Stakeholders Call for Measures to Boost Coffee Farmers’ Earnings

Coffee farmers have been experiencing reduced earnings as a result of high production cost which has surged to a high of 80 to 100 shillings for a kilogram of clean coffee, from the standard 39 shillings.

The concern has been welcomed by various stakeholders in the sector who are seeking ways to boost farmers’ earnings as a way of motivating them to continue with the farming of the beverage. During the forum, that was held in Nairobi, the Sustainable Trade Initiative (IDH) – a Dutch organization noted the need to bridge the earnings gap for Kenyan farmers who sell 50 percent of their coffee to the European market.

Agriculture cabinet secretary Peter Munya instituted reforms in the sector to ensure farmers reap big from their hard work. In addition, coffee farmers are able to control the value chain, including selling their produce directly or through the Nairobi Coffee Exchange without requiring additional marketing licenses.

These reforms have had a positive impact on the farmers, including higher earnings where farmers received higher pay locally, with some societies paying up to 125 shillings for a kilogram of cherry. The direct export to South Korea saw farmers double their earnings.

However, the forum noted that despite the good prices Kenyan coffee is fetching in the global sphere, farmers’ earnings have continued to dwindle. The high inflation rate that triggers low purchasing power is likely to constrain the coffee sector despite increased domestic coffee consumption projections.

In the latest auction, the beverage price rose marginally to $267 (31,506 shillings) from $265 (31,270 shillings), on the back of high demand from roasters, according to data from the Nairobi Coffee Exchange (NCE).

The prices of the beverage at the auction have increased for the second time since the auction resumed last week, after a one-month break in May. It is now focusing on the short-season crop from eastern and parts of western Kenya until November when the primary season will hit the market again.