Latest data from Nairobi Coffee Exchange (NCE) shows that the price of Kenyan coffee dropped to Sh30,891 this week, from Sh31,853 in May, the lowest price recorded in three months.
Continued recovery in supply from the world’s leading producer Brazil, the leading producer of coffee in the world, experienced unprecedented frost last year leading to sharp decline in supply. This led to an increase in global prices.
According to Daniel Mbithi, the chief executive of NCE, the price of coffee in New York, which is Kenya’s market for coffee, declined to 230 cents per pound on Tuesday from 240 pounds.
Kenya sells almost all of her coffee at the international market, with less than five percent left for the local market.
The bulk of the exports, 95 per cent, are in the form of cleaned beans, with the remainder sold as roasted coffee.
Low prices of the popular beverage is attributed to the less quality beans, which is what is available in the market today since the end of April when the main crop season ended.
Nairobi auction is currently receiving coffee from eastern and western Kenya. The two regions are expected to sustain the enterprise up to November when the main season produce is expected to return to the market.
Kenya recently embarked on an ambitious project that seeks to raise the amount of coffee which is locally roasted to 10 per cent annually over the next five years.
