henk van rikxoort - stakeholder analysis in the kenyan coffee sector
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Climate Change Adaptation and Mitigation in the Kenyan Coffee Sector
Sangana PPP
Stakeholder Analysis in the
Kenyan Coffee Sector
Embu, Kenya – 12 May 2010
Henk van Rikxoort
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Climate Change Adaptation and Mitigation in the Kenyan Coffee Sector
Agenda
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1. Why a stakeholder analysis?2. Approach3. The sector in brief4. Sector output5. Stakeholders speaking6. Cause & effect7. Focus points for improvement
Climate Change Adaptation and Mitigation in the Kenyan Coffee Sector
1. Why a stakeholder analysis?
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To understand the dynamics of the project environment
Stakeholder profiling: identifying the attitudes of relevant actors towards the project
To be able to anticipate on the actions of other stakeholders apart form project partners
Basis for strategic decisions
Climate Change Adaptation and Mitigation in the Kenyan Coffee Sector
2. Approach
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Literature study
Interviews with key stakeholders
Stakeholder mapping
Power – potential mapping (Capacity WORKS)
Stakeholder relationship mapping (Capacity WORKS)
Cause & effect diagrams
Climate Change Adaptation and Mitigation in the Kenyan Coffee Sector
SERV
ICES
Smallholders (700.000)
Co-operative Societies
(430)
Estates >15-20ha
(329)
Co-operative Unions (30)
Marketing Agents (8)
Local Roasters
(4)
Exporters (32)
Coffee Research
Foundation
Co-operative Bank of Kenya
(among others)
Kenya Coffee Growers
Association
Kenya Coffee Producers &
Traders Association
Coffee Board of
Kenya
VA
LUE C
HA
INEN
AB
LING
ENV
RIO
NM
ENT
Eastern African Fine Coffees Association
Kenya National
Federation of Co-operatives
Farmer Training
Centers (30)
Millers (8)Small Estates
<15ha (2500)
Input Suppliers
Kenya Coffee Traders
Association
Offshore Buyers
WarehousingTransport services
Nairobi Coffee
Exchange
Second Window
Ministry of AgricultureMinistry of Co-operative Development
Climate Change Adaptation and Mitigation in the Kenyan Coffee Sector
4. Sector output
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PARAMETER: FIGURE: SOURCE:
Export volume: 2.1 million bags (1987) ICO (2008)
0.9 million bags (2007)
World market share: 3.1% (1986) ICO (2008)
0.6% (2008)
Yields/hectare: 892kg/ha (1980) FAO (2008)
284kg/ha (2008)
698kg/ha (Arabica worldwide) FAO (2008)
995kg/ha (Ethiopia)
1160kg/ha (Rwanda)
Premium grades: 20% (1993) Condliffe, K (2008)
10% (2003)
Climate Change Adaptation and Mitigation in the Kenyan Coffee Sector
Smallholder farmers say:
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“There is a lack of transparency in the operations of the co-operatives”
“We have no access to any kind of information”
“The payments for our cherries are delayed”
“There is corruption in various forms”
“The quality of our cherries is decreased during processing”
“We lack knowledge on up to date farming
techniques”
“Changing weather patterns impacts our
production”
“The youth moves away from coffee production”
Political Economical Social Technological Environmental
“We get a low price for our cherries”
“The costs of our inputs are rising”“We have poor access to credit”
“Some of our colleagues quit coffee farming”
Climate Change Adaptation and Mitigation in the Kenyan Coffee Sector
Co-operative societies say:
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“Politics are influencing the way to manage a co-operative”
“Farmers are keen on power”“Farmers are spreading false rumors about the
management board”“There is a gap between coffee growers and buyers”“Marketing agents bribe our farmers in order to get
business”“The MoA, MoCD and the CBK are supporting
themselves instead of farmers”
“A change in climate is impacting the production”“We now have sometimes
rains during the drying period of the parchment”
Political Economical Social Technological Environmental
“High interests are reducing our payments to
farmers”“It is difficult for us to get
funds”
Climate Change Adaptation and Mitigation in the Kenyan Coffee Sector
“The marketing agents are influencing co-operatives in their choice for a miller”
“The relation between co-operatives and marketing agents is very vulnerable”
“The milling contracts between the co-operatives and us are therefore changing all the time”
“There is corruption involved”
Estates say:
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Political Economical Social Technological Environmental
“Climate change impacts are affecting both the quality and yields of our produce”
Millers say:
“The coffee production is
declining”
Climate Change Adaptation and Mitigation in the Kenyan Coffee Sector
Marketing agents say:
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“The lack of loyalty from co-operatives makes our work difficult”
“Due to the quick turnover of the co-operative management board we sometimes have to start from
