Sourcing Specialty Green Coffee From Kenya.

Kenyan specialty green coffee is a must have for any café, coffee shop or an importer. It is best known for its fullness, rich taste and flavor notes with crisp acidity. Kenya has become a popular coffee destination and origin with the SL-28 variety being widely adopted worldwide for cultivation and production. In this article we will take a comprehensive look at sourcing specialty green coffee from Kenya from processing to logistics and payment.

Coffee Production and Processing in Kenya.

There are 4 distinct coffee growing regions in Kenya that have varying qualities of coffee. From the west bordering Uganda, there is the Western and Lake region in areas such as Mt Elgon, Bungoma and Kisii. The rift valley region grows great coffee in areas such as Nakuru, Nandi Hills, Kitale among others, while to the East and South coffee grows in areas such as Voi, Machakos and Taita although not in large quantities.

Last but not least, Central Kenya and Mount Kenya region is perhaps the most popular. The climate here is cool and wet all year round giving rise to some great tasting coffee that take time to ripen and attain full maturity. Coffee in this region is described as fully bodied, crisp acidity with mellow flavors.

Main varieties include SL28, SL34, Ruiru 11, Batian and K7. Processing is a step that cannot be understated. Its importance and significance in the coffee value chain is of the highest priority. Kenya is best known worldwide for its washing process. In fact, most of Kenya’s coffee is washed. This process produces a clean, crisp and balanced cup. The coffee is first sorted to ensure only the red ripe cherries are heaped together at the cherry hoppers from where they flow to the pulping machines by gravity.

The red ripe cherries are taken to the pulping machines where the pulp is separated from the bean. After pulping, clean water takes the wet parchment to the fermentation tanks. The fermentation tanks are specially constructed to ensure that quality of the fermenting parchment is not compromised.

They are usually tiled and cleaned regularly. At the fermentation tanks, the wet parchment is exposed to the air for 36 – 48 hours to remove the mucilage after which the parchment is moved by clean water through washing channels to the soaking pits. During this phase, very clean water is used for dual purposes – moving and cleaning the parchment and pre-grading it depending on density.

Four distinct parchment types are obtained from this washing. Each flows to a different soaking tank. The densest is referred to as P1, followed by P2, P3 and PL for the lightest. Each of these grades is dried separately. Specialty green coffee from Kenya is obtained from the P1 Of late, due to demand and sustainability issues, there has been a surge in the number of processes being used on coffee. Natural processing with variations such as anaerobic fermentation, carbonic maceration is taking root with farmers praising these methods as more sustainable and with better rewards.

Honey processing is another process that is getting a lot of traction and attention in Kenya due to its superior quality cup. Farmers who are employing the honey process say that it fetches high premiums and eliminates the need for fermentation.

Quality Control of Kenya Green Coffee.

Quality control in the Kenyan green coffee value chain begins in the farm where a very detailed and thorough agronomic schedule is made available to the farmers. This includes planting times, pruning times and methods, change of cycle, fertilizers and other chemical sprays and a detailed nutrition regime.

During harvesting, only the red ripe cherries are picked. In Kenya, hand picking coffee is still the most effective way to ensure that only the red ripe cherries are picked. The under-ripe and overripe that are inadvertently picked are later sorted out for different purposes.

At the washing stations, the harvested coffee is sorted. Sorting is a big part of the quality control that is strictly enforced in Kenya. All the harvested coffee is laid out on tarpaulins where under strict supervision, the red ripe cherries are separated from all other.

Under ripe coffee, over ripe cherries, dried cherries, sticks, twigs, strings, stones, leaves and all other elements that are not red ripe cherries are picked out. The overripe and under-ripe are taken to the drying beds immediately for a different processing method.

Under ripe coffee does not fully develop during roasting and creates quakers which are a defect, thus lowering the coffee quality while the over ripe cherries have begun fermentation within the seed which gives a fermented and foxy look on them.

Grading in Kenya is a quality control step that is crucial. In Kenya, there are 7 distinct coffee grades, graded on the basis of both density and size. These include, from the biggest: E, AA, AB, PB(peaberry), C, TT, T.  Grades AA, AB and PB are considered specialty due to their superior cup quality. 

