Coffee farmers made Sh18.6 billion from the sale of 507,878 bags of coffee in the last eight months based on the implementation of the coffee regulation 2019.
The amount was raised through the Nairobi Coffee Exchange (NCE) auction between October 1, last year and May 21. In the period coffee experts say small holders’ producers presented premier grades of AA and AB smiled all the way to the banks.
NCE Chairman Kenneth Gitonga said in the period 13 coffee brokers participated in the auction process as Alliance Berries Limited, Kirinyaga Slopes and New KPCU were listed as the leading coffee brokers after they presented huge consignment of coffee into the auction market.
Gitonga said the average price of the commodity was Sh30,649 per bag of coffee with payment remitted through the Direct Settlement System (DSS) ahead of disbursement to the cooperatives and estate farmers. “In the year, the buyers were attracted to premier grades of AA and AB, and we have encouraged the farmers to ensure they produce the quality grades aiming at achieving high prices in the market,” Gitonga said.
NCE CEO Ms Lisper Ndung’u said Alliance Berries Limited presented 125,589 bags of coffee that earned the growers Sh4.8 billion followed by Kirinyaga Slopes that generated Sh4.7 billion from the sale of 115,259 bags. “New KPCU presented 114,105 bags that earned the growers Sh4 billion as the Kipkelion brokerage firm had 35,089 bags that were traded for Sh 1.1 billion, ,” she added.
Kinya coffee presented 21,968 bags for Sh641.5 million, Meru County 10,241 bags trading for Sh327.5 million and Minnesota presented 3,107 bags for Sh100.2 million. Others were Mt Elgon made Sh 433.1 million after auction of 13,144 bags , Murang’a county raised Sh66.9 million from the presentation of 1,976 bags and united eastern delivered 11,097 bags for Sh341.8 million.
A farmer Mwangi Mwagiru from Kibirigwi, in Kirinyaga appreciates the performance calling on the players through the coffee value chain to address shortcomings and delays caused by the millers. The government, he said, should strengthen the regulations, and license more millers to end the congestion in the existing ones.
” Deputy President Rigathi Gachagua has been championing an increase of production from 51,000 metric tonnes to 100,000 metric tonnes in five years that could be achieved through funding,” said Mwagiru. Gatagua Cooperative Society Chairman Mr Harrison Chege said implementation of coffee regulations faced myriad challenges that were later streamlined.
Mr Chege says the milling process affected many of the farmers, in the crop year 2023/2024.
” Due to the hitches the majority of the societies failed to achieve the best prices owing to the delay by the coffee millers,” said Chege. The sector, Chege adds, has undergone transformation with growers getting better returns through the DSS platform.
Amica Sacco CEO Dr James Mbui said revamping of the coffee sub sector has supported the rural areas economically as majority of the residents secure employment in small scale holders’ farms. Mbui said the societies have obtained loans from the saccos to facilitate processing of the cherries and other operations.
“Amica Sacco this year has granted more than Sh 350 million to the cooperative societies to assist in processing of cherry and payment to the factory employees,” said Mbui. A member at the Coffee Tea Parliamentary Association (COTEPA) Joseph Munyoro says the regulations have empowered the small-scale holders who had been ignored for long.
Munyoro, also the Kigumo MP, say introduction of the reforms helped streamline operations in the cooperative societies, owing to the high level of transparency in the payment. ” Majority of the cooperatives in Mt Kenya region statistics reflect that in the year they transacted through the NCE. The farmers can monitor the coffee auction at the comfort of their homes,” said the MP.
Coffee Directorate Acting Director Dr Benson Apuoyo says during the Coffee Year 2022/2023 a total of 48,649 MT of clean coffee was produced compared to 51,853 MT recorded in the year 2021/2022. Apoyo says they are out to ensure the players in the value chain abide by the regulations, adding that the country in the year 2022/2023 earned Sh17.7 billion for the sale of the produce.
“The regulator is working with the technical persons focusing on increasing production as it has been the government strategy,” he said. Murang’a Director of Coffee Dr Irungu Maina calls on the government to ensure farmers access the right fertiliser.
” The fertiliser collection points should be closer to farmers as Murang’a farmers struggled to access the input dropped at Sagana and Maragua NCPB depots,” said Maina. Other marketing agents are Baringo Kawa 920 bags for Sh33.2 million, Bungoma union 2,263 bags Sh74.3 million, Kiambu Coffee realised Sh 506.6 million for 14,481 bags.
In the year, others that participated were Kinya, Kipkelion, Meru, Minnesota, Mt Elgon, and United Eastern.
