Coffee production declined by 18 per cent last year as Kenyan farmers continued shifting focus from the cash crop to the more lucrative real-estate projects, a report has shown.
According to the Kenya Coffee Platform report, increase in demand for affordable housing has seen coffee farmers sell their farms for better and immediate returns to players in the real-estate sector.
The report shows land previously under coffee is fast being converted into sites for the construction of blocks of flats and commercial buildings in Nyeri, Kiambu, Murang’a and Meru counties.
The report further indicates the past crop year has been challenging due to declining volumes of harvested coffee as a result of adverse weather conditions and climate change.
The coffee production forecast was estimated to reach 39,000 metric tonnes in the 2018/2019 crop year, but farmers produced 36, 873 metric tonnes in 2019/2020, down from 44,990 metric tonnes.
Although the platform noted an expansion in the western part of the Rift Valley region, it clarifies that the expansion cannot adequately compensate for the cases of uprooting of coffee bushes in the major coffee regions in the Eastern part of the Rift.
“Further, low coffee production has been attributed to other factors such as changing weather patterns and unpredictability of rains, leading to closure of wet mills in a majority of the coffee-growing areas,” read the report.
For instance, in Nyeri County, dozens of farmers have resorted to hawking their produce as some cooperatives societies over-borrowed against their crop, leading to poor earnings in the final payment in April.
The platform noted that cold conditions did not allow trees to stress, which is a necessary development that triggers flowering of the main crop.
Since there has been no tree census, the platform says it is difficult to present data on acres of land that have been overtaken by real estate and other agriculture ventures that have replaced coffee farming.
The study went on to note that the weather improved in the later part of the year, allowing for improved flowering for the second crop.
The country exported coffee to various destinations in Europe, the US, Asia and Africa last year, with the US being the biggest export destination at 20 per cent, followed by Belgium at 17 per cent, Korea at nine per cent out of an export volume totalling 46.333 metric tonnes.
Kiambu pays farmers the highest amount, followed by Kirinyaga, Murang’a and Nyeri counties.
Currently, farmers are receiving payment for their produce, with the best rate being Sh100 per kilogramme.
In total, Kenyan farmers produced 36, 873 metric tonnes, which earned them Sh17.4 billion.
The state of Kitwii Cooperative Society in Kangundo on April 12, 2021. Kitwii is in ruins after the collapse of coffee farming in Machakos County.
Photo credit: Lucy Wanjiru | Nation Media Group
The low volumes hit some smallholder farmers who rely heavily on societies for provision of such inputs as chemicals and fertiliser on credit quite hard, with some receiving as low as Sh5.
This means, on average, smallholder farmers were paid Sh45 per kilogramme of the produce they delivered to their respective factories, making it difficult for the majority of them to break even.
The report also noted low producer prices and consequently low incomes for coffee-producing households have persisted since the collapse of the International Coffee Agreement (ICA) 32 years ago.
“As a result, production of coffee in the country is affected by prevailing weather conditions including climate change, prevailing coffee prices, cultural practices, government policies, price support programmes and governance at farmers’ institutions,” the report noted.
Meanwhile, players in the coffee sector now want a Sh3 billion cherry advance fund from the government to be used to refurbish factories and employ competent managers, saying that way farmers would get more value from the kitty than is the case currently.
While dilapidated and old machinery in factories worked against revival of the sector, those managing the factories did not have requisite skills and this compromised the quality of clean coffee produced, they said.
According to them, since there was slow uptake of the Sh3 billion kitty, with only Sh300 million disbursed, the money should be invested in areas such as value addition to revive the sector.
Mikumbune Coffee Cooperative Society executive officer Josephat Kwiriga said some machines were obsolete and could not be used to pulp cherry.
“This affects the quality of clean coffee we produce, which in turn affects farmers’ earnings. Part of the money should go to training of officers running the factories so that they are more competent,” he said.
Mr Kwiriga, whose co-op society is based in Imenti South, added some factories were being managed by people well past the retirement age and who were not conversant with modern coffee marketing business model.
“Instead of waiting to source for more funds to revive the factories as has been suggested, the ministry should use the money that is idle since there is a risk of it being returned to the exchequer,” Mr Kwiriga added.
Mr Joshua Kimathi, a farmer, said since Meru Central Coffee Cooperative Union also packages coffee, they should be funded to enable them to increase their capacity.
“There are many areas of intervention that the ministry can explore and not only the cherry advance, which although helpful, is slow in terms of uptake. The revival of the sector should be approached from various fronts,” said Mr Kimathi.
On Monday, Agriculture CS Peter Munya said there were plans to broaden use of the funds but did not specify areas that would benefit.
