Total earnings from the auction was $10.3 million (Sh1.3 billion) accounting a 35.7 per cent increase from $$7,313,517 (Sh958 Million) recorded last week,” Kinyua told the Business Hub on phone.
He added, some regions, for example, Meru and lower eastern are currently delivering their coffee to the market contributing to the increase in volumes.
The highest price recorded during the auction reached $500 (Sh65, 500) offered for 71 bags from Guama factory in Kirinyaga County, which is part of Guama factory named after Guama village is part of Baragwi Farmers Cooperative Society in Kirinyaga County.
The 71 bags of clean beans sold by Alliance Berries Brokerage Company were bought by Ibero Kenya Ltd a subsidiary of the Germany based Neumann Kaffee Gruppe.
Other four factories Kiirimikui, Nyanja, and KII completed the top 5 factories whose coffee fetched more $400 (Sh52, 400) per bag. “The auction since the start of the current coffee year 2023/24 has continued to demonstrate a lot of acceptance in the buyer r circles. Equally, government’s pace in terms of implementing new reforms has contributed to the auction changing positively and for the good of the farmers,” Kinyua added.
Cabinet Secretary for Cooperatives and Micro, Small and Medium Enterprises Development, Simon Chelugui said the coffee auction has of late witnessed a rise in volume and prices, a trend he attributed to collaboration between the Government and coffee stakeholders. In terms of overall market, a total of 22,841 bags representing 68 per cent of all coffee traded were top premium grades AA and AB. During this week’s auction 251 bags that fetched more than $400 (Sh52,400) per bag were all grade AA and from various cooperative societies in Kirinyaga County. “All except Guama sold their coffee through Kirinyaga Slopes,” he added.
