Production of high quality coffee beans in Kenya has led to an increase In the prices of coffee, which have gone up by 14 percent.
The Nairobi Stock Exchange (NSE) reported that a 50kg bag of coffee currently goes at Sh.24,000, increasing from Sh.21,000 last week. Grade AA sells at Sh.32,028 from Sh.27,030 while grade AB rose from Sh.22.950 to Sh.25,092.
Despite the low market prices on the global market, Kenyan coffee has attracted high prices due to its good quality compared to those from other countries. The last time the price increased in the country was in February last year, which means that it is one year since the same was experienced.
Farmers have been grappling over low prices for a very long period of time, and that is a great relief to them. The good quality coffee beans said to have attracted high prices, comes from Central Kenya who are the also the leading producers of coffee in Kenya.
The Chief Executive Officer of NSE Daniel Mbithi stated that coffee prices at the auction in New York, where Kenya sells its coffee had gone down from US 126 cents a pound to US 115 cents last week. He disclosed that quality was a key factor that determines the prices of the crop.
Mbithi added that among other challenges facing the global coffee market, weak currencies and oversupply are key but the Kenyan coffee seems to have overcome all these. Last year, exports from Kenya’s coffee fetched the country Sh.16.2 billion which was an increase compared to what was fetched in 2014.
More than 90 per cent of the locally produced coffee is exported and it is mainly used by roasters in blending. Towards the end of last year, four Kenyan coffee brands were reported to be among the top 30 most sought after by coffee roasters across the world.
Article by Vera Shawiza.