This archive report was first published on 2 August 2019.
Kenya's coffee earnings are expected to drop by Sh3 billion this year due to increased supply at the global market, mainly from Brazil, Vietnam, and Ethiopia.
According to the Agriculture and Food Authority (AFA), a glut in the global market has depressed coffee prices. However, AFA notes that increased local consumption, identifying more coffee specialty markets, and creating transparency and accountability in the payment system could cushion farmers from the global market shocks.
‘We are likely to witness a drop in total earnings from Sh23 billion in the 2017/18 financial year to Sh20 billion in this year’s coffee year,’ said Isabella Nkonge, Head of Coffee Directorate at AFA, in Mombasa.
A kilo of coffee traded at Sh203 or Sh.10,199 per 50kg bag at the Nairobi Coffee Exchange (NCE) this week.
Experts from 12 African countries meeting in Mombasa to plan for the 18th Africa Fine Coffee Conference and Exhibition, scheduled for February next year, emphasized the need to increase local consumption and explore new markets to protect farmers from the erratic global market.
The conference will deliberate on how to end farmers’ exploitation and promote local consumption, said Ishak Lukenge, Chairman of the African Fine Coffees Association.
