Coffee farmers will continue earning good prices for their beans after coffee prices at Nairobi Coffee Exchange (NCE) increased by 5pc during the latest auction.
Prices at the exchange increased for the second time in a row since the auction reopened last week after a one-month break.
Latest data indicate that a 50kg bag is now selling at an average of Ksh 33,000 from Ksh 32,000 last week driven by high demand for the beans by processors who are currently restocking after the auction opened.
AA grade fetched the highest prices with 1,163 bags of the grade offered at Ksh 57.4 million. The average price for the AA coffee was quoted at Ksh 39,000 representing a 5.4 percent increase from last week’s auction.
SB coffee fetched the lowest price at the auction with a 50kg bag retailing at Ksh 10,000 with only 83 bags traded on the floor of the NCE.
Cumulatively 10,565 bags were offered at the auction by close of business Tuesday, trading at an average of Ksh 33,000 per 50kg bag and netting farmers Ksh 434 million.
The increase in prices comes just days after coffee producers warned of a dip in yields this year due to the high cost of production that is beyond the reach of many coffee farmers.
According to the Kenya Coffee Producers Association Chairman Peter Gikonyo, the high cost of farm inputs has seen a production of a kilo of cherry increasing 39pc to Ksh 100 further eating into farmers’ earnings.