Kenya COFFEE cartel - shocking

[RV Pundit]

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This, ladies and gentlemen, is how you deal with cartels.

1. Name them, then...

2. Expose their evil operations...and finally...

3. Shame them!@CecilyMbarire you did Kenyans proud!

Sasa Kazi kwa Riggy G to make coffee farming great again! pic.twitter.com/ZFoIu5AW4Z

— Samson Ogola (@SamsonOgola) June 10, 2023

?s=20

[Githunguri]

Garbage taka taka UDA

[hk]

What percentage of kenya coffee is bought by 4 local "cartel"? What's is their margin when they resell to global buyers? Marketing companies only get 2% of sale price. Last year prices were the highest in record, there were no cartels? Coffee is a commodity prices determined by global economic forces. They should compare farmers coffee prices with other countries e.g. ethiopia or columbia .
What percentage of coffee produced is Grade 1 i.e AA, AB and PB? Coffee production per kg should be ksh.40, the increased production cost(including labour) is much bigger problem than market opacity. The future of coffee production is small estate and increased local coffee consumption.
The conference meetings are complete waste of time.

[gout]

They will 'reconcile' once they find these are Kenyatta's and ndinasties money laundering vehicles.

State Capture Commission would have gone deeper than Mbarire. There is no one to go after global conglomerates while we are all over begging them to come.

[RV Pundit]

But it same web of companies?
Clearly something is wrong.
Eve if they are scamming farmers 5bob - it still a lot of money.
Coffee board as regulator seem to have failed.

What percentage of kenya coffee is bought by 4 local "cartel"? What's is their margin when they resell to global buyers? Marketing companies only get 2% of sale price. Last year prices were the highest in record, there were no cartels? Coffee is a commodity prices determined by global economic forces. They should compare farmers coffee prices with other countries e.g. ethiopia or columbia .
What percentage of coffee produced is Grade 1 i.e AA, AB and PB? Coffee production per kg should be ksh.40, the increased production cost(including labour) is much bigger problem than market opacity. The future of coffee production is small estate and increased local coffee consumption.
The conference meetings are complete waste of time.

[RV Pundit]

Exactly. It Ruto major failed promise.

They will 'reconcile' once they find these are Kenyatta's and ndinasties money laundering vehicles.

State Capture Commission would have gone deeper than Mbarire. There is no one to go after global conglomerates while we are all over begging them to come.

[yulemsee]

Exactly. It Ruto major failed promise.

Kenyans elected a wolf to watch over their flock, are you suprised?

[RV Pundit]

I am aware Ruto has scored 95% - and has failed in 5%. I am happy with that. Maybe you and Raila would have achieved 100%. We will never find out.

Kenyans elected a wolf to watch over their flock, are you suprised?

[hk]

But it same web of companies?
Clearly something is wrong.
Eve if they are scamming farmers 5bob - it still a lot of money.
Coffee board as regulator seem to have failed.

What percentage of kenya coffee is bought by 4 local "cartel"? What's is their margin when they resell to global buyers? Marketing companies only get 2% of sale price. Last year prices were the highest in record, there were no cartels? Coffee is a commodity prices determined by global economic forces. They should compare farmers coffee prices with other countries e.g. ethiopia or columbia .
What percentage of coffee produced is Grade 1 i.e AA, AB and PB? Coffee production per kg should be ksh.40, the increased production cost(including labour) is much bigger problem than market opacity. The future of coffee production is small estate and increased local coffee consumption.
The conference meetings are complete waste of time.

Coffee brokers e.g ibero or dormans buy coffee from the auction and they don't buy at a cheaper rate than global merchant companies e.g louis drefus or cargill. All the coffee companies have milling, marketing and trading arms just like ktda.  The dynasties(kenyatta) are marginal players in the coffee industry and pius ngugi of thika mills is actually being auctioned off. The boogey man of coffee is so called cartels, meanwhile specialty coffee farmers are making good returns using direct sale window. Coffee solution is producing high grade coffee and direct sales.

[RV Pundit]

I think generally speaking coffee has no future in Mt kenya except for speciality - quality over quantity.
GoK should focus on new areas to grow coffee in large scale - if it want to raise coffee quantity.
Most of maize growing regions in rift valley should transition into large scale coffee production.
That is where next coffee growth can happen - Mt kenya is pretty much hopeless coffee speaking.
We have had 30yrs of the same problems, same arguments, same intervention - and it just keep getting worse - as farmers uproot coffee.

Coffee brokers e.g ibero or dormans buy coffee from the auction and they don't buy at a cheaper rate than global merchant companies e.g louis drefus or cargill. All the coffee companies have milling, marketing and trading arms just like ktda.  The dynasties(kenyatta) are marginal players in the coffee industry and pius ngugi of thika mills is actually being auctioned off. The boogey man of coffee is so called cartels, meanwhile specialty coffee farmers are making good returns using direct sale window. Coffee solution is producing high grade coffee and direct sales.

[Kadudu]

 
How did he get rich himself? By selling chicken!

Kenyans elected a wolf to watch over their flock, are you suprised?

[hk]

https://www.the-star.co.ke/news/realtime/2023-06-12-they-killed-my-brother-gachagua-unearths-rot-in-coffee-sector/ this is the stupidity of it all.

[Kadudu]

Gachagua is smoking something we do not know.

https://www.the-star.co.ke/news/realtime/2023-06-12-they-killed-my-brother-gachagua-unearths-rot-in-coffee-sector/ this is the stupidity of it all.

[RV Pundit]

Agreed - he should avoid such cheap politics as deputy president.

https://www.the-star.co.ke/news/realtime/2023-06-12-they-killed-my-brother-gachagua-unearths-rot-in-coffee-sector/ this is the stupidity of it all.

[sema]

pius ngugi of thika mills is actually being auctioned

Is Pius going broke?

Also, why is it that specialty farmers can sell directly and not other regular farmers?

Also, ruto was the minister of agriculture at some point so I"m sure those brokers showed up in his office with suitcases and he knows who they are and how they work.

[hk]

pius ngugi of thika mills is actually being auctioned

Is Pius going broke?

Also, why is it that specialty farmers can sell directly and not other regular farmers?

Also, ruto was the minister of agriculture at some point so I"m sure those brokers showed up in his office with suitcases and he knows who they are and how they work.

Specialty coffee is high quality coffee that's sold to craft coffee houses e.g intelligensia coffee or blue bottle. The low quality coffee is bought by coffee brokers and consolidators. Brokers don't need government once their license is issued , that's why they're called "cartels". Ruto when he was minister for agriculture gave license to nyambene coffee mills(the wife of the meru guy is a kalenjin), which now is struggling.

[RV Pundit]

Listening to Francis Gaitho..problems seem to be corrupt cofee coop for smallholders

[Georgesoros]

Are there ""cartels"?
Seems like fake news.

[hk]

Listening to Francis Gaitho..problems seem to be corrupt cofee coop for smallholders

Cooperative monopolies.

[RV Pundit]

You Nailed it. It appears each operate on large areas. Think it time to go for small companies like KTDA model?

Cooperative monopolies.