Coffee Farmers to Pocket 80% of Gross Earnings, Proposed Rules
New proposed regulations awaiting review by MPs will see coffee farmers get 80% of the gross earnings while co-operative societies, marketers, and millers receive 20%.
The changes are part of the reforms which began in 2016 after they were initiated by President Uhuru Kenyatta.
“The cost charged by co-operative societies to growers for pulping, factory expenses, transportation, milling, warehousing, brokerage, and any other expenses shall be as per the societies’ budget but shall not exceed 20 per cent of the gross earnings from coffee sales to 80 per cent of gross earnings,” part of the regulations stated.
The government had earlier announced that there are plans to issue a cherry advance revolving fund worth Sh3 billion to the farmers for a three percent per annum rate.
“The agenda is designed to boost production, reduce the cost of processing and milling as well as transaction costs at the auction market,” President Kenyatta said.
The coffee industry contributes about Sh20 billion to the country’s economy every year employing over 700,000 small scale farmers and 3,200 estates spread across 31 countries.
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