A total of Sh372 million was earned during the recent auction held at the Nairobi Coffee Exchange (NCE). This auction, which took place on Tuesday, featured the sale of 9,030 bags of cherry coffee, amounting to an impressive 562,266 kilos. The auction attracted ten brokers, with the average selling price for a 50-kilo bag of cherry set at Sh31,247.
The highest price was secured by the Mbee factory, allied with the Mitaboni Cooperative Society located in Machakos County. They sold 56 bags, equivalent to 3,391 kilos of grade AA coffee, for a remarkable Sh40,824 per bag. This achievement underscores the increasing interest in high-quality coffee, as both local and international buyers continue to seek the best offerings.
Competitive Prices Highlight Quality Focus
Following closely behind Mbee factory, the Kaukiswa factory, part of the Kambusu Cooperative Society, achieved the second-best price at Sh40,506 for their grade AA coffee. In a competitive third place, the Gachuiro and Kapsaos Toremo factories, which marketed their coffee through Alliance Berries Limited, sold 197 bags of AA grade coffee at Sh38,892 per bag.
The auction showcased a strong demand for higher-grade coffees, as grades AA and AB constituted 5,170 bags, representing 57 percent of the total volume traded. This trend emphasizes the crucial role that quality plays in determining market prices, a sentiment echoed by NCE Chief Executive Officer Lisper Ndungu.
“Buyers are increasingly interested in the quality of coffee presented in the auction,” Ndungu remarked. She encouraged the leaders of the 619 cooperative societies represented at the auction to focus on producing premier quality cherries. “Both local and international buyers are looking for the best quality of coffee, which necessitates the need for cooperative leaders to promote best farming practices among their farmers,” she added.
Broker Performance at the Auction
Among the brokers participating in the auction, New KPCU led the pack by trading the highest volume, selling 2,105 bags equivalent to 131,906 kilos, generating Sh87.35 million in sales. Following closely was Alliance Berries, which sold 1,992 bags at Sh82.308 million. The Kipkelion Broker Company also made significant contributions, selling 1,320 bags of cherry for Sh55.44 million.
The sales figures highlight a competitive environment among brokers, each striving to secure the best prices for their producers. Smaller transactions were also recorded, with Baringo Kawa selling 34 bags for Sh13,675,625, and Coffee Estates Bourgeoisie Brokers Limited moving 261 bags for Sh10,467,346. The sales showcase the varied performance across different brokers, reflecting the dynamic nature of the coffee trading landscape in Kenya.
Notable Buyers and Their Purchases
The auction saw participation from 14 buyers, with Ibero Kenya making a notable purchase of 2,702 bags, equivalent to 168,585 kilos, for a total of Sh107.2 million. The Luis Dreyfus Company followed suit, acquiring 1,677 bags of cherry for Sh63.5 million, while C. Dorman purchased 1,225 bags for Sh55.34 million.
These transactions highlight the robust demand for Kenyan coffee in both local and international markets, reinforcing the country’s reputation as a leading producer of high-quality coffee. The presence of prominent buyers at the auction indicates a strong interest in Kenyan coffee, further incentivizing farmers to maintain and enhance the quality of their produce.
Quality and Farmer Returns: A Shared Vision
The focus on quality is paramount for both farmers and brokers as they navigate the complexities of the coffee market. Kenya Coffee Producers Association (KCPA) Chairman Peter Gikonyo emphasized the collective goal of ensuring farmers receive better returns from their produce. He stated, “Our aim is to ensure farmers earn better returns from their produce, and as an association, we have been holding meetings with the farmers across the counties, encouraging them to produce better quality coffee.”
Gikonyo’s remarks highlight the ongoing efforts by associations and cooperatives to empower farmers with knowledge and best practices in coffee cultivation. These initiatives are essential in enhancing the quality of coffee produced, thus aligning with the growing market demand for superior grades.
Recommendations for Improved Coffee Production
To maintain competitiveness in the global coffee market, several recommendations have emerged from stakeholders within the industry:
- Education and Training: Continuous education and training programs for farmers on best farming practices are essential. These programs should cover everything from soil management to post-harvest handling to ensure high-quality cherries are produced.
- Access to Resources: Farmers should have improved access to high-quality seedlings and fertilizers. Collaborations with agricultural extension services can help facilitate this access, ultimately enhancing production quality.
- Market Diversification: Encouraging farmers to explore diverse markets for their coffee can help reduce dependence on traditional buyers. This strategy may involve targeting specialty coffee markets, which often pay a premium for high-quality beans.
- Investments in Technology: Adopting modern technology in coffee production, including better irrigation systems and pest management techniques, can significantly enhance yield and quality.
- Sustainable Practices: Promoting sustainable farming practices can improve soil health and reduce environmental impact, contributing to better quality coffee and meeting the growing consumer demand for ethically sourced products.
Conclusion
The recent coffee auction at the Nairobi Coffee Exchange not only highlighted the financial potential of the coffee industry in Kenya but also underscored the critical importance of quality in driving prices. With Sh372 million earned, the auction demonstrated that when farmers focus on producing high-quality coffee, they can secure better prices and enhance their livelihoods.
As the coffee landscape continues to evolve, it is crucial for stakeholders, including farmers, brokers, and cooperative leaders, to prioritize quality and invest in practices that support sustainable production. By doing so, Kenya can maintain its status as a leader in the global coffee market while ensuring that farmers receive the returns they deserve.
Capital A Investment Bank has unveiled a new identity, signaling its ambition to expand into key areas of growth. Formerly Read more
Amid public uproar over the proposed lease of Jomo Kenyatta International Airport (JKIA) to India's Adani Group, National Treasury Cabinet Read more
During the Banking Industry Inua Biashara Small and Medium Enterprise Exhibition at the Kenyatta International Conference Centre (KICC) in Nairobi, Read more
The media has played an indispensable role in advancing human rights, particularly in highlighting cases of extrajudicial killings and enforced Read more
Kenya is poised to benefit from a transformative collaboration with the Netherlands as 18 Dutch companies in the life and Read more
Jumia Technologies, the leading African e-commerce platform, recently announced its decision to exit the South African market and cease operations Read more