Kenya lags behind Uganda, Ethiopia in coffee production

Mkikuyu- Akili timamu

JF-Expert Member
Feb 16, 2018
4,206
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Kenya lags behind Uganda, Ethiopia in coffee production
WEDNESDAY, FEBRUARY 13, 2019 22:00
BY GERALD ANDAE
Currently, 90 per cent of the Kenyan coffee is traded at the NCE. FILE PHOTO | NMG
ADVERTISEMENT



Barely two decades ago, the coffee sector in Kenya was beaming with success. Production volumes were satisfactory and rising and so were prices and ultimate earnings for farmers.
The country competed fairly well against key rival coffee growers in eastern Africa including Uganda, Ethiopia and Tanzania. As of 1990, Kenya’s coffee production was fairly in step with that of Uganda and Ethiopia, according to statistics by the International Coffee Organisation (ICO).
Today, however, the Kenyan coffee sector is in shambles — far overshadowed by its rivals in the region. Production has tumbled while farmers’ earnings are lower and no longer predictable.
Since the early 1990s to the 2010/11 crop year, the area under coffee in Kenya has declined by 35 per cent from 170,000 hectares to 109,795 hectares, while production has dipped from 130,000 tonnes in 1988 to 45,000 tonnes in the last season (2016/17) as farmers abandoned the crop due to poor management.
On the contrary, in 2017 Uganda produced 5.2 million and exported 4.6 million 60kg-bags, which earned Africa’s leading exporter and second largest producer a record $544 million — buoyed by deeper investment and a replanting programme implemented by Uganda Coffee Development Authority (UCDA).
In Ethiopia, coffee production for 2018/19 (October-September) is projected to remain largely unchanged from the previous year at 7.1 million 60-kilogramme bags (426,000 tonnes) while exports are forecast to remain at a record 3.98 million bags (239,000 tonnes).
Many farmers in Kenya have uprooted coffee trees in exchange for better-performing crops such as avocado.
Also Read
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Real estate projects have also wiped out coffee farming in large swathes of land — with this trend projected to worsen in the coming years as disgruntled farmers seek alternative sources of income.
Crop husbandry has worsened in Kenya with estimates by the Coffee Directorate showing that farmers are presently getting two kilograms of berries from a coffee tree against the required standard of 10kg or more.
The directorate blames poor investment for the dip in performance in Kenya unlike rivals in the region.
“The Ugandan government has, for example, done a lot in the coffee sector … from giving farmers seedlings to even planting for them at some point. All this has ensured that production in the country remains high,” said Coffee Directorate head Isabella Nkonge.
Industry insiders have also blamed the rot in the Kenyan coffee industry on long-running collusion between regulators, millers, traders and brokers which has purposefully kept coffee prices down — even when top grade produce fetched exceptional prices at the international market.
In an attempt to break the price stifling cartels, a 2016 task force proposed an increase on direct sales from the current 10 per cent to 30 per cent, promotion of speciality coffee and turning the Nairobi Coffee Exchange (NCE) to a public limited company.
Farmers have an option of selling their coffee directly to international buyers, or they could contract and authorise their marketing agents to sell through the weekly auctions at the NCE.
Currently, 90 per cent of the Kenyan coffee is traded at the NCE before accessing the export market with only 10 per cent finding its way to the international market through direct sales.
This contrasts with Uganda where more than 95 per cent of coffee produced is exported through direct sales by more than 30 companies. However, 10 companies control more than 80 per cent of the business. Italy, Germany, and Belgium remain the leading export destinations for Uganda’s coffee.
“Whereas most of the coffee is exported to markets outside the East African Community, some of the Robusta coffee is taken for processing at the soluble coffee factory in neighbouring Tanzania, and packaged for distribution in the local and regional markets,” said the Uganda Coffee Development Authority.
Industry stakeholders reckon that the lack of direct market denies farmers a lucrative income should they have procured direct sales other than going through the many chains to sell their crop at the NCE.
The report recommends the establishment of the Central Depository Unit, which will be a building block towards the transformation of the NCE to commodity exchange.
Besides the marketing woes, the Kenyan coffee industry is reeling under debt. According to the Report of the National Task Force on Coffee Sub-Sector Reforms released in 2017, farmers owed unions, co-operatives and saccos a total of Sh4.78 billion.
In the 2016/17 financial year, the government cleared Sh4 billion, leaving a balance of Sh784 million.
In addition, farmers owed Stabex funds amounting to Sh1.7 billion, which came from the European Union and were administered through the Co-operative Bank of Kenya (interest accrued from the Stabex funds was Sh700 million).
 

vulcan

JF-Expert Member
Apr 2, 2012
1,624
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Coffee no longer makes sense for us, esp from Mt Kenya region. last year brokers were buying a Kg of macadamia from 100 - 200shs , it never went below 100shs. such prices have never been heard of in the coffee sector.

