1

COFFE VALUE CHAIN

Key
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Introduction
Coffee Farming in Kenya was first done in 1893. Coffee from Kenya has a distinctly bright acidity
and potent sweetness with a dry winy aftertaste. Among the best Kenya coffee, one can find
intoxicating black-currant flavour and aroma.
Coffee is one of the most popular beverage globally and most trading in Kenya. Localy is called
Kahawa (Swahili) and belong in the Rubiacee family. The two species of commercial interest are
coffee Arabica (Arabica coffee) and coffea canephora (robusta) with arabica bean being the most
grown and tastier of the two. Coffee is widely used as beverage and has stimulating effect derived
from the alkaloid caffeine Kenyan brand is known for its flavor and pleasant aroma.

In Kenya Coffee is largely grown by both large-scale plantations and smallholder cooperative
growers .There are about 500,000 coffee smallholders spread in 500 coffee cooperative
societies,200 large estate owners and 3,000 small and medium coffee estate growers.

It is estimated that in Kenya 160,000 hectares are under coffee, 75.5 per cent of which is in the co-
operative sub-sector and 24.5 per cent in the estates.

Coffee is Kenyas fourth leading foreign exchange earner after tourism, tea and horticulture .The
contribute mainly in employment creation, food security, poverty alleviation and rural development.
It is estimated that six million Kenyans are employed directly or indirectly in the coffee .It
contributing about 30% to the Kenya GDP. . Kenya is ranked the 17th largest coffee producer in
the world, and it is well-known for its quality beans.If you have ever been in a top quality coffee
shop, you've probably seen Kenyan brands of coffee listed. But did you know that Kenyan coffee is
considered by connoisseurs to be one of the world's top coffees.
Known for its premium brand, Kenya AA coffee, Kenya does produce some of the world's best
coffee and is also a leading exporter of Arabica coffee

Ecological of coffee
Generally coffee thrives well in Altitude: 1400-2000m a.s. Temperature: 15-30C
Rainfall: 1000mm p.a .East of the Rift valley and 1145 mm p.a for the West of the Rift
Soils: Deep, well drained, fertile with reasonable humus content and slightly acidic (pH 4.4).

Kenya coffee is grown in the high altitudes of Kenya's highlands and along the Mount Kenya
region. The rich volcanic soil, temperate climate and seasonal rains combine to produce coffee that
is so well balanced it is almost sublime. Though each region can produce its own taste, overall
Kenyan coffee is very bold taste and full body. It can have a high acid level, giving it a bright
flavour. Many varietals have a noticeably fruity aroma, especially when lightly roasted. . If you
want to enjoy the most delicious aroma to ever come from coffee, then try Kenya's roasted coffee
beans.
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Kenya is the leading producer of Arabica coffee in Africa. The following conditions favour its
production in the country:

1. Temperature Coffee does well under temperatures of 14 to 26C although Arabica coffee
can tolerate temperatures of upto 30C. In Kenya the coffee growing areas experience cool
to hot climate ideal for coffeee growing. The temperatures average 15 30C.
2. Rainfall Arabica coffee requires rainfall ranging between 1000 and 2 000 mm per annum.
Many coffee growing areas in Kenya receive high rainfall of about 1000 2000 mm which
is well distributed.
3. Soils Most of the growing areas in Kenya have fertile deep volcanic soils which are
suitable for coffee. The soils are well drained and are acidic with a pH of between 5.3 and
6.0.
4. Topography The coffee growing areas have undulating landscape with hill slopes and
gentle slopes. This has ensured well drained and aerated soils.
5. Altitude Most of the growing areas have a high altitude ranging between 610 m and 1,830
m. However in a few areas like Machakos, coffee is grown at slightly lower altitudes.

Transport The growing areas have good roads which have enabled the crop to be
transported to the buying centers and factories. This has also helped in marketing of the
processed berries.

Labour Coffee growing is labor intensive. A lot of manual labor is required for. Planting,
running and harvesting. The dense population in the growing areas has provided a source of
labor.

