Coffee Earnings Decline 23 Percent

[Photo: Green Life]

Data from the Nairobi Coffee Exchange shows that Coffee earnings declined 23 percent in this week’s auction.

Prices of the commodity have been weighed down by an increase in supply of low quality coffee in the market, attracting reduced prices from buyers.

The price of Kenya’s top-grade coffee improved marginally during the auction, however failed to lift the overall earnings.

A 50-kilo bag of Grade AA earned 313 dollars from 30 3dollars in the previous auction, while Grade AB earned 268 dollars from 258 dollars.

The volume of coffee offered for sale also decreased to 21,258 from 26,170 bags of 50 Kgs in the previous sale.

This is as the price of coffee has been declining in the last one month to below the 300 dollars – mark, that the market has been recording since the beginning of the crop year in October 2021.

Meanwhile, reports indicate that there is a global shortage of the commodity due to bad crop yielding in Latin America, which produces most of the coffee consumed worldwide.

There is also a shortage of coffee caused by frost in Brazil, and bad weather in Colombia that has negatively impacted the crop.

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