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THE CMS MONTHLY REVIEW JUNE 2013

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The highlights for the month are:-

clip_image001[1] The current coffee market information.

clip_image001[2] We review the weather and its likely impacts on coffee production.

clip_image001[3] The coffee husbandry practices for improved quality.

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Coffee sold in volume and value up to sale 27. Source NCE

The Market:

The Nairobi Coffee Exchange continued to receive depressed coffee volumes. The lower grades have contributed to an average price drop. In sale 28 and 29 held on 4th and 18th June 2013 the Auction average prices was $125.91 and $133.31 respectively for 50 kg bag. The coffee sold so far at the NCE up to sale 29 of 18th June total 30,208,651 Kilograms. Farmers have fetched $102,331,585 from this sale at an average price of $170 per 50Kg bag. Up to sale 27 the direct sale window has sold 3,716,727 kilograms valued at $17,986,916 at an average price of $241 per 50kg bag. Out of this CMS have sold 2,702,234 Kilograms valued at $13,647,914 at an average price of $252 per 50kg bag.

The NCE shall be on recess for one month from 18th June to 23rd July 2013. On the graph below the performance of all Marketing agents up to sale 27 is as illustrated.

Weather:

According the metrological department, the rainfall forecast for June 2013 is based on regression of sea surface temperatures (SSTs) on Kenyan rainfall and SST gradients. The forecast indicates that most parts of the country will be generally dry during the month. However, near normal rainfall tending to above normal rainfall is expected over most parts of western Kenya and the entire Coastal strip of Kenya. Cool and cloudy conditions occasionally accompanied by light morning rains / drizzle are likely to characterize the central highlands and Nairobi area.

Crop:

The crop prospects for the year continue to take shape. Farmers in lower and medium altitudes continue to harvest the early crop. The processing of the harvested coffee is critical to retaining quality. They should:-

  • Ensure sorting of twigs diseased berries and greens.
  • Adjust the pulping units to avoid pulper damaged parchment.
  • Observe fermentation duration and wash the parchment as soon as it is gritty.
  • Grade the parchment while ensuring that the correct water flow and gates are in place.

Farmers especially on late crop areas are advised to extend rains by irrigation because of the dry spell. This is meant to guarantee the quality which is made in the field. During irrigation farmers should incorporate any fertilizer that they may have not applied before cessation of the rains. In areas where showers are received at least for three consecutive days the same application should be done. During the rapid expansion stage and with the cold spell the fungus that causes Coffee Berry Disease thrives. Farmers should observe the spray intervals and more so use the recommended crop protection products. CMS agronomist can be consulted in all coffee growing areas.

Central Kenya Coffee Mill indicated to CMS Monthly Review that early crop deliveries started arriving at the mill this month. The quality is expected to be better by early crop standards but this shall be evident as liquoring is done. The fresh arrivals are expected to be traded when the NCE resumes next month.

The late crop CMS Monthly Review estimates to settle at about 34,000 tons. We further estimate about 8,500 tons of early crops to be sold until 30th September to bring the total crop for 2012/13 to about 42,500tons.The late crop 2013/14 is estimated at about 35,000 to 37,000 tons subject to Coffee Berry Disease management and the weather.

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