Kenya: Bid to License New Agents Worries Coffee Marketers
A wave of panic has gripped the closely-knit coffee marketing fraternity following an announcement by the Government to license more agents.
Only a week after the Coffee Board of Kenya (CBK) published a bridged version of coffee rules, the board has advertised for new coffee marketing players.
However, the new players must strictly adhere to rules recently published by Agriculture Minister, Mr Kipruto arap Kirwa. The gazetted rules follow consultations between his Ministry, CBK and key stakeholders, including millers and growers.
However, the latest announcement by CBK had triggered a wave of panic among millers, which have been holding interim marketing licences.
The firms, who include Kenya Planters' Co-operative Union (KPCU), Thika Coffee Mills (TCM), and Socfinaf, would also be required to apply afresh for licences and there is no guarantee they would clinch the deal.
The millers had in the past argued against opening coffee marketing to competition saying that there was little coffee to market and that allowing new entrants could spell economic doom to existing players.
In an advertisement, CBK has given 13 days to companies wishing to apply for a coffee marketing agent to submit applications. CBK managing director, Mr Solomon Waweru, defined a marketing agent as "a grower licensed by the board to market his or her coffee or any person duly licensed by the board and appointed by the grower through a specific agreement to market the grower's clean coffee."
"We shall issue licenses to as many players as possible provided they meet the technical and legal conditions," said the official.
He said the existing millers would be required to apply for licenses to be considered alongside new applicants.
"If they don't apply, the board shall assume they are no longer interested in coffee marketing," the official said.
But it is Kirwa's new fee marketing rules that have sparked fresh worries. The rules have exposed the existing players to open competition. The rules, however, stipulate tough conditions for any commercial firm wishing to market coffee on behalf of the growers.
The potential firm should have "demonstrated access to coffee markets and capacity to market coffee."
Interested firms must also have demonstrated capacity to carry out market research and intelligence and also produce a bank guarantee in favour of the grower fixed at one and half times the value of coffee transacted.
This condition means that if the marketing agent was to handle coffee volume worth Sh10 million, the firm must produce a bank guarantee worth Sh15 million.
But even as the announcement triggered a wave of panic among the existing millers, Kirwa has resisted pressure and has gone ahead to gazette the rules that would also allow farmers to sell their product outside the central auctions.
The rules also empower CBK to take tough action against players who violate the rules. These include farmers, transporters, millers, warehousing agents, dealers and creditors.
Kirwa's rules also require that a potential marketing agent should "pass an integrity test" after vetting by the relevant authority as determined by the CBK.
The board is required not to issue a marketing agent licence to an individual or firm that is indebted to farmers or farmers' organisations.
This condition was inserted after some coffee millers complained that certain companies that were eyeing coffee marketing were highly indebted.
Vietnam Coffee Prices Increase
The FOB price of Viet Nam's export coffee has soared to over 1,450 USD per tonne, an increase of 85 USD from last week.
The sharp increase in coffee prices was attributed to decreasing supplies and increasing speculation in the world market.
In the domestic market, coffee prices remained at 20,400-20,600 VND for a kilogram of robusta coffee in the Central Highlands provinces of Lam Dong and Dak Lak.
According to the Viet Nam Coffee and Cacao Association, the country's coffee output is expected to be 11-11.5 million packages from the current crop and may reach 13.5-14.5 million packages from the 2006-2007 crop.
www.vneconomy.com.vn
Rwanda: ISAR Sensitizes Residents On Coffee Wilt
The Institute of Agriculture and Scientific Research (ISAR) on August 22, carried out a field study in Gicumbi District, sensitizing residents on how to prevent and control the coffee wilt.
The sensitization drive that was organized by the Coffee Research Programme at ISAR in conjunction with coffee parastatal Ocir café, aimed at creating awareness among the coffee farmers in the district on the dangers of the disease.
The coffee wilt disease project that is funded by the CABI International Africa whose head quarters are in Nairobi, Kenya will also help other farmers in Kibungo and Kisenyi.
'This sensitization program is aimed at creating massive awareness especially to the growers of coffee so that they can know how to prevent the spread of the coffee wilt disease from the neighboring countries and to encourage the coffee growers monitor their plantatations regularly,' CABI's Martin Kimani a specialist in charge of farmers participatory training and research, said.
He added: "This we hope shall improve the standard of living of these farmers in the long run."
Kimani cautioned the farmers against sharing farming equipment, saying the coffee wilt disease had not reached Rwanda as yet.
He asked the farmers to pay regular study visits for observations and sharing experience to detect the different diseases that may affect coffee plantations.
A Plant Pathologist from CABI International, Noah Phiri asked farmers to always be on the look out of wilt disease and avoid procuring seeds from the neighboring countries to minimize the spread of the disease.
'Our main aim is to increase awareness amongst the Rwandan coffee growers, to give them support and disseminate materials in the fight against the coffee wilt disease which is so rampant in the neighboring countries' the Coordinator of the coffee wilt disease project at ISAR, John Nzungize said.
CABI International improves people's lives world wide by providing information and applying scientific expertise to solve problems in agriculture and the environment.
allafrica.com
Ethiopia says coffee not affected by floods
Addis Ababa - Floods that have ravaged Ethiopia's lowlands, killing nearly 1 000 people this month and displacing tens of thousands more, have not affected the country's highland coffee crops, an official said.
"Ethiopia's coffee grows in highland areas at an altitude of 1 300 metres above sea level, which are not prone to floods," said Yehasab Achalew of the Ministry of Agriculture.
"Since the coffee belt received plenty of rainfall accompanied by good weather, annual coffee production has increased from an estimated 300 000 tons to 320 000 tons in 2005/06."
Yehasab, the ministry's head of coffee, tea and spice development, said a team was assessing coffee production during 2006/07, which he hoped the rains would push higher.
Ethiopia, Africa's largest coffee producer, exported 183 000 tons of beans worth $427-million in 2005/06.
www.iol.co.za
|
