This archive report was first published on 1 October 2019.
As the global coffee market continues to grapple with an oversupply of 9 million bags, coffee farmers in Kenya are facing a tough time. According to Coffee Management Services Mills MD Kamau Kuria, the global market recorded 172 million bags this season, up from 163 million bags in the last period.
Speaking during a field day for coffee farmers from western Kenya, Mr Kuria warned that the oversupply has led to dipping prices. "There has been excess coffee from major producing countries like Brazil, Columbia and Vietnam (and) that has impacted negatively on the prices of our coffee in the international market," he said.
Kenya's coffee production for 2019/2020 is estimated at 650,000 bags, compared to 750,000 this year. The distribution is projected at 830,000 bags compared to 910,000 bags in 2018/19. Despite this, farmers earned Sh9.04 billion last month, down from Sh11.8 billion in the same period last year.
A Nairobi Coffee Exchange (NCE) report indicates that a 50kg bag of coffee fetched Sh13,500 in the weekly trading, down from Sh15,600 in the previous sale. The report further indicates that Kenya's premium coffee grade AA recorded a much lower price this week at Sh18,000, down from Sh22,300 last week for a 50kg bag.
Mr Kuria urged farmers to insure the crop against losses caused by natural calamities and theft while in transit to factories. He also emphasized the need for farmers to use modern production techniques and improve handling processes to increase their returns.
The Rift Valley is emerging as the leading coffee producer in Kenya, with production declining in central Kenya due to changes in land use from agricultural to commercial and real estate. The Coffee Research Foundation (CRF) has intensified seed production to help farmers access the right variety at affordable prices.
