:. Food Industry News


Kenya Aims to More Than Double Coffee Output by 2012

Source: Reuters
17/11/2008

Nairobi, Nov 17 - Kenya aims to raise coffee production to 100,000 tonnes per year by 2012 by boosting funding to small-scale farmers and expanding coffee-producing zones in east Africa's biggest economy.

Daily News Alerts

Kenya harvested 42,000 tonnes in the 2007/08 crop year (Oct-Sept) and the regulator Coffee Board of Kenya (CBK) expects output to rise to 60,000 in 2008/09 due to favourable weather.

Although a small producer by global standards, contributing 1 percent of the world's coffee, Kenya's beans are favoured by roasters who use them to blend with coffees from other regions.

"We are targeting ... national production of 100,000 metric tonnes of coffee (per year) by, say, the end of 2012," said George Ooko, chief executive of the Coffee Development Fund, an agriculture ministry agency.

"After that we are going to target the next benchmark which is 150,000 tonnes," he told Reuters in an interview on Monday.

He said doubling the east African nation's coffee exports, which earn the country an average 8 billion Kenyan shillings ($102.6 million) annually, could boost economic growth.

"If exports double, what effect will that have on the economy ?" he said. "I am yet to work (that) out precisely, with the help of a national economist, but don't be surprised if this can contribute 1 percent growth to the total economy."

Kenya's coffee industry faces many challenges such as weather -- as it mainly relies on seasonal rainfalls -- poor infrastructure, berry diseases and a lack of funds for inputs.

"The sector has many challenges but the key one has been lack of credit," said Ooko.

He said his fund would spend $11.83 million in the two years ending next June providing loans to small-scale coffee growers.

The government hopes this will help farmers increase productivity and motivate those who had given up coffee farming, due to low earnings, to return to their farms.

"These (loans) go to buy fertiliser and agro-chemicals for coffee. The farmer gets the money to buy inputs. We are targeting productivity per tree," said Ooko.

He said the programme was also being used to reach out to areas that traditionally do not produce much coffee, such as the Rift Valley region districts of Baringo, Bomet and West Pokot.

"These are some of the new zones where a lot of new farmers are coming up," said Ooko.

More than half of Kenya's coffee is grown in the Central and Eastern provinces.

Some 50,000 farmers have benefitted from the fund's financing programme in a country with about 700,000 small scale coffee farmers, according to the last count by regulator CBK.

"It has had a huge impact on farmers because they have seen that money is available," Ooko said.



GO   View more articles on this subject


More Alerts from 18/11/2008


Email This Article To A Colleague     Print A Copy Of This Page
 
 
 
 
FLEXNEWS - Business News for the Food Industry

About Us | Contact Us | Terms & Conditions | Privacy Policy
 
Daily News Alerts
Related Items
Drought May Cut Kenya's 09/10 Coffee Output
Kenya Coffee Earnings Jump 10 pct in 2008/09
Kenya Coffee Review 2009 - Outlook Indicates a Second...
Kenya Trims 2008/09 Coffee Forecast to 50,000 T
Kenya Coffee Prices Fall Despite Strong Demand
Kenya Sees 60,000 T Coffee Crop in 2008/09
Kenya Sees Boost for Farm Exports to Japan
Kenya Coffee Output Seen up 38 Pct in 2008/09
Kenya Coffee Output, Earnings up in 06/07
Kenya Coffee Largely Unaffected by Chaos

More in Food Industry News
USA: Kehe Food Distributors Opens New Centre in Pennsylvania
Russia Duma Passes Beer Tax Hike in First Reading
Bongrain's Slowdown in Cheese Sales Continues as Group's...
Cadbury Descendant Fears Loss of Firm's UK Heritage
Sugar, Coffee Sideways, Eye Storm in Nicaragua
Ahold Set to Benefit Whether Predator or Prey
First UTZ CERTIFIED Cocoa to Be Delivered in Amsterdam,...
GLG Life Tech to Offer 3.6 Mln Shares for US IPO
Sainsbury H1 Profit Seen up 16 Percent, H2 Tougher
EU to Fight for Tuna Protection at Global Talks

Top Headlines
USA: Kehe Food Distributors Opens New Centre in Pennsylvania
Russia Duma Passes Beer Tax Hike in First Reading
Bongrain's Slowdown in Cheese Sales Continues as Group's...
Ahold Set to Benefit Whether Predator or Prey
GLG Life Tech to Offer 3.6 Mln Shares for US IPO
Sainsbury H1 Profit Seen up 16 Percent, H2 Tougher
UK: Continual Growth at Graham's The Family Dairy During...
Ajinomoto H1 FY09 Net Income Increases
Hain Celestial Reports Lower-than-Expected Quarterly...
AarhusKarlshamn's Food Ingredients Quarterly Operating...
SunOpta Q3 Revenue Drops 11.8%
Jones Soda Sees Revenue Decrease of 18% in Q3
UK: Tate and Lyle's Pre-tax Profits £112 Million...
Cha Dao Tea of Seattle Partners with BYB Brands
Coca-Cola Bottling Co. Consolidated Sees Income Growth...
California Pizza Kitchen Profit Up, Forecast Light
Starbucks Raises Outlook as Turnaround Signs Mount
Senomyx Quarterly Revenue Increases 3%
China: Yayi International to Build China's Largest...
Discovery of Pesticide Amitraz in Turkish Pears: EU...
Dr Pepper Snapple Profit Tops View
Sara Lee Reports Strong Fiscal 2010 First Quarter;...
Ahold Gears Up for M&A with Management Rejig
ICA AB Interim Report 2009: Net Income up 7.5 Percent
Process for Preparing a Highly-Soluble Cocoa Extract
Methods and Compositions for Improving the Nutritional...


 


FLEXNEWS 2009 - All rights reserved
ISSN 1950-6228