By Henry Kinyua
Welcome to this weeks’ edition of The HK Coffee Market Summary: Sale number 13.
The coffee season 2023/2024 Sale 13 took place on Tuesday 23rd January 2024 at the usual place 2nd floor Wakulima House along Haile Selassie Avenue where the Nairobi Coffee Exchange is located and on online platforms.
A total of 22,739, 50kg bags of coffee were traded, signifying a notable decrease from the 24,150 bags traded in Sale Number 12 the previous week.
The average price saw a significant uptick, reaching $232 from the previous $198 per 50kg bag in Sale Number 12. This average price is equivalent to Kshs. 111 per kilo of cherry.
The highest price achieved was $404 per 50kg bag from Teremuka Estate in Nakuru County. This Estate sold 413 bags of AA at a price ranging from $278 to $404 and was procured by C.Dorman among other buyers. This is equivalent to 201 Kshs. per kg of cherry.
The total earnings from Sale Number 13 amounted to $6,464,459 or approximately Kshs. 1.04Billion, compared to $5,818,472 or Kshs. 902M in Sale Number 12.
Notably, 15,179 bags constituting 67% of the volumes traded, were grades AA and AB. I would like you to note that an increase in a percentage of high grades leads to an increase in the average price and the total earnings from the market.
Kirinyaga County, represented by the Kirinyaga Slopes Coffee Brokerage Company Ltd, continued to assert its presence in the market. In Sale Number 13, they traded the highest volume at the auction with 9,056 bags at an average price of $266 per bag, equivalent to Kshs. 133 per kg of cherry at the factory gate.
Kiambu County through Kiambu Coffee Marketing Ltd returned to the market with 510 bags that were all sold at an average price of $180. It is also worth noting Kipkelion also brought 1,270 bags to the market that sold at an average price of $207. This is the largest volume they have delivered to the auction during this season
It’s crucial to note that a report on a single sale doesn’t reflect the total sales and returns from any factory cooperative or county. Coffee is processed and traded at different times, and factories present coffee to the market in multiple sales before determining the final price paid for all their traded coffee. Therefore, one sale or even a couple of sales serve as directional indicators of market performance.
To estimate the price per kg of cherry from market reports, take the highest price paid per bag (e.g., $404) and multiply it by the dollar rate (e.g., 162). Then, divide by 50 (50kg per bag) and further divide by 6.5 to get the kilos of cherry. Using this formula: (404 x 162) / 50 / 6.5 = 201, the result is $404 per bag, equivalent to Kshs. 201 per kg of cherry
Eight brokers/agents participated by presenting their clients’/farmers’ coffee for trading at the auction. Kirinyaga Slopes coffee Brokerage Company presented the highest volume to the market followed by Alliance Berries, New KPCU and Kipkelion Broker Company Ltd.
A total of 22 buyers participated in the auction. The top six buyers, led by C.Dormans, Sasini and Ibero purchased 92% of the traded coffee. Other notable buyers included Taylor Winch and Louis Dreyfus Company. Star Coffee procured the least volume of only 2 bags from the auction
Download a detailed report below