AGRODEV Agricultural Growers Resource Organization Developing Economic Viability - PowerPoint PPT Presentation
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AGRODEV Agricultural Growers Resource Organization Developing Economic Viability
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AGRODEV Agricultural Growers Resource Organization Developing Economic Viability – PowerPoint PPT presentation
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Title: AGRODEV Agricultural Growers Resource Organization Developing Economic Viability
1
AGRODEVAgricultural Growers Resource
Organization Developing Economic Viability
- Founded in March 2005
- We are a Kenyan Based NGO working hand on with
farmers to build strong and sustainable
agribusinesses
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MISSION
- To promote development and innovation in Kenyas
agriculture sector by creating niche markets,
encouraging sustainable practices, creating
employment in and out of the agriculture sector,
building infrastructure, linking growers directly
to global markets, and creating education and
awareness on value added initiatives.
3
Our Board of Directors
- Lawrence Njeru holds a BSc. in Agriculture from
Western Michigan University. He has worked with
the United States Department of Agriculture.
Lawrence and the Njeru family have a long
standing history of innovation in the Meru and
Embu region of Kenya. Lawrence is a Kenyan
citizen. - Blake Hanacek holds a BSc. in Global Resource
Systems from the Faculty of Agricultural Science
at the University of British Columbia. He also
holds a Masters of Watershed Management from the
Resource Management and Environmental Sciences
Faculty at UBC. Blake holds dual citizenship in
Canada and the USA. - Richard Damianopoulos holds a BA(hons.) in
Political Studies from Queens University in
Kingston, Ontario. He also holds a MA in
Political Science from the University of British
Columbia. His thesis focuses on the political
economy of the coffee industries in Kenya and
Uganda. Rich is a Canadian citizen.
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CURRENT PROJECT GOALS
- To alleviate rural poverty by provide an avenue
for rural coffee farmers to access sustainable
export markets. - Our first target area is the Meru region around
the slopes of Mt. Kenya. This region is unique
as one of the top coffee growing regions in the
world.
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WHY COFFEE?
- Coffee is the second most widely traded commodity
in the world (petroleum is the first) - It is produced in more than 50 nations. Of the
7.5 million tons of coffee produced worldwide,
only 25 is consumed by the producing countries
themselves. - It is one of the largest employers in the
agricultural sector of developing countries. - It is relied upon as a major source of revenue in
producing countries.
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THE GLOBAL RURAL COFFEE SITUATION
- Post International Coffee Agreement (1962-1989),
liberalized international coffee market - Elaborate value-chain structure
- Old control structures no longer relevant in new
liberalized market - Coffee farmers have been faced with plummeting
world market prices over the past 20years. - Trading is dominated by spot markets, lack of
trust, and opportunism. - After fall of ICA producer percentage of total
coffee income fell from 20 to 13 to now an all
time low of 7 and lower.
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- Coffee area harvested in Kenya has increased by
66 - Coffee area harvested in Uganda has increased by
18 - Data appears to suggest that coffee yields and
production should have increased as well
however, this is not the case
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- Since 1980 coffee yields have decreased by 57 in
Kenya - During same period, coffee yields in Uganda
increased by 17
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- Kenyan coffee production has decreased by 30
since 1980, and by 38 since 1990 - Ugandan coffee production has increased by 38
since 1980, and 44 since 1990
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SPECIALTY COFFEE VALUE CHAIN
- Growers are receiving only 7 of the coffee
revenue - Over 80 of the value added is made in the
consumption country not the production country
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Kenya European CommissionTask Force
RecommendationsExisting Recommended
Dealers
Dealers
KCDA (CDU)
NCE
NCE
Marketing Agents
Marketing Agents
Millers
Millers
Small Estates
Small Estates
Estates
Estates
Cooperative
Cooperative
Physical flow of coffee
Financial flow
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Kenyan Coffee Trends
- Coffee was the number one export for Kenya,
earning 45billion Ksh but now it is fourth
earning only 5billion Ksh per year - The number one export receives 40billion Ksh per
year (Tea) which is liberalized - Coffee production has dropped by over 50 in the
last ten years - Kenya produced a peak of 128,941.00 tons of
coffee in the 82/83 growing season - The 2005/2006 season is projected to yield
55,000.00 tons
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Why the Decline?
- All green coffee for export must be sold at the
Kenyan Coffee Boards auction house (heavily
controlled by politics) - Farmers must wait 9-12 months before they receive
complete payment from their crop forcing them to
borrow their own money and pay interest on it - Unstable market prices force farmers to chase
global commodity markets
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Need for Change
- Falling prices require immediate action on a
grass roots level - Value added initiatives have been introduced, to
help with the coffee crisis, in other producing
countries but not Kenya - Organic, Fair Trade, Shade Grown, Bird Friendly,
i.e. sustainable coffees have seen large market
share growth globally and have been attributed
for saving many communities dependant on coffee
production
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How Do Sustainable Coffees Help?
- Direct purchasing
- Guaranteed price minimum
- Transparency and communication down the
production chain - Community stewardship
- No dependence on synthetic additives
(fertilizers, pesticides, herbicides) - Ecologically friendly growing practices
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How Does AGRODEV Help?
- We will work towards our goals by developing a
network of skilled advocates and professionals
and through collaboration with international
donors, governments, and the private sector. As
a team we will work together to develop long-term
guidelines to enhance development and create
value added initiatives in the Kenyan
agricultural sector.
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