CIC head says policy needed to regulate price

By HANNAH NERO
Coffee Industry Corporation (CIC) board chairman John Inerehu has suggested ways to regulate and set coffee prices through a national coffee policy.
“We have policy after policy to address different aspects of the production and sale of coffee, but none directly address coffee prices, meaning that these policies fail to maximise the output potential of the revenue that coffee can generate in the country,” he said.
“The CIC board is to review a business strategic plan that measures the outcome. Now, another national coffee policy has been drafted, without the input of the CIC board.
“This policy document should have been brought to the CIC board to approve the draft before going for stakeholders’ consultation, because there are various areas that the CIC board has to make formal so as to improve outcomes of production.”
Inerehu explained that the coffee price is a factor in determining the sale and production of coffee.
He said the only way prices were regulated was through the New York pricing on the global market, according to the five export grades.
In simple terms, coffee buyers regulate the prices for it to be set, which will be subject to unforeseen circumstances whenever coffee prices drop.
When this happens, the Government and the CIC have support programs in place to subsidise prices above the cost of production “so it does not defeat income”.
“What we are proposing is an alternative market option where we have a national coffee road map for 10 years,” Inerehu said.
“Potentially, for auctioning the coffee, so when prices are formally at an all-time low, this can be a means of stabilising the prices for coffee farmers based on the quality that potential buyers are made aware of through auction.”