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.

VISIT CAFFE-AMANTE HERE FOR THE BEST PRICE, ON THE FINEST KENYA COFFEE - KENYA AA... ALWAYS ROASTED TO ORDER!!!

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.

Ethiopia’s Coffee Crop May Fall 60% in Two Main Areas

Coffee output in the two main export-growing areas of Ethiopia, Africa’s largest producer of the beans, may decline 60 percent because of drought, the United Nations said.

VISIT US HERE AT CAFFE-AMANTE FOR ETHIOPIAN SIDAMO COFFEE ROASTED TO ORDER!

The lower harvest may aggravate malnutrition in southern Ethiopia’s Gedeo and Sidamo zones, where hunger is rife as a result of the drought, falling world coffee prices and higher food prices, the UN Office for the Coordination of Humanitarian Affairs said in a report today.

Production in Gedeo may fall 67 percent from a year earlier, while that in Sidamo may decline 53 percent, Tamirat Mulu, the author of the report, said in a phone interview in the capital, Addis Ababa, today. The report was based on a livelihood assessment carried out by relief agencies between Nov. 17 and Dec. 5. Ethiopia’s main coffee harvest is from October through December.

Ethiopia exported 170,888 metric tons of coffee last year. About 35 percent of that was high-grade washed coffee and 65 percent lower quality dried coffee. Sidama and Gedeo provide about 60 percent of Ethiopia’s washed coffee, Mulu said.

By Jason McLureDec. 17 (Bloomberg)