Coffee volumes increased by 18 percent this week at the Nairobi Coffee Exchange (NCE), a trend market analysts attribute to the registration of more mills and the high demand for clean beans presented for sale.
A market report by NCE secretariat reveals that during this week Sale 21, registered coffee brokerage firms offered for sale 23,930 bags compared to 20,281 traded in Sale 20 last week. Out of which 17,459 bags accounting 73 per cent of all coffee traded were top grades AA and AB.
The report notes that total earnings from the auction reached $7,295,208 ( Sh970 Million) which was a significant increase from $5,786,468.20 (Sh769.6 million) returned during last week’s auction.
The average price increased to $248 (Sh32, 128) from $ 232 (Sh30, 856) per bag, accounting for 6.9 per cent achieved last week. This average price is equivalent to Sh100 per kilo of Cherry at the trading floor. A coffee value chain expert Henry Kinyua explained that the auction has of last If you look at the catalogue that indicates that more coffee is being milled and equally delivered into offered for sale. “The catalogue indicates more mills have been licensed and are now operational and thus easing crushing of parchment coffee and equally, quality has remained impressive,” said Kinyua on phone. The disbursement of coffee proceeds through Direct Settlement System (DSS) he said has boosted farmers’ morale and thus are frequently releasing their coffee into the market.
Data from the NCE indicated that coffee farmers in the last five months of 2023/24 crop year have received over Sh12 billion through the DSS that was developed by Cooperative Bank of Kenya.
The data indicated that between Oct 1, 2023 and the end of February this year DSS system has settled 17.2 million kgs accounting 339,803 bags in total coffee volumes valued at $89.5million.
NCE on August 8, 2023 announced the appointment of the Cooperative Bank of Kenya as the provider of DSS to coffee value chain players after every sale in the country.
In addition, the clearing and settlement of trades through the Co-op Bank’s Direct Settlement System (DSS) has ushered in unprecedented levels of price transparency that has greatly rebuilt the trust that farmers have in the coffee auction and the Nairobi Coffee Exchange.
NCE on August 8, 2023 announced the appointment of the Cooperative Bank of Kenya as the provider of DSS to coffee value chain players after every sale in the country.
NCE secretariat confirmed that the highest price recorded from the sale reached $455 (Sh60, 515) from the Kiamugumo factory of the New Ngariama Farmers cooperative Society in Kirinyaga County. Other factories whose coffee fetched more than $400 (Sh53, 200) per bag include KII factory, Karimikui, Kerugoya and Kabingra from Kirinyaga County. Others included Gichatha-ini, Gakundu, Kamwangi and Kiunyu in Nyeri County. During the auction a total of 847 bags or 4 per cent of all bags traded fetched more than $400 (Sh53, 200) per bag.
Kirinyaga Slopes Coffee brokerage company successfully traded 8,343 Bags at an average price of $292 (Sh38,836) that was also the highest average price by any broker. Baringo Kawa Brokerage Company, the latest entrant, also presented 247 bags for trading and received an average price of $206 (Sh27, 398).
