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Heat Over Tetu Coffee Deal

Divisions have emerged among coffee farmers in parts of Nyanza Province over a decision by some growers to enter into a marketing deal with the US-based Tetu Coffee Inc.

A group drawn from four districts yesterday disowned the resolutions, saying they needed time to consult."As farmers, we ought to be fully sensitised on the operations of Tetu Coffee Inc. before entering into any deal," said Mr Peter Onyango from Rachuonyo.

Another farmers' representative, Mr James Onwonga, from Nyamira said: "Farmers' meetings should be held where a representative from Tetu Coffee Inc. will be invited to convince them why they should deal with the US-based private firm."

Addressing a press conference in Kisii Town yesterday, the farmers said the 200 representatives who met last week in Kisii and welcomed the new player, blundered by failing to consult the farmers.

"We urge the Cooperatives minister to bar the Tetu Coffee Inc from confusing farmers through its sponsored special general meetings," said Mr Ondari Bogonko from Gucha.

"If the US firm is serious, it should first convince the Government that it is a serious player instead of rushing to sign deals with ignorant farmers," warned Mr Bogonko. Last week, coffee growers from parts of Nyanza Province resolved to enter into negotiations with Tetu Coffee Inc. which has applied to act as an agent in the marketing of Kenyan coffee in the US.

Speaking on behalf of over 100,000 farmers during a meeting attended by 200 representatives at the Gusii Institute of Technology in Kisii, Mr Bogonko said they needed a central marketing agent for their produce.

At a meeting chaired by the Nyanza Coffee Board of Kenya manager, Mr William Epai, and Kenya Planters Co-operative Union (KPCU) area manager, Mr Kandia Karo, the coffee growers, set conditions for Tetu Coffee Inc.Among the conditions is that Tetu Inc. undertake to provide a bank guarantee from a reputable bank equivalent to delivered but not paid for coffee.


"We are asking the Government to ensure the idea by the proposed new coffee market player is not turned into a scheme to con Kenyan farmers," said one representative.

The initiative to purchase coffee directly from the growers and market it in the USA, will be done under a three-year joint coffee promotion pilot project -Single Origin Coffee Marketing Research Project- to be undertaken by both the Board and Tetu Coffee Inc.

Cooperatives minister Njeru Ndwiga has already cautioned against the Tetu Coffee Inc plans saying the matter needed a lot of scrutiny.