Seventeen coffee buyers participated in the Nairobi Coffee Exchange (NCE) where they purchased 9,714 bags of the commodity at Sh370.9 million.
The weekly auction gave less amount as compared to the previous week of Sh455 million after the sale of 11,944 bags of coffee that were bought by 17 local and international buyers. NCE Chief Executive Officer Ms. Lisper Ndung’u said the market has been successively providing competitive prices, urging the growers to continue producing the quality grades that attract the auction platform.
She said 69 percent of the coffee delivered at the auction was grades AA and AB which accounted for 6,707 bags that the nine coffee brokers led by Alliance Berries Limited and New KPCU auctioned. ” The coffee market has been competitive with the buyers going for the quality grades of AA and AB; thus, there is a need for growers to enhance quality production to attract impressive prices,” said the CEO.
According to the NCE reports, Mbaranga factory under Tigania North Farmers Cooperative Society achieved the highest price of Sh39,087 per bag in the AA quality, through the New KPCU. Those that were presented by the Alliance Berries Limited, Thimu factory coffee achieved a price of Sh35,088 per bag of AA grade.
Cooperative Principal Secretary Patrick Kilemi said coffee market performance in August was healthy owing to the consistency of large brokers in presenting high volumes, and thus competitive prices Mr Kilemi said the Kenyan coffee sector, the path forward lies in embracing innovation, ensuring quality, and maintaining the strong reputation Kenyan coffee holds internationally.
” There is room for the smaller brokers to strengthen their market positions through better marketing strategies, investments in quality, or alliances that could level the playing field,” said the PS. Kenya Coffee Producers Association Chairman Peter Gikonyo said the coffee auction has been excellent despite the shortcomings encountered in the process.
Gikonyo said the core issue that should be relooked at is the recruitment of more players to provide Direct Settlement Service (DSS) as the growers expressed in the meetings in May and June when regulators toured the countryside. Gikonyo said as we usher in the second year under the coffee regulation 2019, 2023/2024, there is a dire need for the recruitment of three more players to supplement efforts made by the cooperative bank in DSS.
“For a healthy competition in the sub-sector there is a need for more players to ensure quick remittance of money into farmers’ bank accounts and address to the emerging challenges,” said Gikonyo. Other factories that achieved the best prices are Kaliati, Komothai, New Mitamboni, Kwa Kiinyu, and Nduluma factories.
In the market, Alliance Berries Limited delivered 1,936 bags that fetched Sh73 million, New KPCU 3,857 bags for Sh151.3 million, Murang’a Coffee 365 bags for Sh14,487,394, and Minnesota 583 bags for Sh21.8 million. Other coffee brokers are Kirinyaga Slopes 750 bags, Meru 943 bags, Kipkelion 434 bags, and Kiambu 404 bags.
In the dealers category, Ibero Kenya bought 3,078 bags, C Dorman 1,399 bags, Taylor Winch 1,380 bags, Jowam Coffee Traders 1,242 bags, and Kenyacof Limited 1,025 bags.