Kenya has two coffee marketing systems: Central auction system and direct sale. The time-tested central auction system commonly referred to as Nairobi Coffee Exchange is a market where licensed dealers buy coffee through competitive bidding. Coffee auctions are conducted every Tuesday. The coffee exchange is under the management of the Kenya Coffee Producers and Traders Association.
A direct sale, commonly referred to as ‘Second Window’, requires a marketing agent to directly negotiate with a buyer outside the country and a sales contract is signed and registered with the coffee board. The board registers the contracts after inspecting and analyzing the coffee for quality and value.
There are two categories of marketing agents: Commercial Marketing agents who offer services for commercial purposes and grower marketers who are growers licensed to market their own coffee.
Coffee beans are wet-processed and graded by the size of the beans-AA is the largest followed by A and B which are smaller. After milling, coffee beans are graded mechanically into various grades, which differ in size, shape, and weight. Incorporated into the grading systems are color-sorting machines which separate high-quality coffee beans from light and defective ones electronically.
E is the largest of grades in size and is called ‘Elephant’. Usually, two seeds are joined together to form a single cherry. This grade also includes the large PB beans. Like PB, this grade is normally in smaller quantities in a consignment.
AA has good size formation of large beans and usually fetches the highest price. AB is a combination of two grades- A and B. AB is regarded as a representative of other grades in a consignment. PB contains round beans, which grow as one in a single cherry. About 10 percent of coffee falls in this grade. C’s beans are smaller than B and most of them are thin, while TT is composed of light beans usually separated front other grades. T is the smallest and thinnest of the beans. Most beans in this grade are broken and faulty. It is always below the others. MN /ML is the coffee that has not gone through wet processing because it was not picked or fell from the trees after ripening. About 7 percent of the crop falls into this grade. It fetches lower prices and has sour-tasting liquor.
The grades are subjected to a vigorous classification by the Liquoring Department of the CBK. Cup quality is described as fine fairer to good, fair to average quality down to common plain liquor. Coffee of good raw quality and appearance with a good roast has a pleasant flavor.
Branding Kenyan Coffee
Kenyan coffee beans are traditionally exported for processing at various destinations. The high-quality coffee is used to blend beans from other destinations. The export of coffee as a commodity does not accord it distinctiveness.
Currently, coffee is sold as a raw material for subsequent processing. Nearly 98 percent of national production is exported. The insignificant two percent balance is processed by roasting and packaged locally in retail packs. This is what is consumed in the domestic market.
Coffee beans are packaged in jute bags/sisal of 50kg units and exported in their raw green form. The branding initiative, launched in January 2010 by the Coffee Board of Kenya (CBK), is supposed to facilitate distinctiveness in the market. This will trigger demand and impact on the returns of growers.
A national logo has been developed and will be applied to coffees, which meet the minimum quality of the Kenya Bureau of Standards (KEBS). The European Union-funded project will facilitate the establishment of regional cupping centers, which will be part of elaborate inspection and certification protocols.
Brand development will revolutionize coffee production and enhance recognition of Kenya coffee in International markets. The logo represents the bold, distinctive, full-bodied flavor of Kenya coffee. It is an embodiment of the good attributes of coffee produced in Kenya as captured by the majestic Mt. Kenya in the background, the boldness of the roasted coffee beans and the rich tapestry of Kenya, hence the tagline: So Rich, So Kenyan
CBK will be the legal custodian of the logo. Its application is limited to packages with 100 percent Kenya coffee. Registered and licensed coffee traders can use the logos in promotional campaigns. The use of the logo will start when the phased out implementation plans are complete.