Wednesday, December 17, 2008

Region Kenya: Coffee prices rise on quality


Prices for Kenyan coffee improved at Tuesday's auction ahead of a month-long seasonal break and thanks to better quality, an auction official said.

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The average price for all grades rose to $168.25 per 50-kg bag from last week's $167.99 per bag.

Although Kenya produces only about 1 percent of global output its beans are valued by roasters who blend them with coffee from other countries, earning the east African economy an average of some $100 million each year.

"The two main factors are that we are closing for a month and we are also seeing a bit of good qualities," said Daniel Mbithi, an official of a group that conducts sales at the Nairobi Coffee Exchange (NCE).

The auction will resume on January 13.

Beans that have been arriving for sale in the past few weeks have been from the tail end of the fly crop, which do not usually make top notch brews.

But better quality coffee from the main crop is now in the market.

"There is a bit of influx from the main crop and we are starting to see some good prices too," Mbithi said.

A total 20,335 bags were on offer and 16,570 of them sold for a total $3.4 million.

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