Meru farmers get permit to sell coffee directly
What you need to know:
- Licence allows growers access to product auction.
- Move to cut costs and give union and planters more money.
A farmers union has been licensed to process and market coffee directly to international buyers.
Meru County Coffee Millers Co-operative Union becomes the first co-operative to get a commercial marketing licence in Kenya.
The union will mill and market its coffee at the Nairobi Coffee Exchange (NCE).
The Meru County coffee marketing agent now joins about six others licensed to participate in auctions.
The co-operative’s general manager, Mr Joseph Mwiti, said farmers and the union were bound to benefit as the permit would help cut costs.
Mr Mwiti said the new marketing agent will make its first entry in the coffee exchange on September 8, with about 2,500 bags of coffee beans.
“We have been using a grower’s marketing licence, which could only enable us access the direct window. We will save on commissions that we were paying to other marketing agents,” he said.
Mr Mwiti added that the union had partnered with the Commercial Bank of Africa, which provided a guarantee of Sh100 million, to facilitate licensing of the agent.
“The bank guarantee acts as a cover for farmers in case the agent is not in a position to pay. The bank will give advances to farmers whose coffee will be milled and marketed here. Even as schools open, our farmers will be able to access advances to pay school fees,” he said.
The union has also started roasting and packaging its coffee for local consumption.
