Coffee farmers earn Sh1b at Nairobi auction

51 bags of AA were sold to Ibero Kenya at Sh46,170 per bag of 50 kilograms. [Kibata Kihu, Standard]

Farmers earned Sh1 billion in this week's coffee auction from the sale of 25,180 bags with premier grades of AA and AB fetching better payments.

The payment to the farmers affiliated to 1,001 cooperatives and estates is more than last week's proceeds of Sh1,022 billion from the sale of 26,449 bags of coffee.

In the sale, Konyu Coffee Factory and Iyego Coffee Factory represented by Alliance Berries Limited achieved the best prices of Sh54,540 and Sh50,895 per bag for their 132 bags of AA respectively bought by C Dormans.

Another 51 bags of AA from the Kiunyu Coffee Factory through the Kirinyaga slopes were sold to Ibero Kenya at Sh46,170 per bag of 50 kilograms.

On Tuesday, NCE Chief Executive Officer Lisper Ndung'u noted that 71 per cent of the produce delivered accounted for 17,866 bags of AA and AB that were bought at Sh765.2 million.

Ndung'u said farmers affiliated to Konyu, Iyego and Kiunyu coffee factories in Kirinyaga and Murang'a counties, achieved the highest prices in the auction market.

"Demand for the premier grades has been on the rise, thus the need for the farmers to be encouraged to continue producing the best commodity to attract the market," she said.

On average a 50 kilogramme bag traded at Sh33,075. Kangema MP Peter Kihungi said it was impressive that the majority of the coffee factories across the 33 coffee-producing counties participated in the market.

Kihungi, a member of Cotepa, said the sector was recovering thus registering impressive prices at the auction market.

"The government is working towards looking for more coffee buyers," said Kihungi.

He lauded Iyego Cooperative Society from his constituency for achieving the second-best price of Sh50,895 ($377) per bag of AA.

In the broker's performance, Alliance Berries Limited topped the list with 9,027 bags that fetched Sh401.2 million while Kirinyaga Slopes earned Sh205.1 million after the sale of 5,384 bags of coffee.

The state-backed New Kenya Planters Cooperative Union (NKPCU) earned Sh218.8 million from the sale of 5,209 bags of coffee.

In the coffee dealers category, Kenyacof Limited led the pack buying 5,934 bags for Sh246.8 million, followed by C Dormans 5,127 bags at Sh236.4 million, Ibero Kenya traded 3,578 bags for Sh137.7 million.

Others Louis Dreyfus 3,526 bags for Sh128.7 million, Taylor Winch spent Sh105.3 million and Faina Enterprises Ltd bought four bags at Sh174,069.