Tandao 
Kenya is eyeing direct sales of coffee to the US, Germany and other lucrative markets as part of the ongoing reforms of linking farmers to the buyers for better returns, to deal with cartels on the market.
The government has set 4 billion to boost coffee farmers so that they can acquire profits on their product. Deputy President Rigathi Gachagua said after visiting a church service in Nyeri county at mukuruine constituency.
Kenya’s marketing year (MY) 2023/24 coffee production is forecast to increase 6.7 percent to 800,000 bags due to a recovery from drought conditions and higher fertilizer application. Area harvested is expected to remain flat at 105,000 hectares, as new plantings are curtailed due to a shortage of planting materials and as losses associated with conversion of coffee plantations to real estate slows. MY 2023/24 coffee exports are anticipated to grow 5.5 percent to 760,000 bags as higher production increases exportable supplies.
Gachagua said Kenya has initiated discussions with key stakeholders in the United states.
“Most of our coffee is bought by Americans from the brokers. “I met the US Ambassador to Kenya Meg Whitman early this week. We discussed marketing our coffee in the US,” he said at his Official Residence in Karen Nairobi.
He said a high-level meeting will be held on actualizing this venture, which seeks to eliminate brokers from the supply chain, adding that no amount of blackmail will stop the reforms.
“Those who currently buy coffee from us have decided to use their monopoly of power to sabotage the farmer. They have blocked the auction so that we can panic and fall for their tricks. We are not relenting. I will look for more markets until we break even,” he stated.
The partnership will increase Kenya’s coffee market share in the United States and uproot intermediaries – marketers and millers – who have for a long time been blamed for farmers’ dwindled income.
This month, Gachagua said, he will travel to Germany to look for more markets for Kenyan coffee.
Last month he was in Colombia, where Kenya signed a joint trade agreement for partnership with the South American nation.
The US and Germany are among the top five consumers of coffee globally
“The brokers use Kenyan coffee to blend low quality varieties produced from other countries to increase quality and value. We will meet another group of traders from the Middle East. We are doing well and I urge patience from farmers,” he said.
Acknowledging that the ongoing reforms in the coffee subsector have been resisted by profiteers, the Deputy President said the government has set aside funds to buy the beans to cushion the farmers if the middlemen continue their boycott and creating a crisis.
“We have funds to buy coffee in case the brokers boycott. We are almost succeeding in reforming coffee farming. The middlemen have oppressed farmers for over 30 years. Their time is up. Meanwhile, I urge patience from the farmer,” he said.
The reforms include introduction of one dealer, one license system where a licensed coffee miller will not be authorised to be a marketer.
Stating that direct sale of the crop is profitable, the Deputy President cited an example of Barichu Coffee Cooperative Society, which has secured a deal with a Chinese coffee trader who wants to buy their coffee at a minimum of Ksh.100 per kilogram.
He added that President William Ruto’s administration is committed to increasing the country’s food security.
The DP said various measures, such as importation of yellow maize for manufacturing of animal feeds under waived tax, subsidized fertilizer, have been instituted to lower the cost of production.
On fuel prices and cost of living, Gachagua said the government was working on measures to caution consumers.
He said the government should not be blamed since the oil producers’ countries have also increased the prices of crude oil.
He also said that Mt. Kenya leaders were united and dismissed rumors of discord, adding that he is bringing all the regional leaders across the political divide to the Kenya Kwanza fold.
“There are no divisions. I am reading about it on social media and newspapers. I urge the leaders to remain united because our unity is our strength. I am meeting all leaders, professionals and businessmen to enhance the unity,” said Gachagua.
“Meetings have been planned and I am bringing all on board since elections are over. Our wish is for retired President Uhuru Kenyatta to have a peaceful retirement and when the time comes we shall talk. Those who are in the Azimio coalition are welcome.”
The Deputy President said eradication of illicit brew is ongoing and the war will be won as more stakeholders, especially the religious leaders, are roped in.
“We are doing very well in the war against illicit brews and drug abuse. I will engage all religious leaders, political leaders, and influential people in society to join us in this war. We will succeed,” he stated.
by Kelvin Kimtai
