This archive report was first published on 30 September 2019.
On September 30, 2019, Kenya's coffee earnings took a hit, dropping by 24 percent in the 2018/2019 crop year.
The decline was attributed to a 13 percent slump in global coffee prices, which fell to 96 US cents per pound in August 2019.
Nairobi Coffee Exchange (NCE) chief executive Daniel Mbithi explained that the low earnings resulted from the consistent trend of low prices at the New York terminal, where Kenya trades nearly all of its coffee.
‘The earnings dropped on account of the dipping in prices at New York terminal, which declined by 13 percent to 96 US cents per pound as at August this year,’ said Mr Mbithi.
As a result, the average price of coffee dropped by 24.4 percent, from Sh20,300 to Sh15,300 for a 50-kilo bag in the period under review.
The volume of coffee sold during the review period was also lower, at 581,357 of 60kg bags, compared to last year's 582,887.
Mr Mbithi further noted that the global coffee market was expected to experience a surplus of about five million bags at the end of the year, which would likely keep prices subdued for the rest of the year.
This development would negatively impact the earnings of local farmers, who rely on the sale of high-quality coffee beans.
