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Time
to give coffee sector a kick-start
THAT Kenya’s coffee sector is on its deathbed is indisputable.
In fact, as a top Kenya National Federation of Agricultural
Producers official noted during a recent stakeholders’
meeting called to diagnose what is ailing the sector, it is
in the intensive care unit.
The tragedy is that the very authorities that are supposed to
nurse it back to health seem determined to switch off its life
support system and condemn it to an early death.
The once thriving crop that brought so much joy to many a Kenyan
household and was virtually the economy’s engine has been
left to go to the dogs, to such an extent that it is hardly
recognizable. There are so many professionals who are today
what they are because of the sector, particularly during the
golden 1970s.
The warning shots were fired in the early 1990s when smallholder
farmers vowed to uproot their bushes. While some actually made
good the threat, the authorities threatened fire and brimstone
and used the big stick to whip the rest into line. But no concrete
steps were taken to address the woes facing them. And thus began
either inter-planting, which farmers thought made more economic
sense, or total neglect and abandonment.
The situation has hit crisis levels. Big players have joined
the fray vowing to reduce their acreages or abandon the crop
altogether unless the government wakes up from its long slumber
and takes measures to revive the sector.
Publicly quoted Kakuzi, the torchbearer in this protest, has
halted operations citing continuous unsustainable losses, forcing
it to cut down a massive 800 hectares in preference for horticultural
crops. Another big player, Socfinaf, with huge plantations,
is also scaling down its coffee business, citing deteriorating
international prices that have led to poor earnings. Hesitant
banks unwilling to advance credit to farmers further compound
the situation.
The upshot is a huge drop in production. From a high of 130,000
metric tonnes, which earned US$210 million in the 1987/88 coffee
year to an all, time low of 55,000 metric tonnes worth US$78
million last year.
Granted, the world prices have taken a plunge— the lowest
in 36 years — but the quality of Kenyan coffee wouldn’t
get anywhere near that of countries that have put in place clear
policies. But what do we have in Kenya? It’s a veritable
Tower of Babel, particularly in the marketing.
It takes forever for the farmer to get his returns, if any,
as his produce gets through the marketing maze. And what trickles
down to him is a mere mockery of his toil. Hordes of busybodies
in the name of middlemen, most of whom have never seen a coffee
bush, strategically position themselves along the chain to line
up their pockets for mostly non-existent services.
At the coffee conference to be held in Nairobi, the Kenyan capital,
in February, the government must give concrete proposals on
the way forward. It must be a forum where bureaucrats present
more than just statistics. The farmer must be given the opportunity
to present his case and be listened to. After all, he is the
cornerstone of the industry: Take him away and the whole structure
comes tumbling down.
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