Auction is the main means of coffee trading in Kenya | introduction to the historical development story of Kenyan coffee beans by NCE

Auctions may be one of the most complex and inefficient ways to complete a coffee transaction. But he was one of the first methods used in the coffee trade. Today, it is still the main method of buying coffee from countries such as Kenya and Tanzania and plays an important role in promoting high-quality microbatches. At best, it can also be used as a way to find good bakers and producers, a way to build closer relationships through the supply chain.

Coffee from Ile R é union on the island of Reunion was introduced by the British in 1893, and it was not until the 1930s that the locals were able to grow coffee on their own land. Before 1934, most coffee plantations were forced labor plantations, where blacks were slaves.

Progress was made in the 1930s when the Kenyan Coffee Commission was established and the first auction was held in 1935. In 1944, cooperatives were institutionalized, requiring the participation of small farmers (5 acres or less), weakening their industrial status because the members of the coffee committee board were mostly landowners. Kenya became independent in 1963, land was redistributed, and cooperatives began to be able to lend. A number of new processing plants have been built and are still in use today as an important part of the local coffee supply chain. Today, about 75% of Kenya's coffee fields are cultivated by small farmers, but they account for only about half of their annual output of 50,000 tons.

The Government of Kenya recognized the importance of the country's agricultural sector and made exports a priority for economic growth. In the same year of independence, the coffee exchange the Nairobi Coffee Exchange (NCE) was established, and Kenya mandated weekly coffee auctions.

Composition of the Exchange Commission

The Exchange Committee shall consist of-

A) the nominations of the representatives of the five growers trading through the exchange are as follows

(I) A person nominated by cooperatives in the eastern, north-eastern and coastal areas:

(ii) A person nominated by cooperatives in the central and Nairobi regions.

(iii) A person nominated by cooperatives in the Rift Valley, the West and the Nyanza region.

(iv) one person nominated by the owner of a small and medium-sized coffee garden; and

(v) a person nominated by the property owner.

B) two dealer representatives, one nominated by a small and medium-sized dealer and the other nominated by a large dealer

C) A person representing commercial millers, marketing agents and warehouse managers

D) one representative of the Kenya Coffee Committee

E) Executive Officer of the Exchange Commission