Coffee growing in Kenya

Coffee was rst grown in Kenya by Roman Catholic Fathers at St Austins near Nairobi in 1889.
From then on it has proved to be quite popular and has over the years formed a major export
commodity of Kenya. The species grown are Arabica and Robusta is grown mainly by small scale
farmers in the following areas: Coffee grown zone in kenya is found in central
region(65%),Eastern region(20%),western (10%) and Riftvalley(5%)

1. Central Province Nyeri,Muranga, Kiambu, Thika, Kirinyaga.

2. Eastern Province High areas of Meru Central, Embu, Machakos, Tharaka and Makueni.

3. Coast Province Taita Taveta (Wundanyi area).

4. Westem Province Bungoma,Vihiga, Kakamega.

Nyanza Province Kisii, Nyamira, Nyabondo Plateau in Nyando District and Oyugis in
Rachuonyo Distric
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The ripe berries are handpicked twice a year; the main picking season runs from October to the end
of the year, while the second and smaller harvesting season runs from June to July or early August.

A) INPUTS
The main inputs in coffee production includes; planting material, fertilizer, organic fertilizer,
chemical; Pestcides & fungicide and machinery & equipments.

i) Seedlings
The farmers should obtain coffee seedling from registered coffee nurseries that are certified by
coffee research station. The seedling may be from the seeds, stem cuttings, and tissue culture or
grafted. Coffee Varieties includes; K7 ,SL 28, SL 34 , Ruiru 11 and Batian the latest variety .
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ii) Fertilizer;
The fertilizer requirement of coffee is dependent on soil fertility status and soil PH
and level of production. The commonly used types of fertilizer includes;
Nitrogenous (N), potassium(K) and phosphate(P) (required in large
quantities),compound fertilizer(NPK) and trace element like iron, boron, zinc and
copper required in small quantity

FERTILIZERS Time of Types Rate of Deficiency

application application symptoms

NITROGENOUS(N) Flowering Ammonium Less than 5kg

and plant Sulphate
bearing stage Nitrate(ASN)26% 150gm per tree
during the N
long
rains(March- Yellowing
May) and die back
Calcium 5-7 kg
Ammonium
Nitrate(CAN) 26%) 200gm per tree
N

Ammonium
Sulphate (AS) 20-
21%(N)

Urea 46% N 7-10kg

250gm per tree

PHOSPHATE Before Single Super 350gm per tree Undersized

starting of Phosphate (SSP)
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rain 21% P205 bean

Triple 150gm per tree Lack of

Phosphate(TSP) body in the
40% P205 liquire

Di ammonium 150gm per tree Low density

phosphate(DAP) bean
18% N,46%P205

COMPOUD Applied 17:17:17 250gm per tree Un uniform

six(6) month flowering
before the 20:10:10
main
15:15:15
flowering

TRACE ELEMENT During dry Folia feed According Poor quality

seasons where manufacturer beans
there are dosage
visible recommendation
nutrients
deficiency
symptoms

iii) Organic manure

These include; farm yard manure, composite and coffee pulp .Its provides essential
but in limited amount .It also improve soil water holding capacity.
How composite manure

iv) Fungicide and Pesticides

Organic fungicide is used to control pest and diseases in coffee. Common diseases
includes; coffee berry diseases(CBD), coffee rust, bacterial bright of
coffee(BBC),fusarium bark(FRB) ,fusarium root diseases

Major in organic fungicide includes;

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Table of Tank Mixtures

Organic Copper 50% wp Rate (kg/ha)
Fungicide Organic Copper

Daconil Copper Nordox 2.2 5.5

Kocide 101 2.2 5.5
Cobox 2.2 5.5
Kocide DF 2.2 4.0

Delan 75% wp Copper Nordox 1.6 5.5

Kocide 101 1.6 5.5
Cobox 1.32 6.6

Dyrene 75% wp Copper Mordox 2.2 5.5

Chlortocaffaro Cupprocaffaro 2.2 5.5
75%
Rova 75% wp Cuprocaffaro 2.2 5.5

Coffee Research Foundation

Other Fungicides for Leaf Rust Control

Fentrihydroxide(Du-ter Extra 47.5%wp)
Gives adequate control of leaf rust at 2.75 kg/ha
More effective as an anti-feedant for Giant
Looper.
May be substituted for copper sprays I a leaf rust
programme.
Bayleton(Triadimefon 25%wp)
It is a systematic fungicide.
For severe leaf rust recommended amount is
2kg/ha.
Should not be applied more than twice in one
coffee season. Coffee Research Foundation
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Amour-G(Flutziafol)1% Granules
Its a systematic fungicide
Applied along the drip line of the
coffee bush
Applied at the rate of 19g per tree
Used when the ground is wet and is
adequate for two consecutive
seasons.

