Question: How profitable is coffee farming in Kenya?

Coffee is one of the major cash crops in East Africa. … According to Coffee Research Institute (CRI), a farmer can earn more than KSh 640,000 per acre per year. Assuming you have 10 acres, you will make more than 6.4 million per year.

How much can you earn from 1 acre coffee plantation?

Total revenue generated from one acre of coffee plantation (No. of bags* Price of bag) = 08 bags * Rs. 9,500 = Rs. 76,000/-.

Is coffee farming profitable?

Productivity And Profitability

In most cases, this means that the farmer’s investment starts to pay off after three years or so. Fundamentally, this means it takes years for coffee production to become profitable. … João says: “The world produces about 170 million bags [of coffee per year].

Which is the most profitable farming in Kenya?

Tomatoes are one of the most profitable crops to plant in Kenya. Though the crop performs depending on seasons, there are high chances consistent farmers would make huge returns from the sales. Tomatoes can be harvested twice a year.

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How much does an acre of coffee yield?

Considering 1000 coffee trees of Robusta in an acre, a farmer can harvest about 8,000 kgs in a year (there are two coffee seasons in a year), taking the average of four kilos per tree under average management.

Is coffee estate good investment?

It is a relatively comprehensive list of benefits. Some of them, particularly the guaranteed tax-free access to your money when you need it, is very valuable. One downside of a coffee plantation in India Investment is that you don’t get a tax deduction the first year you’re salting away your assets.

How do I start a coffee estate?

10 Basic Steps for Coffee Plantation

  1. Land Preparation. First of all, divide the land into blocks of convenient size with footpaths and roads laid out in between. …
  2. Nursery Practice. …
  3. Coffee Care & Management. …
  4. Soil Management. …
  5. Manuring. …
  6. Irrigation. …
  7. Weed Control. …
  8. Shade Tree Management.

Why are coffee farmers poor?

As farms shrunk, farmers earned less, and they found themselves trapped in a cycle of poverty. With less income, coffee growers were unable to reinvest in their farms–for example, by replacing old, unproductive trees and planting new, high-yielding ones–which led to further reductions in production and sales.

How much do farmers get paid for coffee?

The Research. Fairtrade International reports that as of 2019, small coffee producers receive less than $1.00 a pound (or $2.20 per kilo) for their beans.

What is the profit margin on coffee?

Turning to the product itself, coffee is a relatively low value item. You have to sell a lot of it to generate a substantial income. However, the profit margins are incredibly high, typically 90% or upwards.

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Can farming Make You Rich in Kenya?

Despite stable earnings for farmers in Kenya, the profession is mostly associated with older people living in rural areas. However, in recent years a new crop of young farmers has emerged. Armed with the knowledge of best practices, technology, and access to information on the best markets, they earn millions.

Can farming make you rich?

Another engineer, Harish left his government job to take up Aloe Vera farming in Rajasthan – which proved highly successful, earning him crores. Once he decided to farm on his ancestral land in Jaisalmer, one of the first things that Harish did was to get his soil tested by the agricultural department.

What is the most profitable crop per acre in Kenya?

Cabbage farming

Cabbage is arguably the most profitable crop per acre on our list and in Kenya at the moment. In a good season, an acre of cabbage can hold roughly 19,000 plants. Going by the current market price, such a number can comfortably fetch a farmer half a million shillings.

How many kgs can a coffee tree produce?

Currently, farms in the country produce 2- 3 Kgs per tree on average against a potential of over 30 Kgs per tree. There is need for farmers to improve productivity per unit area (Kgs per tree) so that they can increase their profit margin in relation to world prices.

What is the price of coffee today?

Key Data

Label Value
Last 2.4185
Prior Settlement 2.439
52 Week High 2.4985
52 Week Low 1.211

How long does coffee take to grow?

Depending on the variety, it will take approximately 3 to 4 years for the newly planted coffee trees to bear fruit. The fruit, called the coffee cherry, turns a bright, deep red when it is ripe and ready to be harvested. There is typically one major harvest a year.

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