Coffee sales at the Nairobi Coffee Exchange (NCE) rose to Sh1.02 billion after 21,636 bags were traded, marking an increase in both earnings and volumes as the market continued to attract buyers seeking quality beans.

The fourth auction of the current coffee year generated more revenue than the previous week’s Sh879.68 million, when 17,442 bags were sold, reflecting stronger trading activity in the coffee market.

An increase in sales volume comes as industry stakeholders encourage farmers to expand production and improve the quality of their beans to take advantage of competitive prices at the auction.

According to the NCE report, 14 coffee brokers participated in the fourth auction, presenting 4,360 bags of grade AA, 9,300 bags of grade AB and 2,747 bags of grade C, alongside other grades.

Alliance Berries Limited emerged among the leading brokers after marketing 5,691 bags, followed by New KPCU with 4,962 bags. CEBBA sold 1,388 bags, while Kirinyaga Slopes marketed 1,220 bags.

The performance of the two leading brokers highlighted their significant role in moving coffee from farmers to the international and domestic markets.

Gakuyu-ini factory recorded one of the highest prices in the grade AA category, selling 98 bags at Sh50,664.90 per bag, equivalent to 390 US dollars.

The Ndundu factory followed after selling 127 bags of grade AA at Sh48,066.70 per bag, or 370 dollars, demonstrating the premium buyers were willing to pay for selected coffee lots.

In the grade AB category, Kapsaos Toretmoi Society sold 100 bags at Sh46,247.96 per bag, equivalent to 356 dollars, while Gatagua Agromarketing Society marketed 105 bags at Sh43,000.21 per bag, or 331 dollars.

The prices underscore the importance of quality improvement, proper farm management and effective post-harvest handling in helping farmers secure better returns from their produce.

On the buyers’ side, Ibero Kenya purchased the largest volume at 4,817 bags, followed by Kenyacof with 3,340 bags. C. Dorman bought 2,748 bags, while Louis Dreyfus purchased 2,575 bags.

Sasini acquired 2,120 bags, Global Mark bought 2,023 bags, and Taylor Winch purchased 1,677 bags.

NCE Chief Executive Officer Lisper Ndung’u said the auction continued to provide growers with an opportunity to secure competitive prices, with 22 buyers participating in the auction conducted on Tuesday.

She noted that buyers were increasingly interested in quality coffee and were visiting farmers through their respective factories to assess the produce and establish closer links with growers.

“The buyers at the auction are interested in the quality coffee, with the majority opting to visit the farmers through their respective factories,” said Ndung’u.

Coffee Board of Kenya Chairman Henry Kinyua urged farmers to increase production and expand their coffee holdings to improve earnings from the sector.

Kinyua said stakeholders were supporting efforts to expand coffee farming across counties through the planting of seedlings with the aim of boosting output in the coming years.

He encouraged growers to raise annual production beyond 100 metric tonnes, saying increased output would help them maximise returns from the industry.

The latest auction results point to the importance of combining increased production with quality improvement as the coffee sector seeks to strengthen farmers’ earnings and sustain demand for Kenyan coffee.

However, the prices achieved by individual factories varied, indicating that the quality and characteristics of each coffee lot remain important factors in determining the returns growers receive at the exchange.

By Bernard Munyao