Kenya Coffee Prices Buck Global Trend Amid Strong Demand

Kenya’s coffee prices remained resilient in the latest auction, defying a global downturn in futures markets driven by increased supply from Brazilian crop.

Arabica coffee prices came under pressure this week after a surge in Brazilian production, with March Arabica futures rising 2.7 percent year-on-year.

Despite the global trend, East Africa nation saw its Arabica prices increase to $342 per 50-kilo bag this week, up from $315 in the previous sale. Strong demand for Kenya’s high-quality beans underpinned the price rise.

Kenya’s premium AA grade soared to a high of $377 from $348, while the second-highest grade reached $345 from $322 previously.

The decline in Arabica coffee futures, primarily driven by Brazil’s favorable weather conditions, reduced the global value of the beverage. Arabica accounts for 95% of Kenya’s coffee exports, making the country susceptible to international price fluctuations.

In 2021, Kenya benefited from high international prices after severe frost in Brazil curtailed supply.

The Kenyan government is now spearheading coffee sector reforms to boost farmers’ earnings by eliminating intermediaries in the value chain.

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