Grades AA, AB and E are the premium heavy grades. Once they are passed through the densitograder, the light ones form a grade known as TT. The light grades from C and PB are referred to as T. Lower quality grades are known as HE (Hulled Ears), UG1, UG2 (Ungraded 1 & 2), SB (Sorted Beans) For the naturally processed coffees, there are either Natural Heavy or Natural Lights. The naturally processed coffees are usually subjected to the floatation process. Before any processing, after delivery from the farm, the cherries are dipped in floatation tanks. The heavier cherries sink while the lighter ones float.

The floaters are dried and processed separately from the heavier ones. 

Cupping is perhaps the most important coffee quality control in Kenya that determines the coffee cup characteristics. Aspects such as acidity, body, flavour, balance, aftertaste, cup finish are evaluated during cupping. All coffee scoring above 80 points is considered commercial grade coffee while coffee scoring above 88 is considered specialty.

In Kenya however, there is a classification of coffee depending on the grade, shape, size, appearance, cup quality. In this classification, scores range from 1 to 10, with class 1 being exceedingly rare and of the utmost quality while class 10 is of inferior quality.

Getting Samples of Kenya Green Coffee

Sampling is a key step in coffee quality control in the Kenyan value chain. Before any transaction can take place, samples are drawn for analysis and evaluation which will be the basis for valuation. Samples are drawn at different stages of the process.

Millers get samples from parchment being delivered before the actual delivery date. These samples are used to prepare the milling statement. From this analysis, the farmer knows what to expect from his parchment. Includes the grade distribution and milling loss to be expected and the cup quality.

Marketing agents draw samples from the coffee lots for analysis. This analysis is used to value the coffee and keeping records. 

Nairobi coffee exchange: There are sale samples kept in the Nairobi coffee exchange that are available for the coffee dealers and importers. The dealers evaluate and analyze these samples and are able to gauge how much to bid for the coffee. These samples are evaluated before the auction date.

Direct Trade: Coffee roasters and importers  that engage in direct trade can also request samples. This may include offer samples, Spot Sample, Pre-shipment sample.

Buying Kenya Green Coffee

There are two distinct avenues of procuring Kenyan green coffee: 

(i) The Auction System – here, coffee is offered for sale at the Nairobi Coffee Exchange (NCE) by marketing agents who are licensed entities and appointed by the coffee producers. The highest bidder acquires that particular lot of coffee and after payment which is usually before 7 days, the buyer is issued with a coffee warrant that indicates that that coffee belongs to them. 

(ii) The Direct Trade System – this is the second option that buyers can employ to source for Kenya specialty green coffee. With direct-trade, producers will work with the buyer directly without the intervention of brokers or third parties. 

However, before any direct trade is conducted, the regulatory body – Coffee Directorate – requires the details of the transaction to be provided to them. This details will include the agreement, contract terms and samples of the green coffee. This is to ensure that the transaction is inline with the regulations of coffee trade in Kenya.

Direct trade can also involve the marketing agents in which case the Nairobi Coffee Exchange is bypassed. Coffee dealers who have specialized in Kenyan specialty green coffee have been licensed and are able to arrange for direct trades between their coffee importer/ Coffee roasters and the producers.

A marketing agent is a licensed entity in Kenya who offers green coffee for sale in the auction or with Direct trade on behalf of the farmers/producers. The marketers do not own the green coffee but are merely holding the coffee temporarily for the farmers until the coffee is sold. They are appointed by the cooperatives at the beginning of each coffee year which begins on 1^st October.

The agents get the green coffee from the millers after bagging and grading. The marketing agents organise the coffee into lots in a Catalogue. The catalogue lists all the coffee in possession of the agents and that is ready for offering at the Nairobi Coffee Exchange. However if the marketing agent is engaging in a direct trade with an importer, they provide the importer with a stock lot which is their  green coffee inventory.

After the coffee has been sold, the marketing agents issue coffee warrants and payment is made to the farmers minus the agents’ fees. The marketers also arrange for direct sales on behalf of the producers.

