Kenya's coffee exports dropped by 4% and output dropped by 6.3% due to new government policies!
Recently, the U.S. Department of Agriculture released the current situation of the coffee industry in Kenya in African countries. The report stated that due to the decrease in coffee planting area and the impact of earlier heavy rains, Kenya's coffee production in the 2024/25 marketing year is expected to be 750,000 bags (60 kg/bag), a decrease of 6.3% from the previous marketing year. Coffee exports in the 2024/25 marketing year are also expected to fall 4% to 720,000 bags.
The current coffee harvest area in Kenya is 105000 hectares. The main reason for the decrease in coffee planting area is the conversion of coffee farms into real estate. In addition, funding constraints at the Coffee Institute (the only supplier of certified growing materials) and a chronic shortage of certified growing materials have hindered the establishment of new coffee farms. Due to limited access to investment and promotion opportunities for farmers, final yields fell.
In July last year, the Kenyan government officially implemented the Coffee Regulations 2019 and the Capital Markets (Coffee Exchanges) Regulations 2020. According to these regulations, companies are prohibited from holding multiple licenses throughout the value chain. The marketing reform effectively terminated the investment, expansion and certification support programs previously provided by revoked marketing agents.
In addition, as part of Kenya's government reforms, all coffee payments sold through the Nairobi Coffee Exchange (NCE) must now be processed through the recently established Direct Settlement System (DSS) platform, managed by Kenya Cooperative Bank.
As DSS became fully operational, there were excessive delays in payments. In addition, several coffee processing plants in Kenya (including the world-renowned NKG company) have ceased operations due to new licensing requirements.
In addition, farmers now have to process coffee in various processing plants owned and operated by the New Kenya Planting Cooperative Alliance (NKPCU) or cooperatives, causing cargo accumulation and logistics challenges for some small factories. As a result, some coffee cherries have rotted due to delayed processing.
This policy also affects Kenya's coffee exports and prices. Since the reform began in July 2023, coffee sales and prices at the Nairobi Coffee Exchange (NCE) have dropped significantly, reaching a record low in August 2023. Only 3038 bags of coffee (50 kg/bag) were sold, which only recovered in March 2023. Moreover, the recent increase in international coffee prices has caused export volume and export prices to rebound. Therefore, Kenya's coffee export volume is expected to reach 720,000 bags in the 2024/25 marketing year.
Currently, the United States is the main export destination of Kenya's coffee, followed by Belgium, Germany, South Korea, Sweden, etc. Since most of Kenya's export destinations are European countries in addition to the United States, coffee exports to the EU need to comply with the new No Deforestation Act (EUDR), which will prompt the Kenyan government to provide funds to carry out necessary land mapping.
- Prev
Costa Rica| Introduction to the Blue Volcano Manor in the Western Valley Production Area
In the coffee growing belt, the Americas are located in the coffee growing belt. There are many famous coffee growing countries in the Americas, such as Panama, Honduras, Costa Rica, Guatemala, etc. Among them, Costa Rica is the first in Central America. Famous for growing coffee and bananas for commercial value. Costa
- Next
Lucky Co-branded Materials knew in advance, who was responsible for leaking internal information?
▲ Click to pay attention| Daily Boutique Coffee Culture Magazine Coffee Factory Recently, the film and television series "The Story of the Rose" has quickly become the focus of discussion on various platforms after it was broadcast. Even if many netizens have not followed the drama, they have more or less heard of this highly popular work from hot searches on the Internet. And yesterday morning, social
Related
- Remove the perimeter! Naixue's largest flagship store in the world quietly closed!!
- Manner Co-branded Cup is a literary style?! Netizen: I almost didn't recognize it
- How to make bubble ice American so that it will not spill over? Share 5 tips for making bubbly coffee! How to make cold extract sparkling coffee? Do I have to add espresso to bubbly coffee?
- Can a mocha pot make lattes? How to mix the ratio of milk and coffee in a mocha pot? How to make Australian white coffee in a mocha pot? How to make mocha pot milk coffee the strongest?
- How long is the best time to brew hand-brewed coffee? What should I do after 2 minutes of making coffee by hand and not filtering it? How long is it normal to brew coffee by hand?
- 30 years ago, public toilets were renovated into coffee shops?! Multiple responses: The store will not open
- Well-known tea brands have been exposed to the closure of many stores?!
- What are "nourishing beans" and "waking beans" in coffee? Do the coffee beans have just been roasted and need to be left for a while before sealing?
- Hunting for surprises?! Aunt Shanghai launches "Xiao Gong Ju Doll" causing controversy
- New progress! Starbucks selects buyers for its China business?!