East African Coffee Prices Fall as Global Markets Retreat

East African coffee prices declined this week, mirroring a global drop that saw benchmark prices hit a one-week low.
Kenyan coffee, renowned for its specialty arabica beans, fell to $321 per 50-kilograme bag at the Nairobi Coffee Exchange, down from $328 last week.
Globally, March arabica coffee futures closed down 6.92 percent at $2.95 per pound on Monday, while January ICE robusta coffee slid 10.63 percent to $191 per tonne .
However, the average value of Kenyan arabica surged to $6.9 million from $4.2 million last week, driven by higher volumes and tightening global supplies.
Poor weather in top producers like Brazil and Vietnam has disrupted harvests, supporting prices. Robusta beans, widely used in instant coffee, recently hit levels last seen in the 1970s.
Brazil, the world’s largest coffee producer, continues to grapple with low rainfall, which has damaged flowering trees and clouded prospects for its 2025/26 arabica harvest.
Global prices had surged to their highest levels since 1997 last week, with New York arabica futures climbing three percent.
However, prices eased after the European Union extended its deforestation law and rains in Brazil raised hopes of improved output.
The East African coffee market remains resilient, with Kenya, Uganda, and Ethiopia benefiting from tighter global supplies and sustained demand.
news@businessdayafrica.org