Global coffee prices have surged driven by fears of a shortage following decline in production from
"The recent publication of official Brazilian production estimates for crop year 2014/15, which is due to start in April suggests that the output could fall for the second consecutive crop," says the report by
The report indicates the uncertainty over the 2014/15 crop, worsened by dry weather in some coffee producing regions has given support to prices over the past month.
The price, says the report, has been increasing consistently over the course of last month, starting from a low of
At the NCE, the price of a 50 kilogramme bag of coffee went up by
The prices have trended upwards since last month, with farmers set to earn good returns, following the rebound.
The move comes as a relief to both farmers and the traders who had been worried by the low price that the commodity has been fetching from October last year.
Between October and December last year, the Kenyan coffee fetched an average of
The volume of weight offered at the auction has also gone up, perhaps indicating a response to the good prices that the beverage has attracted.
In this week's auction, the number of weight offered for sell went up to 1.4 million kilogrammes from the previous figure of 987,000 kilogrammes.
Over 90 percent of locally produced coffee is meant for export market, last year; the country earned 12.4 billion from the crop in foreign exchange.
In an earlier interview, NCE executive officer
"We may witness an upsurge in the price due to recovery of Eurozone Crisis, this is one of the factors that helped our local prices," said
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