Coffee Buyers’ Move to Benefit Farmers

By Edith Fortunate
The Standard

February 26, 2008

Stung by persistent cries of unfair trade practices from developing countries, international coffee buyers and roasters are moving to buy the crop from farmers.

However, they will have to provide farmers with skills and equipment to ensure quality, according to the East African Fine Coffees Association (EAFCA), which has struck a deal with international buyers like Starbucks and Neumann Group.

EAFCA, a regional non-profit association made up of Common Market for Eastern and Southern Africa (Comesa) countries, believes farmers will enjoy better revenue if middlemen are reduced and producers export value added coffee.

"The aim is to help member countries develop quality specialty coffees, train and link them to the buyers after it is packed ready for consumption," said Mr Philip Gitao, EAFCA executive director.

This relationship, he said, has yielded strong partnerships, including the agreements with some of the international buyers.

"Signing MoUs is a sign of fulfilling all that is agreed to promote the region’s coffee profile internationally as the producer of fine quality coffees," said Gitao.

He said farmers would earn a good price and improve their standard of living, reducing poverty and increasing economic development.

He said the MoU would help EAFCA members know what the international market players want and how to brand and package their products.

Comesa Secretary General, Mr Erastus Mwencha, said the deal will better living standards for African farmers as they take advantage of soaring coffee prices in the international market.

"If they produce high-quality beans, we need to tackle issues of productivity, particularly for the small-scale growers. We need to invest not only in facilities and equipment, but also in skills across the coffee value chain" said Mwencha.

He said Comesa needs to enhance the competitiveness of the region’s coffee industry and address individually and collectively policy issues that negatively impact on competitiveness.

Coffee exports from the Comesa region rose to $807 million (Sh57.2 billion) last year from $271 million (Sh19.2 billion) in 2001. Trade within the region stood at a low of $52.18 million (Sh3.6 billion) in 2006, an increase of 23.6 per cent from $42.19 million (Sh2.7billion) in 2005.

With a population of 400 million, he said the Comesa region could have a vibrant coffee market.