Tuesday, January 27, 2009

Addis and back

Well since I last logged on I visited Addis Ababa for some training and meeting. Ethiopia may be the home of coffee but there is a reluctance to share it! We visited the Commodity Exchange, where coffee is traded within fixed predetermined qualities and prices. This is a new institution and at the moment prevents any traceability of coffee or premium prices to be paid for certification. Hopefully this is a temporary situation, caused by a rush of blood to the head.

Travelling out for a meal in Addis is another of life's special experiences. As there were six of us we took two taxis. These are old seventies era Ladas, and look as if they have been rolled along the streets whenever they were short of tyres. In our vehicle the clutch screamed whenever gears were changed and the brakes felt a bit suspect. We set off in what we thought was the direction of the chosen restaurant, only for the driver to stop and run accross the road where he asked directions from another driver. On returning it was apparent we had been going in the wrong direction as we immediately did a 'U' turn in the middle of a double highway! We soon got off the main road and headed up darker streets where the small stalls looked as if they were lit for the occassion. By the time we alighted we were pretty shaken and took most of the first five minutes to recover from the experience.

Back in Nairobi we got the news that another farmers group had decided to partner with us. They are a big group with four wet mills and over 2000 members. They are situated on the eastern side of Mt. Kenya, in Meru District. The problem faced by these farmers is that they have too much capacity and cost and really ought to consolidate by closeing at least two of the wet mills. As one in particular has been paying low prices for cherry, there are fewer farmers delivering to that mill every season.

Tomorrow we are all going to a seminar entitled "Cost Cutting and Value Adding" to be held under the auspices of the East African Fine Coffee Association. There is no difference in Value Adding and Cost Adding, other than one's position. Kenya coffee is losing market share for a number of reasons, inconsistent quality, lower volumes and very high prices. All of these serve to narrow the market opportunities, and this is a trend we would like to help stop.

As a finale, there has been a recent medical paper published showing that the consumption of coffee is negatively correlated to developing dementia. So dont forget to have a cup or two!

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