By Henry Kinyua
The coffee season 2023/2024 Sale 18 took place on Tuesday 27th February 2024 at the usual place 2nd floor Wakulima House along Haile Selassie Avenue where Nairobi Coffee Exchange is located and online platforms.
A total of 30,272 bags (each weighing 50kgs) of coffee were traded, signifying a 35% increase from the 22,260 bags traded in Sale Number 17 last week. The average price increased by 19% to $290 from the previous $244 per 50kg bag in Sale Number 17. This average price is equivalent to Kshs 130 per kilo of cherry.
The highest price achieved was $499 per 50kg bag from Ndaro-ini wet mill (Factory) in Nyeri. This high price is equivalent to Kshs 224 per Kilogram of cherry at Factory gate.
An interesting and encouraging trend is emerging from coffee sales this year where the number of bags receiving more than $400 per bags is increasing. In the last 10 sales the number of bags fetching more than $400 has been above 6%. In this sale, 14 bags or 6% of volumes traded fetched more than $400 per bag. In the previous year’s, the number of bags fetching more than $400 was constant at 2% which was not consistent with normal market behaviors.
The top 10 coffee lots were from factories in the counties of Nyeri and Kirinyaga. These includes: Ndaro-ini whose coffee fetched the highest price, Kangocho, Mutheka and Gathaithi from Nyeri County and from Kirinyaga county we had Kii, Karimikui, Mugaya, Kiangoi who are all part of Rung’eto Farmers’ Cooperative Society and Kaguyu from Inoi Farmers’ Cooperative Society.
The total earnings from Sale Number 18 amounted to $9,009,277.40 or approximately Kshs 1.3 billion. Notably, 20,716 bags, or 68% of the volumes traded, were grades AA and AB.
I would like to state as always 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 only serve as directional indicators of market performance. If you are a coffee farmer, find out which broker is handling your coffee then follow and see how many lots are presented and the prices they fetch. Do this until all the coffee from your factory and cooperative have been sold. Sum it all up to establish amounts paid for your coffee, then follow up deductions at factory level to arrive at the final price paid to farmers.
To estimate the price per kg of cherry from market reports, take the highest price paid per bag (e.g., $499) and multiply it by the dollar rate (e.g., 146). Then, divide by 50 (50kg per bag) and further divide by 6.5 to get the kilos of cherry. Using this formula: (499 * 146) / 50 / 6.5 = 224. So, $600 per bag = $10 per Kg of clean coffee, equivalent to Ksh 224 per kg of cherry
Brokers
Nine brokers/agents presented their clients’/farmers’ coffee for trading at the auction. Kirinyaga Slopes continued to shine at the auction with their coffee fetching the highest average price fetched. They delivered 8,397 bags to the market and sold all at an average price of $289. Alliance Berries delivered and sold the highest volume and at an average price of $240 which was the third highest.
KCCE Marketing Agency sold the 4th highest volumes at an average price of $258, which was the second highest. New KPCU presented 4,198 bags at an average price of $225 per bag. Kiambu Coffee Marketing Limited returned to the auction trading 1,127 bags at an average price of $150.
From the Rift Valley and Western regions, we had Kipkelion with 1,709 bags at an average price of $210, Kinya coffee marketing agency that traded coffees largely from Kisii region also presented 1,432 bags at an average price of $148.
Coffee Buyers.
A total of 24 buyers participated in the auction. The top five buyers led by C.Dormans purchased 75% of the coffee presented. Others included Ibero Kenya, Kenyacof, Louis Drefus Company and Taylor Winch. Kafe Koko Ltd procured 27 bags that was the least volume procured by one buyer at the auction.
