KENYA – Kenyan coffee farmers have earned up to KES18.6 billion (US$144.75M) between October 1, 2023, and June 21, 2024, from selling 507,878 bags of coffee through the Nairobi Coffee Exchange (NCE) online trading platform.
According to The Standard, smallholder producers who presented premier grades of AA and AB received better returns for their high-quality coffee berries.
NCE Chairman Kenneth Gitonga stated that 13 coffee brokers participated in the auction process.
Alliance Berries Ltd, Kirinyaga Slopes, and New KPCU emerged as the leading coffee brokers, contributing substantial consignments to the auction market.
The average price of coffee during this period was KES30,649 (US$238.51) per bag, with payments processed through the Direct Settlement System (DSS) before disbursement to cooperatives and estate farmers.
Gitonga said, “In the year, buyers were attracted to premier grades of AA and AB, and we have encouraged farmers to ensure they produce quality grades aiming at achieving high prices in the market.”
NCE Chief Executive Lisper Ndung’u reported that Alliance Berries Ltd presented 125,589 bags of coffee, earning the growers KES4.8 billion (US$37.35M).
Kirinyaga Slopes generated KES4.7 billion (US$36.58M) from the sale of 115,259 bags, while New KPCU presented 114,105 bags that earned the growers KES4 billion (US$31.13M).
Coffee Directorate acting director Dr. Benson Apuoyo noted that in the 2022/2023 period, 48,649 tonnes of clean coffee were produced, compared to 51,853 tonnes recorded in 2021/2022.
Apuoyo emphasized the importance of adhering to regulations, which enabled farmers to earn KES17.7 billion (US$137.74M) from their produce.
“The regulator is working with technical persons focusing on increasing production as it has been the government strategy,” he said.
Global coffee prices on the rise
The report comes as global coffee prices continue to rally due to concerns that drier-than-normal conditions could potentially affect coffee crops in Brazil and Vietnam.
Somar Meteorologia reported that Brazil’s Minas Gerais region received only 1.3 mm of rain last week, just 24 percent of the historical average. Minas Gerais accounts for about 30 percent of Brazil’s arabica crop.
Robusta coffee prices are also under pressure due to fears that excessive dryness in Vietnam will damage coffee crops and reduce global robusta production.
Coffee trader Volcafe warned on May 22 that Vietnam’s 2024/25 robusta coffee crop might only be 24 million bags, the lowest in 13 years, as poor rainfall has caused “irreversible damage” to coffee blossoms.
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