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Sasini seeks to cushion farmers against volatility

By Kamau Maichuhie | Dec 9th 2017 | 2 min read
By Kamau Maichuhie | December 9th 2017
Naushad Merali. (Photo: Courtesy)

Agricultural firm Sasini will diversify its market as part of providing new opportunities and cushioning affiliated coffee farmers against market volatility.

Group Chairman Naushad Merali said besides deepening presence in the traditional markets, the company is putting strategies in place to tap new segments in Europe, Middle East and Asia.

Addressing farmers during an Open Day in Kiambu County on Friday, Mr Merali said the company will allocate a sufficient budget to facilitate aggressive marketing and networking with overseas buyers.

“In another 10 days, some officers will be travelling to Europe to secure more roasters who have expressed interest in working with Sasini,” he said.

Lucrative market

Most of Kenya’s coffee is exported to Europe but America has recently become a lucrative market.

However, Mr Merali said, some market segments are still not tapped, thus providing justification for the company to deepen its footprints in the 27-member EU bloc.  

“Our target is to deepen presence in old markets. Further, the intention will be focused in already untapped market sections in EU,” he said.

“The market expansion plan will further be rolled out in Asian and Middle East countries where demand of coffee has gone up due to expansion of middle class and increase in economic growth.”

Trade and Industrialisation Cabinet Secretary Adan Mohamed said the Government plans to amend laws and policies on agricultural commodities to enhance value addition.

He said the Government is keen to support producers and traders to enrich products so that they can attract premium prices.

“We have for long continued to sell the bulk of local products in raw form. Our desire as a government is to increase value addition up to 50 per cent in the medium term,” said the CS.

“Our key mission is to work with local organisations already in value addition to assist them upscale their processing capacities,” he added.

Mr Mohamed further said the Government will intensify market linkages between the producers and traders.

Data from the Nairobi Coffee Exchange shows that volumes under direct sales decreased by 3.1 per cent to 6,263 tonnes in 2016/17 production year from 6,492 tonnes recorded in 2015/16.

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