State to bailout coffee cooperatives
In efforts to revitalize the struggling coffee industry, the Ministry of Co-operatives and Micro, Small, and Medium Enterprises (MSME) Development has issued a directive for coffee co-operative societies to compile and authenticate their debts. This move is part of a broader plan to allocate government funds in the forthcoming budget specifically for clearing these debts, aiming to rejuvenate financially distressed co-operatives.
Cabinet Secretary Simon Chelugui, during his address in Murang’a, highlighted the government’s dedication to revitalizing the coffee sector. He pointed out that debt forgiveness for farmers through their co-operatives is crucial to this strategy. Chelugui emphasized the need for accurate debt figures to seek National Assembly approval for budget inclusion to settle the debts.
Chelugui also mentioned similar debt relief efforts in the dairy and sugar sectors, reinforcing the government’s commitment to aiding farmers. He appealed to county governments in coffee-producing areas to assist in the debt listing and verification process to expedite these relief efforts.
The Cabinet Secretary underscored the importance of the coffee industry to the country’s economy, noting its position as the world’s second most traded commodity. He lamented the meager earnings that reach farmers, a mere fraction of the global coffee revenue, and criticized the role of intermediaries in depressing these earnings. Plans are underway to eliminate these middlemen, aiming to significantly boost farmers’ incomes.
Additionally, Chelugui called on county governments to support coffee farmers with high-yield seedlings and extension services to double the current production levels. The government has also earmarked Sh8 billion for a cherry advance fund to finance increased production.
Avocado Farming
Mr Chelugui praised the county’s leadership in avocado production and pledged government support for the sector across other counties as well, aiming to elevate the country’s status as a leading avocado exporter.
It is estimated that around 130,000 metric tonnes of avocados are produced annually in the country, with 100,000 metric tonnes of this being exported to various overseas markets.
“Murang’a County’s avocado production reached an impressive 21,000 metric tonnes last year, all of which were exported. By encouraging farmers to prioritize quality and minimize post-harvest losses, we can elevate their income and establish our country as a top exporter of avocado,” said the CS.
New incentives to ramp up milk production
The Murang’a Co-operative Creameries (MCC) has recommenced its milk processing operations after being dormant since early 2022 due to administrative challenges. This revival was possible thanks to the county government’s decision to transfer the factory’s management to the County Co-operative Creameries Union. This union, comprising 34 co-operative societies with over 10,000 members, now channels 40,000 liters of milk to the factory daily.
At the management handover event, Co-operatives Cabinet Secretary Simon Chelugui applauded the initiative, highlighting that the national government, among other partners, is set to support the MCC. Chelugui revealed plans to boost dairy co-operatives through incentives designed to ramp up milk production. He emphasized the importance of the factory’s management shift to the farmers and called on the local county government to expand the factory’s production capabilities.
The factory, a brainchild of the previous county administration led by Mwangi wa Iria, faced operational hitches due to debts accrued to farmers, transporters, and other vendors. Upon Governor Irungu Kang’ata’s assuming office in August 2022, the factory was indebted to farmers and suppliers by over Sh100 million. Chelugui stressed the critical need to rejuvenate the facility, pointing out the disparity between the country’s milk production and the soaring demand both locally and internationally.
With the current annual milk production at 5.2 billion liters, the government’s ambition is to double this figure to over 10 billion liters. This goal will be pursued by bolstering all dairy co-operatives with subsidies, extension services, and access to quality animal feeds.
