Farmers decry worst macadamia prices in years, demand export ban review

Macadamia produce on a farm after harvest at Gatitu Village in Nyeri. [File/Standard]

Macadamia growers have expressed disappointment over the prevailing low prices following the ban on the export of the unprocessed nuts.

The growers plead with the government to allow them to export 30 per cent of unprocessed nuts of the annual production to the Chinese firms.

On average, the annual production of macadamia is 61,000 metric tonnes, earning farmers in excess of Sh4.5 billion. 

According to Macadamia Growers of Kenya’s official Mr Muriithi Gichabi the government should support the farmers to access better prices instead of imposing regulations. 

He described the low prices as a threat to frustrate the farmers, as the processors favoured by the government are unable to exhaust the production in the farms.

“The processors are holding millions of shillings from the agents, affecting their businesses. If the situation is not handled next year, it will be worse,” said Gichabi, a farmer in Kiamutugu village in Kirinyaga.

Gichabi has castigated the AFA for failing to ensure the players within the nut value chain follow the regulations imposed.

“There is only one factory that has a list of the farmers, as imposed by the regulator,” said Gichabi. 

Nut Traders Association of Kenya Chairman Johnson Kihara blamed the government for failure to suspend the sections of the regulations that bar the export of the in-shell.

Kihara said the traders in the in-shell business have this year lost tonnes of the commodity after the ban, which was imposed without notice.

“The dealers are pleading with the Agriculture CS Mutahi Kagwe to suspend the regulations to enable the agents to export the nuts,” said Kihara. 

Kirinyaga Senator Kamau Murango faulted Agriculture and Food Authority AFA for disappointing the nuts market by imposing unpopular regulations on the sale of in-shell.

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

Magdalene Mwangi, a farmer in Ndia, said the macadamia has registered the lowest payment of between Sh40 and Sh70 per kilogramme, down from last year's between Sh100 and Sh140.

“The farmers want the government to come up with the formulae that will salvage the macadamia industry through allowing the export of in-shell nuts to the Chinese market,” said Mrs Mwangi.

AFA Director General Dr Bruno Linyiru insists that the ban on the export of raw macadamia nuts has tamed theft and harvesting of immature nuts, a trend that had affected the villages.

He said the ban on the export of in-shell remains active; as the processing is done locally, the shell will produce charcoal and organic fertiliser.  

“The export of nuts to the Chinese undermines Kenya's market share in Europe, among other destinations,” said Linyiru.

Dr Linyiru underscores the surveillance and reports from stakeholders that have highlighted the rise in malpractices within the macadamia nut 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 unauthorised trading, among others,” said Linyiru.