Nyeri coffee farmers anxious over proposed marketing plan

Nyeri, Kenya: Coffee farmers in Nyeri are an anxious lot as they wait for the sale of their produce through a new marketing strategy initiated by the county government.

The farmers are caught in the middle of accusations and counter accusations between members of the County Assembly and the Nyeri Executive over the process which was expected to change the fortunes of coffee growers.

It emerged this week during County Assembly proceedings that Taifa Sacco Limited advanced more than Sh125 million to coffee farmers in Nyeri.

Majority Leader Anthony Mwangi Kibuu told the County Assembly that the security of the loan was to be coffee proceeds of the year 2013/2014, which are yet to be fully paid for by the county government.

“The Sacco has agreements with individual farmers and their societies that the proceeds from coffee must be channeled through it to enable it recover its proceeds,” said Kibuu, noting that failure by farmers to settle the amounts will lead to a breach of contract, and will allow the Sacco to take legal action.

Kibuu said coffee factories in Mukurweini Sub-County had borrowed more than Sh62 million, Othaya Sh5 million; Mathira more than Sh52 million and Nyeri Central Sh125 million from Taifa Sacco.

Last year, Nyeri Governor Nderitu Gachagua campaigned on a platform of value addition and shortly after he was elected, he appointed a taskforce to help him draw a strategy to tackle the issue.

Part of the recommendations of the taskforce that called for the branding of local coffee and marketing it as a finished product is what motivated the formation of the Mt Kenya Coffee Development Company Limited.

However, the delayed registration of the agency due to stringent Coffee Act laws, which bar any trading of coffee outside the Nairobi Coffee Exchange, forced the government to work with the Kenya Coffee Co-operative Exporters (KCCE).

This is the company which is to coordinate the milling and marketing of Nyeri coffee, with the milling taking place at the Sagana mills of the Kenya Planters Co-operative Union (KPCU).

Gachagua has since been on a campaign to identify direct markets for Nyeri coffee by making several trips to the United States and reassuring farmers that the pool marketing strategy will succeed.

However, ward representatives insist that the strategy is yet to meet the expectations of farmers. Last month, more than 10 MCAs stormed Sagana KPCU Coffee Mills but were denied entry by the security guards.

The members, led by Kibuu, claimed more than 134,000 bags of processed coffee worth Sh3 billion was yet to be sold despite an assurance from the governor’s office that the coffee had been sold.

Oversees markets

 Last month, Gachague announced that coffee farmers from 210 co-operative societies would be paid more than Sh355 million after 54 per cent of the produce was sold through oversee markets and auctions.

He assured farmers that the county had sold 54 per cent of the coffee delivered and made arrangements through KCCE for them to be paid Sh10 for every kilogramme of cherry delivered.

Speaking to The Standard on Sunday, Gachagua through his Chief of Staff Simon Wachira, said that they were urging all institutions to be patient with the farmers and societies.

“We have received communication from Taifa Sacco and we are asking all the institutions to be patient,” he said.

Gachagua reiterated that the Sh10 was net pay to the farmers and was not to be deducted to pay loans. “The money paid out to farmers is to assist them meet their families’ needs in terms of fees and others. That is the reason it is being channeled directly to them,” Gachagua said.

He noted that financiers including banks, savings and credit societies, Coffee Development Fund, marketers and millers that had agreements with farmers were to be paid once all the coffee was sold.

Nyeri Trade Secretary Stanley Miano clarified that debts owed by farmers and the societies were verified and there was an agreement that stipulated that the debts would be paid by September 30, after all coffee had been sold and that there was no need to panic.

Farmers are now awaiting for the remaining 46 per cent of their coffee to be sold off as the window of optimism is slowly closing for high returns in the sector.

Kibira noted that it was worrying that only 54 per cent of Nyeri coffee had been sold yet the Coffee Auction was expected to close on 15 June.

“We have a comprehensive reports that indicate that 8,000 bags of coffee are to be sold at the Auction this week and we are watching closely, to the actions of the executive,” Kibira said. However, Miano said they expect more coffee will be sold in the two remaining auction sales before the end of June.

“It is important to note that direct coffee sales, which is our strategy, takes a very long process. We may have a buyer contract a certain amount of coffee but it takes time to ensure they receive their shipment after about three to five weeks,” Miano explained.

“It would be ideal for Nyeri farmers that we ensure large quantities of our coffee are sold via contracting, direct buyers,” Miano added.