More Kenyan farmers attracted by organic coffee premiums

Organic farming is gaining popularity in Central Kenya following reports that coffee beans produced through the method fetch premium prices in the market.

Mr. Bernard Gichobi, the production manager at the Coffee Board of Kenya, described demand for organic produce as a niche market that coffee growers in Kenya can service to increase their incomes.

Organic produce has been fetching above-market prices as consumer activism rises in key European and American markets.

Mbumi Coffee Estate, a Nyeri based miller, is promoting production of organic coffee to take advantage of the emerging market.

Ms. Elizabeth Mbugua, the general manager of Mbumi Coffee Estate, said farmers were only awakening to the opportunities the method offers. "Many people don’t know about organic coffee since no one talks about it,” she said.

Besides the popularity of its produce among environmentally conscious consumers, promoters of organic coffee say it produces high yields and saves the farmer the pain of purchasing expensive inputs.

Mbumi Estate has converted its 300-acre farm into organic production through a process that began three years ago. The farm now uses farm manure instead of fertilizers, and natural methods of pest control. The initiative got a big boost last year when Kenyatta University joined in to conduct organic farming research at the farm.

To get premium prices for organic coffee, the miller has linked up with international buyers to promote its products in the global market.

Currently, the International Marketing Organisation that certifies products for European, American and Japanese markets, is in charge of certification for Mbumi’s products. “It has taken years to negotiate for premiums and better prices,” said Ms. Mbugua.

Isaac Gichia, a marketer at Mbumi, said the farm earns an extra $5 above the market price for every 50 kilogramme bag of coffee. This, he says, is only because conversion to organic farming is still under way. Fully organic coffee earns farmers up to $20 in premiums for every 50 kilogramme bag.

Samuel Ndung’u, the national market development officer at the Kenya Organic Agriculture Network, reckons that certification of produce as organic enables farmers to join other certification platforms such as fair trade and earn better premiums.

“Premiums depend on the product and ranges from 20 to 300 per cent of the market price,” said Mr. Ndung’u. But despite the attractive premiums and the drive to popularise it, very little organic coffee is being produced in Kenya yet.

Farmers say the high cost of acquiring certification is partly to blame. Auditing for organic certification alone costs an average of Sh300,000 ($4500) , placing it beyond the reach of thousands of small scale farmers. Many farmers also fear initial losses and the expected drop in production when one stops using fertilizers and pesticides.

“It is expensive to convert to organic farming, since one can lose the whole crop in the first four years of production,” said Ms. Mbugua. After the conversion period is over, production starts to pick and the quality improves dramatically, she explains.

Coffee is naturally resistant to diseases such as Coffee Berry Disease, but has been made reliant on pesticides by regular use, she said.

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