KENYA · GUIDE 0007 · EDITION 4.2
Price Coriander Bunches in Kenya: Calculate Costs and Cash Flow
Price the accepted product
A useful price is tied to an agreed unit. Establish whether a bunch includes roots, how stems are trimmed and whether the buyer expects an approximate weight. If two kitchens want different formats, calculate their preparation and packaging costs separately. A quoted price per bunch is misleading if one customer regularly rejects material that another would accept.
Count what was sold
Record the number prepared, rejected or returned, and accepted. Track direct expenses for that delivery: seed and water allocated to the crop, harvesting and sorting labour, packing material, transport and any other attributable costs. Include the cost of separating tangled stems and making small deliveries. Some costs are paid earlier than the delivery day, so keep both the delivery calculation and a cash ledger.
Worked example: invented numbers
Every amount in this example is invented for arithmetic practice; it is not a Kenya market quotation. Suppose a grower prepares 60 bunches and 10 are rejected before sale. The buyer accepts 50 bunches at KSh 20 each. Revenue is 50 × 20 = KSh 1,000. If direct costs assigned to that delivery total KSh 700, the contribution is KSh 300 before overhead, equipment replacement, finance costs and tax.
The direct cost per accepted bunch is KSh 700 ÷ 50 = KSh 14. If the customer pays KSh 600 at handover, KSh 400 remains outstanding. The KSh 1,000 sale and KSh 600 cash received answer different questions: the unpaid balance is not cash available to buy the next inputs. If more bunches are rejected, recalculate using the actual accepted quantity.
Agree payment and compare routes
Before supplying, discuss unit price, delivery charge, inspection, payment date and how disputes or returns are handled. Record what was agreed. Compare a nearby customer collecting a larger order with several small drops that require separate trips. A lower quoted price can still produce a better contribution if the cost of serving the order is lower, but check the numbers for the actual route.
Review rather than guess
After each pilot delivery, reconcile accepted units, payment received and outstanding balances. Compare actual expenses with the budget and update the next quote. Do not treat the fictional contribution as guaranteed profit or a local market price. The FAO reference provides general postharvest context; it does not supply the example's prices or establish a specific commercial outcome.