Nipate
Forum => Kenya Discussion => Topic started by: RV Pundit on July 12, 2021, 12:23:24 PM
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Seem to be approaching 8 dollars a kilo as American get taste of kenya coffee.
https://www.businessdailyafrica.com/bd/markets/commodities/us-retains-spot-global-buyer-of-kenyan-coffee-3469522
There is really no reason why Kenya should not be producing lots of coffee...especially north rift - farmers need to dump maize for coffee.
Uganda produces tonnes of coffee - I think 10 times kenya!
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The crazy thing - Kenya liberalization crushed the coffee industry - but the story was different in Uganda. The highest production in Kenya was 1989 - just before the 1990s IMF liberization
Uganda the story is quite different.
However, after government privatization in 1991, a strong revival of the sector was seen, leading to a 5100% increase in production since 1989.
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Shortage of coffee beans. This should be Ruto first business in office - to restart coffee farming especially in rift valley - and dump maize & wheat (leave those grains to temperate climates - and open the import market - so we can buy cheap maize from anywhere - and sell more valuable coffee beans).
https://www.businessdailyafrica.com/bd/markets/commodities/coffee-auction-postponed-low-bean-supply-3466140
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And I thought coffee problems in Kenya back in 1989 was coz of collapse of International Coffee agreement.
Our history Teacher says othereise.
https://en.m.wikipedia.org/wiki/International_Coffee_Agreement
Breakdown of the 1989 agreementEdit
In 1989, ICO failed to reach an agreement on new export quotas, causing the 1983 ICA to break down.[10] The disagreement was triggered by consumers' change in taste towards milder and higher quality coffee.[11] With the retained quotas from the 1983 agreement, the change increased the value of milder coffee at the expense of more traditional varieties such as robusta.[12] Brazil in particular – the world's most powerful coffee producer – refused to reduce its quotas believing it would lower their market share.[11][13] The consumers, led by the United States, demanded higher quality coffee and the end of selling coffee to non-members at reduced rates.[14][15]
The US criticized Brazil for not being willing to accept a reduction of the country's quotas despite falling share of the world market since 1980.[13] Jorio Dauster, head of the state-controlled Brazilian Coffee Institute, described Brazil as an "extremely efficient producer" and believed it could survive without help from ICO.[11][13]
The 1983 ICA was set to expire on 1 October 1989, but realizing that it would be impossible to enter into a new agreement before the termination date, the Coffee Council (ICO's highest body) effectively decided to suspend the export quotas on 4 July 1989.[14] Without an extended agreement producing countries lost most of their influence on the international market.[16] ICO's average indicator price for the last five years previous the end of the regime fell from US$1.34 per pound, to US$0.77 per pound for the first five years after.[16]
According to Yves Engler's Canada in Africa, "no longer worried about the prospect of poor coffee producers turning towards the Soviet Union, the US withdrew its support from the International Coffee Agreement in 1989."
The crazy thing - Kenya liberalization crushed the coffee industry - but the story was different in Uganda. The highest production in Kenya was 1989 - just before the 1990s IMF liberization
Uganda the story is quite different.
However, after government privatization in 1991, a strong revival of the sector was seen, leading to a 5100% increase in production since 1989.
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Well, uganda managed to grow their coffee production, as kenya coffee industry collapsed. What I know from history - coffee was liberalized then - the big coffee house uko muthurwa - I think gov had huge role those days - and it was now privatized - with cooperatives owning it - like KTDA was eventually done in mid or late 1990s.
What happened - cooperatives - ended up fighting each others - and stealing members money - and it became another KCC dairy sector story.
Coffee was really doing well - I remember in early 90s - someone visited our home from Kipkelion - he was growing coffee - and when he heard what we made from tea - he laughed at my father and told him to uproot tea.
And I thought coffee problems in Kenya back in 1989 was coz of collapse of International Coffee agreement.
Our history Teacher says othereise.
https://en.m.wikipedia.org/wiki/International_Coffee_Agreement
Breakdown of the 1989 agreementEdit
In 1989, ICO failed to reach an agreement on new export quotas, causing the 1983 ICA to break down.[10] The disagreement was triggered by consumers' change in taste towards milder and higher quality coffee.[11] With the retained quotas from the 1983 agreement, the change increased the value of milder coffee at the expense of more traditional varieties such as robusta.[12] Brazil in particular – the world's most powerful coffee producer – refused to reduce its quotas believing it would lower their market share.[11][13] The consumers, led by the United States, demanded higher quality coffee and the end of selling coffee to non-members at reduced rates.[14][15]
The US criticized Brazil for not being willing to accept a reduction of the country's quotas despite falling share of the world market since 1980.[13] Jorio Dauster, head of the state-controlled Brazilian Coffee Institute, described Brazil as an "extremely efficient producer" and believed it could survive without help from ICO.[11][13]
The 1983 ICA was set to expire on 1 October 1989, but realizing that it would be impossible to enter into a new agreement before the termination date, the Coffee Council (ICO's highest body) effectively decided to suspend the export quotas on 4 July 1989.[14] Without an extended agreement producing countries lost most of their influence on the international market.[16] ICO's average indicator price for the last five years previous the end of the regime fell from US$1.34 per pound, to US$0.77 per pound for the first five years after.[16]
According to Yves Engler's Canada in Africa, "no longer worried about the prospect of poor coffee producers turning towards the Soviet Union, the US withdrew its support from the International Coffee Agreement in 1989."
The crazy thing - Kenya liberalization crushed the coffee industry - but the story was different in Uganda. The highest production in Kenya was 1989 - just before the 1990s IMF liberization
Uganda the story is quite different.
However, after government privatization in 1991, a strong revival of the sector was seen, leading to a 5100% increase in production since 1989.
-
Seem to be approaching 8 dollars a kilo as American get taste of kenya coffee.
https://www.businessdailyafrica.com/bd/markets/commodities/us-retains-spot-global-buyer-of-kenyan-coffee-3469522
There is really no reason why Kenya should not be producing lots of coffee...especially north rift - farmers need to dump maize for coffee.
Uganda produces tonnes of coffee - I think 10 times kenya!
Actually farmers who produce high quality beans have been selling their coffee at good prices since 2012. Coffee produced by small estates( 5 to 20 acres) in 1500m above sea level areas produces high quality coffee. The so called artisan coffee shops e.g https://www.intelligentsia.com/ . https://bluebottlecoffee.com/) this are our customers. Well run cooperatives especially in kirinyaga produce good coffee and they're paid well.
The future of coffee production in Kenya is bright especially at least 1500 meters above sea level altitude. More so if the industry is fully liberalized. Local consumption and creation of local brands is necessary to fully capture economic value.
https://nipate.net/index.php?topic=9241.msg83672#msg83672 this was the correct call, if IMF hadn't rescued Kenya my return would have been even much higher, but not complaining though.
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Great to hear that some people are making money. The last time I went to my inlaws in Embu - they weren't making money - and had intercropped it with Muguga. Interesting. Kericho and Nandi start from 1800m - and then need to abandon maize planting for this kind of quality coffee.