Governors edge out brokers to steer processing and marketing of coffee
US-based coffee buyer, Green Coffee Vault, representative Timothy O’Brien (third left) observes Nyeri governor Nderitu Gachagua (second right) tasting coffee at Sagana Coffee Mills February 28, 2014 during a tour at the factory. The farmers will be selling their coffee directly to the buyers. Photo/ JOSEPH KANYI
What you need to know:
- Nyeri County has already identified a US firm to start buying huge volumes of the produce while Meru has committed Sh2.5 million seed capital to start packaging and exporting its beans
- Leaders from five coffee-growing counties agree to sell the produce direct to global buyers
Governors have won the battle for control of processing and marketing of coffee edging out profit-sapping brokers and the Nairobi Coffee Exchange.
Nyeri County Friday announced it will sell its produce direct identifying Green Coffee Vault, an American-based private coffee buying facilitation group to start the business.
“Once they agree with the farmers on the right price, they have promised to buy 14 containers next week. This represents about 30 per cent of the coffee produced in the county,” Nyeri governor Nderitu Gachagua said when he took Green Coffee Vault representative, Mr Timothy O’Brien, on tour at Sagana Coffee Mill.
“This is a great win for the coffee farmers in this county. The coffee exchange has for a very long time been selling Kenya coffee classifying it as ordinary while it a specialty coffee — denying framers billions of money, Mr Gachagua added.
HIGH QUALITY
Mr O’Brien said he wants to establish a sustainable relationship with the farmers in a plan that would earn the growers better incomes.
“Nyeri coffee has earned praises for its high quality and I am interested in buying all the coffee produced in this region as the demand is very high,” Mr O’Brien said.
In Meru, governor Peter Munya is following in the footsteps of Nyeri County inaugurating a new system where the region will start processing and exporting its produce.
At a function held in Meru town, 43 cooperative societies and 100 private coffee estates under the Meru County Coffee Millers’ Cooperatives Union announced they will be using the Kenya Planters Co-operative Union plant in Meru to process their coffee and later package it for export.
Speaking during the function, Mr Munya said the county government has injected Sh2.5 million seed capital to start business in the first year.
“Milling and marketing our coffee is a major step in controlling the coffee value chain. The move we are taking will radically change the current structure of marketing the commodity in the county to the benefit of the farmers,” said Mr Munya.
The governor said the one-stop milling centre will also help the farmers to cut costs and maximise returns as well as give them a favourable environment to share their ideas on branding, packaging and marketing.
PREMIUM PRICES
Union chairman David Gikunda said the central milling factory will subsequently help the coffee farmers fetch premium international prices.
Last month five governors from coffee-growing counties in Mount Kenya region signed a memorandum of understanding to start processing and collectively market their coffee in a bid to improve farmers’ earnings.
Led by Mr Gachagua (Nyeri), the others included Peter Munya (Meru), William Kabogo (Kiambu), Mwangi wa Iria (Murang’a), and Joseph Ndathi (Kirinyaga).
