Coffee earnings in April improved 21 per cent compared with the same period last year even as the volume traded at the auction declined marginally.
Statistics from Nairobi Coffee Exchange (NCE) indicate that the value of Kenya’s coffee moved from Sh11.6 billion ($112.5 million) to Sh13.9 billion ($135.3 million) in the period under review on account of higher auction prices.
“The volume traded at the auction reduced by about two per cent compared with the same period last year. This can be attributed to the fact that much of the coffee was pushed to the market early in response to the remarkable prices witnessed in the first quarter of the year,” said NCE in a statement.
The average price per 50 kilogramme jumped from $193 last year to $236 in April this year, marking one of the best prices to be realised in 2017.
The decline in volumes can also be attributed to the drought that hit the country last year and the better part of this year.
The auction has taken a break as the main buy isotretinoin online india crop from Central Kenya came to an end, which saw a sharp decline in the quality of coffee at the auction.
NCE chief executive officer Daniel Mbithi said the auction will be resuming in the third week of July when the second crop, mainly from Eastern Kenya is expected in the market.
“The main crop has now come to a successful end and we expect the second crop next month at the auction,” said Mr Mbithi.
He said NCE expects the prices to pick up when the auction resumes given that the crop will be of high quality.
“We are looking at better prices coming next month which will majorly be driven by high quality crop from farmers,” he said.
About 85 per cent of Kenyan coffee is sold through the auction with the balance sold direct to buyers overseas.
The government has been pushing for direct sales to enable growers to earn more from their crop by eliminating the middlemen who exploit farmers through the auction.
Credit: Business Daily