Bloomberg News

Kenya Coffee Prices Fall for Second Week on Lower Quality

June 12, 2012

Kenyan coffee prices slumped for a second week after the quality of the beans declined, the nation’s Coffee Exchange said,.

The average price for all the coffee sold fell 4.3 percent to $155.73 for a 50-kilogram (110-pound) bag from a week earlier, the Nairobi Coffee Exchange said today by e-mail from Nairobi, the capital.

The average price for the benchmark AA grade rose 0.8 percent to $279.86 a bag, and it reached a high of $305 compared with $329 at the previous sale, the exchange said.

“The quality was rather poor as most lots were of low grade because dealers are supplying old crop residue,” Sam Kimani, the director for quality at the Nairobi-based Taylor Winch Coffee Ltd., said by phone. “The quality is expected to improve in July with increased inflows from an early crop.”

Germany, the U.S., Canada, U.K., Belgium, Netherlands, Luxembourg, Sweden and Finland are some of the main importers of Kenyan beans, according to the Coffee Board of Kenya.

Sales at the auction declined to 5,542 bags worth $1.05 million from 5,743 bags valued at $1.14 million at the previous sale, the agency said.

Supplies at the auction fell 2.9 percent to 14,584 bags from a week earlier, the exchange said. Kenya harvests its early crop from May through July, while the main crop is reaped from September through December, according to the board.

The following are details of today’s auction in dollars for a 50-kilogram bag:

Grade          Low            High          Average
AA             180            305           279.86
AB             154            217           197.42
C              100            177           160.96
HE             142            160           152.85
MH             104            141           112.28
PB             152            196           169.92
T               71            163           148.07
TT             150            189           170.58
UG             152            153           152.32
UG1             97            172           122.65
UG2            140            148           142.69

To contact the reporter on this story: Fred Ojambo in Kampala at

To contact the editor responsible for this story: Paul Richardson at

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