Been resting/unwinding in Chumani (Kilifi), the last few days & found some local economics in play. If you buy a coconut around Chumani stage you'll most likely get it at Ksh. 12/Ksh. 13 (Ksh.15 if you're green to the trade). Here's a short breakdown of how it gets to that price.
A coconut dealer agrees a price of Ksh. 6 per coconut with the coconut tree owner/farmer. He/she then has to pay Ksh. 1.50 per coconut to the person climbing the tree to throw down the nuts. The one gathering them into a heap at the bottom gets 50 cents per coconut...
The one removing the husks will get Ksh. 1 per coconut. That brings the total to Ksh. 9. Most times the dealer will have to collect the coconuts from several farms. If he/she has their own transport, he/she will leave the farms having spent Ksh. 9 per piece buying the product...
If he/she doesn’t have their own transport, there will be an additional labour cost of Ksh. 1 per coconut to have them transported to the stage in Chumani. Therefore, on average, a coconut dealer will have spent Ksh. 10 per coconut to get the product from the farms in Chumani.
If he/she sells them at Ksh. 13 in Chumani stage, the profit will be Ksh. 3 per piece. This is assuming the dealer doesn’t do all the above roles themselves. This is the trade around Chumani & may be different elsewhere. The price goes higher as the product moves to say Mombasa.
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