Macadamia farmers in central Kenya decry poor prices, blame ban on export of raw nuts

Macadamia farmers in central Kenya decry poor prices, blame ban on export of raw nuts

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Farmers drawn from counties in Mt Kenya region have decried poor macadamia prices attributing it to the ban on export of unprocessed nuts.

In a press briefing on Tuesday in Murang’a, the farmers led by their association leaders claimed that currently, prices of macadamia have dropped to between Ksh40 and Ksh70 down from last year’s prices which ranged between Ksh100 and Ksh140 per kilogramme.

The farmers asked the government to allow them to export at least 30 per cent of their production to the Chinese market which has high demand for unprocessed nuts.

Macadamia Growers of Kenya Association official Muriithi Gichabi requested the government through the ministry of agriculture to support farmers access better prices from the emerging markets.

He noted that the ban on export of unprocessed nuts leaves farmers counting losses as the local licensed processors cannot exhaust all macadamia production from farms.

“As we speak, Kenyan macadamia processors are holding millions of shillings from the agents that affect their businesses. If the situation will not be handled urgently, next year it will be worse,” said Gichabi, who is also a farmer in Kiamutugu village in Kirinyaga.

The macadamia grower further faulted the Agriculture and Food Authority (AFA) for failing to ensure the players in the nut value chain followed the regulations imposed.

“There is only one factory that has a list of the farmers, as imposed by the regulator. Others rely on brokers. AFA should ensure all factories adhere to regulations,” Gichabi said. 

Nut Traders Association of Kenya Chair Johnson Kihara blamed the ministry of agriculture for failure to suspend the sections of the regulations that restrict export of in-shell nuts. He observed that traders in the in-shell nut business have this year lost tonnes of the commodity after the ban which was imposed without a notice. 

Kirinyaga Senator Kamau Murango who joined the farmers also faulted AFA for disrupting the nuts’ market by imposing unpopular regulations on sale of unprocessed macadamia.

“In other macadamia-producing countries like Zimbabwe and Australia, there is a state formula on export of in-shell and processed nuts. Kenya should follow suit to ensure fairness,” the Senator said.

In a rejoinder, AFA Director General Bruno Linyiru insisted that the ban on the export of raw macadamia nuts has tamed theft and harvesting of immature nuts.

Interviewed by phone, the director said the ban on export of in-shell nuts remains active with processing being done locally. He said the shells are used to produce charcoal and organic fertilizer.  

Linyiru regretted that stakeholders have highlighted rise in malpractices within the macadamia nuts sector that compromised the integrity of the supply chain and undermined the reputation of Kenya’s Macadamia industry.

“The malpractices in the macadamia sector include harvesting of immature nuts, and unauthorized trading, among others.

“The export of nuts to the Chinese undermines Kenya’s market share in Europe among other destinations. Processing of the nuts locally also creates employment to thousands of youths in the factories,” Linyiru said.

Annually, average production of macadamia in the country is 61,000 metric tonnes, earning in excess of Ksh4.5 billion.

  • A Tell Media / KNA report / By Bernard Munyao
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