Farmers and Settlers Association Inc. President Wilson Thompson said that ahead of the national election until September when the new government is in place, there is unlikely to be any intervention or actions from the government on the price of coffee.
He raised the issue this week and attributed a number of reasons for the drop in prices, due to the following:
- There is no money to support the price support program and no trigger mechanism
- Slow recovery of coffee after frost and resumption of production
- War in Ukraine affecting coffee consumption, including the coffee movement
- Fuel surcharge and government taxes and fees increase for vehicles, dock fees and
- CIC 100% Levy on production resulting in a reduction of the levy on the price paid to farmers.
“Producers and farmers are therefore advised to start selling their coffee before prices fall below K8 and down to K7.50 per kilogram,” Mr Thompson said.
He said the price had risen from 4.70K parchment per kilo in January 2021 to over 10K per kilo in January 2022. Stating the reasons were snowfall which affected production in Colombia and the effect COVID on shipping.
Mr Thompson said that while coffee prices fall to around 8K per kilogram parchment this month, farmers’ income has declined.
This is due to poor road conditions and vehicle owners deducting K1 to K2 per bag and Coffee Berry Borer gas which has reduced weight by up to 30-40% which is not encouraging for growers.
“We have government intervention like cutting fuel but the impact is not immediate so there is no Berry Borer CBB coffee and the removal of levies and taxes which continue to be passed on on producers, thereby reducing the price paid to producers and farmers.”