Whenever a coffee importer or coffee roasters  wishes to buy green coffee from a certain cooperative without passing through the auction, the marketing agents are licensed to arrange for this transaction.

To purchase coffee from the auction, one has to abide by several regulations including being a licensed coffee dealer/trader. 

Cooperatives sign contracts with the marketing agents if they are the ones who will be handling the sale of their coffee. Cooperatives with direct links to buyers and who are licensed to market their coffee sign the agreements and contracts with the buyers in the presence of witnesses and a legal team to vet the legality and legitimacy of the contracts.

Green Coffee Warehousing

In Kenya, ownership of coffee is confirmed by a coffee warrant. It is usually provided by either the warehouse company or the marketing agent, depending on the buying method used. Most coffee sold in and from Kenya are Green Coffee. Therefore, this coffee must be bagged and stored in an approved and licensed warehouse

Coffee leaves the cooperatives as parchment and is delivered to the millers for hulling and bagging. From the millers, the coffee is transported to the warehouses for storage awaiting sale. All this is made possible by specially prepared trucks that won’t compromise on quality of the coffee. Due to security concerns, the coffee is always accompanied by security forces while in transit.

There are several warehouses in Kenya that provide storage services alongside other crucial specialty green coffee processes. Some warehouse companies include Cafe Logistiques, Bollore and C Dormans. Bagging, vacuum sealing, color sorting and even logistics are also offered by these warehouse companies.

When shipment arrives in the U.S, the green coffee should be stored in an environment with limited moisture to keep the green beans fresh if you are not using a warehouse service provider. If you need a warehouse service provider to store your green coffee, a few options to consider are Continental Terminals Annex and The Green Room, both are certified warehouses to store your green coffee.

Green Coffee Logistic

Logistics, shipping and transport is a key step in the coffee trade business. The coffee has to be exported through the port in Mombasa because Mombasa port is the only origin port used for shipping coffee out of Kenya.

Before exporting, the green coffee has to be inspected by the health inspectorate to assure that it fulfils all the requirements for human food. A phytosanitary certificate is issued for each lot upon satisfactory evaluation of the green coffee.

Kenyan specialty green coffee can be exported either as FCL or LCL. These are shipping terms that describe how much coffee is being shipped. FCL means a container is full of coffee but in some cases, the green coffee will be exported as LCL meaning it is less than the container load. This flexibility allows for the smaller coffee shops who don’t need a whole container to source for the Kenyan specialty green coffee from the origin.

Another aspect to consider in green coffee logistics  is the Incoterms. Incoterms specify who is responsible for paying for and managing the shipment, insurance, documentation, customs clearance, and other logistical activities. The most widely used intercom in green coffee trade are FOB, CIF and CRF, so it is important to agree on these terms with the producers prior to shipment. All agreed upon shipping terms should be documented in the contract with the producers to ensure that both parties are aware of their obligations.

Green Coffee Payment

Coffee farmers and producers are usually paid via the bank wire. After the cooperatives receive the payment, money is transferred to the accounts of the respective farmers. In some cases, cash is still the medium of payment.

Bankers cheques are still a very common medium of payment for coffee. Direct deposits are also widely used for transactions while in the direct trade system, the Kenyan specialty green coffee can be paid for via Mobile Money Platforms such as Airtel Money or M-Pesa. 

However, there are large plantation farmers who do not rely on the cooperatives for marketing or processing. In this case, they are able to market and trade their coffee to buyers. They are capable of signing agreements and contracts indicating the coffee particulars such as amount, quality, variety, farm location, grade, processing method among others.

These farmers also agree on the payment terms which may include mobile money, cheques or direct deposits. Rarely does cash apply in this situation.

With the introduction of  Modern Digital Agricultural Commodities Sourcing Platforms such as AGnimble, sourcing for Kenyan specialty green coffee has been simplified. Irrespective of the size of the buyer, the platform is revolutionizing the way green coffee from Kenya is sourced.

AGnimble allow buyers to connect with producers, issue purchase orders , order of samples, arrangement of logistics and collaborate, all in one seamless platform.