KenyaÃ¢â‚¬â„¢s coffee prices slumped for a third week in a row in what marketing agents say is a correction of last yearÃ¢â‚¬â„¢s high prices, which were witnessed in the international market.
In the last three trading sessions held on April 24, May 2 and May 15, the price of the top grade coffee of grade AA fell by 10.18 per cent.
Data from the Nairobi Coffee Exchange shows that a 50kg coffee of grade AA fell from Sh23,395.68 ($278.52) on April 24 to Sh21,013.44 ($250.16) on May 15.
The average price for all the coffee grades within the same period also fell by 10 per cent from Sh16,492.56 ($196.34) on April 24 to Sh14,752.08 ($175.62) on May 15.
According to the executive secretary of the Commercial Coffee Millers and Marketing Agents, Martin Ngare, coffee prices have fallen from the highs seen last year due to reduced demand from both local and international dealers compared to last year.Ã‚Â
Ã¢â‚¬Å“International coffee prices have reduced by 25 per cent since December 2011 as the coffee market corrected itself from the highs of early 2011. Locally, we have seen reduced demand for coffee from most dealers as they try to sell stocks they are holding as the demand season comes to an end,Ã¢â‚¬Â Mr Ngare said.
Volumes of coffee sold also fell by 11 per cent to 1.116 million kilos at the last auction on May 15 from 1.256 million kilos from the April 24.
The current levels of demand and price are expected to continue as the price correction takes shape. Sales from all the volumes with this period fell by 20 per cent from Sh414 million ($4.93 million) on April 24 to Sh329 million ($3.9 million) at the last auction on May 15.
Ã¢â‚¬Å“The market remains very fluid but is likely to stay at the current levels for some time as the current high coffee supply has corrected,Ã¢â‚¬Â Mr Ngare noted.