The Coffee Cartels Short-Changing Coffee Farmers
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- Опубліковано 22 жов 2023
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I love Kenyan humor, this was the show! Missing home.
I loved the introduction. Really hilarous. Leadership is not for every Tom Dick and Harry. Unfortunately, our political processes cannot allow us to have the the best brains to guide us in this challenging times. We have many fit for the 1980s!!
We've subdivided our farm lands to an extent where no cash crop can be meaningfully farmed by most farmers. You find a farmer with less than 10 acres of coffee/tea also expecting it to be lucrative. Once farmers are fragmented into small units, they lose scale and negotiating power. The international coffee market is well balanced as is.
In a way, you are right. That said, the fragmentation into small units could be our biggest strength since you wouldn't need a million to plant coffee in a huge piece.
10 acres should bear enough to change living standards
And why should we farm cash crop yet go to the shop to by foodstuff? Up root all those cash crop and produce food.
@@princevince334 For the millers and middle men, the more the merrier, as long as you can regulate quality. But this model is bad for farmers because a smaller farms loses negotiating power. If you threaten to uproot, they won't care. But a large 1000 Ha farmer can even negotiate for better terms. Perhaps commercial farming was never meant for so many farmers.
They have the market. You cannot control a crop that you dont have the market. For initial time, they tell farmers to plant then they will buy, how many farmers have avocadoes , macadamia and don't have markets. No way a matatu driver can own a matatu, drive it, and yet dictate the passengers he wants . It has to be a free market.
Possibly one solution is to realise we (Kenyan farmers) capture a small share of the market value. This is made worse by the small share of overall market volume BUT the quality is high. We should approach Ethiopia, Rwanda and Uganda with a view to form one marketing body to capture a larger share of market value. We have to recognise that local value chain investors have excess capacity and to remain viable have to lower prices they pay for coffee beans. Just create one regional body that delivers the best quality globally and secures best farmer prices. This is what Githunguri Dairy realised, farmers cannot rely on private dairies that are barely profitable. So they started their own dairy whose main corporate objective is to maximize farm gate prices. Private interests don't want maximum prices for farmers.
I love this Robert.
Ghana tried doing this with Cocoa. They wanted to sell directly to Europe, but they had no plan of filling the supply vacuum. It will not end well if this government has no tangible plan
It's only in Kenya investors are called cartels. This will be the policy failure of the century. We are staring at the total collapse of the industry because of these reckless actions by the government. Kenya is a very small producer of coffee (less than 1%). Kenya actually gets the best prices in the world market. Please visit some of the businesses they are calling cartels, these are huge investments, serious, professionally run entities.
It's only in Kenya where cartels pose as investors. And when fought they run to the media to cry and pose as victims. That is what is called a cartel
"How to successfully destroy an industry and deepen poverty." Written by Kenya's politicians.
The coffee value chain in Kenya is very clearly lopsided. Let these investors invest in land and plant coffee. They obviously can marshal the Capital. The farmers are done.
Beg to differ . A cartel is an investor who also controls(pays) MPs or is one of the MPs to Lobby laws that are favorable to their investments . So any competition is eliminated so that laws are only favorable to his own benefit.
In the Caribbean & South America, farmers get $2.00/kg. Why are the Kenyan farmers getting less than $1.00 yet they produce superior Arabica coffee?
The coffee cartels have underpaid the Kenyan farmers for decades. It makes no sense as to be why hard-working farmers who produce the best coffee should remain poor
Value for the farmer can only be got if KPCU is granted an exporting license. Look it up, KPCU has been denied an exporting license since time immemorial and thats the problem. That's how
This conversation should take another turn by inviting the New KPCU officials to shed more light on this issue. Gachagua shall be a perennial underachiever in this sector.
This is the greatest show Kenya has ever had
The late bro had a coffee company... they are cartels too
My Father sales in Uganda an we are ok.
Who determines the value of a product in a market, consumers or producers? Unless Kenya is operating on a new/strange economic principle.
The saccos and societies buy that 70sh per kilo then they sell the coffee in the European market at around 11 euros per kilo. How is that fair to the farmers?
@Eric Latif at minute 15-16 thats basically it. the noise is a negotiation. Coffee dynaics are global and complicated and someone realized this after shouting prematurely
Kikuyus and kalenjins are their own worst enemies!! Kwanza Kikuyus!! Hee….The mountain is dead….coffee is not coming back. It’s a political tool now!! unless people wake up! People need to revolt against bad governance! If only farmers could know how much their coffee costs in America…..
Why isn't anyone talking about changing the laws around coffee marketing and the gatekeeping there
Everything that grows and thrives in Nyanza and Western Province had never been promoted by all Government. They want us to Voters
Sessional paper no 10, my fren!😉
Kenya ina wenyewe, sisi ni wageni
Uganda and Ethiopia sell more coffee than Kenya, how did that happen? Starbucks dominates the coffee industry!
