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Farmers earn Ksh 708M from coffee auction

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Coffee farmers drawn from 10,029 cooperatives societies and estates have earned a total of Ksh 708.7 million during this week’s sale at the Nairobi Coffee Exchange (NCE).

Tuesday auction saw a total of 21,311 bags equivalent to 1,308,310 kilos of coffee offered for sale. The quantity was slightly lower compared to last week’s auction where 21,867 bags were traded.

On sale, the average price per 50 kilo bag of coffee was at Ksh 34,230 compared to last week’s sale where a bag was bought at average of Ksh 25,511.

Eight brokers participated in the auction with Alliance Berries Ltd trading the highest volume at 33pc.

“Alliance Berries sold 7,006 bags at Ksh 264 million, followed by Kirinyaga slopes company which traded 6,099 bags at Ksh 179.6 million with New KPCU emerging third after selling 4,699 bags at Ksh 150.07 million,” said Lisper Ndung’u, NCE Chief Executive Officer .

During the sale, 3,241 bags of grade AA were traded, where they fetched Sh136. 32 million and 7,158 bags of grade AB were sold at Ksh 258.47 million.

Ichamari coffee factory of Nyeri County got the best price for its AA grade by selling 93 bags through Alliance Berries ltd at Ksh 45,499 per bag of 50 kilos.

“Other coffee factories which fetched better prices in the auction include Gitura which sold each of its 22 bags of grade AA at  Ksh 43,790, followed by Gathinja which traded 30 bags, each earning Ksh 42,212 and Iyego factory of Murang’a county sold 40 bags of grade AA, each at Ksh 41,160,” added the Ndung’u.

A total of 19 local and international buyers participated in the auction where Louis Dreyfus Company bought 4,338 bags, Ibero Kenya ltd purchased 4,328 bags and C.Domarn Ltd bought 4,167 bags.

Other top buyers include Kenyacof Ltd which bought 3,224 bags, Taylor Winch Ltd 2,268 bags and Sasini Kenya Ltd bought 1,873 bags.

Ms Ndung’u noted returns from coffee have gone down in the past two weeks to amount below a billion shillings attributing this, the decreased quantity of grade AA coffee.

High quality coffee, Ndung’u said, has been earning better prices divulging that some three weeks back, farmers were earning more than Ksh 1 billion in the auction.

She challenged coffee societies to emphasize on quality produced by farmers and help them produce grade AA and AB so as to attract more international buyers.

KNA
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