Kenya Coffee, Graphic Analysis of Post War Prices

Abstract

The price movements of Kenya coffee are analysed and graphically recorded and compared with those of Costa Rica and Rio No. 7 coffees. It is shown that the value of coffee has in reality been much more steady than at first sight appears, and that in spite of increased production of Brazilian and mild coffees there is no evidence of any appreciable decline in the basic value of coffee in the world market. The seasonal cycle for Kenya coffee prices based on the years 1922-35, taking 100 as normal, shows a rise from 86 in July to 108 in December and 111 in January and February, falling to 108 in March, 100 in April and back to 86 in July. The reasons for this fluctuation are possibly seasonal variations in quality, the appearance on the market of coffee from different districts or even preconceptions on the part of the buyers. A further article on this subject is promised.