Kenyan coffee prices slumped for a second week after the quality of the beans declined, the nation’s Coffee Exchange said,.
The average price for all the coffee sold fell 4.3 percent to $155.73 for a 50-kilogram (110-pound) bag from a week earlier, the Nairobi Coffee Exchange said today by e-mail from Nairobi, the capital.
The average price for the benchmark AA grade rose 0.8 percent to $279.86 a bag, and it reached a high of $305 compared with $329 at the previous sale, the exchange said.
“The quality was rather poor as most lots were of low grade because dealers are supplying old crop residue,” Sam Kimani, the director for quality at the Nairobi-based Taylor Winch Coffee Ltd., said by phone. “The quality is expected to improve in July with increased inflows from an early crop.”
Germany, the U.S., Canada, U.K., Belgium, Netherlands, Luxembourg, Sweden and Finland are some of the main importers of Kenyan beans, according to the Coffee Board of Kenya.
Sales at the auction declined to 5,542 bags worth $1.05 million from 5,743 bags valued at $1.14 million at the previous sale, the agency said.
Supplies at the auction fell 2.9 percent to 14,584 bags from a week earlier, the exchange said. Kenya harvests its early crop from May through July, while the main crop is reaped from September through December, according to the board.
The following are details of today’s auction in dollars for a 50-kilogram bag:
Grade Low High Average
AA 180 305 279.86
AB 154 217 197.42
C 100 177 160.96
HE 142 160 152.85
MH 104 141 112.28
PB 152 196 169.92
T 71 163 148.07
TT 150 189 170.58
UG 152 153 152.32
UG1 97 172 122.65
UG2 140 148 142.69
Source: bloomberg.com/news/2012-06-12/kenya-coffee-prices-fall-for-second-week-on-lower-quality.html