The Hass Avocado was also doing way better than coffee by far. If you compare the care needed to grow quality coffee vs avocado and macadamia..coupled with the management of the Coffee selling bureaucracy, where farmers do all the work , take the coffee to the factory and then wait and hope...it makes no sense to grow coffee..

Our people are very realistic, the rate at which people are planting macadamia and avocado targeting the global market, we are already leading in these crops and very soon they will be top export earners IN KE.


Kenya beats South Africa to emerge as Africa's top avocado exporter

Kenya macadamia nut exports are on the rise. The U.S. is buying


Nyinyi limeni kahawa
 

Gwizzy

JF-Expert Member
Nov 5, 2018
423
500
Coffee no longer makes sense for us, esp from Mt Kenya region. last year brokers were buying a Kg of macadamia from 100 - 200shs , it never went below 100shs. such prices have never been heard of in the coffee sector.

The Hass Avocado was also doing way better than coffee by far. If you compare the care needed to grow quality coffee vs avocado and macadamia..coupled with the management of the Coffee selling bureaucracy, where farmers do all the work , take the coffee to the factory and then wait and hope...it makes no sense to grow coffee..

Our people are very realistic, the rate at which people are planting macadamia and avocado targeting the global market, we are already leading in these crops and very soon they will be top export earners IN KE.


Kenya beats South Africa to emerge as Africa's top avocado exporter

Kenya macadamia nut exports are on the rise. The U.S. is buying


Nyinyi limeni kahawa
As well ...... Former coffee growing regions in Kiambu County have traded coffee for real estate. Areas such as Ruiru, Kenyatta road, gatundu, kamiti etc were laden with coffee bushes but now are concrete Jungles!!!! I expect coffee production to decline further in the coming years.
 

vulcan

JF-Expert Member
Apr 2, 2012
1,624
2,000
As well ...... Former coffee growing regions in Kiambu County have traded coffee for real estate. Areas such as Ruiru, Kenyatta road, gatundu, kamiti etc were laden with coffee bushes but now are concrete Jungles!!!! I expect coffee production to decline further in the coming years.
Very true, Tatu city was also a coffee farm
 

Depay

JF-Expert Member
Jun 22, 2015
6,576
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How about Danganyika ?It must be lagging behind Burundi.......It has always been a Laggard anyway
 

Tony254

JF-Expert Member
May 11, 2017
5,307
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Kenya lags behind Uganda, Ethiopia in coffee production
WEDNESDAY, FEBRUARY 13, 2019 22:00
BY GERALD ANDAE
Currently, 90 per cent of the Kenyan coffee is traded at the NCE. FILE PHOTO | NMG
ADVERTISEMENT



