Kenya: Value of Kenya’s Coffee Surges 20 Percent As Market Reopens
The value of Kenya’s coffee surged 15 percent this week as the auction reopened after a mid-season break, amid global price volatility.
The total value of the beverage at the Nairobi Coffee Exchange rose to $5.5 million from $4.8 million in the last sale before the break.
The increase was driven by strong returns from Kenya’s top-grade coffees, which saw significant growth.
Kenya’s premier coffee grade AA surged, with a 50-kilo bag fetching $275, up from $239 in the previous sale. Grade AB also saw an increase, with prices rising to $236 per bag from $233.
Global coffee prices hit a one-month low this week, pressured by increased global supplies. The International Coffee Organisation (ICO) reported a 3.8 percent year-on-year rise in June global coffee exports to 10.78 million bags.
Additionally, global coffee exports from October to June increased by 10.1 percent year-on-year to 103.47 million bags.
Brazil, the world’s largest coffee producer, is nearing the end of its 2024/25 coffee harvest, which was 87 percent complete by the end of last month, compared to 80 percent at the same time last year and faster than the five-year average of 84 percent.
Kenya exports up to 95 percent of its coffee production, with only five percent consumed locally, meaning that a change in international price has a direct impact on the local crop.
The Kenyan government is pushing for coffee sector reforms to increase farmers’ earnings by eliminating intermediaries in the value chain.
By Business Day Africa.
