The New KPCU sold coffee worth Kshs. 94.9 Million during its inaugural sale after it acquired the requisite milling, warehousing, agency and marketing licenses.
The New KPCU sold the coffee as follows:
- 30,083 Kgs of AA at US$6.8 per Kg equivalent to Kshs. 714 per Kg at an exchange rate of Kshs. 105.3 to the Dollar;
- 92,085 Kgs of AB at US$5.0 per Kg equivalent to Kshs. 526.5 per Kgat an exchange rate of Kshs. 105.3 to the Dollar;
- 9,774 Kgs of PB Grade at US$5 per Kg equivalent to Kshs. 526.5 per Kg at an exchange rate of Kshs. 105.3 to the Dollar; and
- 40,753 Kgs of C Grade at US$4.6 per Kg equivalent to Kshs. 483.4 per Kg at an exchange rate of Ksh.105.3 to the Dollar
- 30,083Kgs of AA at US$6.8 per Kg equivalent to Kshs. 714 per Kg at an exchange rate of Kshs. 105.3 to the Dollar;
- 92,085 Kgs of AB at US$5.0 per Kg equivalent to Kshs. s526.5 per Kg at an exchange rate of Kshs. 105.3 to the Dollar;
- 9,774 Kgs of PB Grade at US$5 per Kg equivalent to Kshs. 526.5 per Kg at an exchange rate of Ksh.105.3 to the Dollar; and
- 40,753 Kgs of C Grade at US$4.6 per Kg equivalent to Kshs. 483.4 per Kg at an exchange rate of Kshs. 105.3 to the Dollar.
Agriculture CS Peter Munya says the coffee fetched a good price comparing with the prices that were on offer at the Nairobi Coffee Exchange at the time of sale. “Had all this coffee been sold at the last coffee auction at the Nairobi Coffee Exchange (NCE) where the auction prices were US$ 6.2 per Kg for Grade AA; US$ 3.52 per Kg for Grade AB; US$ 3.0 per Kg for Grade PB and US$ 2.4 per Kg for Grade C; the coffee would have fetched a gross cumulative value of Kshs. 73,792,450, which is about Kshs. 21Million (or 28%)lower than the Kshs 94.9 Million New KPCU has received through this sale,” says the CS.
The New KPCU has already issued payment instructions to the bank to pay the farmers’ cooperative societies and their factories and the societies are expected to make the payments to farmers in the coming week.
“This inaugural coffee sale by New KPCU is therefore a major indictment of the price discovery process at the Nairobi Coffee Exchange. It is inconceivable in my view that a direct sale would discover coffee prices better than a coffee auction if the auction process was efficient and transparent; and this particular discovery gives significant impetus on the need for serious reforms at the coffee exchange,” says the CS.
Speaking at the Ndandora milling plant today, Munya also said that New KPCU has fully operationalized the warehousing and milling operations in Ndandora and Meru while plans are underway to operationalize milling services in Sagana.
“As a show of confidence by coffee farmers to the on-going coffee reforms and the important role New KPCU is going to play in the process, the Meru Milling plant started receiving coffee from farmers on the 29th June 2020 and received over 2,000bags, equivalent to over 100 tons of coffee parchment in one week. Moreover, between January 17th to May 27th 2020, the New KPCU Ndandora milling plant received 9,341bags equivalent to 434,285 kgs of coffee parchment for milling and marketing,” opined the CS.
The CS directed the Agricultural and Food Authority (AFA), to ensure that all coffee marketing agents disclose and publicize the prices for all coffee they sell through direct sale on behalf farmers in the manner demonstrated by New KPCU today in order to enhance transparency and accountability in coffee sales.
