Kenya Coffee Prices Drop Despite Global Gains, Reversing Recent Trend

Kenya’s coffee prices fell this week, reversing a recent trend of resilience against global market fluctuations, even as international coffee futures rose on reduced rainfall in Brazil, the world’s largest producer.

Arabica prices on Kenya’s weekly auction slipped to $326 per 50-kg bag from $342 last week, driven by subdued demand for premium grades. Grade AA saw it’s value decline this week to $365 from a higher $377 previously, while the second-highest grade dropped to $333 from $345 in last week’s sale.

Globally, Arabica futures gained on expectations of reduced Brazilian output due to dry weather in key growing regions.

Somar Meteorologia reported that Minas Gerais, Brazil’s top arabica coffee-producing area, received just 65 percent of its historical average rainfall last week.

Kenyan coffee, which derives 95 percent of its export value from Arabica, has previously defied global downturns. It has been rallying even as increased Brazilian production pressured international markets in the last two weeks.

The East African nation has undertaken reforms to boost coffee farmers’ earnings, focusing on eliminating intermediaries in the value chain.

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