Coffee farmers in limbo as prices fall drastically this year

coffee

Coffee farmers have suffered a great deal after prices of their commodity dropped by almost half this year.

At Kabare Coffee Farmers Co-operative Society Limited for instance, which is affiliated to Kirinyaga District Co-operative Union Limited, farmers were paid between Ksh72 and Ksh92 per kilogram, rates that were far much lower than last year’s of between Ksh91 and Ksh122.   

In a communication to all members of the cooperative and signed by their secretary Samuel Maina, the payments per kilo for 2022/2023 in the 11 factories were as follows: Kiringa Ksh73.1, Konyu Ksh89.35, Karani Ksh84.50, Kiang’ombe Ksh89, Mukure Ksh83.10, Mukengeria Ksh72.25, Kimandi Ksh89.15, Kathata Ksh58.85, Kiangothe Ksh92.75, and Kiamiciri Ksh57.40.

In the 2021/2022 payout, Ksh114.15 was paid at Kiringa factory, Ksh122.65 at Konyu, Ksh113.05 at Karani and Ksh113.05 at Kiang’ombe.

Others were Mukure (Ksh110.60), Mukengeria (Ksh113.90), Kimandi ( Ksh119.70), Kathata (Ksh91.40), Kiangothe (Ksh116.40), and Kiamiciri (Ksh96.50).

In Bungoma County, coffee farmers have appealed to the government to intervene to help stabilize the prices in the area, noting that it had been on a decline since 2021 to reach an all-time low of Ksh35 this year.

At the Nairobi Coffee Exchange, according to its Sales Summary per Grade report for the 2022/2023 season, the prices of the premium coffee grades AA was Ksh11,271.96 ($81) per 50kg bag to top at Ksh95,463.76 ($686).

According to a report released by the directorate for coffee production, marketing and exports status report of March 2022, which covered the first and second quarters, prolonged drought around December 2021 spilling over to the second quarter of 2021/2022 affected flowering of the main crop for West of Rift and early crop for East of Rift.

As at half-year 2021/22, the top six millers had produced 32,096 metric tonnes (MTs); 13,399.67 MTs of GBE (Green Bean Equivalent) in the first quarter and 18,696.05 MTs in second quarter.

The estimated total clean coffee production for 2021/22 was 37,760 MTs, about 9 per cent above the total production in 2020/21.

Coffee sold through auction in 2021/22 was 26,260 MTs valued at $163.9 million (Ksh22.8 billion) compared to 17,781 MTs in a similar period in the 2020/2021 valued at $101.1 million (Ksh14 billion)

The auction average price per 50kg bag in 2021/22 was $312 (Ksh43,417) compared to $284.55 (Ksh39,597.98)in 2020/21.

While opening a 2-day brainstorming Coffee Reforms Conference in Meru County in early June this year, Deputy President (DP) Rigathi Gachagua lamented that the coffee farmers who sweat the most in producing the cash crop have benefitted the least.

Some of the challenges bedevilling the sector have been attributed to legal and policy gaps, with the conference being expected to come up with far-reaching reforms that will, among other things, ensure coffee becomes the leading foreign exchange earner for the country.

A task force led by Prof Joseph Kieyah had earlier proposed a raft of measures to be implemented by the government, which include a change in the mode of payment to the farmers, opening a window for direct coffee sales, and re-organization of the Nairobi Coffee Exchange.

By Roy Hezron

Get more stories from our website: Sacco Review

Kindly follow us via our social media pages on Facebook: Sacco Review Newspaper for timely updates.

Sharing is caring!

Not Allowed