Government revives ailing sub-sector

In the heart of Nyeri town, Central Kenya lies Tetu division, well endowed in coffee and tea production. The region which experiences heavy rains for most of the year has an ever- green scenery, and is hilly giving it an outstanding natural beauty.

However, corruption being the order of the day in the former president Daniel arap Moi regime, most cash crop farmers almost gave up for food crops. Farmers suffered for three years consecutively when coffee-buying policies made them run at a loss.

Informal sources say that it was difficult for farmers to run the industry since they were incurring huge expenses, compared to the meager earnings that they received at the end of the whole process.

It was until early 2003 that they decided to revive the industry following reforms by the National Rainbow Coalition [NARC] government. The incumbent government has raised the prices of coffee to KES 4 per kilogram from KES 1.50.

Amos Kibata, an elderly farmer hailing from Muruguru village like other growers in the area, has started tending his 900 plus coffee trees in earnest following signs that the sub-sector could be on it’s way to recovery. “We have the assurance that our government will help us fetch good money from our coffee, following the revival of our collapsed cooperative societies,” said Mr Kibata.

He was in the process of abandoning coffee farming following unrelenting crises and poor returns. Though he has been delivering his produce in small quantities to the Kiandu cooperative, he has only been receiving peanuts. “I have been receiving very little money, which I can only use to prune the coffee trees and weed the farm”, he lamented.

He said that after the picking period he had to borrow money for hiring labour from his working children. But with the new reforms, he anticipates delivering more than 6000 kilos of coffee cherry this season.

Though producing arguably some of the best coffee in the world, Nyeri farmers had lost hope in the crop. Having been the most lucrative business for them since the1960’s, it was not until the 1997/1998 seasons that crisis started haunting the sub-sector. Mr Kibata, like many other farmers in the area, stopped delivering produce to the neighboring Githiru factory in 1999.

It is noteworthy that the government has promised to fully liberalize coffee marketing by allowing societies such as the Kenya Planters’ Cooperative Union [KPCU] to secure a dealer’s licence. The KPCU is expected to start roasting the beans as soon as it gets the licence, and sell the coffee to customers globally over the Internet.
The biggest question on the lips of most Kenyans has been what would happen should the government allow KPCU to buy all Kenyan coffee, roast and sell it overseas. But Cooperative minister, Njeru Ndwiga remains optimistic. “I am for the idea since there will be greater value addition”.

But Dorman Coffee managing director, Jeremy Block does not agree. He argues that the crisis in coffee sector is not about KPCU buying all Kenyan coffee, roasting and selling it overseas but paying farmers their money. “What the cooperative minister is saying is totally unrealistic”, he asserted.

Block says that leading agencies, especially the cooperative bank, KPCU and the Coffee Board of Kenya, brought about the crisis in the industry. “The major problem at the moment is paying the farmers”. he stresses. He adds that although the board realized KES 641 million in coffee sales for 2001/02 seasons, the money has never reached the farmers.

Block argues that if the government is to take such an initiative, sales will diminish in niche markets and will take a lot of time: money and a lot of effort to develop. Kenya will also loose loyal coffee customers in the world market.

Kenya’s coffee remains superior to any that Brazil and Vietnam can produce, yet farmers are not getting full value for their produce. According to Block, the ministry of agriculture and the Coffee Board have failed in their duties, with increase in production creating a glut of cheap, low grade coffee.

Tea farming runs concurrently with coffee farming in Nyeri. Ordinarily, it is more lucrative than coffee farming because of cheap labour, less tedious work and high returns. Despite the encouraging end results of tea farming, many tea farmers in Nyeri want new factories opened to curb the predicament of congestion at local factories and non-collection of tea -leaves from buying centers.

Farmers also complain of high charges incurred in the tea collection process. Muchiri Muchina explains an incredible occurrence on his tea-leaves in the month of June last year. “I had a bumper harvest that month. When the tea collectors in the factory that represents me came, they claimed that my tea-leaves were of poor quality. Before I could transfer my tea leaves to another factory, the produce got spoilt”.

With the new government’s commitment to reform the agricultural sector, Nyeri is set to regain its vast contribution to the Kenyan economy.