Sale 3 of the 2024 coffee trading season took place on October 15th, 2024, at the Nairobi Coffee Exchange (NCE) trading floor and through online platforms, marking another successful session. Coffee enthusiasts, traders, and producers closely monitored the proceedings, as the event provided key insights into market trends and performance.
Key Performance Indicators
Total Volumes and Average Price
In this session, a total of 9,030 bags, equivalent to 562,266 kilograms of coffee, were traded. The average price per 50-kilogram bag reached $242, which translates to approximately Kshs 100 per kilogram of coffee cherry.
Total Market Value
The coffee traded generated a cumulative market value of $2,881,561, or around Kshs 366 million. This sale reflects the continued dynamism of Kenya’s coffee industry, as the demand for high-quality beans remains strong both domestically and internationally.
Highest and Lowest Prices
The highest price recorded during the sale was $316 per 50-kilogram bag. This premium price was paid for a batch of 56 bags (3,391 kilograms) of grade AA coffee from Mbee Factory, which operates under the New Mitaboni Farmers Cooperative Society (FCS) in Machakos County. On the other end of the spectrum, JOSRA Coffee made the smallest purchase, acquiring just three bags (238 kilograms) of grade PB coffee at $271 per bag. This batch was sourced from Utangwa Factory, also part of Kikima FCS in Machakos County.
Sales Confirmation and Price Tiers
At the close of business, 2,631 bags, or 29% of the total volumes traded, had been confirmed as sold. Additionally, 550 bags, representing 6% of the traded volume, managed to fetch a price of $300 or more. These statistics demonstrate the premium associated with quality grades and the increasing willingness of buyers to invest in top-tier coffee.
Grade Performance: Focus on AA and AB
Grades AA and AB dominated the market during Sale 3, accounting for 5,170 bags, or 57% of the total volume traded. Kenyan AA coffee, in particular, is renowned for its superior quality, attributed to favorable growing conditions and meticulous processing. AB-grade coffee also performed well, attracting competitive prices. These two grades remain popular among buyers seeking the best Kenya has to offer in terms of aroma, body, and flavor complexity.
Broker Participation
A total of ten brokers were actively involved in this sale, playing a critical role in facilitating transactions between coffee producers and buyers. These brokers included:
- New Kenya Planters Cooperative Union (New KPCU)
- Alliance Berries
- Kirinyaga Slopes
- Meru Union
- KCCEMA
- Kiambu Coffee
- United Eastern Kenya Coffee
- Minnesota CEBBA
- Baringo Kawa
- Kipkelion
Brokers are essential intermediaries, as they not only manage logistics but also ensure that coffee meets buyer specifications through rigorous quality control processes.
Buyer Engagement
Fourteen buyers participated in Sale 3, reflecting a healthy demand for Kenyan coffee across both local and international markets. Ibero Kenya emerged as the leading buyer, securing significant quantities during the auction. This level of buyer interest highlights the competitive nature of the trading environment, where coffee factories and cooperatives strive to offer the finest beans to meet market demands.
Regional Highlights
Machakos County stood out in this sale, with both Mbee Factory and Utangwa Factory making notable contributions. Mbee Factory’s batch of AA coffee fetched the highest price, underscoring the value that buyers place on premium-grade beans. Similarly, the PB coffee from Utangwa Factory, although sold at a lower price, maintained competitive market presence, showcasing the region’s ability to produce quality coffee across multiple grades.
Implications for Farmers and Cooperatives
The outcomes of Sale 3 carry significant implications for farmers and cooperatives. Higher prices for grades like AA and AB suggest that efforts toward improving quality are yielding positive results. Farmers who belong to cooperatives with strong quality-control systems stand to benefit from higher payouts. The cooperative model continues to play a critical role in ensuring that smallholder farmers can access markets, gain bargaining power, and receive fair prices for their produce.
Conclusion
Sale 3 of the 2024 coffee trading season at the Nairobi Coffee Exchange demonstrated the resilience and vibrancy of the Kenyan coffee market. With a total value of $2.88 million and robust participation from brokers and buyers, the session confirmed the growing demand for premium Kenyan coffee. Grades AA and AB continued to perform well, with 57% of the traded volume attributed to these high-quality beans. The competitive pricing of $300 per bag and above for 6% of the volume underscores the strength of Kenya’s coffee brand globally.
Brokers and buyers alike showed keen interest in coffee from Machakos County, particularly from Mbee and Utangwa factories, indicating that quality-driven regions will continue to attract premium prices. As the market evolves, the role of brokers and cooperatives will remain essential in bridging the gap between producers and buyers, ensuring that the coffee supply chain operates efficiently.
The full list of transactions, including detailed factory performances, will be available later in the week upon the release of the Final Transaction Listing from the Nairobi Coffee Exchange.
