STiR coffee and tea magazine

54 STiR coffee and tea / Issue 3, 2017 (June/July) Lake Victoria Mt. Kenya Mt. Elgon KENYA TANZANIA Bungoma Nandi Trans-Nzoia Kericho Machakos Nairobi Thika Murang'a Nyeri Kirinyaga Kisii Nakuru Embu Meru Kiamou Equator 0 Trees are planted at approximately 1,320 per hectare and harvested twice a year. Last year (2015/16) Kenya produced 455kg per hectare, approximately 2.4 kgs of cher- ry per tree. The result was 46,121 m.t. of green coffee. "Now, compare that to 1987/88 when productivity was 829kg per hectare and the average tree produced 4.4 kilos of cherry resulting in 129,637 m.t.," said Kandagor. A recently completed government report on reforming the coffee industry paints a dire picture of declining coffee lands, bulldozed for development and more profitable crops. The Integrated Coffee Productivity Initiative (ICPI) is designed to unlock this potential through soil management, increasing the capacity at the factory level (wet sta- tions) and supplying certified planting material. "Increasing productivity per tree is achievable when small holders optimize their land," he said, citing the example of Eliud Kimotho in Tekangu, Nyeri County. Kimo- tho has only 170 trees but he produces 6,300 kilos annually, an average of 37 kilos of cherry per tree. He earns 50 shillings per kilo, an astounding $18.5 per tree, according to Kandagor who has personally verified the above. In a country with an annual per capita income of $1,376 (2015) grossing $3,145 from small parcel provides a big incen- tive and the resources to produce good coffee. Field training and localized advice shifts the responsibility to individual farmers who can make adjustments per existing conditions, said Kandagor. The rest is simple math. Coaxing 5 kilos of cherry from 157 million mature trees yields 110,000 m.t. and planting 24 million new varieties, which yield 7 kilos per tree, adds 24,000 m.t. Acting now will increase the 2019/20 harvest to 134,000 m.t., more than doubling current production. "Production per tree is key to the coffee business," he said. Financing A potential obstacle in Kenya's pursuit of historic yields ― beyond changing weather and depleted soil, low earnings, delayed coffee payments, and restrictive laws ― is the urgent need for access to cash for farmers. Futuristic solutions aside (See bext360, pg 46) few family farmers canaccess financ- ing from mainstream financial institutions. Kenya sees two approaches that hold promise. The first is to increase domes- tic consumption. Unlike Ethiopia were coffee is popular, less than 5% of the Kenyan crop is consumed in Kenya. De- veloping a robust local market simplifies transactions complicated by coffee's long growing cycle. Helping farmers overcome finan- cial obstaces is the other solution. The Commodities Fund (Coffee Develop- ment Fund) has disbursed $26 million to 130,880 farmers since 2007. Last year 21,400 farmers qualified for assistance in the form of credit for farm inputs and operations. Targeting North America Last year North American roasters paid an 18% premium for Kenyan AA over German bidders. This is one reason why Kenya has set a goal of selling 30% of its coffee to the US by the end of 2019. Kenya currently exports about 14% of its crop to the US. This is also one reason why Kenya worked so hard to leave a good impres- sion at this year's SCA, says Kenya Cof- fee Exchange c.e.o. Daniel Mbithi. Last year Americans bought 6.1 mil- lion kilos (m.kg.) valued at $32.8 million. Germany purchased 8.17 m.kg. during the same period and Belgium bought 7.4 m.kg. Successfully marketing the country's coffee in Seattle, where it was well re- ceived, will likely move the United States into second place. Coffee regions in Kenya are underutilized. Production has declined by half since the 1980s. The remedy: Invest in training and adopt "tree-level" focus on yield. 2008 2009 2010 2011 2012 2013 2014 2015 small holder 122,040 106,656 120,000 120,000 85,189 85,200 85,300 87,433 estate 40,680 53,344 40,000 40,000 24,606 24,600 24,700 26,067 Total 162,720 160,000 160,000 160,000 109,795 109,800 110,000 113,500 small holder 22,260 29,370 22,280 19,600 27,000 21,900 32,700 27,230 estate 19,740 24,650 19,720 16,660 22,000 17,900 16,800 14,807 Total 42,000 54,020 42,000 36,260 49,000 39,800 49,500 42,037 Area Under Coffee (ha.) Production (m.t.) Area under coffee (ha.) and Production (m.t.) from 2008-2015

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