Henk van Rikxoort - Stakeholder Analysis in the Kenyan Coffee Sector

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Henk van Rikxoort - Stakeholder Analysis in the Kenyan Coffee Sector

  1. 1. Climate Change Adaptation and Mitigation in the Kenyan Coffee Sector Sangana PPP Stakeholder Analysis in the Kenyan Coffee Sector Embu, Kenya – 12 May 2010 Henk van Rikxoort 1
  2. 2. Climate Change Adaptation and Mitigation in the Kenyan Coffee Sector Agenda1. Why a stakeholder analysis?2. Approach3. The sector in brief4. Sector output5. Stakeholders speaking6. Cause & effect7. Focus points for improvement 2
  3. 3. Climate Change Adaptation and Mitigation in the Kenyan Coffee Sector 1. Why a stakeholder analysis? To understand the dynamics of the project environment Stakeholder profiling: identifying the attitudes of relevant actors towards the project To be able to anticipate on the actions of other stakeholders apart form project partners Basis for strategic decisions 3
  4. 4. Climate Change Adaptation and Mitigation in the Kenyan Coffee Sector 2. Approach Literature study Interviews with key stakeholders Stakeholder mapping Power – potential mapping (Capacity WORKS) Stakeholder relationship mapping (Capacity WORKS) Cause & effect diagrams 4
  5. 5. ENABLING ENVRIONMENT Ministry of Co-operativeAdaptation Climate Change Development and Mitigation in the Kenyan Coffee Sector Ministry of Agriculture Kenya Kenya Coffee Coffee National Growers Board of Federation of Association Kenya Co-operatives Kenya Coffee Farmer Kenya Coffee Eastern African Co-operative Producers & Training Traders Fine Coffees Unions (30) Traders Centers (30) Association Association Association Co-operative Smallholders Societies (700.000) (430) Nairobi Exporters OffshoreVALUE CHAIN Coffee (32) Buyers Exchange Small Estates Marketing <15ha Millers (8) Agents (8) (2500) Local Second Roasters Window Estates (4) >15-20ha (329)SERVICES Co-operative Coffee Bank of Kenya Input Transport Research Warehousing (among Suppliers services Foundation others)
  6. 6. Climate Change Adaptation and Mitigation in the Kenyan Coffee Sector 4. Sector outputPARAMETER: FIGURE: SOURCE:Export volume: 2.1 million bags (1987) ICO (2008) 0.9 million bags (2007)World market share: 3.1% (1986) ICO (2008) 0.6% (2008)Yields/hectare: 892kg/ha (1980) FAO (2008) 284kg/ha (2008) 698kg/ha (Arabica worldwide) FAO (2008) 995kg/ha (Ethiopia) 1160kg/ha (Rwanda)Premium grades: 20% (1993) Condliffe, K (2008) 10% (2003) 6
  7. 7. Climate Change Adaptation and Mitigation in the Kenyan Coffee Sector Smallholder farmers say: “We get a low price for our “Changing weather cherries” patterns impacts our“The costs of our inputs are rising” production” “We have poor access to credit”“Some of our colleagues quit coffee farming” “There is a lack of transparency in the operations of the co-operatives” “The youth “We have no access to any kind of “The quality of our moves away information” cherries is decreased from coffee “The payments for our cherries are during processing” production” delayed”“We lack knowledge on “There is corruption in various up to date farming forms” techniques” Political Economical Social Technological Environmental 7
  8. 8. Climate Change Adaptation and Mitigation in the Kenyan Coffee Sector Co-operative societies say: “High interests arereducing our payments to farmers” “Politics are influencing the way to manage a co-“It is difficult for us to get operative” funds” “Farmers are keen on power” “Farmers are spreading false rumors about the management board” “There is a gap between coffee growers and buyers” “Marketing agents bribe our farmers in order to get “A change in climate is business”impacting the production” “The MoA, MoCD and the CBK are supporting“We now have sometimes themselves instead of farmers” rains during the drying period of the parchment” Political Economical Social Technological Environmental 8
  9. 9. Climate Change Adaptation and Mitigation in the Kenyan Coffee Sector Estates say: “Climate change impacts are affecting both the quality and yields of our produce” Millers say:“The marketing agents are influencing co-operatives in their choice for a miller” “The coffee“The relation between co-operatives and marketing production is agents is very vulnerable” declining” “The milling contracts between the co-operatives and us are therefore changing all the time” “There is corruption involved” Political Economical Social Technological Environmental 9
