Kenya’s Coffee experienced a 20 percent decline in overall earnings for the week, attributed to low volumes, despite a rise in the value of a 50-kilo bag, according to market data from the Nairobi Coffee Exchange.

The figures reveal that the total earnings for the week declined from $10 million last week to $8 million in the latest sale, weighed down by a drop in the volumes offered for sale.

The volumes offered for sale this week declined from 29,082 bags offered last week to 26,813 in the review period, pulling down the overall value of the beverage.

However, the coffee market recorded the highest value for the season with the kilo of the commodity rallying two percent to $252.

The rising price of coffee is attributed to declining volumes at the international market, which has pushed up the value.

On Monday, both Arabica and Robusta coffee prices experienced significant increases in the world market, with Arabica hitting a six-month high and Robusta reaching an unprecedented peak.

Market momentum was fueled by persistent worries stemming from the potential impact of extensive rainfall in Brazil’s key coffee-producing regions on crop yields.

The Minas Gerais region, which accounts for roughly 30 percent of Brazil’s Arabica production, suffered negative impacts from the rains, raising concerns about supply disruptions in the market.

On the other hand, Vietnam, the world’s largest producer of Robusta coffee beans, is experiencing tight supplies, which is a significant bullish factor. Vietnam’s agriculture department projected on March 26 that coffee production in the 2023/24 crop year could decrease by 20 percent.

The government of Kenya is actively advocating for coffee reforms aimed at increasing farmers’ earnings by eliminating brokers along the value chain.

Kenya primarily sells up to 95 percent of its total production to the world market, with only five percent allocated for local consumption.

gandae@businessdayafrica.org