Barely two decades ago, the coffee sector in Kenya was beaming with success. Production volumes were satisfactory and rising and so were prices and ultimate earnings for farmers.
The country competed fairly well against key rival coffee growers in eastern Africa including Uganda, Ethiopia and Tanzania. As of 1990, Kenya’s coffee production was fairly in step with that of Uganda and Ethiopia, according to statistics by the International Coffee Organisation (ICO).
Today, however, the Kenyan coffee sector is in shambles — far overshadowed by its rivals in the region. Production has tumbled while farmers’ earnings are lower and no longer predictable.
Since the early 1990s to the 2010/11 crop year, the area under coffee in Kenya has declined by 35 per cent from 170,000 hectares to 109,795 hectares, while production has dipped from 130,000 tonnes in 1988 to 45,000 tonnes in the last season (2016/17) as farmers abandoned the crop due to poor management.
On the contrary, in 2017 Uganda produced 5.2 million and exported 4.6 million 60kg-bags, which earned Africa’s leading exporter and second largest producer a record $544 million — buoyed by deeper investment and a replanting programme implemented by Uganda Coffee Development Authority (UCDA).
In Ethiopia, coffee production for 2018/19 (October-September) is projected to remain largely unchanged from the previous year at 7.1 million 60-kilogramme bags (426,000 tonnes) while exports are forecast to remain at a record 3.98 million bags (239,000 tonnes).
Many farmers in Kenya have uprooted coffee trees in exchange for better-performing crops such as avocado.
Also Read
Data HubNEWS INDEPTH: Growth of radio in Kenya opens opportunities
Data HubSurge in Kenya factory import orders signals industrial rebound
Real estate projects have also wiped out coffee farming in large swathes of land — with this trend projected to worsen in the coming years as disgruntled farmers seek alternative sources of income.
Crop husbandry has worsened in Kenya with estimates by the Coffee Directorate showing that farmers are presently getting two kilograms of berries from a coffee tree against the required standard of 10kg or more.
The directorate blames poor investment for the dip in performance in Kenya unlike rivals in the region.
“The Ugandan government has, for example, done a lot in the coffee sector … from giving farmers seedlings to even planting for them at some point. All this has ensured that production in the country remains high,” said Coffee Directorate head Isabella Nkonge.
Industry insiders have also blamed the rot in the Kenyan coffee industry on long-running collusion between regulators, millers, traders and brokers which has purposefully kept coffee prices down — even when top grade produce fetched exceptional prices at the international market.
In an attempt to break the price stifling cartels, a 2016 task force proposed an increase on direct sales from the current 10 per cent to 30 per cent, promotion of speciality coffee and turning the Nairobi Coffee Exchange (NCE) to a public limited company.
Farmers have an option of selling their coffee directly to international buyers, or they could contract and authorise their marketing agents to sell through the weekly auctions at the NCE.
Currently, 90 per cent of the Kenyan coffee is traded at the NCE before accessing the export market with only 10 per cent finding its way to the international market through direct sales.
This contrasts with Uganda where more than 95 per cent of coffee produced is exported through direct sales by more than 30 companies. However, 10 companies control more than 80 per cent of the business. Italy, Germany, and Belgium remain the leading export destinations for Uganda’s coffee.
“Whereas most of the coffee is exported to markets outside the East African Community, some of the Robusta coffee is taken for processing at the soluble coffee factory in neighbouring Tanzania, and packaged for distribution in the local and regional markets,” said the Uganda Coffee Development Authority.
Industry stakeholders reckon that the lack of direct market denies farmers a lucrative income should they have procured direct sales other than going through the many chains to sell their crop at the NCE.
The report recommends the establishment of the Central Depository Unit, which will be a building block towards the transformation of the NCE to commodity exchange.
Besides the marketing woes, the Kenyan coffee industry is reeling under debt. According to the Report of the National Task Force on Coffee Sub-Sector Reforms released in 2017, farmers owed unions, co-operatives and saccos a total of Sh4.78 billion.
In the 2016/17 financial year, the government cleared Sh4 billion, leaving a balance of Sh784 million.
In addition, farmers owed Stabex funds amounting to Sh1.7 billion, which came from the European Union and were administered through the Co-operative Bank of Kenya (interest accrued from the Stabex funds was Sh700 million).
Coffee estates are becoming real estates my friend. You should know that real estate is more valuable than coffee farming. A quick example is Tatu city which was a big coffee farm before being bought by the developers. I think even two rivers may have been a coffee farm. Don't compare Kenya with Uganda or Ethiopia sisi tuko ligi nyingine kabisa.
 

Msapere

JF-Expert Member
Jul 18, 2018
3,166
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Kenya lags behind Uganda, Ethiopia in coffee production
WEDNESDAY, FEBRUARY 13, 2019 22:00
BY GERALD ANDAE
Currently, 90 per cent of the Kenyan coffee is traded at the NCE. FILE PHOTO | NMG
ADVERTISEMENT



