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An emerging, urbanised middle class and rising exports are factors driving coffee demand in East Africa. Mwangi Mumero finds out more.
Experts note that the increase in coffee prices at the New York Coffee Exchange has been instrumental in boosting earnings for Kenyan farmers.
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Boosting demand for coffee in East Africa
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N DOWNTOWN DAR es Salaam, coffee enthusiasts meet at Atom Coffee Hub or Grano Coffee for espressobased drinks. While coffee consumption remains low in East Africa compared to North Africa, the sector continues to grow, despite numerous challenges. Kenyan coffee industry Coffee earnings among Kenyan farmers continue to soar this year, as compared to last year, as global demand rose even with the troubling effects of the Covid-19 pandemic. Market reports from the Nairobi Coffee Exchange (NCE) showed that the crop earned US$47.3mn in January 2021 – a 94% rise from US$24mn in January 2020. The NCE chief executive officer Daniel Mbithi observed that the improved earnings is a result of high demand for the Kenyan coffee and higher volumes at auction. “There has been a very high demand now for Kenyan coffee especially for the washed premium ones. This has seen a surge by an amazing 64.49% from an average of US$177.46 in January 2020 to US$291.91 per 50 kilogramme,” said Mbithi. On an average, prices of 50kg bag went up to US$132 at the end of January 2021 from US$111, in early 2020. Experts note that the increase in coffee
16 African Farming - March/April 2021
prices at the New York Coffee Exchange has been instrumental in boosting earnings for Kenyan farmers. Kenyan coffee has a bright acidity and a wonderful sweetness with a dry winy aftertaste. A really good Kenya coffee will have a black-current flavour and aroma, according to the Kenya’s Coffee Directorate, the industry regulator. Kenya grows mainly the Arabica coffee, farmed by nearly 700,000 smallholder farmers across 32 counties. It is marketed by, approximately 500 primary cooperatives which receive, process and then deliver to any of the 17 coffee mills. Among the leading millers are Thika Miller Limited, New Kenya Planters Co-operatives Union (KPCU), Kofinaf Company Limited, Sasini PLC and Kahawa Bora Millers. Among the coffee dealers are Dorman Coffee, Diamond Coffee, Africa Coffee roaster EPZ and Eagle Brown Coffee Limited. Such has been the rosy story of coffee earnings among East African farmers even
Low prices, and a persistent shift of coffee producers to less risky enterprises are the leading factors in the possible fall in marketed coffee volumes in recent years.
as coffee production continues to declines due to a myriad of challenges. Government projections indicate a drop in production from 44,000 tonnes in 2019 to the projected 40,000 tonnes projected for 2020. “Our farmers are harvesting less coffee per tree while others are converting their land for real estate purposes and this has negatively impacted our coffee production”, said Dr Hamadi Boga, principal secretary in Kenya’s Ministry of Agriculture. According to Dr Boga, on average, a farmer is able to harvest 2kg per coffee bushel while major coffee producing nations can achieve up to 30kg per bush. Coffee production has been falling from more than two million bags in 2016 to less than one million two years ago. “While demand for Kenyan coffee in the world remains steady, with the United States being one of the top export destinations, the future of Kenya’s coffee production remains uncertain,” notes a report prepared by Kennedy Gitonga for the USDA Foreign Agricultural Service. Low prices, and persistent shift of coffee producers to less risky enterprises are the leading factors in the possible fall in marketed coffee volumes in recent years. Coffee production and climate change “The coffee bush is bearing berries at different stages of maturity becoming hard
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