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Commodity Watch

Coffee Farmers Receive Double Earnings on Direct Export

BY Jane Muia · March 18, 2022 09:03 am

KEY POINTS

The Kipkelion Cooperative Society based in Kericho will receive 116 shillings per kilo, almost twice the average price of 76 shillings per kilo usually received after selling to the local firms.

KEY TAKEAWAYS

Coffee production plays a massive part in the Kenyan economy providing approximately 230 million US Dollars annually and a source of livelihood for over 800,000 small-scale coffee farmers.

Over 900 Small-scale coffee farmers in Kericho, Nandi and Bomet have almost doubled their earnings after making their first direct export to South Korea.

The Kipkelion Cooperative Society based in Kericho will receive 116 shillings per kilo, almost twice the average price of 76 shillings per kilo usually received after selling to the local firms. The union exported 134.4 metric tonnes of coffee to Good Beans (a Korean firm), valued at 908,160 US dollars, equivalent to 103.5 million shillings.

“Today, we are here to pay farmers the proceeds of the sale of this coffee, which is going towards payment of 9,582 small scale farmers at an average rate of 116 shillings per kg of Cherry compared to an average of 76 shillings which the same coffee fetched at the local auction a clear 43 shillings above the local prices (56%),” Samuel Marindany, the society’s chairperson said.

The society’s chair also complimented the farmers’ effort, adding that local farmers have the potential to rise to the occasion and produce, mill, meet export requirements, negotiate and export coffee across the entire globe.

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According to Marindany, Good Beans will wire the money to the Cooperative Bank of Kenya for distribution to the farmers.

The move is part of the ongoing reforms in the sector to ensure farmers maximize their profits.

Coffee production plays a massive part in the Kenyan economy providing approximately 230 million US Dollars annually and a source of livelihood for over 800,000 small-scale coffee farmers. It is the second most grown cash crop in Kericho county after tea, covering approximately 2,000 Ha.

On the other hand, South Korea is the fourth-largest importer of Kenyan coffee after Belgium, Germany, and the United States. Its coffee industry is ranked eleventh largest globally, providing an annual consumption of about 512 cups per capita and over 110,000 coffee cafes.

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