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Coffee Auction pushed to Wednesday 14th …

09-09-2016 Hits:1139 News & Events CEO - avatar CEO

Due to the gazette notice making Monday 12th September a public holiday, the Exchange wishes to let all coffee stakeholders know that Sale No. 37 auction has now been pushed...

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Coffee futures jump, as export tumble fu…

02-09-2016 Hits:1103 News & Events CEO - avatar CEO

Coffee futures staged a strong start to September, attempting in New York to record their second highest close in more than a year, as data showing a slump in world...

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Sale 32/2016/17 - Avg Price in $/50kg

Sale 32/2016/17 - Avg Price in $/50kg

Sale 32/2016/17 - Avg Price in $/50kg

Sale 32/2016/17 - Avg Price in $/50kg

Sale 32/2016/17 - Avg Price in $/50kg

Sale 32/2016/17 - Avg Price in $/50kg

Sale 32/2016/17 - Avg Price in $/50kg

Sale 32/2016/17 - Avg Price in $/50kg

AA - 368.88, AB - 271.21, C - 223.26, PB - 278.86, T - 118.31, TT - 193.02, E - 0.00, HE - 76.30, MH - 103.16, ML - 94.88, SB - 52.37, UG - 105.12, UG1- 127.54, UG2 - 91.41, UG3 - 41.00

Overall (All Catalogues) 227.90

Overall (All Catalogues) 227.90

Overall (All Catalogues) 227.90

Overall (All Catalogues) 227.90

Overall (All Catalogues) 227.90

Overall (All Catalogues) 227.90

Overall (All Catalogues) 227.90

Overall (All Catalogues) 227.90

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Friday, 27 February 2015 09:24

NCE Background

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Coffee is undoubtedly the most important agricultural commodity in the world. It is estimated that about US $ 30 billion worth of green coffee is traded while commanding over US$ 80 billion at consumer level annually, thereby making it the second most traded commodity after oil.  Its production is fundamental to over 35 developing nations, to which it is frequently the main source of foreign exchange earnings.

 

Coffee growing was introduced in Kenya by the British around 1900. Since its introduction as a cash crop in Kenya, coffee has remained one of the most important products of Kenya’s agriculture. All coffee grown in Kenya is Arabica and is grown on the rich volcanic soil that is found in the highlands of the country. The most well-known varieties are SL28 and SL34 that  are known for the distinctive big body and winy blackcurrant flavor.

The first coffee auction was inaugurated in September 1935 when the first coffee was auctioned under KCA. The function of coffee marketing was placed under the Coffee Marketing Board (CMB) which was established under the Coffee Marketing Ordinance No. 6 of 1946. In 1960 the Coffee Industry Ordinance and the Coffee Marketing Ordinance were merged to form the Coffee Ordinance Cap 333. 

Following independence from the British in 1963, Kenya organised their coffee industry around a weekly government-run open auction system. This transparent system is establishing a pricing hierarchy based on quality with finer lots fetching higher prices. There is now increasing competition for the better-known estates and co-ops and particularly for the AA grade beans. The grades are simply a measure of bean size, not of defect tolerance. 

The coffee marketing function has evolved over the years around various legilations. Act 13 of 1971 abolished the CMB and consolidated the function of coffee marketing with the regulatory functions of the CBK. Since then, CBK controlled the industry up to July 2001 when a new Coffee Act was enacted to amend Cap 333 that specified new roles for CBK as an industry regulator.

Subsequently the Coffee (General) Rules of 2002 gave an association the mandate to manage NCE. In 2006, section 62 of the rules was further amended to specify Kenya Coffee Producers and Traders Association (KCPTA) as managers of the NCE, until July 2013. 

Via Legal Notice no. 79 of 2012, the amendment entrenched NCE in coffee law and the Exchange would be managed by an Exchange Management Committee as provided for by the Nairobi Coffee Exchange Trading Rules, 2012.

The NCE is one of the most important institutions in the coffee industry contributing to over 90% of the total Kenya coffee produced being traded through it.

The purpose for which the Exchange Committee is established is to manage the operations of the Exchange for the benefit of the coffee industry in an efficient, prudent, and professional manner

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