scratch” “Regardless how we perform, we can always be kicked out”“Other marketing agents adopt unorthodox methods to get
new business”“We work in an uneven playing ground, we lack proper
rules of the game”“The CBK is failing and not independent”
“The MoA, MoCD and the CRF do not provide agricultural extension”
“The climate is changing and coffee is a vulnerable crop
to climate”
Political Economical Social Technological Environmental
“We see estates disappearing”
“Smallholders are quitting coffee
farming”
Climate Change Adaptation and Mitigation in the Kenyan Coffee Sector
Exporters say:
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(Local exporters): “Marketing agents are very powerful”
“The sector is working very inefficient”“It is made impossible for us to vertically integrate”
“There is corruption everywhere”“We have to deal with a very poor government
performance”“We pay high taxes to keep all those governmental
bodies running”“A fully liberalised sector would work better for
everyone”
Political Economical Social Technological Environmental
“Coffee is increasingly traded trough illegal
routes”
“Things would be much better if there was more
coffee available for trade”
“We are suspected of price agreements and cartel forming”“We are excluded in
multi-stakeholder dialogues”
Climate Change Adaptation and Mitigation in the Kenyan Coffee Sector
The KCPTA says:
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“The relation between co-operatives and marketing agents is vulnerable
and short lasting”“The CBK is dominant and dictating
what we have to do”
Political Economical Social Technological Environmental
“Input financing by marketing agents causes tensions
between them and financial institutions”
“Illegal trading of coffee is happening”
“Hijacked coffee transports are reported”
“The coffee production of Kenya is declining”
Climate Change Adaptation and Mitigation in the Kenyan Coffee Sector
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6. Cause & effect – Coffee production
Less incentives
to farmers to invest in quality
Decreasing coffee quality
Decreasing coffee yields
Payments to
farmers according
overall wet mill quality
Decreasing margins for chain actors
Increasing volumes of
coffee traded through
illegal routes. Currently 5 –
8%
Decreasing volumes of coffee available
in the chain
(Young) farmers
quit coffee
farming
Erratic rainfall
patterns
Climate change
Outdated farming
techniques
Increasing temperatures
Farming systems
vulnerable to climate
change
Delayed payments to
farmers
Complex and slow payment
systems
Wrongly timed
fertilisationand crop
protection
Moderate processing
performance at wet mills
Coffee is hardly
profitable for
farmers
Lack of knowledge
Dated machinery
Lack of knowledge
Pests & diseases, soil
erosion, leaching, etc.
Lack of knowledge
Rising costs of inputs
Low coffee price
Hijacked coffee
transports
Farmers selling at hawkers
Poor access to credit
Untrained staff
Untrained farmers
Untrained farmers
No collateral
Climate Change Adaptation and Mitigation in the Kenyan Coffee Sector6. Cause & effect – Sector governanceDecreasing margins for chain actors
Complex, bureaucratic
and in-transparant
chain
Farmers have rarely
insight in the breakdown
of payments
Corruption and withholding money
throughout the chain (with farmers
at the end of the payment chain)
No “rules of the game”
Unorthodox marketing
agents
Short term or no vision of
co-operatives
Lack of loyalty towards
marketing agents
Vulnerable and short lasting
relations between co-operatives and marketing agents
The “benefit reaping” stage
of the collaboration is not reached
Government personnel with own interest in the coffee
sector
Biased policy design
Outdated governance
systems
Outdated knowledge
government personnel
Government fails in setting sound sector
regulation and regulation
enforcement
Highly cost inefficient and complex sector
structure, no “rules of the game”
Understaffed governmental
extension offices
Outdated knowledge
government personnel
Demand driven
extension
Insufficient and outdated government
extension
Private sector takes over extension
CRF unable to extent science to
farmers
Drastically decreased
coffee exports
No government
subsidies after
liberalisation
Budget cut CRF: 50% staff cut CRF: 70%
Budget CRF
based on 2% export
tax
Extra cost for the private sector on top of the taxes
Sector systems and processes are vulnerable to corruption
Poor organisational
capacity of co-operatives
Climate Change Adaptation and Mitigation in the Kenyan Coffee Sector
7. Focus points for improvement
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Organisation of extension structures
Sound sector regulation
Corruption prevention
Climate Change Adaptation and Mitigation in the Kenyan Coffee Sector
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gtz
Henk van RikxoortSangana PPP Intern
P.O. Box 41607-00100Nairobi, Kenya
P (Kenya) +254723354294P (Europe) +31618187108M [email protected]
Contacts
gtz
Kerstin LinneProject Coordinator
Postfach 518065726 EschbornGermany
P +496196793004M [email protected]