“I think that is the biggest problem, but then you cannot blame the exchange for that,” Mr Mbithi said. Text the word 'NEWS' to 22840Coffee marketers are allowed in law to find foreign buyers directly in an arrangement called direct sales, which bypasses the NCE, where price discovery is through bidding. Subsidiaries of multinationals, including global commodity leaders, are involved in the management of smallholder farms through their respective co-operative societies. The firms, often through separate companies, have established milling operations that allow them front row access to ready beans. Direct sales were permitted, but under strict regulation, to allow foreign buyers who want coffee beans bearing specific attributes such as aroma and acidity.

Source: Standard Digital April 23, 2018 05:26 UTC