Barely two decades ago, the coffee sector in Kenya was beaming with success. Production volumes were satisfactory and rising and so were prices and ultimate earnings for farmers.
The country competed fairly well against key rival coffee growers in eastern Africa including Uganda, Ethiopia and Tanzania. As of 1990, Kenya’s coffee production was fairly in step with that of Uganda and Ethiopia, according to statistics by the International Coffee Organisation (ICO).
Today, however, the Kenyan coffee sector is in shambles — far overshadowed by its rivals in the region. Production has tumbled while farmers’ earnings are lower and no longer predictable.
Since the early 1990s to the 2010/11 crop year, the area under coffee in Kenya has declined by 35 per cent from 170,000 hectares to 109,795 hectares, while production has dipped from 130,000 tonnes in 1988 to 45,000 tonnes in the last season (2016/17) as farmers abandoned the crop due to poor management.
On the contrary, in 2017 Uganda produced 5.2 million and exported 4.6 million 60kg-bags, which earned Africa’s leading exporter and second largest producer a record $544 million — buoyed by deeper investment and a replanting programme implemented by Uganda Coffee Development Authority (UCDA).
In Ethiopia, coffee production for 2018/19 (October-September) is projected to remain largely unchanged from the previous year at 7.1 million 60-kilogramme bags (426,000 tonnes) while exports are forecast to remain at a record 3.98 million bags (239,000 tonnes).
Many farmers in Kenya have uprooted coffee trees in exchange for better-performing crops such as avocado.
Also Read
Data HubNEWS INDEPTH: Growth of radio in Kenya opens opportunities
Data HubSurge in Kenya factory import orders signals industrial rebound
Real estate projects have also wiped out coffee farming in large swathes of land — with this trend projected to worsen in the coming years as disgruntled farmers seek alternative sources of income.
Crop husbandry has worsened in Kenya with estimates by the Coffee Directorate showing that farmers are presently getting two kilograms of berries from a coffee tree against the required standard of 10kg or more.
The directorate blames poor investment for the dip in performance in Kenya unlike rivals in the region.
“The Ugandan government has, for example, done a lot in the coffee sector … from giving farmers seedlings to even planting for them at some point. All this has ensured that production in the country remains high,” said Coffee Directorate head Isabella Nkonge.
Industry insiders have also blamed the rot in the Kenyan coffee industry on long-running collusion between regulators, millers, traders and brokers which has purposefully kept coffee prices down — even when top grade produce fetched exceptional prices at the international market.
In an attempt to break the price stifling cartels, a 2016 task force proposed an increase on direct sales from the current 10 per cent to 30 per cent, promotion of speciality coffee and turning the Nairobi Coffee Exchange (NCE) to a public limited company.
Farmers have an option of selling their coffee directly to international buyers, or they could contract and authorise their marketing agents to sell through the weekly auctions at the NCE.
Currently, 90 per cent of the Kenyan coffee is traded at the NCE before accessing the export market with only 10 per cent finding its way to the international market through direct sales.
This contrasts with Uganda where more than 95 per cent of coffee produced is exported through direct sales by more than 30 companies. However, 10 companies control more than 80 per cent of the business. Italy, Germany, and Belgium remain the leading export destinations for Uganda’s coffee.
“Whereas most of the coffee is exported to markets outside the East African Community, some of the Robusta coffee is taken for processing at the soluble coffee factory in neighbouring Tanzania, and packaged for distribution in the local and regional markets,” said the Uganda Coffee Development Authority.
Industry stakeholders reckon that the lack of direct market denies farmers a lucrative income should they have procured direct sales other than going through the many chains to sell their crop at the NCE.
The report recommends the establishment of the Central Depository Unit, which will be a building block towards the transformation of the NCE to commodity exchange.
Besides the marketing woes, the Kenyan coffee industry is reeling under debt. According to the Report of the National Task Force on Coffee Sub-Sector Reforms released in 2017, farmers owed unions, co-operatives and saccos a total of Sh4.78 billion.
In the 2016/17 financial year, the government cleared Sh4 billion, leaving a balance of Sh784 million.
In addition, farmers owed Stabex funds amounting to Sh1.7 billion, which came from the European Union and were administered through the Co-operative Bank of Kenya (interest accrued from the Stabex funds was Sh700 million).
kenya lags several miles behind Tanzania in witch craft...
 

Mkikuyu- Akili timamu

JF-Expert Member
Feb 16, 2018
4,206
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Coffee estates are becoming real estates my friend. You should know that real estate is more valuable than coffee farming. A quick example is Tatu city which was a big coffee farm before being bought by the developers. I think even two rivers may have been a coffee farm. Don't compare Kenya with Uganda or Ethiopia sisi tuko ligi nyingine kabisa.
You are speaking as if uganda which is 1/2 the size of kenya with 40 mil people just 5m less than kenya has not been building real estate..
 

kennedy0000

JF-Expert Member
Apr 14, 2012
3,776
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Dying business.
Kenyan farmers are sharp and follow the money.
Starbucks cannot be selling a cup of coffee for an arm and a leg, but pays peanuts for the raw product.
 

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