Kenya grows coffee, but someone else keeps the margin

Bags of coffee beans at a factory.

Photo credit: Shutterstock

A coffee cherry leaves a farm in Nyeri for a few shillings a kilo. Months later it returns as a branded bag on a Nairobi shelf or a flat white in a London cafe at many times the price. Almost none of the difference stayed in Kenya. The roasting, the grading, the branding, the packaging, the financing, the market relationship. All of it was captured somewhere else.

That gap is the whole story.

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Note: The results are not exact but very close to the actual.