Coffee farmers earn Sh677 million at Nairobi auction
Business
By
Boniface Gikandi
| May 15, 2024
Kenya Coffee has continued posting poor results at the auction owing to the low delivery of quality grades in the market.
In the auction at the Nairobi Coffee Exchange (NCE), farmers earned Sh677.9 million after the sale of 21,876 bags of coffee traded.
The sale of the commodity sourced by the marketers from 1,133 cooperatives and estates fetched Sh677.9 million, up from the previous week's Sh615.5 million.
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In the week's auction that attracted 19 local and international buyers, Kiburi Coffee Factory products sold by Alliance Berries Limited was offered the highest price of Sh39,650 per bag of 50 kilogrammes of AA, bought by Kenyacof Limited.
NCE Chief Executive Officer Lisper Ndung'u, noted that in the auction C-Dorman bought coffee worth Sh174,909,943, Louis Dreyfus purchased 3,724 bags for Sh114,167,614.6, Ibero Kenya Ltd spent Sh88.5 million for 3,055 bags.
In the market, AA and AB bought for the auction 10,298 bags out of 21,867 bags delivered by the 12 marketing agents led by Alliance Berries, Kirinyaga Slopes and New KPCU.
"The coffee delivered at the auction was sourced from 1,133 cooperative societies and estates in the counties," said Ms Ndung'u.
The CEO said that in the provision of supply of the quality grades for trading, the three leading marketing agents managed to deliver 7,963 bags of AA and AB.
Coffee Value Chain expert Henry Kinyua blamed low price in the coffee market on lack of quality grades.
Kinyua said there is a reduced supply of the top grades at the auction, thus reflecting the low prices for the commodity.
"The premier grades delivered at the market are less than 60 per cent, thus the need to increase the production of the quality grades that fetch the high prices," said Kinyua.
In the auction, Alliance Berries Limited delivered 5,545 that fetched Sh166.2 million, Kirinyaga Slopes 6,437 bags Sh193.9 million, and New Kenya Planters Cooperative Union 4,429 bags Sh150.7 million.
Other marketing agents, Murang'a county, presented 437 bags traded for Sh14,793,409, Minnesota 466 bags for Sh13.7 million, and KCCE 1,368 bags for Sh43.9 million.