Coffee Research Foundation

v) Machinery and Equipment

List of machinery and equipments used in coffee value chain

Types of Function Pictures

Equipment
(picture)

Pulping machine Process cherry bean into clean

coffee

Eco pulper It is Economic machine for

Processing cherry into parchment
Economical in water usage and
have a demucilager that remove
muslage when coffee is being
processed.

Hand pulper Manual machine for processing

cherry for smallholder farmers

Lister machine For pumping water for coffee

processing from the source
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Recirculation Used for re circulating back water

machine into processing unit

Weighing For weighing the coffee production

machine from the farm

COFFEE PRODUCTION
Coffee production involves land preparation, planting , mulching, Spraying ,Pest and disease
control ,prunning, Harvesting and Sorting at farm level .Establishment of coffee crop can either
be from planting of new seedling or rehabilitation of abandoned coffee plant.
In all circumstances the farmer is required to keep records of cost of production in order to
facilitate measure the performance of the coffee enterprise

i) Land preparation
Coffee establishment involves Preparing land well in advance of planting, Clear all land,
completely dig out any tree stumps, Grasses and all difficult weeds should be removed, Dig holes
during dry weather at least three months before planting to allow them to weather
The Hole size: 60 cm x 60 cm x 60 cm (2ft x 2ft x 2ft) keeping top soil separately from the sub-soil.
On steeply sloping land, appropriate soil conservation measures should be considered during land
preparation.

ii) Planting
Involves Filling holes one month before planting and mound them slightly to allow settling when it
rains

Requirements

Put one debe (20 litres) of well decomposed manure

100 g Triple Super Phosphate (45% P205) or DSP

100 g Dolomitic limestone (Ca Co3 Mg Co3) where soil is acidic

10 g of Furadan 10 G
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If soil acidity is below optimum, use 200 g Single Super Phosphate (21% P2O5)
in place of Triple Super Phosphate.

vi) Planting procedure

The Soil should be wet to a depth of 60 cm (2 ft).Open soil mound to accommodate the taproot and
other roots. Remove the polybag before planting and Spread the roots in their natural plane. Fill in
the soil and press the soil firmly as you fill .Maintain the rooting zone of the seedling to avoid
either deep or shallow planting.

iv) Spacing
Ruiru 11 (eleven) hybrid
2 x 2 m (6 x 6 ft) - 2500 trees per hectare
Close spacing - 2 x 1.5 m (2 x 4.5 ft)- 3333 trees per hectare.
Close spacing is for high rainfall areas (over 1250mm per year) or irrigated coffee.

Traditional varieties (K7, SL28 & SL34)

2.74 x 2.74 m (9 x 9 ft) - 1329 trees per hectare
Hedge row spacing - 2.74 x 1.37 m (9 x 4.5 ft) giving 2660 trees per hectare

Batian varieties
Its a true breeding Arabica coffee variety resistance to coffee berry diseases and leaf rust
Spacing of 2m x 2m of 2500 tree per hectare

Iv ) Terracing
This involves protecting soil degradation and soil erosion and prevents nutrients loss.

