Coffee earnings at Nairobi auction rise to Sh932 million as production picks up

A sample of AA grade coffee beans presented at the Nairobi Coffee Exchange auction./KNA

Coffee farmers have earned Sh932 million from the latest Nairobi Coffee Exchange (NCE) auction, signalling improved trading activity as increased production boosts the volumes of the commodity offered to the market.

The earnings were realised from the sale of 19,359 bags weighing 1,192,242 kilogrammes, compared to Sh870.5 million generated from 18,338 bags sold during last week’s auction.

The sixth sale of the current coffee year represents an increase of about Sh61.5 million in earnings, reflecting sustained demand for Kenyan coffee among local and international buyers.

The average price during the auction stood at Sh39,103.66 per 50-kilogramme bag, with different grades attracting varying prices depending on their quality.

According to the NCE market report, brokers presented 5,119 bags of grade AA, 8,664 bags of grade AB and 2,019 bags of grade C, among other grades.

Kiangomb’e Coffee Factory recorded the highest price at the auction, with its grade AA coffee fetching Sh48,605.04 per bag through Kirinyaga Slopes Coffee Brokerage Company, demonstrating the premium prices that well-prepared coffee continues to attract.

The auction attracted 21 buyers, with established international coffee dealers accounting for a significant proportion of the purchases.

Ibero Kenya led the buyers with 3,387 bags, followed closely by C. Dorman, which purchased 3,309 bags, and Kenyacof with 3,307 bags. Louis Dreyfus bought 2,785 bags, while Mumbi Coffee acquired 1,175 bags.

On the brokerage side, Alliance Berries marketed the highest volume at 6,805 bags, followed by Kipkelion with 2,499 bags, CEBBA with 1,913 bags and Kirinyaga Slopes with 1,508 bags.

NCE Chief Executive Officer Lisper Ndung’u attributed the sustained market activity to growing demand for quality Kenyan coffee, urging farmers to maintain high production standards to benefit from available market opportunities.

She observed that international buyers continued to demonstrate strong interest in Kenyan coffee, particularly high-quality grades, which have the potential to attract better returns for producers.

“The buyers have an appetite for quality coffee, and demand for the same has been on the rise,” said Ndung’u.

She encouraged farmers to focus on improving the quality of their produce through proper harvesting, processing and handling practices, noting that quality remains a key determinant of the prices realised at the auction.

Coffee value chain expert Henry Kinyua said the volumes traded at the exchange were expected to increase further as coffee cherries mature across producing counties.

He noted that the ongoing harvesting season would see more farmers deliver their produce to cooperative societies and processing factories, raising the quantities available for marketing through the NCE.

“By early next year, more coffee is expected to be offered through the Nairobi Coffee Exchange and the direct market,” said Kinyua.

Kenya markets its coffee through the Nairobi Coffee Exchange and the direct sales arrangement, which allows licensed growers and marketing agents to negotiate sales with overseas buyers.

The NCE provides a centralised platform where coffee from different factories and cooperative societies is graded, sampled and traded competitively, with prices influenced by quality, international demand and prevailing market conditions.

The latest auction performance comes at a time when the sector is seeking to increase production and improve farmers’ earnings through better farm management, access to inputs and improved processing practices.

With more coffee expected to enter the market in the coming months, farmers are looking forward to benefiting from increased trading activity and sustained demand for Kenyan coffee.