Kenya: Giant Coffee Firm in Nyeri
Neumann Kaffee Gruppe (NKG) of Germany has established a second subsidiary in the country – Thika-based Tropical Farm Management Kenya – which has opened an office in Nyeri town
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. NKG is the second largest speciality coffee trading company globally and has a presence in major coffee consuming and producing countries. The other Neumann Kaffe Gruppe company operating in the country is Ibero, which has been trading in Kenyan coffee since 1960s. The chairman of the Hamburg-based group, Mr Michael Neumann, was set to officially open the Nyeri office yesterday. That a senior executive would travel all the way from Germany to open a branch in Kenya underscores the importance of the country”s coffee to NKG and the world market. Its presence in Nyeri means that local coffee growers will be dealing with two leading world coffee dealers who have come in just a few months apart. Starbucks, the American multinational coffee trading company based in Seattle, has also been working with a section of local farmers and is currently modernising two coffee factories at a cost of Sh10 million. There is speculation that the multinationals could be positioning themselves for the imminent opening of a second marketing window that will enable direct purchase of coffee. Kenya”s Arabica coffee, mostly grown around Mt Kenya, is famed for to its blending qualities. “If the second window opens it will probably be our sister company, Ibero, that will be buying coffee. Tropical is the NKG farming arm and our intention is to produce high quality and quantity coffee,” the company”s head of marketing, Mr Wycliffe Murwayi, said. The German group deals with farming, farm management, milling, exporting, importing, insuring, logistics and other coffee-related services. It has in recent years expanded and diversified its services. “Over the past few years it has taken its presence across the borders to neighbouring countries with the objective of being present in the entire East African region,” said Mr Murwayi. Its main aim is to build a steady supply of green coffee. Apart from its own international network, NKG in 2001 helped establish the International Coffee Partners (ICP), a non-profit organisation that brings together leading coffee companies in their respective markets and thousands of small-scale producers. The NKG says it has been cooperating with international groups like the German development bank, GTZ, the European Union and the International Coffee Organisation to improve the lot of small-scale farmers and their business performance and market position . Although much of its local business is in managing coffee estates, Tropical Farm Management says it will work with smallholders and help them reduce costs and embrace good coffee husbandry practices. It is already working with Giakanja, Barichu, Mwirua and Kibirigwi coffee societies in Nyeri and Kirinyaga. The company is also developing a coffee standard for the region that will, among other things, address social responsibility, child labour and environmental conservation. It has already set up demonstration plots within the catchment of each society where farmers are taught about coffee production. “This is part of our corporate social responsibility because we feel that these farmers need a lot of motivation,” says Mr Murwayi.Some of the direct gains by small-scale farmers include cheaper farm inputs, especially chemicals and fertilisers. It is already targeting this category of farmers by repackaging its surplus inputs in 2-kg packs. Mr Murwayi says the price will now go down to affordable levels. “We will follow up the purchase of these inputs with advice on how to apply them because our policy is to work together,” said the manager. With certification of good agricultural practices in vogue, Tropical is seeking registration by the National Environmental Management Authority (Nema) as a lead firm in environmental audit. “Because of its experience in agriculture, Tropical is in a good position to carry out environmental impact assessments and audits,” said Mr Murwayi.
Source: www.allafrica.com
