This archive report was first published on 2 October 2019.
Kenya's coffee farmers are facing a challenging time as the international price of their cash crop has dropped due to oversupply and competition from major producing countries.
According to Coffee Management Services Mills MD Kamau Kuria, the global coffee market recorded 172 million bags this season, up from 163 million bags in the last period, resulting in an oversupply of nine million bags.
"There has been excess coffee from major producing countries like Brazil, Colombia, and Vietnam that has impacted negatively on the prices of our coffee in the international market," Mr Kuria said during a field day for coffee farmers in western Kenya.
Kenya's coffee production for 2019/2020 is estimated at 650,000 bags, compared to 750,000 this year, while the distribution is projected at 830,000 bags compared to 910,000 bags in 2018/19.
Reports by the Coffee Directorate show that farmers earned Sh9.04 billion last month against Sh11.8 billion in the same period last year.
A Nairobi Coffee Exchange report indicates that a 50kg bag of coffee fetched Sh13,500 in the weekly trading, down from Sh15,600 in the previous sale.
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.
The Rift Valley is emerging as the leading coffee producer in Kenya as production declines in central Kenya owing to changes in land use from agricultural to commercial and real estate.
The Coffee Research Foundation (CRF) says production in central Kenya declined drastically last season.
CRF has intensified seed production to help farmers access the right variety at affordable prices.
The main coffee-growing counties are Uasin Gishu, Trans Nzoia, Baringo, Kericho, Bomet, and parts of Nakuru.
