Coffee farmers want representation at Nairobi auction

The Kenya Coffee Producers and Traders Association (KCPTA) has demanded that coffee farmers be represented at the Nairobi Coffee Exchange (NCE).

This, KCPTA has said, would enable the farmers to realise high market returns of their produce especially in export markets.

According to KCPTA head of Communication and Agribusiness K’Okoth Sylvestre, coffee cartels and multi-nationals have dominated marketing at the auction hence manipulating coffee reserve prices at farmers’ cost.

“A group of coffee cartels consisting of coffee multi-nationals with multiple licenses Tuesday last week boycotted the weekly coffee auction at the NCE blaming County Governors for interfering with coffee marketing at the auction which is not true.

Henceforth, no county government should allow sale of coffee at NCE until farmers are well represented at the auction,” Mr K’Okoth said.

He further noted that if farmers are not represented at the NCE their coffee will always attract lower prices.

EMBRACE FAIRNESS

“Kenya should only accommodate buyers who are ready to play by the law and embrace fairness, accountability and economic justice as a core value in their operations and not cartels of arrogant investors,” he said.

He also cited powerful forces in the coffee markets like the Commercial Coffee Millers and Marketing Agents Association (CCMMAA) who have ignored and disregarded the constitution by defining the county governments’ role in the coffee sector.

“CCMMAA wants the role of county governments to remain that of facilitating an enabling environment for business to thrive.

They should not play ignorant just because they claim their members stand to lose over Sh1.5 billion if governors have their way,” he said.

The coffee markets, he said, ought to operate within the spirit of devolution by involving the farmer as a major stakeholder and their position at the NCE management need to be explained.

“NCE for a long time has been under the control of coffee cartels because of lack of discipline from the Coffee Board of Kenya which is a regulator and it is a high time farmers get value for their sweat and if not coffee dealers and exporters should close shop in Kenya,” Mr K’Okoth said.

GLOBAL REPUTATION

If anything, the KCPTA representative itemised Kenya coffee has a global reputation on quality and falls under the category of Columbian mild’s competing only with coffee from Columbia, Costa Rica and Rwanda.

In defense, CCMMAA Chairman James Mureithi expressed fears saying they appreciate the proposed raft of changes by the Constitution but it is evident that there is a lack of understanding on coffee production and trading structures.

“Of course members of CCMMAA could lose Sh1.5 billion which is at stake if farmers renounce milling and marketing contracts that are in force,” Mr Mureithi alleged.

NCE chief executive Daniel Mbithi said they are in talks with county governments in an attempt to resume operations after last week’s auction was suspended due to apparent low supply of the commodity.

EXPORT DIRECTLY

“Counties in key coffee producing regions agitate to have their own millers and marketers and sell coffee directly to export markets as agricultural activities are now devolved in line with the constitution,” Mr Mbithi said.

A circular by the County Government of Nyeri dated October 30, 2013 stated that coffee produced in the county shall be milled centrally at Sagana Coffee Mills, something that has sparked varied reactions from stakeholders.

Nyeri, Embu, Murang’a, Meru and Kirinyaga counties have all announced intentions to set up coffee milling and marketing units in the hope that this would get rid of middlemen and increase earnings for farmers.