Coffee farmers are enjoying higher prices of lower grades of their produce sold at the Nairobi Coffee Exchange due to high volumes of the high-grade beans at the auction.
Societies have recorded improved earnings from C grade, which they say has boosted earnings for farmers.
According to Mr Josephat Kwiriga, the executive officer at Mikumbune Coffee Cooperative Society in Imenti South, grade C, which used to go for $250 (Sh27,000) for the 50 kilo bag is now selling at between $300 (Sh32,400 and $360 (Sh39,000).
“Grade C is now competing with grade AA, whose price starts at Sh35,000 depending on global supply of the commodity. This is good news to farmers because they have not yet improved on quality due to lack of proper farm inputs,” Mr Kwiriga said in an interview at the society.
The coffee exchange CEO, Mr Daniel Mbithi, said over the past four sales, grade C coffee has recorded improved prices since supply of the AA grade has flooded the market, leading to prices for the lower grades appreciating.
This week’s report from the NCE indicates that the prices of the grade C coffee continued to rally, with a 50-kilo bag going for $352 (Sh38,000). In the previous sale, the grade recorded a high of $380 (Sh41,000) for the 50kg bag.
Mr Mbithi said while the AA grade coffee volumes initially accounted for about 11 per cent, currently they were at 30 per cent, meaning the auction was flooded with the top grade.
“Despite the current prices, we encourage farmers to strive and achieve the top grade because this scenario is temporary,” Mr Mbithi said Wednesday in a phone interview.
One of the serious challenges facing small scale farmers is low productivity, especially of the top grades coffee – AA and AB – due to poor husbandry of bushes as a result of lack of proper farm inputs and adequate funds.
Due to neglect of coffee bushes over the past two decades after the sector declined, growers produce low grade coffee, resulting in poor earnings.
However, the quality is likely to improve after reconstruction of factories started in Meru and Tharaka Nithi counties. At least 50 factories in Meru county will be refurbished, each at a cost ranging from Sh10 million to Sh32 million depending on the work done.
