Coffee farmers earn Sh822.5 million from weekly auction
Business
By
Boniface Gikandi
| Feb 07, 2024
Kenya's coffee market this week earned Sh822.5 million from the sale of 16,468 bags down from Sh833.3 million that was paid to the growers a week ago.
The delivery at the Nairobi Coffee Exchange (NCE) decreased to 17,468 bags from the previous trading where the marketing agents had 20,821 bags.
During Tuesday's sale at the Nairobi Coffee Exchange (NCE), 17 buyers bought 4,258 bags of AA grade that fetched Sh267,036,243.81($1,663,777.22).
The grades AB were 7,334 bags and fetched Sh367.4 million ($2,289,356.34), and at total of 2,038 bags of grade C sold at Sh75.3 million ($469,388.84).
Seventeen buyers participated in the auction with four leading ones being Ibero Kenya, Kenyacof, C. Dormans, and Sasini who purchased 85 per cent of the commodity.
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Ibero Kenya purchased 4,227 bags, Kenyacof 3,698 bags, C.Dorman Ltd 3,209 bags and Sasini 2,939 bags.
NCE Chief Executive Officer Risper Ndung'u said the online trading received from the marketing agents 1,016, 955 million kilogrammes of the commodity that sold at an average of $251.98 per 50-kilogramme bag of coffee.
"The activities at the NCE have been impressive and we encourage the farmers' cooperatives to utilise the online trading platform," said Ndung'u.
At the same time, the Kenya Coffee Producers Association (KCPA) noted that the utilisation of NCE by farmers in cooperatives and estates is at 75 per cent.
The Association's chairman Peter Gikonyo said activities at the exchange stabilised in October after the users gained confidence in coffee reforms.
"We have observed stability in the sector and we are now focusing on increasing production cost to maximum returns to the growers," said Mr Gikonyo.
New KPCU was conspicuously absent from the market as Kirinyaga Slopes presented the highest volume of 5,897 bags, followed by Alliance Berries 4,643 bags.
Murang'a County Coffee Dealers made a second appearance since they entered the market on August 15 last year with 266 bags.