In a significant boost to Kenya’s coffee sector, farmers have earned Ksh 718 million from the latest auction at the Nairobi Coffee Exchange (NCE). This auction, held after a three-week recess, saw a total of 19,478 bags of coffee traded, with each 50-kilogram bag fetching an average price of Ksh 31,070.
Record-Breaking Prices for High-Quality Coffee
The auction was marked by impressive prices, particularly for Grade AA coffee, which attracted the highest bids. The top price reached Ksh 50,764 per bag, a figure that underscores the strong demand for premium Kenyan coffee. Grade AA coffee, known for its superior quality and flavor profile, has long been sought after by both local and international buyers.
Among the standout performers at the auction were coffee beans from the Kimathi, Kiairia, Mihuti, and Gatomboya factories, which were marketed by Alliance Berries Limited. Kimathi factory led the pack, achieving the highest price of Ksh 50,764 for each of its 33 bags of Grade AA coffee. Following closely were Kiairia with Ksh 50,634, Mihuti with Ksh 50,375, and Gatomboya with Ksh 48,044 per bag.
Another notable success was Kathinthiuku factory, whose produce, marketed by the New Kenya Planters Cooperative Union (New KPCU), fetched Ksh 49,857 for each of its 109 bags of Grade AA coffee. These figures highlight the continued relevance and profitability of producing high-quality coffee in Kenya.
Strong Performance Across Various Grades
The auction also saw robust trading across other coffee grades. Grade AA coffee alone accounted for 28.9% of the total volume traded, with 4,710 bags brought to the auction. Grade AB coffee was even more prominent, making up 39.15% of the traded volume with 7,487 bags on offer.
Lisper Ndung’u, the Chief Executive Officer of NCE, expressed satisfaction with the auction’s outcome, noting that a significant number of bags fetched premium prices. “By the close of the auction, 1,203 bags had earned above Ksh 39,000 per bag,” she revealed. Ndung’u emphasized the importance of quality in attracting better prices and urged farmers to focus on producing both quality and quantity to meet the demands of international buyers.
Active Participation from Agents and Buyers
The auction attracted a diverse group of participants, including eight coffee agents and 20 buyers from both local and international markets. In the agents’ category, New KPCU and Alliance Berries Limited were the leading contributors, presenting 7,053 and 6,486 bags of coffee respectively.
On the buying side, Ibero Kenya emerged as the top buyer, purchasing 6,391 bags of coffee for a total of Ksh 216 million. This was followed by C. Dorman, which bought 2,861 bags at a cost of Ksh 123.6 million. Other significant buyers included Sasini, which acquired 2,552 bags for Ksh 11.3 million, and Taylor Winch, which bought 1,738 bags for Ksh 65.6 million.
Implications for the Coffee Sector
The successful auction highlights the resilience and potential of Kenya’s coffee industry, particularly as it navigates a complex global market. The high prices achieved, especially for Grade AA coffee, underscore the importance of maintaining stringent quality standards. As international buyers continue to seek out premium coffee, Kenyan farmers stand to benefit significantly from focusing on quality production.
The Nairobi Coffee Exchange plays a crucial role in linking Kenyan coffee farmers with global markets. Its auctions provide a transparent platform where prices are determined by the quality and demand for the coffee on offer. With the growing interest from international buyers, there is a clear opportunity for Kenyan coffee farmers to enhance their earnings by adhering to best practices in coffee cultivation and processing.
Looking Ahead
The future looks promising for Kenya’s coffee industry, particularly if farmers can consistently produce high-quality beans that meet the standards of discerning buyers. The recent auction is a testament to the potential rewards that can be reaped when quality is prioritized. As the sector continues to recover from past challenges, there is optimism that such positive trends will continue, benefiting both farmers and the broader economy.
In conclusion, the Ksh 718 million earned at the recent Nairobi Coffee Exchange auction is not just a financial achievement but also a significant indicator of the opportunities that lie ahead for Kenya’s coffee farmers. By continuing to focus on quality, the industry can sustain its growth and reinforce its position in the global coffee market.
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