By George Mwangi

Special to Dow Jones News Newswires


NAIROBI--Kenya's coffee prices at the Nairobi Coffee Exchange rose by 18% to an average price of $328 a 50-kilograms bag between October and March compared with the prior year, the U.S. Department of Agriculture said late Wednesday.

The rise was attributed to increased global demand and lower production in leading producer countries such as Brazil and Vietnam, it said.

"Although Kenya's coffee attracts relatively high prices compared to coffee from other countries that produce mild arabicas, Kenya coffee accounts for less than 1% of world coffee exports," the USDA said.

Kenya's coffee production is expected to rise 11% from an earlier estimate of 7% on year to 780,000 bags in the current marketing year beginning October 2021, mainly due to favorable weather and better husbandry, it said.

However, the currently rising prices of input costs, including those of fertilizers and pesticides, might dampen the production outlook, it added.

Almost all Kenyan arabica coffee beans are sold at a weekly auction run by the NCE, with most for export, although direct sales are allowed.

In 2020-2021, the U.S. remained the leading export destination for Kenyan coffee, it said.

Other key destinations included Belgium, Germany, and South Korea, the USDA said.


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(END) Dow Jones Newswires

05-20-22 0444ET