Coffee prices recorded a sharp increase as trading resumed at the Nairobi Coffee Exchange (NCE) following the mid-year recess with Sale 30 generating Sh345 million, despite a significant drop in the volume of coffee offered.
The auction, held on Wednesday at Wakulima House in Nairobi, traded 6,622 bags of coffee weighing 412,562 kilograms.
The coffee fetched an average price of Sh41, 864 per 50-kilogramme bag, equivalent to Sh836 per kilogramme of clean coffee.
Although the quantity traded declined by 48 percent from the 792,877 kilograms sold during Sale 29, the final auction before the recess, the average price rose by Sh8, 474 per bag, representing a 25 per cent increase.
The higher prices pushed the estimated cherry payout to farmers from about Sh103 to Sh129 per kilogramme, offering a significant boost to coffee growers.
According to the Nairobi Coffee Exchange auction report, Kieni Factory in Nyeri County posted the highest price of the day after its Grade AA coffee sold for Sh55, 302 per 50-kilogramme bag through Alliance Berries to buyer C. Dormans.
Kathiguni Factory followed closely after its coffee fetched Sh55, 043 per bag, while Kiiriangoro Factory in Murang’a County realized Sh54, 914. Muthaite Factory earned Sh54, 655, with Gitugu Factory completing the top five at Sh54, 397 per bag.
Grade AA coffee continued to attract premium prices, with 516 bags sold for a total of Sh32.3 million. The larger Grade AB category accounted for 2,941 bags, earning Sh176.8 million.
Nine marketing agents participated in the auction, with New KPCU PLC handling the largest volume. The broker traded 2,219 bags worth Sh117.6 million at an average price of Sh42, 984 per bag.
Alliance Berries marketed 1,402 bags valued at Sh78.1 million, followed by Kipkelion Brokerage Company with 951 bags worth Sh49.9 million. KCCE Marketing Agency sold 730 bags, earning Sh30.2 million.
On the buying side, 17 dealers participated in the auction, with the top five buyers taking up about 84 percent of the coffee offered.
Ibero Kenya purchased the largest volume, acquiring 1,569 bags valued at Sh87.9 million. C. Dormans spent Sh92.3 million to purchase 1,478 bags, reinforcing its dominance in acquiring premium-quality coffee.
Louis Dreyfus bought 1,394 bags worth Sh70.5 million, while Taylor Winch purchased 562 bags valued at Sh33 million and Global Mark Foods acquired 577 bags worth Sh11.4 million.
The results of Sale 30 indicate continued strong international demand for quality Kenyan coffee, with the higher auction prices expected to translate into improved earnings for coffee farmers, despite the reduced volumes offered at the first sale after the recess.
By Bernard Munyao
