Nairobi Coffee Exchange(NCE) witnessed the sale of 10,770 bags (about 671,180 kg) of coffee, at last week’s auction earning a total of US$ 4.99 million, equivalent to KSh 666 million. This is a drop from the prior week’s KSh 704m
The average price across all grades at the Nairobi Coffee bourse stood at US$ 372 per 50-kg bag, or roughly KSh 148 per Kg of Cherry.
Last Week’s Nairobi Coffee Exchange trading was dominated by grade-AB (31%), C (28%), and Mbuni-MH (10%) grades, while the AA grade continued to command the highest prices, averaging US$ 444 per bag and a maximum price of US$ 477 per bag for one lot of 5 bags Grade AA from Menu Farmers Cooperative Society in Bungoma County.
New KPCU PLC once again led the auction with 3,092 bags valued at US$ 1.51 million, followed by Alliance Berries Ltd with 2,768 bags worth US$ 1.26 million.
Minnesota Coffee Marketers Ltd maintained solid performance with 856 bags fetching USD 370,387, while KCCEMA, United Eastern, Kirinyaga Slopes, Kipkelion, Meru Union, and Murang’a Union each contributed respectable volumes. Coffee Estates Bourgeoisie Brokers Limited transacted 181 bags valued at USD 81,858.
Nairobi Coffee auction dominated by few dominant buyers
On the buying side, Taylor Winch (Coffee) Ltd topped the list with purchases worth US$ 1.59 million, followed closely by Ibero Kenya Ltd, Louis Dreyfus Company, and C. Dormans SEZ Ltd.
Together, these four exporters accounted for more than 80% of the total market value, underscoring the continued dominance of leading international buyers in driving Kenya’s coffee trade.
This dominance on the buyer side of Kenyan coffee at the Nairobi Coffee Exchange could be on its last legs if plans for coffee sale to go online, allowing international buyers to deal directly with coffee farmers, cooperative societies and factories, reaches fruition.
A glance at auction results at the weekly Nairobi Coffee Exchange(NCE) reveals dominance of the buying activities by a few global players, who also control the prices and sales figures.
Kenya’s Cabinet Secretary for Agriculture and Livestock Mutahi Kagwe said this online platform will ensure that coffee auctions are not held hostage by cartels and that the technology will assist will better price discovery and transparency for coffee farmers.
Kenya is one of the leading coffee producers and has been implementing structural reforms both in the coffee and cooperatives sector, to uplift productivity and incomes of coffee farmers.
The Cooperative Bill and the Coffee Bill 2024, which have already been passed by Kenya’s Parliament and are now awaiting Senate Approvals, is set to transform both the Coffee industry and the Co-op sector.
Leave a comment