Author Topic: HK no wonder you're silent - Coffee prices are literally on the roof.  (Read 1464 times)

Offline RV Pundit

  • Moderator
  • Enigma
  • *
  • Posts: 38127
  • Reputation: 1074446
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!

Offline RV Pundit

  • Moderator
  • Enigma
  • *
  • Posts: 38127
  • Reputation: 1074446
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.

Offline RV Pundit

  • Moderator
  • Enigma
  • *
  • Posts: 38127
  • Reputation: 1074446
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

Offline Nowayhaha

  • VIP
  • Enigma
  • *
  • Posts: 7369
  • Reputation: 5000

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
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.

Offline RV Pundit

  • Moderator
  • Enigma
  • *
  • Posts: 38127
  • Reputation: 1074446
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
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.

Offline hk

  • VIP
  • Enigma
  • *
  • Posts: 1406
  • Reputation: 16501
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.

Offline RV Pundit

  • Moderator
  • Enigma
  • *
  • Posts: 38127
  • Reputation: 1074446
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.