DR. REGINA MWANGI - COFFEE VALUE ADDITION

1. COFFEE VALUE ADDITION
BY
DR. REGINA MWANGI
DEDAN KIMATHI UNIVERSITY OF
TECHNOLOGY

2. Dedan Kimathi University of Technology
Better Life Through Technology
COFFEE VALUE ADDITION Def’
The difference between the sale price of a finished product
and the cost of producing it (Porter, 1980)
A series of progressing activities or processes which aim at
creating and adding value to a product at every step during
the production process towards a finished product and
must also occur in the proper order (Ensign, 2001)
As coffee moves along the different stages of the value
chain, it results in the higher price of the product owing to
the value added to it.
• Coffee value addition at the higher end of the value chain
entails: Blending, roasting, grinding, branding and
packaging coffee for consumption
27/05/2022 DR. REGINA MWANGI, PhD. 2

3. 27/05/2022
DR. REGINA MWANGI, PhD. 3
Ground coffee
Roasted coffee
Raw/Green coffee
Brewed coffee
PARCHMENT MBUNI
Secondary processing level
COFFEE CHERRY
Packaged coffee

4. Dedan Kimathi University of Technology
Better Life Through Technology
VALUE ADDITION
27/05/2022 DR. REGINA MWANGI, PhD. •4
Kenya has a history of selling raw green coffee with limited
value addition practices due to:
Unaffordable equipment
Inadequate skills, capacity-the Art of coffee brewing
Lack of market/marketing strategies
Coffee farmers receive 7% of total price of raw green coffee
exported
Value Addition as a culture would drive the sustainability of
coffee industry
“Coffee is not always coffee”

5. Dedan Kimathi University of Technology
Better Life Through Technology
VALUE ADDITION AT DeKUT
27/05/2022 DR. REGINA MWANGI, PhD. •5
Coffee cupping Lab
Blending, roasting, grinding and packaging
Training/Capacity building
Coffee shop-promotion of coffee consumption
Coffee-based products (yoghurt, cakes, cosmetics, Cakes)

6. Dedan Kimathi University of Technology
Better Life Through Technology
WHY VALUE ADDITION?
a) Increased gross margins/returns
b) Employment creation (Youth and women)
c) Food sustainability-Improve the livelihood of producers
d) Increased domestic coffee consumption
e) Adding value close to the sites of production is not only
important but economically plausible.
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7. Dedan Kimathi University of Technology
Better Life Through Technology
WHAT NEXT?
Value added coffee in Kenya ~1,500MT ~4% annually
SOME STRATEGIES TO INCREASE VALUE ADDITION
a) Collaboration with private sectors
b) Enhancement of value addition skills
c) Zero-rated materials for coffee packaging
d) More research on value addition technology
e) Affordable credit
f) Product diversification
“COFFEE remains the OIL of KENYA to GREASE its
ECONOMIC WHEELS”
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