POTENTIAL Of Gis In KENYA

Special focus on Kenya coffeeCoffee Board of Kenya

GI Concept..

• A geographical indication (GI) – A tool used on goods that have a specific geographical origin and possess qualities, reputation or characteristics that are essentially attributable to that origin

The GI…..

• A GI promotes the economic and cultural value of a product

• The exclusivity through the linkage of the product quality and its geographical origin is of genuine commercial interest to any producer Kenya included

Kenya- A Land of diversity

Her strengths !!

• Population:- 41 million(estimated)• Land of contrasts- Mountains, valleys, rivers,

lakes and sandy beaches• Cultural diversity:- 42 ethnic communities• Positioning:- Across the equator• Economy:- USD 1200.00 per capita GDP• Major Exports:- Tea, Coffee, Horticulture

Cont…• Agriculture in this country is of high socio-

economic importance to the country, as it supports the livelihood for about 75% of the population.

• Thus the need to improve the value gained in the production and supply chain through branding of Kenyan farm products.

Kenyan coffee…

• The main growing areas include:-Central region- kiambu, Murang’a,Nyeri and KirinyagaEastern and Coast region-Embu, Meru,Machakos and Taita Taveta Nyanza region- Kisii, Nyamira and KuriaRify valley- Nakuru,Kericho, Baringo and NandiWestern region- Kakamega, Bungoma, Kitale and Mt. Elgon

The Background..• Coffee was introduced to Kenya by the French

missionaries in 1893..• Mainly washed Arabicas - Key varieties being SL28,

SL34, K7, R11, Batian, Blue Mountain • Production is elaborately structured into two distinct

production systems .Small-scale growers – 500 cooperatives and estimated membership of 700,000 farmers.Estate growers- numbering 3,411

• Mainly used for blending with coffee from other origins

Small scale sector

An estate farm

Kenya coffee Value ChainNo farmer Identity Or control afterAuction/Export

Grower/farmer

Wet mill/factory

Dry Mill

Marketing Agent

NCE-Auction Direct Sale

Dealer/RoasterDealer/Roaster Overseas

Buyer

ConsumerOverseas

Buyer/Export

Globally..

• Kenya is a minor coffee producer globally, • Highest production ever is 128,926 metric

tones in 1987/88. Average annual production is now at 50,000 tones .

• Kenya produces one of the finest arabica coffees in the world alongside Colombia, Ethiopia and Tanzania(ICO categorization)

Why “the” Kenya Coffee ? – Our Heritage !

• A unique micro- climate boosted by the presence of pristine indigenous forest in the red volcanic slopes makes Kenya coffee one of the best in the world.

• The succulent berries are individually picked, wet processed and dried under the natural sun.

• Highly elaborate traceability mechanism from the farm to the market.

The Product ...

• Full bodied, fruity, floral taste with deep aromatic overtones

Need for GI protection ?To capture the product uniqueness for higher value (not a commodity)Enable Product differentiationBring out the intrinsic attributesBuild on already existing Product reputationFocus on the niche- Higher value marketGrower ownership(Direct reward) through buyer linkages

The Roadmap..

Initial focus on dominant functional attributes which could linkthe product to the region where it is grown e.g location, soils,climate, management practices, traditional knowledge, etcSix regions with GI potential identified and each regional GI was to carry the name Kenya to indicate the country of originThe protection under the Trade Marks law since there is no GI legislation in place.National coffee standards and code of practice developedGeneric brand developed as an anchor for regional brands –Coffee Kenya

Coffee Kenya Mark

• Where are we ?• Coffee Kenya is locally registered as CTM in 2009 by KIPI (Reg No: 66945)• • International application via WIPO done in 2010. Reg No: 1076798• Expected to give identity and visibility of Kenya coffee in the global market. • Development of rules of application in progress..

Way forward• Generic with regional GIs

Coffee C

Coffee A

Coffee BCoffee B

Coffee D

Challenges..• No sufficient legal framework in place for GI

protection• Acceptability of GI by the trade fraternity is still low• The current production levels pose sustainability

challenges in terms of quantity and quality• Higher regard for some local coffees than others• Lack of data on coffee quality mappings and profiling• Expectations of outright price premiums by the grower

community.

opportunities

• The devolved system has given the county governments and stakeholders an opportunity to delineate products in their regions

• Many producers’ associations have undertaken significant own efforts to research document and market their products delineate

• Institutional structures for collective management of GIs are in place through either the cooperative movement or grower associations

• There is a deliberate government push at both the national and county level to develop and market local products.