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Coffee exports, earnings rise as key reforms bear fruits, New KPCU reveal grand plan to revitalize the sector

The New Kenya Planters Co-operative Union (NKPCU) has launched a grand strategy that aims to double production and earnings in the coffee sector in the next four years.

And the Cabinet Secretary for Co-operatives Wycliffe Oparanya revealed that over the past one year, the country has seen remarkable growth and resilience in the coffee sector, as exports and earnings rise.

“In the past one year, our exports rose to 47,957 metric tons, up from 42,858 metric tons the previous year. This growth highlights the unwavering demand for Kenyan coffee on the global stage, with the total export value reaching an impressive USD 252.12 million,” said Oparanya.

Oparanya who presided over the launch of the New KPCU’s 5-year Strategic Plan, added that, on the domestic front, Kenya has witnessed a 19% increase in coffee consumption, with coffee houses expanding from 506 to 791. These are clear indicators of a thriving coffee culture within our borders.

He however noted that production declined by 6%, with 48,649 metric tons of clean coffee produced compared to the previous year’s 51,853 metric tons. This decrease can be attributed to erratic weather patterns and the natural cyclical nature of coffee production.

Oparanya said on a positive note, the area under coffee cultivation has grown to 111,902 hectares, supported by quality seedling programs that provide farmers with superior planting materials.

“Looking ahead, we project production for the 2023/24 season to increase to 54,800 metric tons, a testament to our efforts in enhancing fertilizer availability and extending support services to farmers,” he said.

Speaking during the event held at the Utalii Hotel grounds in Nairobi, chairman of the New KPCU Daniel Chemno said coffee reforms initiated by the government has greatly helped farmers especially the subsidy program and the Coffee Cherry Advance Revolving Fund (CCARF).

He called for more support for the sector saying of the subsidy is expanded to include the spray program and pest control measures, it will lead to more production and better quality and therefore more earnings.

The New KPCU CEO Timothy Mirugi said the institution is keen on supporting farmers through offering efficient services, traceability, integrity and efficiency so as to meet and exceed their expectations.

He said New KPCU is working to encourage the youth and women to embrace coffee farming and putting in strategy in agronomy that will see production per tree rise from the current national average of 2kg per bush to between 10 and 20kgs.

Mirugi said they are also encouraging farmers from non-traditional coffee growing regions to embrace the crop especially in Western and Rift Valley regions where the climate has been found to support growth of coffee.

Globally, CS Oparanya said coffee production rose slightly by 0.1% to 168.2 million bags in the 2022/2023 coffee year. While this growth was modest, regional production faced challenges. Africa’s production declined by 7.2% due to unfavorable weather, affecting major producers like Kenya, where output fell by 6% to 0.81 million bags. Despite these challenges, Kenya continues to be the third-largest producer of Arabica coffee in Africa, with our rich, high-quality beans renowned worldwide.

Despite our achievements, the coffee sector still faces significant challenges. Production has decreased dramatically from a peak of 128,000 metric tons in 1989 to 34,500 metric tons in 2020/21. Factors such as high input costs, shrinking coffee-growing areas, delayed payments, climate change, and fluctuating market prices have compounded these issues. Additionally, weak governance in cooperative societies and outdated legislation have hindered the sector’s growth potential.

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