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Scope for improving technical efficiency of coffee processing by co-operative societies in Kenya

by Ndirangu, L.K.
Publisher: Nov 1995Subject(s): CAFE | PROCESAMIENTO | COOPERATIVAS | KENIA | COFFEE | PROCESSING | COOPERATIVES | KENYA | CAFE | TRAITEMENT | COOPERATIVE | KENYA In: Kenya Coffee (Kenia) v. 60(709) p. 2117-2120Summary: The various processing cost components in cooperative factories in Central Province were identified and their contribution to total processing cost variability analysed. To assess possibility of improving efficiency of processing coffee through improvement of technical efficiency, factories were categorized into four groups and variation in group averages assessed. The results showed that apart from processing material cost, the factory groups differed in their ability to keep unit cost of the other components down; that is labour, power and repair and maintenance costs. The unit cost of processing was shown to decline as output (volume of cherry handled) increased. It was concluded that, ther is scope of improving technical efficiency of coffee processing by co-operative factories through expansion of cherry volume.
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The various processing cost components in cooperative factories in Central Province were identified and their contribution to total processing cost variability analysed. To assess possibility of improving efficiency of processing coffee through improvement of technical efficiency, factories were categorized into four groups and variation in group averages assessed. The results showed that apart from processing material cost, the factory groups differed in their ability to keep unit cost of the other components down; that is labour, power and repair and maintenance costs. The unit cost of processing was shown to decline as output (volume of cherry handled) increased. It was concluded that, ther is scope of improving technical efficiency of coffee processing by co-operative factories through expansion of cherry volume.

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