The Mountain Journal
Coffee farmers generated Sh24.3 billion from the sale of 691,956 bags at the Nairobi Coffee Exchange (NCE) in the coffee year 2023/2024, which ended on September 30..
It was a year full of mistrust between the farmers and the players in the sector following delays in remittance of money into the cooperative societies bank accounts and other challenges..
Between October, and December, the Deputy President Rigathi Gachagua pleaded with coffee farmers to sell their coffee through the NCE, after the majority declined as they demanded continued trading with former marketters.
In January, the coffee brokers led by Kirinyaga Slopes, Alliance Berries Limited and New KPCU mobilised the cooperative societies to deliver the coffee through the auction.
.In the previous year, coffee production according to the Agriculture Food Authority (AFA) was 32,652 metric tonnes sold through the auction, and 9,350 metric tonnes through direct sales.
NCE CEO Ms Lisper Ndung’u said in the year they managed to auction 691,956 bags of coffee with hope that next year the number will increase.
Ndung’u said the demand for quality coffee has been high calling on farmers to increase production to satisfy the market.
“The regulators have been doing their best to ensure full implementation of the regulation towards improving the earnings to the growers from the auction market,” said Ms Ndung’u.
In the year alliance berries sold 189,845 bags of coffee that fetched Sh6,874,417,647.10, New KPCU 145,733 bags for Sh4,898,865,761.82, Kirinyaga Slopes 118,964 bags for Sh4,616,595,064.
Others are Murang’a Coffee 2,614 bags for Sh84,250,315, Mt Elgon 13,322 bags for Sh420.2 million, Minnesota 9,595 bags for Sh 333.5 million among others.
Kenya Coffee Producers Association (KCPA) Chairman Peter Gikonyo said in the year there were a lot of challenges that included delayed remittance of money from the Direct Settlement System.
Coffee farmers, he said, failed to enjoy the subsidized fertiliser as the majority
bought the expensive input from the agrovets.
“ We have demanded recruitment of more DSS players to ensure there is effective remittance of money,” said Gikonyo.
Gikonyo said the requirement by NCE that the cooperative societies submit details of the growers to the DSS is an avenue to dismantle the cooperative sector.
“ If this happens and the farmers are paid directly through the DSS, who will pay for the cost of production and factory employees. The circular should be recalled and let the society submit their details instead of those from the farmers,” said Gikonyo.
Harrison Chege, chairman at Gatagua cooperative society accused the government of subjecting farmers to untold suffering after it denied private coffee mills licenses.
Chege says the trend affected the performance of the sector coupled by other challenges.
“ With the increased coffee production we need all the coffee mills opened. In the year under review we witnessed congestion in the mills thus delayed taking the coffee to the auction,” said Chege.
Deputy President Rigathi Gachagua who is spearheading agriculture reforms says the coffee sector has benefited a lot with the sale of the produce through the NCE.
He regretted that coffee production had declined from 250,000 metric tonnes in the 1980’s to 41,000 metric tonnes .
“ I urge the MPs to pass the coffee bill 2023 and cooperative 2023 as we need to have laws to guide the sector to prosperity,” said the DP when he addressed coffee farmers in Komothai, in Githunguri, Kiambu on Friday.
