Coffee prices retreat as main crop beans quality falls
Coffee prices at the Nairobi auction declined marginally this week, reversing the 11 per cent rise that was registered in the previous week’s sale.
On average, the price of a 50 kilo bag dropped from Sh11,400 to Sh11,211 in the latest sale held on Tuesday at the Nairobi Coffee Exchange (NCE).
The value of the Kenyan coffee has generally depreciated in the last couple of months after registering impressive results between January and February due to high quality coffee supply from farmers.
According to the NCE, the quality of beans offered this week declined compared with the previous sale, pushing the price of the commodity down.
“There was a slight decline on quality in this week’s trading compared with the previous one, a move that pushed down the price marginally,” said the NCE.
Coffee trading at the auction has been coming in from the main crop season in Central Kenya, which is now coming to an end with quality expected to pick in July with arrival of short crop from Eastern Kenya.
Kenya’s earnings from coffee dropped by Sh1.3 billion between October and March compared with the same period last year, on account of low international prices and reduced volumes at the auction.
The low prices are also set to affect listed agriculture firms dealing in coffee.
Earnings dropped by Sh1.4 billion in seven months to April compared with the same period last year, on account of low prices for Kenya’s Arabica at the international market.