POTENTIAL Of Gis In KENYA - Special focus on Kenya coffee Coffee Board of Kenya

POTENTIAL Of Gis In KENYA

   Special focus on Kenya coffee
      Coffee Board of Kenya

GI Concept..
• A geographical indication (GI) – A tool
  used on goods that have a specific
  geographical origin and possess qualities,
  reputation or characteristics that are
  essentially attributable to that origin

The GI…..
• A GI promotes the economic and cultural
  value of a product
• The exclusivity through the linkage of the
  product quality and its geographical origin is
  of genuine commercial interest to any
  producer Kenya included

Kenya- A Land of diversity

Her strengths !!
• Population:- 41 million(estimated)
• Land of contrasts- Mountains, valleys, rivers,
  lakes and sandy beaches
• Cultural diversity:- 42 ethnic communities
• Positioning:- Across the equator
• Economy:- USD 1200.00 per capita GDP
• Major Exports:- Tea, Coffee, Horticulture

Cont…
• Agriculture in this country is of high socio-
  economic importance to the country, as it
  supports the livelihood for about 75% of the
  population.
• Thus the need to improve the value gained in
  the production and supply chain through
  branding of Kenyan farm products.

Kenyan coffee…
            •    The main growing areas
                 include:-
            ™    Central region- kiambu,
                 Murang’a,Nyeri and Kirinyaga
            ™    Eastern and Coast region-
                 Embu, Meru,Machakos and
                 Taita Taveta
            ™     Nyanza region- Kisii, Nyamira
                 and Kuria
            ™    Rify valley- Nakuru,Kericho,
                 Baringo and Nandi
            ™    Western region- Kakamega,
                 Bungoma, Kitale and Mt. Elgon

The Background..
• Coffee was introduced to Kenya by the French
  missionaries in 1893..
• Mainly washed Arabicas - Key varieties being SL28,
  SL34, K7, R11, Batian, Blue Mountain
• Production is elaborately structured into two distinct
  production systems .
9 Small-scale growers – 500 cooperatives and
  estimated membership of 700,000 farmers.
9 Estate growers- numbering 3,411
• Mainly used for blending with coffee from other
  origins

Small scale sector

An estate farm

Kenya coffee Value Chain
No farmer Identity    Grower/farmer

Or control after
Auction/Export       Wet mill/factory

                          Dry Mill

                     Marketing Agent

      NCE-
     Auction                            Direct Sale

    Dealer/
                                         Overseas
    Roaster
                                          Buyer

     Overseas
   Buyer/Export            Consumer

Globally..
• Kenya is a minor coffee producer globally,
• Highest production ever is 128,926 metric
  tones in 1987/88. Average annual production
  is now at 50,000 tones .
• Kenya produces one of the finest arabica
  coffees in the world alongside Colombia,
  Ethiopia and Tanzania(ICO categorization)

Why “the” Kenya Coffee ? – Our Heritage !

• A unique micro- climate boosted by the
  presence of pristine indigenous forest in the
  red volcanic slopes makes Kenya coffee one of
  the best in the world.
• The succulent berries are individually picked,
  wet processed and dried under the natural
  sun.
• Highly elaborate traceability mechanism from
  the farm to the market.

The Product ...

• Full bodied, fruity, floral
  taste with deep aromatic
  overtones

Need for GI protection ?
  ƒ To capture the product uniqueness for
    higher value (not a commodity)
  ƒ Enable Product differentiation
  ƒ Bring out the intrinsic attributes
  ƒ Build on already existing Product reputation
  ƒ Focus on the niche- Higher value market
  ƒ Grower ownership(Direct reward) through
    buyer linkages

The Roadmap..

y Initial focus on dominant functional attributes which could link
  the product to the region where it is grown e.g location, soils,
  climate, management practices, traditional knowledge, etc
y Six regions with GI potential identified and each regional GI
  was to carry the name Kenya to indicate the country of origin
y The protection under the Trade Marks law since there is no GI
  legislation in place.
y National coffee standards and code of practice developed
y Generic brand developed as an anchor for regional brands –
  Coffee Kenya

Coffee Kenya Mark
• Where are we ?
• Coffee Kenya is locally registered as CTM in 2009 by KIPI (Reg No: 66945)
• • International application via WIPO done in 2010. Reg No: 1076798
• Expected to give identity and visibility of Kenya coffee in the global market.
• Development of rules of application in progress..

Way forward
• Generic with regional GIs

                              Coffee
                                A

        Coffee B

                                       Coffee C

                   Coffee D

Challenges..
• No sufficient legal framework in place for GI
  protection
• Acceptability of GI by the trade fraternity is still low
• The current production levels pose sustainability
  challenges in terms of quantity and quality
• Higher regard for some local coffees than others
• Lack of data on coffee quality mappings and profiling
• Expectations of outright price premiums by the grower
  community.

opportunities

• The devolved system has given the county governments and
  stakeholders an opportunity to delineate products in their
  regions
• Many producers’ associations have undertaken significant
  own efforts to research document and market their products
  delineate
• Institutional structures for collective management of GIs are
  in place through either the cooperative movement or grower
  associations
• There is a deliberate government push at both the national
  and county level to develop and market local products.