The 21st coffee sale for the season took place over two days, setting a new precedent for the market. The first day, Tuesday, March 4th, saw the trading of 26,522 bags of coffee, with the remaining 7,486 bags traded on Wednesday, March 5th.
Market Overview
The total volume of coffee traded in Sale 21 was 2,092,764 kilograms, which is equivalent to 34,008 bags. The sale reached a total value of $14,372,607, or approximately 1.9 billion Kenyan shillings. The average price per 50kg bag was $343, which translates to $136 per kilogram of cherry (gross).
Top Buyers
The coffee sale saw significant activity from several prominent buyers.
- Ibero Kenya Ltd emerged as the leading purchaser, particularly active in grades AB and C, acquiring a large portion of the available stock.
- Louis Dreyfus Company was another major buyer, participating across all grades, ensuring diverse acquisition strategies.
- C.Dorman Ltd focused primarily on premium grades, contributing to the acquisition of top-tier lots.
- Kenyacof Limited maintained a strong presence, particularly in grades AA and AB, with several high-value lots.
- Sasini (K) Limited was another notable buyer, showing interest in a wide range of grades.
Grade Analysis
The pricing structure for coffee varied significantly based on grade, with premium grades commanding the highest prices:
- Premium Grades (AA, AB): These grades saw the highest pricing, ranging from $380 to $410 per 50kg.
- Grade C: Traded at a slightly lower average price of $360 per 50kg.
- Grade T/TT: Coffee in this category saw the lowest pricing, ranging from $240 to $350 per 50kg.
- Peaberry (PB): These premium lots fetched a price between $350 and $390 per 50kg, reflecting the higher demand for this specific coffee type.
- UG1/UG2: Coffee from these grades saw more varied pricing. UG1 averaged $360 per 50kg, while UG2 averaged $230 per 50kg.
Certification Premium
Coffee with recognized certifications such as Fairtrade (FLO), Rainforest Alliance (RA), and CAFÉ attracted a premium price. These certified coffees were priced 5-15% higher than non-certified counterparts of similar grades, highlighting the growing market preference for ethically and sustainably sourced products.
Broker Performance
Several brokers played key roles in facilitating the trades during Sale 21:
- Alliance Berries Limited was the top performer, handling a total of 12,899 bags (787,808 kg).
- Minnesota Coffee Marketers Limited brokered 4,016 bags (253,751 kg).
- Kirinyaga Slopes Coffee Brokerage Company Ltd traded 5,624 bags (343,843 kg).
- New Kenya Planters Co-operative Union PLC handled 3,667 bags (227,109 kg).
- KCCE Marketing Agency Limited facilitated the trade of 2,559 bags (158,582 kg).
Premium Lots (>$400 per 50kg)
Several premium lots exceeded $400 per 50kg, reflecting the strong demand for high-quality coffee:
- Lot 6088 from Nyeri County (AB grade, 126 bags) fetched $420 per 50kg, traded by Kenyacof Limited.
- Lot 6023 from Kirinyaga County (AB grade, 62 bags) traded at $414 per 50kg, purchased by C.Dorman Ltd.
- Lot 6063 from Kirinyaga County (AB grade, 124 bags) also sold for $414 per 50kg, acquired by Ibero Kenya Ltd.
- Lot 6067 from Nyeri County (AB grade, 108 bags) was sold for $411 per 50kg, with C.Dorman Ltd as the buyer.
- Lot 6115 from Kiambu County (PB grade, 12 bags) fetched $410 per 50kg, purchased by C.Dorman Ltd.
- Lot 6087 from Meru County (AB grade, 59 bags) sold for $409 per 50kg, again acquired by C.Dorman Ltd.
- Lot 6092 from Kirinyaga County (AB grade, 94 bags) traded at $409 per 50kg, also secured by C.Dorman Ltd.
- Lot 6215 from Kiambu County (AA grade, 50 bags) fetched $411 per 50kg, purchased by Kenyacof Limited.
The performance of these premium lots highlights the continuing demand for high-quality, specialty coffee in the market.
The Nairobi Coffee Exchange is expected to release the Final Transaction Listing by the end of the week, detailing the trading factories and their performance. For more comprehensive data on previous sales, users are encouraged to access the Kilimo News app via the Google Play Store or use the web version.
