"When we appointed Linturi, they tried to bribe him with Sh30 million to fall for their trap but Linturi informed me and the Head of State. They had approached me and had offered Sh7 billion but I refused," Gachagua said.
They have destroyed coffee value chain that has taken more than 30 yrs to create. The world doesnt need kenya coffee, its kenya that needs global coffee market. The solution was to fully liberalize the coffee sector. Instead they have created several barriers between buyers and farmers. And worst of all is creation of direct settlement system run by cooperative bank , the md of coop is muriuki villagemate of gachagua. This means coop bank would be getting about $250m deposits annually, that's industry capture.
The solution was to deregulate and fully liberalize to get clear price discovery and market transparency. Turning Nairobi coffee exchange into a regional coffee commodity exchange drawing international buyers should have been the priority. The future of coffee farming in kenya is in small estate selling specialty coffee, cooperatives society will collapse.They have destroyed coffee value chain that has taken more than 30 yrs to create. The world doesnt need kenya coffee, its kenya that needs global coffee market. The solution was to fully liberalize the coffee sector. Instead they have created several barriers between buyers and farmers. And worst of all is creation of direct settlement system run by cooperative bank , the md of coop is muriuki villagemate of gachagua. This means coop bank would be getting about $250m deposits annually, that's industry capture.
What is the Solution to this coffee issue? Uprooting?
They have destroyed coffee value chain that has taken more than 30 yrs to create. The world doesnt need kenya coffee, its kenya that needs global coffee market. The solution was to fully liberalize the coffee sector. Instead they have created several barriers between buyers and farmers. And worst of all is creation of direct settlement system run by cooperative bank , the md of coop is muriuki villagemate of gachagua. This means coop bank would be getting about $250m deposits annually, that's industry capture.
Govt interventions are bound to bring market distortions.Millers and marketers are holding more than 200,000 bags of green coffee cause their licenses have been withdraw and somehow they're the ones burning the value chain cause of gachagua? Coffee buyers can easily replace Kenyan coffee with south american, rwanda or ethiopian coffee. The biggest global coffee buyers of kenyan coffee are Nestle, starbucks ,Tchibo and luis drefus. Starbucks is the biggest coffee chain in china and dubai, if starbucks were to procure coffee elsewhere it'd definitively lower the coffee prices, this is what has happened.
It is a lie to say that the world does not need Kenyan coffee - this is a lie by a few individuals/corporates who have control of the European and US market. Just because they have misgivings with Gachagua they are ready to burn the value chain but am sure given the money in it some fellows will crack it. I have been involved in sending samples to Dubai, and China, and the reports on Kenyan coffees is incomparable to Uganda, Tanzania, and even Ethiopia.
Coop bank has invested in coffee farmers for decades and is the banker of farmers saccos and farmers cooperatives.They have destroyed coffee value chain that has taken more than 30 yrs to create. The world doesnt need kenya coffee, its kenya that needs global coffee market. The solution was to fully liberalize the coffee sector. Instead they have created several barriers between buyers and farmers. And worst of all is creation of direct settlement system run by cooperative bank , the md of coop is muriuki villagemate of gachagua. This means coop bank would be getting about $250m deposits annually, that's industry capture.
Millers and marketers are holding more than 200,000 bags of green coffee cause their licenses have been withdraw and somehow they're the ones burning the value chain cause of gachagua?
This is exactly cartelish blackmail. Why not sell through licensed marketers? Why incite the global buyers not to deal with KPCU. Even Moses who was gaga about 'value addition' climbed down and it is all about market access.Renew their license and they'll sell to whomever they want to. Government can register as many brokers, millers and marketers as they want(fully liberalization). In a free market the new entrants can earn their business but forcing existing players to shutdown for new entrants to scoop up buyers is counter to market regulations. If cooperatives are corrupted why not scrap the coffee act that forces farmers to sell to cooperatives? The future of coffee in kenya is in small estate( 2acres and above and aggregators (similar to early milk collection companies). If kenya coffee is so valuable why are global buyers incited not buy from kpcu? One would think they'd be scrabbling to buy kenya coffee from whomever is selling it.
So Ibero would rather do a Chepkube and take coffee from Kenya to Uganda? Soon the market will speak and bring in more players.
The wailing marketers have corrupted and captured the farmers' cooperative and do not want any fresh players.
Millers and marketers are holding more than 200,000 bags of green coffee cause their licenses have been withdraw and somehow they're the ones burning the value chain cause of gachagua?
This is exactly cartelish blackmail. Why not sell through licensed marketers? Why incite the global buyers not to deal with KPCU. Even Moses who was gaga about 'value addition' climbed down and it is all about market access.Renew their license and they'll sell to whomever they want to. Government can register as many brokers, millers and marketers as they want(fully liberalization). In a free market the new entrants can earn their business but forcing existing players to shutdown for new entrants to scoop up buyers is counter to market regulations. If cooperatives are corrupted why not scrap the coffee act that forces farmers to sell to cooperatives? The future of coffee in kenya is in small estate( 2acres and above and aggregators (similar to early milk collection companies). If kenya coffee is so valuable why are global buyers incited not buy from kpcu? One would think they'd be scrabbling to buy kenya coffee from whomever is selling it.
