Farmers risk losses over looming Macadamia export ban

Thousands of farmers are staring at a looming crisis as a ban on the export of raw macadamia is set to resume in November.

Senate Agriculture Committee chairperson, James Murango, said the ban on exportation of raw or in-shell macadamia was lifted for a year on November 3, 2023.

With the government silent on the matter, the Kirinyaga Senator said farmers now risk being stuck with the macadamia without anywhere to sell the nuts.

Consequently, the farmers could be left with a glut of produce, a situation that could drive down the price leading to massive losses.

The MP said that since the suspension of the ban, the price of macadamia has shot up to Sh140 per kilogramme, but if the ban resumes, then the price could go back to the previous Sh30 a kilo.

“We want the new Agriculture Minister Andrew Karanja to extend the suspension of the ban for at least another two years to ensure better returns for the farmers,” said Mr Murango.

“I have already written to the Ministry and we hope the CS will listen to the farmers. I hope we don’t return to the days when cartels used to exploit the farmers buying a kilo of macadamia at Sh30,” he added.

He argued that the extension of the authority to export the nuts would attract investors, especially the Chinese, who want to put up warehouses to buy from the farmers at better prices.

“Let any exporter buy the macadamia at the prevailing market price. Let agriculture and food authority not take us back to the dark days,” he said.

The Senator also said that he has moved an amendment of the AFA Act to do away with section 43 of the law, which prohibits the export of raw macadamia, except with written authority from the Agriculture Cabinet Secretary. 

“The Bill is in the second reading stage and it seeks to do away with Section 43 so that we can have a free market,” he said.

Section 43 of the AFA Act 2013 prohibits the export of raw (in-shell) macadamia, except with written authority from the Cabinet Secretary.

Former Agriculture CS Mithika Linturi in November last year directed the Agriculture and Food Authority (AFA) to authorise the exportation of raw or in-shell macadamia for a period of 12 months up to November 2.

He explained that the move is envisaged to open external markets, thus improving the farm gate prices given to the farmers, who in the recent past have experienced a myriad of challenges, which include low prices.

The CS also directed that all raw macadamia nuts destined for export be purchased from farmers at a negotiated minimum price of Sh100 per kilogramme.

He directed AFA to issue the requisite export licences to applicants on condition that they meet the prescribed conditions including meeting at least Sh100 per kilogramme requirement.

The CS observed that the Macadamia industry is experiencing serious challenges, including unfavourable prices that are being paid to Macadamia farmers.

Thus, he said, the prohibition of the exportation of raw macadamia has blocked the farmers from accessing external markets thus lowering the demand and resultant prices.

Subsequently, the exporters were required to purchase from the farmers at a negotiated price of not less than Sh100 per kilogramme.

“All those who possess a valid export license for macadamia kernels or in-shell are at liberty to export subject to provision of evidence of having paid the farmers at least Sh100 per kilogramme,” said the ex-minister.

The development followed a push by Senator Murango, who raised concerns that despite the high demand for macadamia nuts, both nationally and internationally, there has been a sharp decline in prices of macadamia, which has been retailing at Sh30 per kilogramme.

The Senate Agriculture Committee chairperson requested that companies that possess a trading license to export macadamia kernels or in-shell be cleared to export the nuts if they commit to buying the nuts for at least Sh100 per kilogramme.

He argued that the move would stabilise macadamia prices and shield farmers from unscrupulous middlemen who continue to exploit farmers.

[email protected]