Kenya Gains as Brazil Drought Drives Coffee Prices Higher --[Reported by Umva mag]

The value of Kenyan coffee surged 55 percent in the latest auction as the country capitalised on Brazil’s prolonged drought, which has driven prices higher.

The value of Kenya’s coffee shot up from $2.8 million in the previous sale to $4.3 million at Tuesday’s auction, even as the East African nation wraps up sales from its lower-quality short-term crop.

The drought, marking the driest conditions in key Brazilian farming regions since 1981, has slashed coffee production in the world’s top producer, sending global prices soaring.

From May to August, Brazil’s agricultural heartland experienced the driest stretch in over four decades, according to Brazil’s natural disaster monitoring agency, Cemaden.

Kenya isn’t alone in reaping benefits. Ethiopia and Uganda, East Africa’s largest coffee exporters, are also set to profit from the price surge.

Ethiopia earned a record $1.43 billion from coffee exports in the 2023/24 fiscal year, shipping 298,500 tonnes—a 20 percent rise from the previous year.

Uganda, meanwhile, recorded $1.14 billion in coffee export earnings, its highest in 30 years, with a total of 6.13 million bags exported.

With no rain forecast for the next two weeks, Brazilian coffee trees face a critical period, exacerbating the global supply shortfall.

Kenya’s market is currently trading leftover beans, while the more lucrative main crop is expected in the coming months.

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