Macadamia farmers across Mt Kenya, the Rift Valley and the Coast are staring at heavy losses after the government's export window for raw nuts closed with only a fraction of the expected volumes shipped.

More than 30,000 metric tonnes of in-shell macadamia nuts are said to be lying unsold in stores and on farms, according to stakeholders quoted by the Kenya News Agency, as farm-gate prices sink to some of their lowest levels in years.

700 tonnes out of an expected 14,000

The Agriculture and Food Authority (AFA) allowed the export of raw nuts between July and October, with the window closing on October 10. Industry players had expected about 14,000 metric tonnes to leave the country in that period.

However, AFA Acting Director-General Calistus Kundu reported that only 14 companies managed to ship a combined 700 metric tonnes through the Port of Mombasa before the deadline. After the window closed, the regulator blocked shipment of the remaining allocation.

In Nakuru, large-estate representative Jacinta Mwai said more than 5,000 metric tonnes from her area alone were waiting to be shipped.

Processors cannot absorb the crop

Kenya produces about 75,000 metric tonnes of macadamia a year, according to Taita Taveta stakeholder Moses Karasha, who said local processors simply do not have the capacity to take up the whole crop.

Kenya Macadamia Growers Association vice-chairman Mureithi Gichabi accused the regulator of "failing to facilitate the process despite exporters incurring costs" and warned that "inconsistent policies and regulatory uncertainty" were hurting the industry. He said some processing factories could close if the situation does not improve.

Murang'a farmer Jane Wambui said the glut has left growers with little bargaining power, forcing them to accept low prices from buyers. Value chain expert Peter Mwangi said the crisis mirrors one three years ago, when the then Agriculture CS Mithika Linturi temporarily lifted the ban on raw-nut exports.

Farmers in Murang'a, Nyeri, Embu, Meru, Kirinyaga, Uasin Gishu, Baringo and Taita Taveta are among those affected.

What the industry wants

Stakeholders have put several proposals before the government:

  • Extend the export window so dealers can meet contracts already signed with foreign buyers.
  • Amend the Agriculture and Food Authority Act to remove legal limits on exporting raw nuts.
  • Allow predictable, regular lifting of the ban on raw-nut exports to China, the main market, according to Nut Traders Association of Kenya vice-chairman Njiru Kathangu.
  • Create a government-backed fund, similar to the Coffee Cherry Advance Revolving Fund, to help processors pay farmers on time.

The Ministry of Agriculture had not publicly responded to the calls for an extension by the time of publication.

Photos: KNA/KBC (macadamia nuts in sacks); The Standard (macadamia nuts, file). Thumbnail design: HAMASTA MEDIA.