The document discusses coffee value addition. It defines value addition as the difference between the sale price of a finished product and the cost of producing it, and as a series of processes that aim to create and add value to a product at each step. For coffee, this includes blending, roasting, grinding, branding and packaging. Kenya has historically exported raw coffee with limited processing due to lack of equipment, skills and markets. This means farmers receive only 7% of the final price. The document advocates for increasing value addition through collaboration with private sectors, skills enhancement, research and affordable credit to boost returns and livelihoods.

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”
27/05/2022 DR. REGINA MWANGI, PhD. 7

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