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Free and fair: how liberalisation is helping Kenyan coffee farmers escape exploitation PDF Print E-mail
Written by Alex Singleton   
Thursday, 07 September 2006
This morning I visited a Kenyan coffee co-operative (I am grateful to the Ministry of Trade & Industry for arranging this). They explained the liberalisation in the Finance Bill 2005 which came into effect last month, giving coffee co-operatives and farmers choice in who they deal with. Previously, they were not legally allowed to agree to sell coffee at a particular price to a particular company. They were only allowed to use one milling organisation: now they have a choice of three licensed milling organisations which have to compete.

Prior to liberalisation, the co-operative had to sell coffee through auction which is bad for farmers because they have very little idea how much they will get in advance. "The government made sure that middlemen took more money that farmers," one representative said. (I have been told separately that co-operatives have often been swindled because they have no way of them knowing how much was really paid at auction.) Needless to say, the people at the co-operative are very happy at the new flexibility they have been given.

But they told me that farm inputs, which are imported, such as fertilisers, chemicals and machinery are barely affordable, which they blame on high tariffs.

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