Kenya’s coffee market witnessed an eight percent decline in prices, primarily influenced by a sharp drop in the value of top-grade coffee.
According to market data from the Nairobi Coffee Exchange (NCE), the cost decelerated, with a 50-kilo bag of coffee sliding to $212 in the latest trading session, down from $232 in the previous week.
Notably, Kenya’s premier coffee-grade AA experienced a significant decline in value, with a 50-kilo bag dropping to $269 compared to the previous sale’s $298.
Similarly, Grade AB, the second-tier in terms of quality, saw a decrease, fetching $217 per bag, down from the previous $235.
This price downturn resulted in a diminished overall sales value, which contracted to $5.4 million, a significant decrease from the $6.4 million recorded in the preceding week’s sale.
Despite a sustained positive trend in previous sales since the start of the crop year in October, this recent decline poses challenges for coffee farmers.
However, there is optimism for a potential rebound in prices as more high-quality coffee enters the market, driven by an anticipated global shortage.
This bullish trend witnessed in earlier sales was fueled by robust demand from buyers, further intensified by stockpiling activities by influential producers in response to the global market shortage.
Projections point towards a continued tightening of Robusta coffee supplies, with reports indicating that Vietnamese farmers, leading in Robusta production, strategically withhold their produce in anticipation of more favourable prices.