V) Mulching
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This involves covering the top soil with grass contents for Moisture conservation.Other importance
includes; Suppress weeds, Supply of nutrients ,Improvement of soil structure ,Prevention of soil
erosion and Encouragement of root development in the fertile top soil ,Increasing coffee
yield/quality,Reduction of temperature fluctuations in the top soil, Reduction of incidence of thrips

iii) Spraying
This involves spraying the pesticide and fungicides to the coffee bushes to control the infected
tpes of diseases and pest.Spraying is done by uses of knapsack sprayers, and tractors for large
farmers

iv) Disease and Pest control

Globally coffee is attacked by 350 diseases and 1000 insect pest species. About 35 insect pests
infest coffee in Kenya. The major diseases infecting coffee includes; Coffee Berry Disease
(CBD),Coffee Leaf Rust (CLR) and Bacterial Blight Of Coffee (BBC)
The minor diseases in coffee includes;Fusarium Root Disease (FRD),Fusarium Bark Disease
(FBD),Brown-eye Spot Disease and Botrytis Warty Diseases .
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Disease Symptoms Control Physical symptoms

Coffee berry Dark brown Prune coffee trees
disease (CBD) streaks on immediately after main
(Colletotrichu flowers harvest.
m kahawae) Small dark Remove old stems and
sunken thin out branches
patches on Plant resistant/tolerant
green berries varieties
Dark, sunken Use recommended
parches with copper based fungicides
black dots on e.g. Red or green copper
ripe berries
(Brown
Blight)
Coffee leaf Orange Plant resistant varieties
Rust patches e.g. Ruiru 11 and Batian
(Hemileia caused by Timely application of
vastatrix) spore masses 50% copper formulations
on lower e.g. Dithianon
surface of
leaves.
The colour
changes to
yellow orange
and
defoliation
occurs leading
to die-back.
Bacterial Initial black Minimize pruning and
Blight of lesions and use of foliar feeds
Coffee (BBC) water soaked Plant shade trees/wind
(Elgon/Solai leave margins breaks
Die-back) Brown, dry Cut off infected twigs
( Pseudomonas leaves that roll and disinfect implements
syringae) inwards used.
without Integrate chemical
shedding control of CBD and BBC
Dieback and e.g. use Daconil mixed
black with Copper Nordox or
shriveled Cobox.
flowers and
pinheads
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Fusarium Occurs in three Report suspected

Bark Disease distinct forms: infection to local Coffee
(FBD) ( storeys back Extension Officer/Coffee
Fusarium -Depressed Research Foundation
stilboides) dark brown Uproot and destroy trees
lesions at having dieback
sucker base Spray suckers kept for
Scaly back - conversion with Captan
Rising up and Disinfect pruning tools
flaking of with methylated spirit.
bark on
mature stems.
Collar Rot
:Cankerous
lesion round
the stem base
at the soil
level leading
to die-back
from tree top
Fusarium Cutting a bit -Uproot dead trees and
Root Disease of the stem sterilize the planting hole
(FRD) near the soil with Basamid (Dazomet) at
caused by level of a tree 150g/hole or leave whole
Fusarium reveals unplanted for 3-6 months.
solani purplish pink -Burn infected tree.
stain. -Avoid root damage of new
Dry rot at seedlings at planting
centre of
wood if
infection has
stayed long.
Major pest in coffee
Damage Control Sample pest
Kenya Mealy Mealy white Use insecticide e.g.
Bug masses Sumithion
(Planococcus between Cut branches touching
kenyae) clusters of ground.
berries and Paint stem with
flower buds insecticide e.g. Dursban.
Spots of sooty Apply soil insecticide
mould on around the stem e.g.
upper surface Amdro
of the leaves.
Leaf Miner Irregular Apply soil insecticide e.g.
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(Leucoptera brown Disulfotan (Disyston),

meyricki and blotches on biological insecticides
L caffeina) the upper side e.g. Nomolt or foliar
of the leaves insecticides e.g.
Sumicidin
Antestia Bug Blackened Timely pruning, handling
(Antestiopsis flower buds and de-suckering.
spp) and rotten Use insecticides e.g.
beans within Fenitrothion
berries.
Black stripes
(zebra) on dry
parchment
Lace Bug Yellow Spray insecticide e.g.
(Habrochila patches on Fenitrothion or Fenthion
spp) lower side of
leaves covered
with spots of
shiny black
liquid excreta.
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Pest identification
Root feeders Stem/branch borers

Root mealy bugs Root nematodes Yellow Headed White Borer

4
Borer damage damage 6

Sap feeders /suckers

Yellow headed borer adult Yellow headed borer larva

7 8
Green scales attack on stems
White borer ring barking

v) Canapoy management
This is the overall process of optimizing production of bearing wood in order to maximize regular
annual cropping through the pruning, tree training, handling, de-suckering and change of cycle.
Pruning is a thinning process through which plant vigour is concentrated in desired parts of the
plant by cutting away others.

