Muchiri Gitonga And Stephen Munyiri
3 November 2008
Nairobi — The government has banned buying of coffee at the farm gate common in some parts of the country.
At the same time, the industry regulator, Coffee Board of Kenya, is warning growers against signing more than one milling contract.
In a circular issued last week to various players in the coffee sub-sector, the board's managing director Loise Njeru said action will be taken against any dealer or grower who will contravene the Coffee Act 2001 which prohibits sale of coffee at the farm gate.
Smallholder coffee farmers in Mt Kenya region have been selling their produce to brokers at throwaway prices dampening hopes of revival of the industry.
Brokers have been buying a kilogramme of coffee cherries at between Sh10 to Sh12 compared to last season when the highest paid farmer from the region pocketed Sh50.50 for every kilogramme of the cherry delivered to coffee factories.
The Coffee Act of 2001 prohibits any form of dealings in coffee without a licence or certificate from the board and imposes a fine of up to Sh1 million or a maximum jail term of 10 years or both for those contravening the Act.
Ms Njeru said players in the industry must operate within the provisions of their respective licences.
"The board will swiftly and firmly apply any legal and administrative punishment on any player who is found to be perpetuating any illegal practice which will include suspension or cancellation of their licences," the director said in the circular sent to co-operative societies, growers, millers, managing agents and dealers.
Ms Njeru said that a valid one-year contract between a farmer and an interested miller should be in place.
She said a contracted miller should exercise due diligence to ensure that the grower has not signed any another contract with another miller as well as ensure that the contract is registered by the board as per the law.
Meanwhile, an American-based coffee dealer has urged Kenyan farmers to put more emphasis on quality of their produce if they hope to get higher premiums on the world coffee market.
The CEO of Moledina commodities Mohamed Moledina told farmers in Nyeri North District that his firm was ready to buy Kenyan coffee at the highest possible price.
"Kenya is recognised globally for its quality coffee but not the quantity and if our quality is compromised, then it will be just like any other producer out there. We should emphasise more on improving quality right from farm level by using the right agricultural practices and through processing by using the right practices," he said at the weekend.
Farmers are blaming tough terms by intermediaries disbursing the Coffee Development Fund that make it difficult for them to access loans to finance picking of the crop.
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