Coffee cooperative sees increased earnings after securing direct market

Coffee farmers are to earn Kshs. 70 more from a kilo of cherry following the implementation of coffee reforms that allows farmers to directly sale the produce through licensed brokers.

Farmers under the Kipkelion Coffee Cooperative Society today exported 135 metric tones of the commodity to South Korea in a deal that locks out middlemen from the process, securing them higher income.

The Coffee Reforms of 2016 aimed at increasing value for farmers by cutting off unscrupulous middlemen who were ripping off farmers.

Implementation of the reforms has seen the Capital Markets Authority mandated to license brokers who facilitate trade between farmers and buyers.

So far, CMA has licensed five brokers among them Kipkelion Brokerage Company, that today oversaw the direct sale and export of 134.4 metric tones by farmers affiliated to Kipkelion Coffee Cooperative Society to South Korea.

The deal with South Korea’s Goodbeans firm benefits 9,582 small scale farmers drawn from the counties of Kericho, Nandi and Bomet.

Even though this arrangement has been welcomed by farmers, licensed brokers say they have been blocked from accessing the Nairobi Coffee Auction, which is affecting coffee trading.

According to Nairobi Coffee Auction, monthly coffee earnings nearly doubled to $90.4 million (Kshs. 10.2 billion) in January as Kenya benefited from high global prices in the market occasioned by a shortage of the produce.

Similarly the average price of the commodity in the review period hit a high of $338 (Kshs. 38,363) for a 50 kilo bag from an average of $291 (Kshs. 33,028) in corresponding period last year.