Decline in Coffee Prices Driven by Low Quality Beans in the Market

A market report from the Nairobi Coffee Exchange (NCE) indicates that the price of coffee in Nairobi has declined by 16 percent in the latest weekly sale as low quality beans take a toll on the value.

According to the report, a 50-kilogramme bag of coffee has been retailing at 18,156 shillings this week as compared to 21,624 shillings in the previous sale, a decrease by 3,468 shillings.

Lately, coffee has been registering lower prices attributed to poor quality of beans delivered by farmers as the main crop season ends. NCE chief executive Daniel Mbithi disclosed that the low prices will still be experienced as the low-grade coffee is expected to persist until the auction breaks for recess.

The NCE is likely to go on recess in June, to usher in the new crop in July when it resumes.

“It is expected that much lower average prices will be realized in the coming sales due to lower quality of the beans streaming into the market,” said Mr. Mbithi.

The auction has been enjoying high volumes of good quality beans from central Kenya in the last three months.

Mbithi noted that next month marketers will determine when the auction will go on recess, and this will depend on the availability of coffee to trade.

Coffee earnings had improved by 63 percent in February compared with a similar period in 2016 on the back of higher international prices and an increase in volumes at the Nairobi auction.

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