The Farmers and Settlers Association Inc. has cautioned coffee growers and farmers that the price of coffee is likely to drop due to a number of factors.
President of Farmers and Settlers Association Inc., Wilson Thompson said going into the National Elections all the way to September, when new government will be in place, there is unlikely to be any government intervention or actions on the coffee price.
He raised the issue this week and attributed to a number of reasons for the drop in price, due to the following:
- There is no money to prop up prices support program and no trigger mechanism
- Slow recovery of coffee after the frost and production picking up
- War in Ukraine affecting coffee consumption including movement of coffee
- Fuel surcharge and Government taxes and fees increase for vehicle, wharfage fees and
- CIC 100 percent Levy on production resulting in the levy reduced from the price paid to farmers.
“So it is advisable to growers and farmers to start taking your coffee in to sell before the prices go below K8 and down to K7 .50 per kilogram,” Mr Thompson said.
He said the price rose from K4.70 parchment price per kilo in January 2021 to over K10 per kilo in January 2022. Stating that the reasons was the snowfall that affected production in Columbia and the COVID effect on shipping.
Mr Thompson said while coffee prices are going down to around K8 per kilogram parchment this month, the farmers’ income has decreased.
This is due to poor roads and vehicle owners deducting K1 to K2 per bag and Coffee Berry Borer gas reduced weight by up to 30 to 40 percent, and this is not encouraging to growers.
“We have some government intervention like reducing fuel but impact is not immediate so as no coffee Berry Borer CBB and removal of levy and taxes that is continued to pass onto growers, in effect reducing the price paid to growers and farmers.”