Coffee Prices Soar Due to Shortage

Auction prices on the Nairobi Coffee Exchange (NCE) rose, on average, $9/50kg as buyers rallied on quality lots after a glut of sub-par coffee resulting from cold spells and isolated bouts of Coffee Berry Disease (CBD). Prices peaked at $136.91/50kg on Tuesday. Overall, crop estimates are down from 58,658 tons to 53,693. The 10% decrease in crop yields coupled with growing global demand is expected to maintain the higher prices in the near to mid-term. According to Daniel Mbithi, an official on hand at the auction on Tuesday:

“The markets are intertwined and the latest developments on both sides are quite impressive. The overriding factor is demand and we expect this to stay on a little,”

So with increasing global demand out pacing production the shortage in Kenya this year only exacerbates the bigger issue.

Read the full article at All Africa Here.

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