KENYA – Kenya’s coffee prices at the Nairobi Coffee Exchange (NCE) dropped marginally by 6% due to decline in supply of good quality coffee from Eastern Kenya, reports Business Daily.
According to the NCE, a 50 kg kilogramme bag on average declined by 6% to US$ 188.34 (Ksh19,300) from a previous performance of US$200.05 (Ksh 20,500) which was supported by good quality coffee in the market.
However, NCE anticipates an increase in price in the coming weeks as they expect some quality coffee influx from the western region of the country.
The value of coffee in two months between October and November hit US$15.61 million which was greatly attributed to the commodity from western region.
Data from NCE indicates that the produce value rose by 3.2% from US$15.32 million last year to US$15.71 million this year.
The report also shows that volumes for coffees sold through the exchange increased by 22.62% from 63,891 kilos sold in last year to 78,342 kilos in 2018.
Despite the high volumes of the produce this year, the produce fetched low international prices which in turn affected farmers’ earnings at the auction.
NCE also reported that the auction also plans to go on a recess starting next week and will be resuming in the beginning of next year.
Kenya has been eyeing the Specialty Coffee Association of America (SCAA) in a bid to double the sales to the US by tapping the premium price that the American market pays for the beverage.
America,Germany and Belgium have been the key markets for the Kenyan produce although Kenya’s coffee is majorly traded at the New York Coffee Exchange due to their premium prices and any change in price affects the local sales.
The Kenyan government has been pushing for more direct sales to enable growers earn from their crop by eliminating middlemen who exploit farmers when their crop goes through the auction.
The country seeks to raise the amount of coffee roasted locally from five to 10 percent annually over the next five years even as production remains low.