Pruning
This is done immediately after main crop ie. January for farmers whose main crop is the October-
November crop .Sick looking trees due to dieback should NOT be pruned until after the following
rain season. Pruning should be done only after the new growth .
The function of pruning include;
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i. Facilitate free entry of light and air

ii. Enhance pest and disease management

iii. Enhance penetration of chemical sprays

iv. Achieve suitable crop/leaf ratio
v. Achieve regular uniform cropping
vi. Regulate number of heads
vii. Rejuvenation of plant bring fresh vigor

Tree training
There are two distinct systems of tree training in coffee - The capped tree system and the
uncapped tree system (free growth) which is more appropriate for small holder farmers.

TREE TRAINING SYSTEMS

Capped tree system Uncapped tree system (free growth)

Un Cap seedlings at 15 cm to encourage two heads to grow For R II allow 2 heads in the
second cycle
Capping is done at 1.83 m (6 ft) from soil level

Handling
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These involves Thinning out the flush or young shoots after the rains.its Done any time but
usually after the main rains.its also involves Replace mature secondaries with young shoots

Desuckering
Involves Removal of unwanted suckers done any time but least every but at least every
three to four months .Do not allow suckers to grow unless for change of cycle or to replace
a broken head

Change of cycle
Start preparing for change of cycle 18 to 24 months before heads are to be cut off
Cut off inside branches leaving a head measuring 1.5 2.5 ft from top
Allow suckers to grow on main stem or heads between 30 45 cm (12in -18 in) from

ground between August and November

vi) Harvesting
On average the newly established coffee take between 2 - 3yrs depending on the variety.
Already established coffee have two picking season; Early crop between april-may and late
crop
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between September to January . Timely and selective picking of the fully ripe coffee cherry judged
by their deep red colour. Mixed stages of maturity and ripeness of cherries may cause pulping and
fermentation problems.

vii) Sorting
This is done at farm level after the coffee picking is done. its involves removing unripe , immature
green under riped, overriped, dry, insect damaged, leaves ,small cherries and unwanted material
before the coffee is wet processed.
Use clean material like canvas - avoid contact of cherry with soil during sorting.

viii) Gross margin OF COFFEE

Cost of production vs returns in the small holder sector

5kg fair, 10kg better, 15 kg good
Most farmers At At For R 11
(over >80%) 5kgs/tre 10kgs at
Produce e /tree 7kgs/tree
o 2kg/tree

Production kg clean O 150kg 378kg 760kg 1000kg

coffee/acre

Cost/acre (Sh.) 12,500 31,700 50,500 52,500

Cost/kg cherry (Sh.) 18.50 12.00 9.50 7.50

Net revenue per 4,700 34,400 82,400 122,500

acre at Sh.24/kg
cherry

% return 35% 108% 160% 233%

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Coffee processing
Processing of coffee start withn the Ripe berries being transported to the factory where they are
weighed and Taken through apulp machine which removes the outer covering pulp. The berries are
fermented at optimum between pH5.5 to 6.0. before curing by drying in the sun for one week. After
curing, machines peel off two layers of inner husks before the berries are winnowed and graded.
The beans are then sorted out according to size and quality.

Wet processing
Wet processing represents the primary processing of coffee when the cherry is delivered to the
society by individual farmers,or processed by small and medium coffee growers. Its involves
separating the coffee beans from red coated pulp through pulping .

Cooperative farmers are required by law to aggregate their cheery produced and process in coffee
factory for economies of scale.They are also cautioned not to divert the coffee produce to informal
dealing such as hawking, selling direct to millers.
The pulper and the pre-grader should be adjusted, repaired and tested prior to the seasons pulping.
Cherry should be pulped the same day its harvested
Processing water must be clean and free of colour, tastes and odours.
Pre-grade the coffee into firsts seconds and lights.
Re-circulate processing water to enhance the subsequent fermentation stage.
Pre-grade the coffee into firsts seconds and lights.
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Re-circulate processing water to enhance the subsequent fermentation stage.

