Kenyan coffee losing charm as production dwindles

Kenya risks losing its international coffee market share to neighboring countries as production is projected to dwindle due to increased fertilizer prices.

Players in the coffee sector say international coffee buyers have been contemplating sourcing for equivalent quality coffee from the region as Kenya’s production is inconsistent and low with this year’s projection pointing at reduced production from the previous year.

Kenya’s coffee production over the years has been averaging 40,000 metric tonnes, a decline from a high of 100,000MT duping the previous decades.

Last year Kenya earned approximately Kshs. 24 billion from coffee exports between January and December eclipsing the entire 2020 earnings that stood at Kshs. 22 billion.

Players in the sector say the good prevailing coffee prices are as a result of calamities in Brazil and Colombia and tensions in Ethiopia and soon prices will fall as the three countries’ production stabilizes.

Kenya might lose its market shares to Uganda which average 300,000MT annually and Ethiopia that averages 500,000MT as buyers source for stable suppliers to meet the global demand.

To enjoy the economy of scales small coffee holders have been encouraged to amalgamate their produce and create modalities for direct sales that has seen Kipkelion District Cooperative earn Kshs. 116 million for their 134.4MT of coffee beans export to South Korea.

These as east African countries have been encouraged to come up with a harmonized price mechanism to ensure the region’s tea fetch more at international markets.