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High Production Costs Scare Away Coffee Farmers

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Nyakundi Report

Newsroom 1 min read

This archive report was first published on 26 November 2019.

Kenya's coffee industry is facing a crisis due to high production costs, which have led to a significant decline in production.

According to industry players, the high cost of production has made it difficult for farmers to remain profitable, resulting in a decrease in coffee production.

As a result, coffee prices in the international market have reached a 13-year low, with a kilo trading below a dollar last year.

Industry players are now calling for government subsidies to reduce the cost of production and make coffee farming more viable.

Lower production costs are also expected to boost local consumption of high-grade coffee and create more market opportunities.

Most African nations export coffee without adding value, which denies the continent jobs and income.

The Inter-Africa Coffee Organization is seeking $900 million from the private sector to offer farmers loans and increase coffee production.

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