The continuous rain experienced in Kenya, from early October through to January affected coffee production and quality.
As a result, the average price of coffee at the local exchange declined. In February, a 50kg sack of Arabic coffee sold at an average price of $211.9 (KSh21,700), 2.5 percent down from $217.3 (KSh22,300) recorded in January 2020.
According to the Chief Executive Officer of the Nairobi Coffee Exchange, David Mbithi, average coffee prices at the auction declined by 7.14 percent in the October to February season compared to a similar season in the previous year.
Additionally, coffee volumes at the exchange fell by 27.4 percent from 266,060 bags to 193,215 bags in the period under review.
Coffee exports are a major income earner for the country. Therefore, a decline in coffee sales is expected to put a dent on Kenya’s economic growth.
Related: New regulations will see CMA regulate coffee auction.
Eaagads Issues Profit Warning as Coffee Production Drops
