Coffee Prices up on Higher Demand by Processors

Coffee farmers will continue to earn good prices for their beans after coffee prices at Nairobi Coffee Exchange (NCE) increased by 5 percent during the latest auction.

Prices at the exchange increased for the second time in a row since the auction reopened after a one-month break.

Latest data indicates that a 50kg bag is now selling at an average of Sh 33,000 from Sh 32,000 driven by high demand for the beans by processors who are currently restocking after the auction opened.

AA coffee grade fetched the highest prices with 1,163 bags of the grade offered at Sh 57.4 million. The average price for the AA coffee was quoted at Ksh 39,000 representing a 5.4 percent increase from the previous auction.

SB coffee grade fetched the lowest price at the auction with a 50kg bag retailing at Sh 10,000 with only 83 bags traded on the floor of the NCE.

Cumulatively 10,565 bags were offered at the auction by close of business Tuesday, trading at an average of Sh 33,000 per 50kg bag and netting farmers Sh 434 million.

This increase in prices comes just days after coffee producers warned of a dip in yields this year due to the high cost of production that is beyond the reach of many coffee farmers.

According to the Kenya Coffee Producers Association Chairman Peter Gikonyo, the high cost of farm inputs has seen a production of a kilo of cherry increasing 39 percent to Sh 100 further eating into farmers’ earnings.