Embassy of Kenya, Washington, DC

Written by Reuters

Kenya introduced the direct coffee marketing system in 2006 to bolster farmers’ incomes.
May 19, 2008: Kenyan specialty AA grade coffee has fetched $1,138 per 50kg bag, the highest price ever paid for Kenya coffee using the direct sales system, a Kenyan exporter said on Friday.

“An astounding farm gate price of $1,138 per 50kg was agreed on for AA graded coffee from Kagumoini cooperative factory,” coffee exporter C. Dorman said.

C. Dorman said Swiss-based roaster Kuster Sirocco Kaffee AG paid for the coffee, surpassing the previous high of $1,079 per 50 kg paid at an auction in May 1998 for a coffee from Gatomboya factory.

Bolster incomes

In April, coffees of grades AA and AB from two estates fetched between $600 and $400 per 50-kg bag respectively through the direct sale system.

Last year, a small lot of AB coffee fetched $954 per bag through the auction. While a relatively small producer globally, contributing only about 1 percent of total production, Kenya’s top quality Arabica beans are used by roasters around the world to blend with coffees from other regions.

Kenya introduced the direct coffee marketing system in 2006 to run parallel with the coffee auction system that has been in place since 1935, to bolster farmers’ incomes.

Growers had long sought the so-called “second window” which they said would allow them to negotiate better prices with buyers abroad and eliminate middlemen who kept most of their earnings. Kagumoini factory is in Nyeri district, at an altitude of 1,600 metres (5,249 ft).

It has around 1,000 members with an average holding of 250 bushes each. Using the ‘second window’, the Swiss buyer has entered into a direct arrangement with the Kagumoini co-operative society through its marketing agent Coffee Management Service Ltd.