Coffee prices at the Nairobi auction this week dipped by 5.3 per cent, marking the first decline since the beginning of the year.
The weekly market report from Nairobi Coffee Exchange (NCE) indicates that the price of a 50 kilogramme bag of coffee dropped from Sh31,000 last week to Sh29,355 on sales that were held on Tuesday.
Volumes offered for sale increased to 32,000 bags from 26,000 bags the previous week as more berries from central Kenya continues to trickle at the auction.
Coffee prices had been on an upward trajectory in the past five weeks as quality produce from the Mount Kenya region pushed up the demand for Kenyan beans at the auction.
NCE chief executive officer Daniel Mbithi, however, said that the high prices are likely to return in subsequent auctions due to improving quality of beans that they have been receiving from growers.
“We expect that the good prices will continue in the coming sales as we continue to receive quality coffee from farmers,” Mr. Mbithi told the Business Daily.
The top most coffee grade-AA- also lost its value from Sh38,831 last week to Sh38,316 in the latest auction.
Coffee remains a major export cash crop in Kenya.
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Credit: Business Daily
