Annual output of Kenyan coffee the Kenyan coffee industry is showing signs of continuous decline

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In recent years, due to low returns and poor management, coffee production in Kenya has declined year by year, and the coffee industry has shown a trend of decline.

According to the latest data from Kenya's National Bureau of Statistics, Kenya's coffee exports fell by 19% from 2639 metric tons in January 2020 to 2129 metric tons in January 2021.

As a result of Kenya's economic weakness, the exchange rate of its currency against the United States dollar fell (the highest exchange rate of the dollar against the Kenyan shilling in January 2021: 1 = 110.40 Kenyan shillings), causing Kenyan exports to rise from 985 million shillings to 1.3 billion shillings, soaring by 36 per cent.

In the late 1980s, Kenyan coffee production peaked at 130000 tons a year, but now it produces only about 40, 000 tons a year. The potential annual output per coffee tree is 35 kg, while most smallholder coffee growers produce less than 2 kg per tree. At present, Kenya accounts for nearly 1% of the world's total coffee production, but the country's coffee production has declined in recent years.

Kenya exported 600000 bags (60 kg each) of coffee in 2020, down from 815000 bags in the previous quarter, according to the U.S. Department of Agriculture.

Kenyan coffee's market share in places such as the United States and South Korea has also been declining. In 2019, US consumption of Kenyan coffee fell to 11.78 per cent from 13.28 per cent in 2018. Although South Korea's market share in Kenyan coffee exports has risen from 6.43 per cent in 2017 to 9.44 per cent in 2018, it fell again to 6.51 per cent in 2019.

Recently, the Kenyan authorities launched a coffee revitalization plan of 1.5 billion Kenyan shillings aimed at increasing coffee production and quality, protecting farmers from exploitation and saving the decline of the country's coffee industry.

The project is a new attempt by Kenya to revitalize the industry and is funded by the World Bank. The project complements the 3 billion-shilling Cherry turnover Foundation (Cherry Revolving Fund) launched earlier by the government. The foundation aims to provide affordable, sustainable and accessible loans to smallholder coffee growers.

In addition, the President of Kenya, Uhuru Kenyatta (Uhuru Kenyatta), extended the mandate of the Executive Committee of the Coffee sector in the country so that it could monitor the findings of the reform working group.

The working group also recommended changing the coffee crop management framework, promoting boutique coffee, increasing the participation of young people and transforming the Nairobi Coffee Exchange into a listed company.

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