Challenges facing the kenya tea sector - Cooperatives Europe
Transcript of Challenges facing the kenya tea sector - Cooperatives Europe
DIVERSITY OF COOPERATIVES AND THEIR
ABILITY TO EMPOWER GROUPS TO HAVE A
GREATER CONTROL OF THEIR LIVES
(Benefits of Cooperatives to smallholder
farmers)
Presentation by ERIC TOWETT-CHAIRMAN CHEPCHEB
OUTGROWERS COOPERATIVE SOCIETY LTD to the
World forum in Lille-france, on cooperatives
on 15th of November 2012
Fintea Union comprises of five
Cooperative Societies: Kokchaik
Chesetekaa, Chepcheb, Ainamoi and
Kapkap all registered with the Ministry of
Cooperative Development and Marketing.
The picture shows co-op members
meeting.
Introduction
Chepcheb Cooperative
Kapkap Cooperative
Kokchaik Cooperative
Chesetekaa Cooperative
Ainamoi Cooperative
FINTEA UNION
.
Background information
The project’s objectives include;
• Processing of tea, thereby improving
livelihood of small scale tea farmers
• Organizing farmers into Cooperative
Societies
• Organizing for the certification of the
societies
• Accessing, maintaining and widening
premium markets
Certifications
The union is currently certified under:-
• Fairtrade 2nd grade producer
organization.
• Rainforest Alliance.
Our products (cont.)
• Direct sales to the European
markets.
• Through Mombasa Auction house (
facilitated by the processor)
Market for our products,
Current situation
Low sales through Fair trade with the
rest going through Mombasa auction.
Two major buyers under Fair trade;
Cooperative Group and Salisbury
Low percentage of fair trade sales.
Comparatively better prices for the
production.
Diversification
Kericho is a highly potential area for a
number of agricultural enterprises to be
undertaken; Crop farming and animal
husbandry
Through the Union we have introduced
additional products to our farmers
These products will be available in the
supermarkets here and elsewhere soon.
Future plans
• In an effort to enlarge our markets we
appeal through this conference and the
use of other electronic media to the
individual consumers and the Consumer
Cooperative Societies to buy our products,
in so doing they will be improving the lives
of over 11,000 small scale farmers and
their dependents.
• It is our dreams that we will be having our
brands in the shelves in all major
supermarkets in the entire European
market in the near future both for tea and
diversified products. The blend 99 package
in the British market gives us a lot of hope
and we encourage the purchase of these
brands.
Future Plans(cont)
Future Plans(cont)
• We have identified projects that we
will utilize the premium received on,
though most of these projects
require more capital outlay than the
available premium.
Major challenge
The union is still relying on one
processor with a limited tea processing
capacity. During peak seasons we exceed
their capacity to process, this situation
limits our overall performance.
Weather associated risks are other
challenges. This include; drought and hail
• Service Delivery - Processing of tea
• Pooling of resources
• Technical support from the Project and
Finlay (K)Ltd -(Processor)
• Improved prices and timely payments
• Collective bargaining for improved prices
and other conditions
Benefits
• Knowledge derived from Fair trade
training,
• Opportunity to attend international trade
fares, expo’s and conferences,
• Access to the niche markets,
• Premiums and hence reduction in
poverty,
Benefits(Cont)
• Ripple effects-employments /job
creations,
• Role of players in marketing of our
products.
• Water and environmental
conservations
• Good Agricultural practices- safe use
of pesticides and herbicides
Benefits(Cont)