Coffee prices registered a 24.67 per cent drop as at the end of eight months of the 2018/19 production year, a Nairobi Coffee Exchange (NCE) report has revealed.
Average prices of a 50 kilogramme at the end of 2018/19 main crop bag dropped to Sh15,964 compared to the previous Sh21,192.
At the same time, coffee earnings dropped to Sh10.1billion in 2018/19 compared to Sh12.6 billion returned at the end of the main crop of 2017/18 year.
Daniel Mbithi, NCE chief executive officer, said during the review period the number of bags sold through the auction increased to 518,783, a rise of 29,544 bags from 489,239 in 2017/18.
“The number of kilogrammes of clean coffee sold through the NCE reached 31.7 million kilogrammes, a 6.16 per cent increase from 29.9 m kilos auctioned in the 2017/18 production year,” he said.
Dismal performance of the international prices especially at the New York Coffee Exchange (NYCE) contributed to decrease to local prices. For example, the Intercontinental Exchange in New York decreased to below $1.98 (Sh198) per kilogramme or 90 cents per pound mark in the month of April.
April was the lowest monthly average price since July 2006 when the price reached 88.57 US cents per pound (Sh194) at the New York Coffee Exchange.
Mbithi said premium grade AA attracted the highest price during the months of December, January, February and March.