Kenya

Kenya

Kenya is a relatively small global producer with significant need for R&R driven by suboptimal practices and high age of trees

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R&R Need

~60% of total land is in need of R&R

SHF land in R&R need

‘000 hectares

44,000 ha No need
66,000 ha R&R need

Need is primarily driven by old trees(50-70 years in some places) and bad current practices. To a lesser extent, R&R need is driven by disease exposure (Coffee Wilt Disease) and by climate change in the Western part of the country.

Current SHF yield & potential uplift

Tons per hectare

0.37
0.61
Current yield
Target yield

Uplift potential

+65%

High potential for SHF yield increase, though little impact

Potential increase in supply

~10-30%

Total national supply could increase ~10-30% if R&R and GAP is implemented on all SHF land in need of R&R2


Notes:
(1) Average yield is calculated as the total SHF production divided by the total SHF land. The potential yield improvement is estimated by GCP and Technoserve, Economic Viability of Coffee Farming, 2017;
(2) Rounded to the nearest 5%, estimate assumes that R&R and GAP increase yields with 65%, and the range reflects a 25-100% R&R success rate. Source: FAO Statistics database; ICO statistics; GCP and Technoserve, Economic Viability of Coffee Farming, 2017; USDA, Annual Coffee Report, 2017; Kenya Agricultural & Livelstock Research Organization; Coffee Development Fund, Financing Smallholder Coffee Farmers in Kenya, 2011; Republic of Kenya, Report of the National Task Force on Coffee Sub-Sector Reforms, 2016; Dalberg Interview

Other Viability Considerations

  • Farmer share of the export price is around 75%. Local wet mills have the potential to decrease their operational costs, which could result in farm-gate price increases.
  • Labor costs on average equal USD 260 /ha, corresponding to more than twice the labor costs in Ethiopia and Tanzania. Labor costs have increased over the past years.
  • Traditional coffee growing areas face competition from housing and enterprise development.

Farmer Segmentation

Most SHFs are in tight value chains

  1. Large & medium farmers
  2. Commercial farmers in tight value chains
  3. Commercial farmers in loose value chains
  4. Disconnected farmers

National production is dominated by SHFs

The majority of SHFs are members of coops, and therefore included in tight value chains.

# SHFs

‘000

650

~3.5% of global SHFs1. SHFs are progressively replacing large plantations

# SHF land

‘000 hectares

83

(~75% of national land) – farm size typically ~0.1-0.5 hectares

# SHF production

‘000 hectares

31

(~60% of national production)

Assessment of SHF orgs.

Strong coop movement, but high level of mismanagement. ~100% of SHFs are linked to coops.

Links to market

Coops links the overwhelming majority of SHFs to markets.


Notes:
(1) Assuming a global SHF population of 20 million.
(2) The Coffee Development Fund is a state corporation under the Ministry of Agriculture in Kenya, established in 2006 as a financing vehicle for revitalizing the coffee sector. CoDF provide long-term affordable credits to farmers organized into cooperatives. Source: FAO Statistics database; ICO statistics; GCP and Technoserve, Economic Viability of Coffee Farming, 2017; USDA, Annual Coffee Report, 2017; Kenya Agricultural & Livelistock Research Organization; Coffee Development Fund, Financing Smallholder Coffee Farmers in Kenya, 2011; Republic of Kenya, Report of the National Task Force on Coffee Sub-Sector Reforms, 2016; Dalberg Interview

Enabling Environment for R&R

  • Coffee share of GDP: N/A [Coffee Share of exports: 4.6%(2016)]
  • National government and County governments cooperate in a “Task Force for Coffee sub-sector Reforms”, but observers complain about lacking coordination and poor implementation of legislative measures.
  • The Task Force recommends several measures, including the rule on prompt payment (farmers should be paid at least40% of the prevailing price on the spot for the cherry they deliver), and a subsidy program for SHFs, offered as a package including fertilizer, planting materials for new varieties, and TA. Implementation of these measures is slow.
  • The Coffee Research Foundation (CRF) produces four different varieties of verified Arabica coffee, but not at commercial volumes.
  • Some cooperatives develop their own nurseries, sometimes with the support of private companies, but seeds are not controlled.
  • Some cooperatives provide credit via the Coffee Development Fund1at affordable rates (5% in KES). However, volumes are limited.
  • Marketing agents and traders provide larger volumes of credit, but interest rates are high (>15% in KES).
  • Not all coops are able to provide high-quality TA.
  • The Ministry of Agriculture and County governments provide extension services, but do not have sufficient extension officers to reach all SHFs.

Examples of R&R programs

Past R&R programs have focused on increasing adoption of GAP and building SHF organization capacity

TechnoServe - The Coffee Initiative
2008-2017

Technoserve trained roughly 12,000 Kenyan SHFs on the use of GAP and rehabilitation practices.

Learn more and get involved

There is a lot of work to be done to ensure the long-term supply of coffee from countries where the crop has long shaped the social and economic fabric. Learning to extend the life of their trees and improve yields helps farmers stabilize annual production and in turn, income, while the rest of the world benefits from a steady supply of quality coffee. Continue on to learn more about the immediate attention and action that is required to make this a reality.