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Diagnostic of a Smallholder Service Unit for coffee farmers in Kenya

Neumann Kaffee Gruppe (NKG) is the largest coffee trading group in the world, providing services related to farm management, quality control, exporting and importing, logistics, risk management and financing. In Kenya, NKG provides a variety of services to smallholder coffee farmers and cooperatives, including financing, high quality input supply, capacity building, and market access. Interested in understanding ways to better meet the needs of coffee farmers in Kenya, NKG commissioned IPC to conduct an in-field diagnostic of its services provided to farmers and cooperatives.

During a two-week on-site visit, IPC interviewed coffee cooperatives and farmers, identifying strategies for NKG  to increase and optimise services provided to farmers.

In addition to understanding the needs of coffee farmers and cooperatives (both financial and non-financial), the diagnostic assessed the institutional setup and operations of the services provided, determining areas for process improvement and training.

Based on the findings of the diagnostic, IPC identified possible risks and growth potential for NKG coffee sourcing in Kenya through a long term strategy based on a combination of training programs and increased financial support offered to cooperatives and farmers though the establishment of a Smallholder Service Unit (SSU). IPC experts accordingly developed a business case for the SSU set-up with newly developed, tailor-made products for coffee farmers and cooperatives, with the goal of strengthening the coffee value chain and improving the livelihoods of smallholder farmers in Kenya.

 

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