🇰🇪🇰🇪Speaking of cartels, if they won't name them, how about tell us how they operate and how they have captured the coffee sector. We have never seen God or Christ, but we know his ways and how he operates. Simple!!!
Let's cut to the chase, we won't uplift the coffee farmer by selling to Starbucks. We'll change the coffee sector if we can do the value addition ourself. The same logic applies to literally any other resource. So, how we can we start changing the dynamics by processing coffee and selling our own roasted coffee? Can we change the conversation in that direction instead of relying on "serikali saidia?"
Hiyo labda we drink it ourselves 😂. People have different ways of drinking coffee. Unless ni mzungu ana roast huku nobody is buying it.
Kenya can split coffee into two sections large scale and small scale , large scale farmers can market their coffee the way they want. whatever price they're seeking individually that's fine. For small farmers they sell coffee through cooperate societies and that's where government comes in with laws to govern.
These cartels in the coffee industry were created during moi era and it makes sense that in the current regime they have become more entrenched.
Actually they came about in the Jomo Kenyatta era.
@@Msapere You are very wrong. During the time of mzee coffee was gold and because of that the dollar went for only four shillings.
Coffee collapsed completely around 1993. I know this because our family sold fertilizer and I personally designed the bags that the fertilizer came in. Suddenly the big cooperatives in Murang'a, Nyeri and Kiambu were unable to pay for supplied fertilizer. Even in the late 80s people were doing very well in agriculture. No one had any problem sending their children to the best schools around. The economy of Mt Kenya has never recovered since. If Mt Kenya ppl dug really deeply into what caused their economic woes, they'd probably act differently. But again, maybe not
Kenya is not indispensable in the world coffee market. Kenya coffee will be substituted overnight. Actually I guess it has been substituted already. Markets respect those who are organized and are predictable. Coffee markets owe Kenya nothing, after all there are plenty of other suitable substitute coffees - Colombian, Ethiopian, Rwandan, Costa Rican
You guys do u take Kenya coffee in the studio
The issue is that there are several major coffee producers globally so it’s a buyer’s market, with Brazil and Vietnam having the biggest advantages. These advantages are driven by big corporations who determine which markets to prop up
CT is a wise old man.
In Ethiopia you can't do cartel 😂. They will send you to Baba.
CT has said it. Our biggest problem with coffee is that we don't consume our coffee. Milk, Maize, Ndengu, beans....these products make money for farmers. Why? Because there's a local market. Unless we consume a big % of our coffee, 'cartels' will always have a say in the market.
Let th government bring international coffee buyers from Europe direct to th famers
We need a benevolent dictator in that country!!
To be precise coffee comes second after petroleum in terms of being lucrative.
But if other countries it is lucrative business why not us?
Which countries bro?
😂😂😂😂,Kenya is joke aki
😂😂😂, the farmers are being shortchanged
Let the Government buy all the coffee produced by various Societies in the country at aflat rate,eg 2 U S dollars. Stock the coffee and market later at there Convenience time to wherever they will get the market and recover their money back.That the only way they will promote and support the farmers, otherwise it will remain Marriage dance
Kenya is not indispensable in the world coffee market. Kenya coffee will be substituted overnight. Actually I guess it has been substituted already. Markets respect those who are organized and are predictable. Coffee markets owe Kenya nothing, after all there are plenty of other suitable substitute coffees - Colombian, Ethiopian, Rwandan, Costa Rican
Farmers were already getting a good return on investment some factories were paying even ksh 120 per kg but when this politics started everything went south,why deny businessmen license to do business because you want to score political points 😅
You don't know what you are talking about! They buy at 120 per kilo and it retails in European market at around 11 euros per kilo. People who sell directly to those markets like jimmy wanjigi are the ones who make huge profits, the small farmers barely make even. Look into this matter further because you're clearly clueless.
Uhuru and Munya did quite well but the current government seems to be the one harbouring cartels or even better they are the cartels.
Coffee is a drug, inapelekana hivi🤞🏽na mbangi na poppy plant, ukitaka kukatwa ulimi cheza na katell za coffee!! There is no money in drugs based on people who have done it so the reason you expect money from coffee is crazy. There was a guy arrested with probox full of bangi and he narrated he is not a millionaire despite being in possession of bangi woth millions. Wewe ikiwa una lima kahawa ume rogwa.
UDA party iko coffee cartels deep inside. Wacheni ku complain. Rigathi hawezi win this war. Hes still complaining. This government of illusion and lies and deception deceitful
you cant offer to give solution for a problem you dont full understand well,before fighting he should have understod the problem and extend of damage any solution could bring, work with those percieved cartels as you supervise and improve ata akienda kubargain to other buyers who have ready supply he will go there desperate this settles for less
Rigii g is a joke