Farmers who have delivered their coffee to the New Kenya Planters Cooperative Union (KPCU) will receive payment amounting to over Sh.90million.
The New KPCU acting Managing Director, Joel Kinyua said they have secured a buyer from the USA who has offered to buy a kilo of coffee at between six and seven Dollars.
Kinyua said that after the revival of KPCU, farmers from Kiambu, Murang’a, Nyeri and Kirinyaga have been delivering their coffee to Warehouses at Dandora in Nairobi for milling.
He said the buyer has already paid 50 percent of the total value of coffee noting that the remaining amount will be paid once all the coffee is shipped to America.
Speaking to KNA on Friday, Kinyua said a farmer would get between Sh.70 and 110 per kilo depending on quality of the coffee delivered.
On New KPCU, Kinyua said is committed to revive the sub sector, which for many years has not been doing well.
He said coffee cooperative societies from counties near Nairobi have opted to market their cherry through the New KPCU.
“Farmers need to increase production of coffee as prices have gone up and with KPCU in place, marketing of the cherry will be boosted,” Kinyua added.
He noted that plans are underway to rehabilitate their stores in Sagana, Meru and other places where farmers will be delivering their coffee.
“Use of our stores will minimize the upsurge in coffee thefts witnessed in several factories. Revival of the Nairobi – Nanyuki railway line will also support transportation of coffee to our mills in Nairobi,” added Kinyua.
He encouraged cooperative societies to consider delivering their coffee to the new KPCU, noting the union was working out ways to source more buyers from abroad.
The New KPCU, Kinyua observed, has put in place various strategies targeting to mitigate challenges that coffee farmers have been facing for a long time.
He noted that one of the benefits the farmers will enjoy through KPCU is that they will be able to appoint representatives among themselves.
“Through the New KPCU, farmers will be at liberty to determine prices and buyers for their coffee beans. The New KPCU will assist farmers throughout the process of selling coffee,” he added.
Meanwhile, the director disclosed that New KPCU Board of management now manages the Sh.3billion Cherry Advance Fund and farmers are at liberty to apply for loans by filling the necessary forms.
“To qualify for a Cherry Advance Loan, you must be a coffee farmer because it is your coffee that will act as security. 40 percent of coffee value per kilo goes directly to the farmer and the loan will attract a mere 3% interest,” said Kinyua.
He continued, “The loan can be given in form of farm inputs such as fertilizer which will cost not more than Sh.2, 000 a bag and farmers can apply for the loan via the phone.”
By Bernard Munyao