The HK Coffee market summary, Sale number 9 of Wed Dec 13th 2023

By Henry Kinyua

Welcome to this weeks’ edition of the HK Coffee market summary, Sale number 9

Kenya celebrated her 60^th Birthday on Tuesday 12^th December 2023, the day referred to as Jamhuri or Republic Day. The day was marked with pomp and glamour led by the president H.E President William Ruto and Kenyans trooped to the main stadium at Jamhuri Park and others followed the proceedings from the comfort of their homes. All in all, like any birthday it was a memorable day. This however disrupted the coffee marketing routine pushing the weekly auction from Tuesday to Wednesday.

On a positive note, however, the one-day delay didn’t dim the prospects at the market as we saw the highest volumes traded in a day this year, with 20,199 bags traded at an average price of $187 per 50 kg bag earning farmers and traders a total of $4,618,074.3 or Kshs. 693M.

The trade floor also welcomed the most significant county in Kenya in matters coffee and that is County number 20, the great county of Pishori rice that also refers to the power saw as “kanoenoe”. This is the great county of Kirinyaga. Kirinyaga is significant in coffee matters largely due to their high productivity per tree.  Kirinyaga has an average production of 6 kgs per bush which is three times the national average of 2 kgs.

The county has 15 cooperative societies and 69 pulping stations (factories). One factory called Guama for instance in 2019/2020 produced over 1.1 million kilos of cherry more than, Nakuru, Baringo, Busia, Homabay, and Makueni counties combined.  Kirinyaga farmers have also managed to sort out their local cooperatives politics that have seen them maintain strong cooperatives and that has improved service delivery to farmers over the years. One black spot in Kirinyaga over the years has been their inability to use their coffee mill that they spent hundreds of millions constructing for over 10 years. There were many theories out there why it wasn’t used but I don’t want to dwell on that but celebrate that they finally not only utilized it this year but also registered a brokerage company called Kirinyaga Slopes Coffee Brokerage Company Ltd. It started trading this week at the auction. Their first volume in the market was 2,442 bags that traded at a minimum price of $156 per a 50 kgs bag and the highest price attracted by their coffee was $295 per a 50 Kgs bag. The average price was $190 per bag or Kshs 81 per Kg of cherry which is not high but good for a start. So, let’s watch how their subsequent sales will fair at the auction.

Another latest entrant that deserves a mention is Bungoma Union Marketing Agency.

Back to Sale 9

In this sale, 20,199 bags of coffee were traded at the auction. The value of coffee traded was $4,618,074.3 or Kshs 693M. The number of brokers selling coffee at the auction increased from six  last week to ten.

Alliance Berries continued to  blaze the trail taking the first position trading at 27% of the volumes at the auction closely followed by New KPCU that traded at 26% of the volumes. Kirinyaga followed with 12%, then Kipkelion at 9% and KCCE Marketing closing the top 5 position at 7%. The five companies accounted  for 81% of the volumes traded that day.

The highest price paid for coffee in this trade was $517 per bag but for only two bags of grade NH (Natural Heavy) from Kiriga Coffee estate.Tthe estate also got the highest price for their washed coffee grade AA AT $343 per bag that was bought by Taylor Winch. This is equivalent to about Kshs 120 per kilo of cherry at pulping station factory gate. The farmers cooperative whose coffee attracted the highest price was Kiangoi factory in Kirinyaga that is a member of Rung’eto Farmers Cooperative society at $295, per bag  was purchased by Sasini. Top grades AA and AB comprised 52%  of the volume traded.

Download the COFFEE-BROKER_PERFORMANCE_REPORT below

Coffee Buyers

A Total of 18 buyers participated at the auction. Top 5 buyers led by Ibero-27% bought 86% of the coffee traded.

 Others included C.Dormans at 23%,  Kenyacof at  21%, Taylor Winch at 10% and Sondi Trading Co Ltd at 9% taking the 5^th  position. In the category of the least volume procured by a buyer we had First Coffee Africoff Trading Ltd with 14 bags.

Download the Sale 09 Transaction Listing below