  10. 10. Climate Change Adaptation and Mitigation in the Kenyan Coffee Sector Marketing agents say: “We see estates disappearing”“Smallholders are quitting coffee “The lack of loyalty from co-operatives makes our work farming” difficult” “Due to the quick turnover of the co-operative management board we sometimes have to start from scratch” “Regardless how we perform, we can always be kicked out” “Other marketing agents adopt unorthodox methods to get new business” “The climate is “We work in an uneven playing ground, we lack proper changing and coffee rules of the game” is a vulnerable crop “The CBK is failing and not independent” to climate” “The MoA, MoCD and the CRF do not provide agricultural extension” Political Economical Social Technological Environmental 10
  11. 11. Climate Change Adaptation and Mitigation in the Kenyan Coffee Sector Exporters say: “Things would be much better if there was more coffee available for trade” (Local exporters): “Marketing agents are very powerful” “We are suspected “The sector is working very inefficient”of price agreements “It is made impossible for us to vertically integrate”and cartel forming” “There is corruption everywhere”“We are excluded in “We have to deal with a very poor government multi-stakeholder performance” dialogues” “We pay high taxes to keep all those governmental bodies running” “A fully liberalised sector would work better for “Coffee is increasingly everyone” traded trough illegal routes” Political Economical Social Technological Environmental 11
  12. 12. Climate Change Adaptation and Mitigation in the Kenyan Coffee Sector The KCPTA says:“The relation between co-operatives and marketing agents is vulnerable and short lasting” “The CBK is dominant and dictating what we have to do” “Input financing by marketing agents causes tensions between them and financial institutions” “Illegal trading of coffee is “The coffee production of happening” Kenya is declining” “Hijacked coffee transports are reported” Political Economical Social Technological Environmental 12
  13. 13. Climate Change Adaptation and Mitigation in production 6. Cause & effect – Coffee the Kenyan Coffee Sector Decreasing margins for chain actors Decreasing Decreasing volumes coffee of coffee available quality in the chain Decreasing (Young) Increasing coffee farmers volumes of yields quit coffee traded coffee through farming illegal routes. Pests & Currently 5 – diseases, soil 8% Less Moderate erosion,incentives processing leaching, etc. to performance Coffee is farmers at wet mills hardly Wrongly Outdated to invest Farming profitable timed farming in quality systems for fertilisation techniques vulnerable farmers and crop to climate protection Lack of change knowledgePayments Lack of Poor access Delayed Erratic Increasing Low Farmers to knowledge to credit payments to rainfall temperatures coffee selling at farmers farmers patterns hawkers Dated Lack of priceaccording overall machinery knowledge Complex and Rising Hijacked wet mill Untrained No slow payment Untrained Climate Untrained costs of coffee quality 13 staff collateral systems farmers change farmers inputs transports
  14. 14. Climate Change Adaptation and Mitigation ingovernance 6. Cause & effect – Sector the Kenyan Coffee Sector Decreasing margins for chain actors Corruption and The “benefit Highly cost Extra cost for the withholding money reaping” stage inefficient and private sector on throughout the of the complex sector top of the taxes chain (with farmers collaboration structure, no “rules at the end of the is not reached of the game” Private sector takes payment chain) over extension Vulnerable and Sector systems short lasting Government fails in CRF unable to Insufficient and processes relations between setting sound sector extent science to and outdated are vulnerable co-operatives and regulation and farmers government to corruption marketing agents regulation extension enforcement Unorthodox Lack of loyalty marketing towards Budget cut CRF: 50% Outdated agents marketing staff cut CRF: 70% knowledge agents government Complex, Biased policy Outdated No personnel bureaucratic design governance government and in- Short term or systems subsidies Demand transparant no vision of after driven chain co-operatives liberalisation extension Government Outdated Farmers personnel knowledge Budget Drastically have rarely Poor with own government CRF decreased Understaffedinsight in the organisational interest in personnel based on coffee governmental breakdown No “rules of capacity of the coffee 2% export exports extensionof payments the game” co-operatives sector tax offices
  15. 15. Climate Change Adaptation and Mitigation in the Kenyan Coffee Sector 7. Focus points for improvement Organisation of extension structures Sound sector regulation Corruption prevention 15
  16. 16. Climate Change Adaptation and Mitigation in the Kenyan Coffee Sector Contactsgtz gtzHenk van Rikxoort Kerstin LinneSangana PPP Intern Project CoordinatorP.O. Box 41607-00100 Postfach 5180Nairobi, Kenya 65726 Eschborn GermanyP (Kenya) +254723354294P (Europe) +31618187108 P +496196793004M henk.vanrikxoort@wur.nl M kerstin.linne@gtz.de 16

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