New KPCU plan to boost coffee drinking targets schools, youth

The government is looking to increase coffee consumption locally to boost revenues even as production of the commodity has slumped.

While launching its strategic plan yesterday, the New Kenya Planters Cooperative Union (New KPCU) has said consumption of coffee is very low at just about 19 per cent.

In this regard, the union has asked that coffee be introduced early in schools, offices and outlets to boost consumption with more marketing required to make it more attractive to the younger generations.

While addressing coffee farmers during the launch in Nairobi, Cooperatives and MSMEs Cabinet Secretary Wycliffe Oparanya said the past year has seen remarkable growth and resilience in the coffee sector.

.

Keep Reading business

•  Co-op Bank third-quarter profit jumps to Sh19b on higher income
•  I am not about to retire, Equity's James Mwangi says Premium
•  Report: Construction sector leads in mobile money use Premium
•  Delayed projects leave Kenya's blue economy limping Premium
•  Firms seek solutions in renewable energy to curb high cost of power

“This growth highlights the unwavering demand for Kenyan coffee on the global stage, with the total export value reaching $252.12 million (Sh32.5 billion),” Oparanya said, adding that local coffee consumption has increased to 19 per cent.

High output cost

However, production declined by six per cent to 0.81 million bags, which the CS attributed to erratic weather and the natural cyclical nature of coffee production.

“The area under coffee cultivation has grown to 111, 902 hectares supported by quality seedling programme,” he said, projecting production for the year 2023-24 to increase to 54,800 tonnes.

Despite the drop in production, Kenya remains the third largest producer of Arabica coffee in Africa.

According to the CS, the coffee sector is faced with significant challenges such as high input cost, shrinking coffee growing areas, delayed payments, climate change and fluctuating market prices.

“Additionally, weak governance in cooperative societies and outdated legislation have hindered the sector’s growth potential,” Oparanya said.

“We have seen many cooperatives collapse due to bad dividend manners, where officials declare dividends when they have made losses, or borrow money to pay dividends that are sometimes unrealistic and do not match the performance margins of the cooperative.”

He said he has given instructions for the development of a dividend policy for cooperatives that will ensure they do not borrow to pay dividends or declare dividends when they have made losses.

The New KPCU strategic plan lays out a roadmap for building a resilient coffee industry.

Downward trend

New KPCU chairman Daniel Chemno said the organisation is keen to increase production and revive coffee farming.

“There is a need to ensure that our production increases. Over the last 30 years’ coffee production has been on a downward trend,” he said, pointing out output is now on an upward trajectory due to government support.

“We are looking to increase production by enhancing milling, warehousing and mechanic services.

“We are keen also to ensure that coffee becomes attractive to the young generations,” he said, noting that the average Kenyan coffee farmer is aged 60 years.

Chemno said every part of the country viable for coffee farming should be utilised, with 33 counties already doing coffee farming.

Specific programme

The chairman said New KPCU faces challenges such as ageing machinery, consequently affecting the efficiency and quality of coffee handling.

He also requested that the government should provide a subsidy for agricultural chemicals through New KPCU.

Additionally, Chemno proposed that the government introduce a specific programme for women and youth to increase coffee production.

He said the Coffee Research Institute should be empowered to produce Robusta seeds through partnerships with counties.