Kenya Planters Cooperative Union (KPCU) announced plans to begin trading next year, reports Daily Nation. KPCU chairman William Gatei said they are set to enter into partnership for the new financial instrument launched by the Nairobi Securities Exchange last week.
“KPCU has identified partners in order to enter into derivate markets and warehouse receipt system to only handle coffee but also other foodstuffs.
The derivatives market will provide advantages such as minimal upfront investment and lower transaction costs.
The KPCU is a farmers wholly owned institution, whose membership comprises of over 700,000 small scale farmers represented by over 300 Co-operatives and about 2,000 Estate farmers owning small, medium and large-scale farms.