Coffee Farmers Net Sh708.7 Million In Auction


Coffee farmers drawn from 10, 029 cooperatives societies and estates have earned a total of Sh. 708.7 million during this week’s sale at the Nairobi Coffee Exchange (NCE).

On the auction done, a total of 21, 311 bags equivalent to 1, 308, 310 kilos of coffee were offered for sale. The quantity was slightly lower compared to last week’s auction where 21,867 bags were traded.

On sale, the average price per 50 kilo bag of coffee was at Sh34, 230 compared to last week’s sale where a bag was bought at average of Sh25, 511.

Eight brokers participated in the auction with Alliance Berries Ltd trading the highest volume at 33 percent.

‘Alliance Berries sold 7, 006 bags at Sh264 million, followed by Kirinyaga slopes company which traded 6,099 bags at Sh. 179.6 million with New KPCU emerging third after selling 4,699 bags at Sh150.07 million,’ said the NCE chief executive officer Lisper Ndung’u.

During the sale, 3, 241 bags of grade AA were traded, where they fetched Sh136. 32 million and 7, 158 bags of grade AB we
re sold at Sh258.47 million.

Ichamari coffee factory of Nyeri County got the best price for its AA grade by selling 93 bags through Alliance Berries ltd at Sh45, 499 per bag of 50 kilos.

‘Other coffee factories which fetched better prices in the auction include Gitura which sold each of its 22 bags of grade AA at Sh43, 790, followed by Gathinja which traded 30 bags, each earning Sh42, 212 and Iyego factory of Murang’a county sold 40 bags of grade AA, each at Sh41, 160,’ added the CEO.

A total of 19 local and international buyers participated in the auction where Louis Dreyfus Company bought 4, 338 bags, Ibero Kenya ltd purchased 4, 328 bags and C.Domarn Ltd bought 4, 167 bags.

Other top buyers include Kenyacof Ltd which bought 3, 224 bags; Taylor Winch Ltd 2, 268 bags and Sasini Kenya Ltd bought 1,873 bags.

Ms Ndung’u noted returns from coffee have gone down in the past two weeks to amount below a billion shillings attributing this, the decreased quantity of grade AA coffee.

High quality coffee, the CEO
said, has been earning better prices divulging that some three weeks back, farmers were earning more than Sh1 billion in the auction.

She challenged coffee societies to emphasize on quality produced by farmers and help them produce grade AA and AB so as to attract more international buyers.

Source: Kenya News Agency