Posted on :Monday , 1st April 2019
The small-scale coffee farmers can expect a wave of positivity are set to benefit from a Sh3 billion revolving fund, as a leading world lobby is going to fight for higher prices. President Uhuru Kenyatta recently said the government has set aside the money to help in harvesting and loss reduction at farm level. Opening the 124th session of the International Coffee Organization (ICO) Council in Nairobi, President said the allocation is part of the government's commitment to reviving the sub-sector.
The council has already met in March and will now meet again in September to discuss coffee matters, approve strategic documents and consider recommendations of advisory bodies and committees "Starting July this year, small-scale farmers will be able to finance harvesting of their produce. Farmers will access the fund at a modest interest rate of three per cent per annum," the President said.
In addition he said the government is riding on coffee as a credible vehicle to advance rural development and spur wealth creation. Other reforms include the rehabilitation of 500 pulping stations in 31 counties and ensuring that farmers access adequate planting materials.
He also pledged to ensure that coffee cooperatives are audited annually and directors adhere to good governance, besides producing resilient varieties. The President said coffee production had declined over the years, a situation that has only been mitigated by the "excellent performance of Kenyan coffee at the international market where it has always attracted premium prices".
Kenya is globally reputed for producing fine Arabica coffee that has a good flavor and pleasant aroma. But the President regretted that good performance was not reflected at the level of small-scale farmers. Kenya produces between 40,000 and 50,000 metric tonnes, having declined from a peak of 128,941 metric tonnes in the 1983/84 crop year.
Further reforms in the sub-sector include transforming the Nairobi Coffee Exchange (NCE) into a commodity exchange platform.The Coffee Sub-sector Implementation Committee's (CSIC) proposal to establish a central depository unit to ensure timely payments to farmers has been opposed by millers and marketers.
The committee, headed by Prof Joseph Kieyah, suggested that Sh2.1 billion be used as cherry advance, Sh200 million for modernizing coffee exchange and branding of the crop be carried out at a cost of Sh203.5 million.
The committee had further suggested use of Sh200 million for rehabilitating pulping stations in the country.ICO Executive Director Jose Sette praised Kenyan coffee for dominating the world in terms of high prices and quality.
"Kenya may be grappling with low coffee production over the years, but her beans still stand out as the best in the world market. And I still believe that increased production locally can be achieved, especially if value chain players agree to work together," he observed.
He added ICO is working at taming the drop in prices. "Going forward, we will embark on dialogue promotion among players, enhancing transparency along the value chain, promoting consumption in coffee producing countries and advocacy." The conference ends on Friday.