So Ibero would rather do a Chepkube and take coffee from Kenya to Uganda? Soon the market will speak and bring in more players.
The wailing marketers have corrupted and captured the farmers' cooperative and do not want any fresh players.
Millers and marketers are holding more than 200,000 bags of green coffee cause their licenses have been withdraw and somehow they're the ones burning the value chain cause of gachagua?
BTW cooperatives have their broker and marketing firm, why not sell through them? The coffee market just needs more transparency, coffee brokers just like investment banks buy coffee in the market to resell, its one of the reason why price changes from price declared at CME and at export declaration in Mombasa. This should be handled by markets regulation authority.
It is a breakthrough today as we signed a deal with The Java Coffee Company in Rotselaar, Belgium, to source coffee directly from our smallholder farmer, with a focus on women.
— Rigathi Gachagua (@rigathi) October 26, 2023
It is a monumental outcome of our coffee reforms, with our farmers guaranteed better… pic.twitter.com/cZyzbY9E1X
It is a breakthrough today as we signed a deal with The Java Coffee Company in Rotselaar, Belgium, to source coffee directly from our smallholder farmer, with a focus on women.
— Rigathi Gachagua (@rigathi) October 26, 2023
It is a monumental outcome of our coffee reforms, with our farmers guaranteed better… pic.twitter.com/cZyzbY9E1X
Gachagua is w villager trying to deal with world trade issues
What reforms? The cartels licenses trading licenses were renewed without cancellation of milling and marketing licenses. The major brokerage companies still dominates the auction the likes of ibeiro and dormans. More importantly the price of coffee hasn't improved its still at around $4, the only saving grace is depreciation of Ksh. Just like tea farmers bonuses were higher due to ksh. depreciation.
As for java coffee company that company has been buying kenya coffee for more than 10yrs, its strictly a pr stunt. Which cooperative societies was Gachagua representing that signed direct coffee sale? Next we're going to be told that starbucks is buying kenya coffee and all along starbucks has been second biggest buyer after nestle.
This is transparency- Gachagua already explains that New KPCC is what will be working with the roasters. More transparency as he will explain to farmers how the 700 tonnes were sourced.So in a nutshell cooperative societies will be forced to sell their coffee via KPCC . Basically the reforms being touted are meant to regulate the industry and undo the 90s liberalization.
The signing is just ceremonial just like presentation of dummy cheques.
Seems likes of Ibero and Dormans won't be going to Uganda after all.What reforms? The cartels licenses trading licenses were renewed without cancellation of milling and marketing licenses. The major brokerage companies still dominates the auction the likes of ibeiro and dormans. More importantly the price of coffee hasn't improved its still at around $4, the only saving grace is depreciation of Ksh. Just like tea farmers bonuses were higher due to ksh. depreciation.
As for java coffee company that company has been buying kenya coffee for more than 10yrs, its strictly a pr stunt. Which cooperative societies was Gachagua representing that signed direct coffee sale? Next we're going to be told that starbucks is buying kenya coffee and all along starbucks has been second biggest buyer after nestle.
How are those coffee reforms coming along? https://www.the-star.co.ke/news/2024-08-22-mathira-coffee-farmers-protest-over-alleged-poor-payment/
Freaking disaster .
The Nairobi coffee exchange is working smoothly thus the informed and agitated farmers. This is a cooperative leadership ukora issue. The farmers can do their calculations and the Gen Zii spirit has hit Karatina.The CME was working smoothly even before the reforms. The sole purpose of the reforms was to get rid of cartels that were supposedly colluding to swindle farmers. After the reforms, farmers earnings hasnt increased on the contrarily, at best prices have stagnated or lower in $. The CME hasnt changed, its only there are new brokers. The lower end of the supply chain i.e(milling) is what has been affected with several millers shutting down. Central millers and tropical have shut down their mills. The unintended consequences will be that coffee hawking is going to explode. The egregious direct settlement system was suppose to ensure prompt farmers payment, this year farmers were paid in august instead of the kawaida June.How are those coffee reforms coming along? https://www.the-star.co.ke/news/2024-08-22-mathira-coffee-farmers-protest-over-alleged-poor-payment/
Freaking disaster .
The Nairobi coffee exchange is working smoothly thus the informed and agitated farmers. This is a cooperative leadership ukora issue. The farmers can do their calculations and the Gen Zii spirit has hit Karatina.The CME was working smoothly even before the reforms. The sole purpose of the reforms was to get rid of cartels that were supposedly colluding to swindle farmers. After the reforms, farmers earnings hasnt increased on the contrarily, at best prices have stagnated or lower in $. The CME hasnt changed, its only there are new brokers. The lower end of the supply chain i.e(milling) is what has been affected with several millers shutting down. Central millers and tropical have shut down their mills. The unintended consequences will be that coffee hawking is going to explode. The egregious direct settlement system was suppose to ensure prompt farmers payment, this year farmers were paid in august instead of the kawaida June.How are those coffee reforms coming along? https://www.the-star.co.ke/news/2024-08-22-mathira-coffee-farmers-protest-over-alleged-poor-payment/
Freaking disaster .