Coffee exporter targets 10,000 tonnes this season

By James Anyanzwa

The new Kenya Co-operative Coffee Exporters Ltd (KCCE) is gearing up towards marketing over 10,000 tonnes of clean coffee this season (2009/2010).

Barely eight months since its inception, over 110 coffee societies have signed up marketing agreements with the state-backed marketer to earn better prices for their produce.

"More societies are expected to sign up," said Lucy Murumba, the firm’s chief executive. She said KCCE has established markets for coffee and we have not appointed any other marketing agent to market on our behalf."

In a statement yesterday, Mrs Murumba said the company has commenced marketing coffee, citing Katheri and Thagara Co-operative societies in Meru whose coffee fetched over Sh39 per kilogramme of cherry compared to the previous payment of Sh27 per kilogramme.

"This is the highest payment ever in larger Meru," said Murumba. The entry of the KCCE is expected to promote increased prices for farmers. This would boost their morale leading to higher productions, better quality coffee and improved foreign exchange earnings.

The latest move, however, spells doom to the 76-year-old Kenya Planters Cooperative Union (KPCU) whose long-term dominance of coffee dealership is understood to have stifled the growth of the coffee industry.

Falling production

Available data shows that coffee production has plummeted from the 1980s highs of 130,000 tonnes by registering a 21.3 per cent decline in production from 54,000 tonnes in 2007 to 42,000 tonnes in 2008.

KCCE is an initiative by the smallholder co-operative based coffee farmers. It was formed to maximise returns on coffee sales by engaging directly in coffee marketing rather than going through the auction system.

The firm’s shareholding is open to only coffee co-operative societies or unions. Murumba said, so far, 50 societies have applied for membership in KCCE. It can buy from independent growers, roast, package and ship it abroad.