Fermentation
Fermentation breaks down the mucilage into simple non-sticky substances, which are easily washed
off. The removal of mucilage is important because it is sticky, inhibits drying, attracts dust, makes
handling difficult and is a good media for spoilage micro organisms to thrive on. The best practises
in fermentation includes; Fermented the different grades of parchment in separate fermentation
tanks, Practice intermediate washing during fermentation, gritty feel of the parchment with the hand
marks completion of fermentation process. Never allow the fermentation of parchment for a longer
time than necessary; never use the fermentation tanks as a temporary store for wet parchment

Final washing, soaking and Grading

This involves use of clean water to Wash the parchment thoroughly to ensure complete removal of
mucilage. This is done in the, channels, paddles and dikes during washing and grading.caution
should be put in place and avoid perfumes or drugs like cigarettes are not permitted. Ensure
complete separation of the different parchment grades.

Soak parchment in clean water for should be done

between 16-24 hours to improve the quality. The soaking water should be changed every morning.

Drying

The first stage in drying of parchments is the removal of surface water. The skin drying should be
done within the shortest time possible. Less than a day.
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The parchment should be transferred to the final drying tables on the same day. Should not be left
overnight .one inch (2.5 cm) parchment layer maximum per dying table,the defective beans since
they are easily distinguished during the skin drying stage
The metallic drying tables should be painted regularly to avoid rusting of metal. Wooden tables
should be repaired and be in clean condition and absolutely flat for even drying.

Final drying stage

Soft Black stage (30 -20% moisture contect)
Sunlight is very essential, final bluish green bean colour formed at this stage. Mechanical drying
not recommended.the partchment should be Exposed to sunlight at least for 2 days ( 50 hr
sunshine) to improve bean colour .Drying depth should be 2.5 cm, but may be increased to 5.0
cm.Temporary storage in ventilated bins is permitted (to ease congestion at the drying tables).

Medium Black stage (20 16 %) M.C

Beans are fairly hard and Parchment can be dried rapidly without loss in quality using either the sun
or mechanical driers.The parchment can also be heaped safely to a depth of 5cm. In case of
congestion, the parchment can temporarily be stored in ventilated bins to create space and be taken
out later for final drying.

Hard black stage (16 11%) MC

Beans are Fully hard and Can be dried rapidly without loss in quality.Mechanical drying can be
done if there is limited drying space.

Conditioning (11 10.5 %)

Conditioning is done in ventilated stores or bins.At this stage the beans are dry and cannot suffer
any quality loss if the relative humidity is maintained at 60%.
Avoid over drying parchment to safeguard against fading and moisture re-absorption during storage
A well dryied partchment should contain 11-10.5 MC

Mechanica drying
This involves drying of partchment using electricity driven machine .thses reduses the
number of day
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Storage and Packaging

The parchments should be stored only under controlled but adequate ventilation. The roof must also
provide adequate insulation in order to minimise heat transfer.

Partchment should be Protected from water and dust and coffee bags should be putted on wooden
pallets 15 cm away from either wall or floor surface.
The ideal storage temperatures and relative humidity are 22oC and 50-70% respectively with
minimal fluctuations.

Buni
Buni is naturally processed through sundried. Its usually undergoes the same process as parchment.
There are two grades mainly in MH and ML. the MH is regarded the high quality grade

i) AGGREGATION AND VALUE ADDITION

Aggregation in coffee involves bulking of cherry parchment and clean coffee by cooperatives
societies,unions,estate growers ,millers and marketer for economies of scale
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Value addition includes wet processing, fermentation, grading ,drying, sorting of parchment,
packaging, transportation, milling, roasting and packaging link pdf below

MILLING
Milling represents the secondary processing when the coffee parchments is delivered into the mill
Plant; by either the coffee cooperative societies,estate growers and large scale plantation.
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Coffee societies are required to appoints a miller annualy from a list of licensed miller by the coffee
board of Kenya .
Through union, coffee societies have installed their own milling machine and cooperatives are
encouraged to follow the suite to maximize the returns.
Coffee milling involves the following activities and process;

