Premium coffee grades boost earnings at latest Nairobi Coffee Exchange auctions

KENYA – Premium coffee of grades AA and AB traded at the Nairobi Coffee Exchange (NCE) accounted for 12,578 bags, representing 73 percent of the total volume traded in the auction, resulting in an increase in earnings.

The auction netted Sh869 million after sales of 17,293 bags of cherry, an increase compared to Sh637.1 million earned after the sale of 12,144 bags of coffee during last week’s auction.

On average, a bag of 50 kilograms of cherry was sold at Sh40,922, which equals Sh125 per kilo at the trading floor.

NCE Chief Executive Officer (CEO) Lisper Ndung’u said there was an increase in premium grade coffee in the auction. During last week’s trade, only 7,300 bags of grade AA and grade AB were traded compared to this week’s 12,578 bags.

Ms. Ndung’u lauded farmers for heeding calls to produce high-quality coffee, saying the premium grades fetched the best prices.

She called on farmers’ cooperative societies to support and educate farmers on best practices for producing high-quality coffee, which attracts international buyers.

“The leadership of NCE appreciates the farmers for the continued production of quality coffee at the auction,” said Ms. Ndung’u.

The auction attracted 15 local and international buyers. Sasini Kenya Ltd bought the highest volume of coffee after purchasing 5,460 bags at Sh295.3 million, followed by Taylor Winch Ltd, which purchased 3,038 bags at Sh163.5 million. Ibero Kenya Ltd acquired 3,488 bags at Sh158 million.

Gicherori Factory from Embu County earned the best price after realizing Sh54,519.50 per bag of grade AA. The factory, which is part of Kibugu Farmers’ Cooperative Society, sold a total of 702 bags of grade AA coffee.

Ten brokers participated in the auction, led by Alliance Berries, which traded 6,767 bags at Sh358.9 million. Kirinyaga Slopes Coffee Brokerage Company sold 2,032 bags of coffee, realizing Sh103.7 million. New KPCU sold 1,991 bags at Sh100.9 million, and Minnesota Coffee Marketers Ltd traded 1,742 bags at Sh87.9 million.

Meanwhile, the European Union (EU) plans to support local coffee farmers to comply with deforestation regulations.

Speaking during a breakfast meeting organized by Fairtrade and the Kenya Coffee Platform (KCP), the First Counsellor and Head of Trade Section at the EU, Filipo Amato, said the coffee value chain will equally receive support under the regional initiative on improving the market access upgrade programme (MARKUP) to the EU that is funded by the International Trade Centre (ITC).

However, the Commission’s proposal will now be discussed with the European Parliament and Council, who must approve it before it enters into force.

“We are also developing programmes aimed at building capacity and support to farmers to comply with the EUDR,” said Amato.

He noted that the EU-Kenya Economic Partnership Agreement (EPA), with the objective to boost trade relations between the two parties and possibly increase the export of coffee from Kenya to Europe, will see the launch of new programmes in the coming weeks to support the coffee value chain in Kenya and other countries in the region.

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