Coffee weekly auction fetches Sh896 million

Kenya’s coffee auction fetched Sh896 million from 15,906 bags, with top-quality beans selling for up to USD 461 per 50kg bag. [Courtesy]

The auction at the Nairobi Coffee Exchange (NCE) witnessed reduced volume as the harvest season comes to an end in some parts of coffee-growing regions.

A total of 15,906 bags weighing 984,630 kilograms were traded at the auction, valued at Sh896 million at sale number 37, as compared to last week's auction, in which 17,315 bags weighing 1,067,915 kilograms valued at Sh949 million were traded from 961 lots and 13 marketing agents.                

According to the NCE report, the auction recorded an average price of USD 352 (Sh45,984) per 50kg bag, equivalent to USD 7.04 per kg of clean coffee, translating to approximately Sh910 per kg.

Based on the industry benchmark of 6 kg of cherry to 1 kg of clean coffee, this represents approximately Sh152 per kg of cherry before milling, marketing and cooperative society deductions.

According to grade performance, Grade AB remained the dominant grade, accounting for approximately 39% of the total volume and achieving an average price of USD 391(Sh50,618) per 50kg bag.

Grade C accounted for 28% of the volume at an average of USD 349 (Sh45,181) per bag, while AA represented 8% and averaged USD 401 (Sh51,913) per bag.

Lower grades recorded comparatively lower prices, with T accounting for 8% of the volume at USD 228 per bag, UG2 representing 5% at USD 243, while ML recorded an average of USD 123 per bag.

The highest price of the auction was USD 461 per 50kg bag, highlighting the continued premium commanded by exceptional-quality Kenyan coffee.

New KPCU emerged as the leading marketing agent by volume, handling 272,653 kg, representing 28% of the total coffee traded.

Its portfolio was valued at approximately USD 1.98 million, achieving an average price of USD 363 per 50kg bag.

Alliance Berries followed with 241,063 kg, representing 24% of the total volume. The coffee was valued at approximately USD 1.76 million, with an average price of USD 364 per bag.

Kirinyaga Slopes handled 171,575 kg, representing 17% of the total volume, with its portfolio valued at approximately USD 1.11 million and averaging USD 324 per bag.

The market remained concentrated among the leading buyers, with six dealers accounting for approximately 90% of the total volume traded.

Ibero Kenya led with approximately 23% of the purchases, followed by Kenyacof and C. Dormans SEZ, each at 22%. Taylor Winch accounted for 12%, Global Mark Foods for 7%, while Louis Dreyfus accounted for 5%.