Grading in Kenya
Kenya AA is popular in the world among Other Grades such as AB, PB. Kenya coffee is graded in
7 as follows.
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By products (husk ,manure charcoal )

The following are the main by products derived from coffee value chain;

By product Description Economic importance /Usage

Coffee pulp Derived after Composting into Organic manure

cherry pulping
Mushroom growing
Press into charcoal cake
Biogas production
Animal feeds (under investigations)

Parchment Derived from Husk Charcoal

husk partchment
milling Civil structures (hardboards

Effluent Water from Caffeine extraction

coffee pulping
and washing

Buni husk From buni Husk charcoal

hulling
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MARKETING
The clean coffee is sold locally and through export to European , latin America, US market. other
emerging market such as China ,middle East. The clean coffee is graded, packaged and sold in
60kg bag through. Cooperatives and small growers are required to sell their coffee produce through
licensed coffee marketing agent by coffee board of Kenya who sells the clean coffee through
Auction in Nairobi coffee exchange (NCE.) the Auction takes place weekly during the season.The
prices are dictated by new York price index and reserve price fixed by taste of the cup. Ideally the
buyer focus on quality predominantly in the cup.
Individual cooperative have option to sell clean coffee through direct market (second widow)
without involving the marketing agents The option is commonly favorable to the coffee
cooperatives and union who have invested in a milling plant.
Direct marketing (second widow)
In 2006 the government published the rules to govern the direct sales of coffee making the direct
coffee marketing operational a long side the traditional coffee auction. This is expected to improve
both the production and exports of coffee in the country.

Nairobi coffee Exchange

The Kenyan coffee is noted for it's democratic auction system. In this system, samples of each lot
are made available to bidders prior to a weekly auction. If a bidder (or the bidder's customers) is
interested in a lot of coffee, they enter the auction for that lot. In this transparent auction, the
highest bidder wins--no insider deals are cut. The result of this system is that generally the best
quality lots of coffee command a higher price with the highest fetching prices being grade AA.

Coffee Export
Coffee is among the most important agricultural commodities in world trade. Like most other
primary agricultural commodities, the market is characterized by oversupply, declining product
prices and increased global competition among producing countries.

Kenya exports most of her coffee in bulk. However in the last decade companies have started
adding value to their coffee through roasting and packaging under different company brands for the
export market.Coffee exports account for approximately five percent of all exports from Kenya.The
exporter has to be license to export coffee into external market

Policy and regulation

Various policy regulating the coffee industry includes the Kenya coffee Act 2009, Crop Act No.16
of 2013,Cooperative society Act , amendment 2008.
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Service providers
The service provider in coffee includes; licensed miller (Private/growers) marketing agents ,cetified
bodies,coffee board of Kenya,KCPTA,MOIED, State department Agriculture ,Coffee
research,Inputs stockiest,coffee cooperatives and unions,credit providers,coffee equipment
supplies,coffee transporters ,cofffe warehouses,farm management agents, shipping lines .

Name of service provider Role Link

Coffee board of kenya Regulate the coffee industry in www.coffee board .co.ke
Kenya
License coffee
millers,marketing agents and
small growers

Coffee research Research www.crf.co.ke

development,dissemination of
modern and innovative
technology in coffee industry

Credit providers (financial Provision of credit to coffee Commodity fund.

institution sub sector
Rural sacco.
Cooperative bank.
Equity bank

MOIED Regulate and the coffee www.industrialization.go.ke

cooperatives

State department of Extension services to coffee www.agriculture,go.ke

Agriculture growers

Inputs stockiest Provides inputs to coffee MeaLTD

frmers
Kenya farmer Cooperative
union

Cooperatives societies /unions Bulking of coffee and primary

processing ,milling

KCPTA www.kcpta.co.ke
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Millers Process parchment in clean Approved list of licensed mille

coffee, grade and package for
market

Marketing agents Sell clean coffee on behave Approved list of licensed

of the coffee growers, coffee marketing agents
cooperatives, and large
planters

Certification bodies Quality Assurances and Rainforest alliance

standards
4Cs
Fairtrade
UTZ

Coffee directory kcpta