Monday, May 5, 2008

Kenya: Coffee Board Bets On Online Trade to Boost Sales -

Allan Odhiambo

The Coffee Board of Republic Of Kenya is exploring the possibility of starting the 3rd window of java gross sales which affects selling the java online. This come ups one twelvemonth after gap of the 2nd known as direct sales.

Sources said that the move is meant to guarantee husbandmen acquire maximal benefits from the liberalised sector.

According to the board, the 3rd window will take up a particular class of high class forte coffees.

Once placed on the website, the high class javas will be unfastened to any willing purchaser in the human race who commands highest.

Still in preparation stages, the new option of merchandising java will be tried and if successful, it will be rolled out nationally.

Currently, most of Kenya's top class javas are sold through the java auction bridge which accounts for 95 per cent of the sum java sold in the country. The remaining five per cent is sold directly to purchasers through the direct sales.

According to java board's Michael Mungai, the 2nd window have got taken up most of the top quality javas sold from the country.

"Speciality javas have mostly been going through direct sales," said Mister Mungai. But in its first twelvemonth of operation, the 2nd window failed to ran into the outlooks of husbandmen and stakeholders.

This have got got been blamed on deficiency of capacity to transport out international trade by both commercial and agriculturist selling agents.

The 2nd window have however picked in its 2nd twelvemonth and figs from the board show that about 20,000 bags of top class java have been sold directly to foreign purchasers so far for the twelvemonth 2007/2008.

This Marks a 100 per cent addition from the 10,000 bags which were sold through direct gross gross sales in 2006/2007.

Despite the pronounced increase, direct sales still stay far less than the traditional auction bridge system which managed to sell 259,219 bags of chief grade, miscellaneous and common java for the twelvemonth 2007/2008.

But unlike the 2nd window which aims specific purchasers in specific purchasing countries, the 3rd window will widen the possible marketplace to include all willing purchasers internationally.

"This would be an sweetening of the 2nd window and would do it more than competitive," said Mister Daniel Mbithi of Republic Of Kenya Producers and Coffee Traders Association.

Mr Mbithi said minutes in the 2nd window are only known by the purchaser and seller, whereas the 3rd window would addition the figure of people who cognize the forte javas on sale and are able to offer for them thus increasing competition.

Experts state that with the renewed energy injected into farms , sufficient measures of high class javas will be produced for the 3rd window.

Boosted by rising terms of java and increased support from government, java husbandmen in the state have renewed their attempts in improving quality and measure of java produced. According to the head lickerer, this have got made the quality of Kenyan java to better by 30 to 40 per cent since 2002.

"Top quality classes and qualities of java are increasing because of the renewed involvement from husbandmen and promising terms from the auction bridge and direct sales," said Mister Mungai.

Mr Mungai said forte java is the manner to travel as Kenyan husbandmen tax returns to production of high quality coffees.

To hike production of the forte coffees, the board have been educating husbandmen through workshops, seminars and extension services meant to better their crops.

Coffee Millers and sellers have also chipped in to help husbandmen with farm input signals and production techniques meant to hike the quality of coffee.

Relevant Links

The authorities also recently cleared loans worth Sh4.2 billion liberation husbandmen who were almost giving up on the crop.

This was followed up with the induction of the Coffee Development Fund to assist the husbandmen better their java farms.

Despite these efforts, the current production which stood at 50,000 metrical tones of voice last twelvemonth is still seen as deficient to ran into the demand for high quality coffees.

No comments: