Cartels blamed for dip in coffee prices in Meru

Caroline Kajuu and Florence Nkatha at their coffee farm in Thuura, Meru. [Phares Mutembei/Standard]

Farmers celebrated when the Meru Central Coffee Milling factory was established in September 2013, as the miller bought berries from farmers at higher price.

Josphat Kirimi was among the farmers affiliated to the 47 societies in Meru that started selling their berries to the mill at higher prices.

The mill and the Meru County Coffee Marketing Agency were put in charge of selling the coffee from the county’s nine sub-counties.

Some of the coffee was sold directly to the US, Netherlands and other countries, raking in millions for farmers.

Mr Kirimi is among farmers who sold their coffee to the mill in 2013, where the least paid got Sh57 per kilo, with the highest receiving Sh102.

“Before many farmers were getting as low as Sh20,” said Kirimi.

The celebrations were, however, cut short at the end of 2014 and up to now Kirimi says they are unhappy that they are receiving as low as Sh30 per kilo of the berries.

Meru Central Coffee Union General Manager Frederick Mburugu blamed cartels for the dip in the prices.

Mr Mburugu said the 90,000 farmers spread around the county gained bargaining power when they came together and decided to sell as one.

“At the end of 2014 cartels invaded the sector and wooed some farmers to their side. This year, with just four months gone, we are at our lowest, with the average price at Sh30 a kilo,” he said.

Mburugu said the presence of brokers and dealers in the sector had affected production and marketing of the produce.

He urged the Government to weed out some shadowy players who were producing, milling, marketing and dealing in coffee.

“We want licensing of millers, dealers and marketers to be re-looked at. We have a situation where some have licenses to perform all these roles, meaning they are able to dictate grading and pricing,” the general manager said.

He said having all the licenses made an entity very powerful in the sector, hence the need to review the licenses held by some parties.

“When one has licenses to grade, market and also buy coffee, the farmer cannot survive,” he lamented, calling on the State to act quick.