Relief for macadamia farmers as state extends permit to export raw nuts

The government has extended the export of raw macadamia nuts for at least six months, offering a reprieve to farmers who were facing a crisis with the resumption of the ban just months away.

The latest development comes after a push by senators, led by Senate Agriculture Committee Chairman James Murango, to extend the resumption of the ban, due on November 2, 2024.

The ban on the export of raw or in-shell macadamia nuts was lifted on November 3, 2023 for a period of one year.

However, Senator Murango wrote to the department expressing concern about the expiry of the grace period, saying thousands of farmers across the country were now at risk of being stuck with the macadamia with nowhere to sell it.

Appearing before the committee on Thursday, Agriculture Cabinet Secretary Andrew Karanja said the ministry would extend the period for another six months while it worked on a permanent solution.

"We will look at the request and have a six-month extension while we carry out public participation on the way forward," Mr Karanja said.

Section 43 of the AFA Act 2013 prohibits the export of raw (in-shell) macadamia except with the written approval of the Cabinet Secretary to the Ministry of Agriculture.

The softening of the government's stance comes despite the CS saying the government would not extend the deadline beyond November 2 this year.

The minister said the tough stance was aimed at protecting farmers from brokers and ensuring that the local processing industry thrives by ensuring that there are enough nuts for local processors.

The CS explained that Kenya benefits more from exporting processed macadamia nuts (kernels) than from exporting in-shell (raw) unprocessed macadamias.

He argued that the export ban will not affect farmgate prices as there is currently high demand for raw nuts from 41 macadamia processors in the country with a processing capacity of more than 120,000 tonnes.

However, processors have reported that they have not been able to meet their export orders for kernels in the past as they are operating below their processing capacity.

"It is worth noting that the current marketing system is dominated by middlemen who unethically undermine the farmers' margins. They buy all macadamias from farmers, whether they are destined for local processing or for export in shell," the CS said.

The CS promised that the government would put in place a mechanism to determine farm-gate prices to avoid exploitation of farmers.

"The ministry through the Agriculture and Food Authority will engage relevant stakeholders and farmers to come up with minimum prices," Dr Karanja said.

The senators, however, maintained that farmers will be the worst affected if the ban is not extended as they will be left with a glut of produce, a situation that could drive down the price resulting in massive losses.

Mr Murango said public participation would take time and if the ban was reinstated, it would affect individuals or companies who had bought the nuts with the expectation of exporting them.

"I am a large-scale macadamia farmer and if the ban is reinstated, I will not be able to sell my nuts because exporters will not want to be stuck with the nuts. That is why we are asking for an extension of at least one year," he said.

Bungoma Senator David Wakoli also called for an extension of one year while public participation continues.

"Let the price take into account the cost of production because our role is to protect the farmer," said nominated Senator Beth Syengo.

Mr Murango also raised the issue of enforcement, saying the minimum price is set but there are those who buy from farmers for less than Sh80.

"In the last 14 months, exporters earned Sh8.7 billion against Sh2.3 billion from exporting raw macadamia at an average price of Sh161 per kilo. This shows that the beneficiaries were the processors and not the farmers who were paid Sh30 per kilo," he said.

He said the market should be a free one where a farmer can sell to whoever offers the highest price, adding that zoning protects processors at the expense of farmers.

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