Monthly coffee earnings rose 62.5 percent to $130 million (Sh14.8 billion) in February, the Nairobi Coffee Exchange (NCE) said the earnings jumped from $80 million (Sh9.1 billion) recorded during February 2021
The surge was attributed to a global shortage caused by bad crop in Latin America however, it is set to boost farmer’s earnings. The good earnings were also boosted by growth in volumes, which were 46 percent higher in the review period compared with the previous season.
The number of 60 kilogramme bags traded continued to surge from 218,928 in February 2021 to 319,307 in the review period. The average price of the commodity in February hit a high of $333 (Sh37,945) for a 50-kilo bag from an average of $296 (Sh33,729) in the corresponding period last year.
The good earnings were also boosted by growth in volumes, which were 46 percent higher in the review period compared with the previous season.
However, the global shortage comes shortly after a coffee shortage caused by frost in Brazil and bad weather in Colombia that impacted negatively on the crop.
“Brazil has been facing record crop failures due to cold weather and drought. In Colombia, rains destroyed part of the crops, and Ethiopia was on the verge of a civil war, impacting on global production. It is predicted that this trend may continue in the next one or two years,” Daniel Mbithi, chief executive officer NCE.
He further noted that the coffee industry, like many others, is facing difficulties due to labour shortages caused by the Covid-19 pandemic, which led to a global shipping crisis, affecting the movement of the produce.
Brazil, which is the top world supplier, produces up to 60 million kilos of the commodity every year but lost over 20 percent of its entire crop in the last season due to the bad weather.
This created a shortage in the world market as Ethiopia also, the world’s fifth-largest producer, saw farming activities interrupted by the conflict between the government and the militia in the Tigray region.