The Nairobi Coffee Exchange has reported that Kenya’s benchmark coffee grade climbed for a third successive sale, rising 9.9% to $400 (Approx. KES 34,440) for a 50-kilogram bag, from $364 (Approx. KES 31,340) at the previous sale two weeks ago. NCE says that supplies of the grade rose 62% to 2,105 bags with the average price being $336.24 (Approx. KES 28950.264) a bag compared with $323.97 (Approx. KES 27893.82) at the previous auction.
(Kenyan coffee is sold in US Dollars per 50 kilos at the NCE auction)
In October, coffee auctions at the Nairobi Coffee Exchange (NCE) were cut to be held every two weeks, contrary to the previous weekly basis, owing to low supply and depreciating stocks at the exchange. However, the trend is that, supplies are often low at the start of Kenya’s coffee season (Oct-Sept) but pick up as the season progresses, in line with the harvest cycle. Charles Mbaluka, the chief executive of the Nairobi Coffee Exchange (NCE) says that the situation normally persists until December and January when the new crop starts coming to the market.
Compared with producers such as Brazil and Vietnam, Kenya is a small coffee but it’s the specialty beans from Kenya that are much sought after for blending with those from other countries. Coffee Board of Kenya (CBK) Statistics show that coffee exports in Kenya earned KES 26 billion in 2010/11, up from KES 16 billion in 2009/2010.