Coffee prices rose nine percent in the latest auction on improved quality of beans at the weekly auction.
A market report by Nairobi Coffee Exchange (NCE) indicates the average price of a 50 kilogramme bag increased from Sh17,952 of last week to sell at Sh18,360 in Tuesday’s auction.
NCE had last week anticipated the price of the commodity would rise in the coming weeks as it expected some quality volumes to trickle in from western Kenya.
The auction is expecting the main crop from central Kenya any time from next month as the short-term beans from eastern Kenya come to an end.
“The crop is currently being picked in central Kenya and if the weather will be favourable, then it can come to the market before we go on recess,” NCE said last week.
Monthly earnings from coffee dropped to a 12-year low with the average price of a 50-kilogramme bag declining by 19.74 percent from Sh20,229 in October 2017 to Sh16,237.6 last month.
High volumes of the produce this year and low international prices affected farmers’ earnings at the auction.
Kenya’s coffee is majorly traded at the New York Coffee Exchange and any change in price affects the local sales.
The country seeks to raise the amount of coffee roasted locally from five to 10 per cent annually over the next five years even as production remains low.