More should be done to save coffee and tea

Tea is no doubt one of Kenya’s biggest foreign exchange earners. However, the latest events around the tea sector, coupled with the decreasing bonuses, are a matter of concern.

Farmers have borne the brunt of mismanagement and wrangles that have dominated this sector. Poor and delayed payments coupled with declining returns are a big let down to a sector that Kenya should count on to help it realise its economic dreams.

Regions where households depend on tea and coffee are headed for poverty. Production has declined over the years.

Liberalisation of the coffee sector has been reduced to mere rhetoric, with idle millers subjecting farmers to high overhead costs. Saturating the sector with more millers and marketers is doing more harm than good.

True liberalisation will only be realised when coffee and tea farmers are left to choose their millers. Forcing farmers to take their produce to certain millers under the disguise of “economies of scale” only creates suspicion and ignores the production agenda, which ought to be the primary concern of the sector administrators.

Granted, international prices have been a matter of concern, but the real problems affecting the coffee and tea sectors are of our own making.

NEED FOR TRANSPARENCY

There is a need for transparency and accountability in the management of these cash crops. The number of tea or coffee bushes should not be the main consideration of the board but rather the vetting of the officials to run the sector.

The 600,000 smallholder farmers who command 48 per cent of the market need to be educated on the importance of electing responsible managers.

It is a matter of concern that despite the quality of Kenya’s tea and coffee, the crops still fetch poor prices on the international market. Use of derivatives such as future contracts, value addition, and increased domestic consumption would stabilise the prices.

Cost of production has been a bottle neck due to currency devaluation, inflation, and inefficient input markets. The government needs to roll out a subsidy programme for smallholder farmers to mitigate the high prices of fertiliser and spraying chemicals.

Extension work need to be revamped to include services such as soil testing and treatment.

Marketing of the two crops at the auction does not benefit farmers due to the many interests and powerful cartels involved. It is important that the veil be lifted so that Kenyans know who is involved in the value chain.

Provision of competitive credit and insurance products through cooperatives and other financial intermediaries need to be fully supported to provide guarantee of loan repayment. This would make credit accessible as the lenders would be cushioned against losses and also lead to increased production.

There is a need for review of the existing laws governing the crops to bring them in line with the current economic policy papers that are hinged on Vision 2030. Agricultural policy experts need to come in to help salvage the sector.

Currently, coffee and tea farmers are living in the midst of green gold and talking of hunger and poverty. This should not be allowed to continue.