Farmers to earn more as coffee fetches good prices

 

Coffee farmers are likely to earn more this financial year, thanks to improved prices both in the local and international markets. Coffee prices at the Nairobi Coffee Exchange (NCE) and New York Futures have been increasing especially for the premiums grades -AA and AB thus signaling better fortunes for local coffee growers.

Coffee firm Sasini Tea and Coffee last week predicted a bright future for coffee farmers in Kenya as demand for local coffee beans at the international market continue to increase. The company chairman Maushad Merali during a coffee farmers open day at Sasini coffee mill in Kiambu County said quality coffees both at that the auction and through direct sales are  fetching prices in excess of $7 per kilogramme.

“With the upward trend of New York futures, we anticipate that this year, farmers will enjoy better prices as that witnessed in the year 2011/12,” said Merali.

Last week, Nairobi coffee auction, average price of coffee offered for sale reached Sh21,708 ($241.20) compared to Sh20,428.20 ($226.20) registered in the previous week. Premium grades AA and AB fetched Sh26,550 ($295) and Sh22,140 ($246) respectively. Grade PB and C fetched Sh22,050 (US$245) and Sh20,250 ($225).

For months now, quality coffee prices have been oscillating at between Sh24,300 ($270) and Sh37,620 ($418) per 50 kilogramme bag of clean coffee. If the prices remain high, growers could earn high income as witnessed in 2011/12 coffee year, when  farmers in the country fetched up to almost Sh150 per kilogramme owing to favourable global prices and high demand of fine Arabica which Kenya is reputed for in the world.

“Since last year, our marketing team has travelled to USA, Europe and the Middle East in search of market for farmers’ coffee. Very positive enquiries have been received and various samples for your coffee have been availed to these potential buyers,” he said.

General Manager in charge of coffee operations James Mureithi said before the end of the year, the company would have distributed over 300,000 grafted seedlings and Batian variety to more than 25 coffee societies and 20 private planters across the country. “Through these initiatives Sasini will have assisted in facilitating planting of about 1,000 acres of coffee in one year,” he said.