The Mountain Journal
Macadamia farmers are minting millions of shillings following the suspension of a regulation that barred the export of in-shell.
Last year, the farmers incurred major losses after the 51,000 metric tonnes failed to secure the market, owing to the depressed economy in the US, and Europe among other states.
The export window on shell nuts has been a relief to the sector as the price of the commodity, shot to between Sh100 and Sh120 per kilogramme targeting the Chinese market. Last year, the commodity was hawked at less than Sh20 per kilogramme.
This year harvesting starts on March 18 as farmers are lobbying for the removal of section 43 of the Crops Act to allow the commodity trade freely in the market, 2with those interested in processed products have an option.
In November last year, Agriculture Cabinet Secretary Mithika Linturi suspended Section 43 of the Crop Act 2013, allowing the export of the in-shell, ending hawking of the commodity.
The window will run for a year, expected to close on November 1, this year, as the traders are exporting more than 20 million kilogrammes of nuts monthly.
The Standard learnt to ship a container with 25,000 kilogrammes, a trader is paying pays Sh336,000, with KRA collecting Sh5,000 for taxes.
Mzee Gikara wa Ndiritu from Nyeri County says the opening of the window is a blessing, as this year the farmers are looking for a bright future through the export of in-shell to the ready market
Filled with joy, the farmers allied to the Mukarashu self-help group with 40 members in Nyeri county, said last year they lost a commodity worth Sh5 million.
“Last year farmers lost crop estimated at Sh5 billion, owing to the depressed market, with today we have a window to exploit and make a profit,” said Gikara.
Ms You Sang, a trader from China says there is a large market for the nuts that Kenya farmers on condition they are mature.
The demand for nuts in China has increased, Ms Sang said due to the large population in Asia.
“ Am in Kenya to supervise that I get the best product for the Chinese market, have four containers ready for export,” she said.
Fair Nut Company Factory in Thika is among the firms exporting the nut to China.
Chairman of the Nut Traders Association of Kenya (NUTAK) Mr Johnson Kihara says farmers have benefited from the export of in-shell deals, as processors reject the immature nuts.
The farmers, he said, are benefiting from the programme, with the hope that in a month the price could adjust to Sh150 per kilogramme.
“We are encouraging the farmers to increase their production and avoid dealing with the immature nuts,” said Kihara.
Nahason Mugi a macadmia nursery operator says the increment in the price, has been implicated positively with demand for seedlings.
“Since December farmers are buying seedlings an anticipation of a better future in nut production,” said Mugi.
Morris Nderi a farmer in Nyeri said last year the farmers incurred heavy losses due to the close of the market.
Nderi calls for the removal of the section of the Crops Act 2013 saying it has messed up the industry as some of the processors have been smuggling the shell through the border points.
AFA marketing officer Mr Kiragu Gathunya said as the harvesting season starts they will round up the unregistered dealers as they are implicated with the immature nuts, that compromise the market.
The regulator, Kiragu explains that a survey established that 75 percent of the agents contracted by the processing companies have not been registered as the regulators’ demand.
Two weeks ago, tonnes of immature nuts, were rejected by a processor as an agent forced to sell them to a tea processing factory in Kirinyaga to help recover some money.
“AFA has established surveillance systems to weed out the rogue players compromising the nut market, through immature nuts,” said Kiragu.
He spoke when there are fears that the processors could be proceeding to contract farmers in Nakuru, Kericho, and Uasin Gishu who own huge tracks of land and increased production with time.
“ Ensure you harvest mature nuts as the dealers might be forced to relocate to the new areas for those doing genuine business,” said Kiragu.
themountainjournal.co.ke
