Kenya announces coffee industry reform measures aimed at increasing production and increasing farmers' income

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Kenyan President Uhuru Kenyatta yesterday announced measures aimed at reforming the country's coffee industry.

Speaking at the 124th International Coffee Council (ICO) meeting in Nairobi, Kenya, Kenyatta said the reforms were aimed at increasing coffee production and reducing processing and grinding costs as well as transaction costs in the auction market.

From july coffee growers will be paid from a 3 billion shillings ($30 million) cherry advance revolving fund, he said. Under this scenario, farmers receive cash when they transport coffee beans to their respective processing plants, rather than having to wait months.

"All coffee farmers in the country can make more profit at a modest interest rate of 3 percent," Kenyatta said.

Kenyan leaders say the coffee industry will be liberalised, ushering in a new era of cooperatives and direct marketing.

"All coffee cooperatives will be required to submit an audited annual report to the Secretary of the Cabinet of Agriculture within six months of each year and to publish it to members of society and the public." he said.

The president said there are further plans to help reduce processing and milling costs and ensure youth and women are involved in coffee production.

"Despite Kenyan coffee's high international prices, profits are not flowing to farmers." he said.

Kenyatta also announced plans to rehabilitate 500 processing plants in 31 coffee-growing counties, in addition to investments in the use of quality growing materials and research and extension services.

He said part of the plan is to aggressively promote coffee globally to increase Kenya's market share in Europe, the US and emerging Asian markets.

Article translated from: Xinhua Net