Farmers oppose new coffee rules

The new coffee regulations have elicited mixed reactions in Mount Kenya region, the cash crop's main producer.

Various stakeholders opposed to the regulations that were published on July 1 argue that they might not meet the intended objective of governing coffee farming and trade.

Among the issues farmers and cooperative societies have flagged in the new regulations is the introduction of Direct Settlement Scheme (DSS) to remit proceeds from coffee sales as opposed to previous models where farmers were paid by cooperative societies.

This, observers have said, is likely to kill farmers' cooperative societies.

"It is not clear what issues the DSS will address. What is the reason for farmers to be paid through the DSS? It is not reasonable," said Rowland Ndegwa, the chairman of Iyego Coffee Cooperative Society in Murang'a.

Mr Ndegwa argued that the regulations were also ambiguous on who would bear the costs of payments by commercial banks that would provide the direct settlement system.

Critics of the system question what will happen in cases where banks are unable to pay, arguing that the regulations are not clear on farmers' recourse since there is no contractual agreement under the proposed payment mode.

To achieve the new provision on direct payments, all stakeholders in the entire coffee value chain would be required to digitise their operations, including weighing scales, farmers' records and coffee quantities.

Optional DSS 

In a reaction to the regulations tabled by the National Task-force on Coffee Sub-sector Reforms, Kenya Coffee Producers Association (KCPA) suggests that the DSS should be optional to allow the producers to make a choice on how their coffee proceeds should be paid. 

The association cited a possible decline in coffee production and accumulation of debts due to lack of an agreement between banks and farmers.

"Making DSS the compulsory way of settling coffee payments will only interfere with producers' rights," said KCPA in a statement.

"The Government should not solve issues by creating other issues. They can solve the known current issues surrounding payments of farmers' dues by enforcing already existing policies," the association stated.

Kirinyaga County Coffee Cooperatives Union chairman Norman Gatuguta supported KCPA.

"Our stand on coffee issues are the same as those of KCPA because we are members of the association," said Mr Gatuguta.

The new regulations also prohibit movement of coffee without an original permit in a bid to tame rogue brokers.

The rules require anyone transporting coffee either for sale or for milling to produce an original movement permit upon request by the relevant authorities.

This regulation was lauded by majority of the farmers who spoke to The Standard.

Farmers will also be registered with the county government and will be required to indicate the number of coffee trees on their farms and notify the county government before uprooting their crop.

Many farmers opposed the suggestion to notify government before uprooting their crop, arguing that owners of the produce could move to other crops without seeking approval.

The coffee producers association at the same time said the rules should have a rider to address the issue of dual and multiple registration of growers at the society level to curb coffee hawking and theft. 

"Many societies have been crippled because some members are selling coffee to the neighbouring societies to avoid debts," said the association.

A number of farmers suggested that growers or their representatives should weigh coffee at their premises and the same confirmed by the miller. They had also pushed for millers' guarantee on quality.