Kenya mulls leasing land to boost production of coffee

Kenya could lease land to foreign investors in a bid to increase coffee production that has been on the decline over the years.

This option will be among topics set for discussion during the 12th African fine coffees conference scheduled for February in Nairobi.

“During the conference, Kenya will put its case on coffee production and options will be explored on how this can be improved. Kenya is the only country in the region where coffee production has been decreasing. The possibility of international producers leasing land for coffee production is among those to be discussed,” African Fine Coffees Association executive director Samuel Kamau said.

The event will be attended by global players who include farmers, dealers, roasters, marketers and logistics companies.

While coffee production has increased in Ethiopia, Uganda and Tanzania, the opposite has been the case in Kenya.

In 2013, Ethiopia produced six million bags, Uganda 3.5 million bags and Tanzania slightly more than Kenya with 850,000 bags.

Mr Kamau said AFCA has a strategic plan to increase output in Africa from 12.5 million bags to 25 million bags in three years, and Kenya being among the top four growers is expected to play a key role in achieving this goal.

He said the country should borrow from Zambia, Zimbabwe and Malawi that have boosted production through leasing of land that is put under irrigation, adding that this can apply well in Rift Valley.

SOUGHT AFTER

“Kenya’s coffee is worldly known and highly sought after as a specialty brand but production has been on the decline, putting the future of the sector in limbo as potential buyers seek alternative sources,” Mr Kamau said.

Coffee production has declined from a peak of 130,000 metric tonnes in 1988 to an average of 50,000 tonnes in recent years despite several government interventions that included debt waiver, cheaper credit to farmers and liberalisation of the market.

Some of the reasons blamed for this are reduction of acreage in traditional coffee growing regions due to competition from more rewarding ventures like real estate mostly in Central Kenya, and low income for small scale farmers, which has discouraged many.

“Productivity per coffee tree should be part of the strategy to improve production. This has remained very low at an average of two kilogrammes per year yet there is potential for average of over 30 kilogrammes. We can raise output by improving production from the trees we already have,” Mr Joseph Kimemia, a former director of research at Coffee Research Foundation said.

According to 2014 Economic Survey, coffee production declined by 18.8 per cent from 49,000 metric tonnes in 2012 to 39,800 tonnes in 2013, which was attributed to rising costs of farm and processing inputs. The average yield also decreased in both estates and co-operatives sub-sectors.

According to Vision 2030, the target is to attain 100,000 metric tonnes a year in 15 years.

Agriculture Principal Secretary Sicily Kariuki said the government would work with the counties in coffee-growing zones to assist in raising production.