Advertisement

Coffee farmers eye higher income on global demand

Coffee farmers eye higher income on global demand
Coffee Plant. PHOTO/Print

Local coffee farmers stand to earn premium prices for the produce as international buyers reiterated their commitment to expanding trade in the country, arguing the beans are still leading globally in terms of quality. 

Even though the traders complain that local farmers are grappling with low volumes, Kenya coffee is still classified as the best-washed Arabica in the global market owing to its pleasant aroma and high acidity among other quality parameters.

Marten Sievers, the Regional Managing Director of NKG East Africa, a company of the German-headquartered Neuman Kaffee Group, noted that Kenya coffee beans are in high demand in the international market. “Kenya has a fantastic top-quality coffee grown in high altitude and endowed with a satisfying smell.  It’s highly sought by consumers worldwide and thus fetching premium prices,” he said.

Sievers made the remarks during a cocktail party organised by Kirinyaga Slopes Coffee Brokerage Limited (KSCBL) for its international buyers at a Nairobi hotel. Kenya is globally known for the production of fine Arabica coffee that fetches high premium with most of the beans grown largely in Mt. Kenya Region, Rift Valley, Western Kenya, lower Eastern and Taita Taveta regions. 

However, Marten stated Kenya though among the five leading producers in Africa, is grappling with low production compared to her neighbours with current export volumes oscillating at between 500,000 and one million clean bags of coffee annually.

Regional partners namely Ethiopia and Uganda export more than seven million bags each annually. Louis Strohl a junior coffee trader with Louis Dreyfus Company Kenya Limited, a subsidiary of Netherlands-based coffee buyers -Louis Dreyfus Company said consumers have high regard for local coffee owing to its superior quality.

But as volumes are still low, he advised stakeholders to join hands to increase yields and thus fetch more income and also ensure good agricultural practices are followed.   “We have been buying most Kirinyaga coffee as it is certified and thus meets the standards consumers are demanding in niche markets,” said Strohl.  

Patrick Kahonge, KSCBL Business Development Manager said Kirinyaga County has high quality coffee which explains why buyers are making efforts to trace the coffee to the farm level. “NKG verified is a case in point. The buyer has committed to buying such coffees because they meet their standard. We have a substantial amount of certified coffee and the coffee milled in Kirinyaga was recently certified to complete the value chain capture,” he said. 

Highest prices

The brokerage company owned by Kirinyaga County Cooperative Union Limited (KCUUL) is one of the 16 coffee brokers registered by the Capital Markets Authority (CMA) to market Kenyan coffee at Nairobi Coffee Exchange (NCE).  

Since it was established in October 2024, the company has traded most of the coffee offered for sale at NCE with the clean beans fetching some of the highest prices at the auction.

Chairman of KCCUL Geoffrey Kinyua confirmed that so far, the brokerage has given 7,137 tonnes out of 37,088 tonnes offered for sale through NCE, accounting close to 20 per cent of all auction volumes, to date. “In terms of value we have sold coffee worth $35, 737,558.64 (Sh4.6 billion) out of $167,029,940.10 (Sh21.5 billion) representing 21.43 per cent.  Due to the exceptional quality of Kirinyaga Coffee we got good prices with an average price of $250.81 (Sh32, 354.49) per 50kg bag which translates to $5.02 (Sh647.58) per kilogramme of clean coffee,” he said. 

Kinyua confirmed that out of the total coffee sold through the auction 12 out of 14 societies in the county paid over Sh100 with the highest paying almost Sh130.

He said farmers in the county with assistance from various stakeholders are adhering to good agricultural practices to ensure the quality of the bans are maintained.  The county, Kinyua said, is exploring direct sales as part of diversifying export avenues to increase income to the farmers.

The Rainforest Alliance, an international non-profit organisation working at the intersection of business, agriculture and forests to make responsible business the new normal, has been working with local farmers to produce coffee that has met high standards.

Rainforest Alliance senior director in charge of East and Central Africa Julius Ng’ang’a said the global market is changing thus requiring farmers to adhere to good agricultural practices as part of maintaining consumers’ preferences.

Author Profile

For these and more credible stories, join our revamped Telegram and WhatsApp channels.
Advertisement