Pyrethrum farming beats tea and coffee sectors in earnings

Despite facing underfunding challenges, the pyrethrum enterprise remains the most lucrative agribusiness sector in Kenya, according to the latest price list released by the Pyrethrum Processing Company of Kenya (PPCK).

Pyrethrum farmers in 19 growing counties are earning an average of Sh200 and a maximum of Sh750 for every kilo of dry flowers delivered to the Nakuru-based factory this year depending on the pyrethrin content. This is a massive improvement in payment in comparison to what tea, coffee and macadamia farmers are getting. Tea farmers earn an average of Sh59 for every kilo of green leaf sold while coffee farmers across the country are earning at least Sh80 per kilo of coffee berries. Initially, coffee farmers earned Sh20 per kilo in cherry advance. As for macadamia farmers, they are getting between Sh100 and Sh130 per kilo up from Sh30 last year.

“We pay our farmers according to pyrethrins content, and with a pyrethrin content of 0.80 per cent, farmers earn Sh200 per kilo while with a maximum of three per cent of pyrethrin content, a farmer earns Sh750 per kilo,” said PPCK Acting Chief Executive Officer Mary Ontiri.

At the moment, majority of the farmers in the 19 pyrethrum-growing counties are earning Sh350 per kilo.

The liberalised industry has four major private companies that process pyrethrum in Kenya with PPCK leading. Interestingly, private pyrethrum companies operating in Kenya, including two US-based firms, pay farmers a flat rate of Sh240.

With the ban on the use of highly hazardous synthetic pesticides across the globe, Kenya’s pyrethrum demand especially in high–end markets in Europe and America is increasing by the day as it is environmentally friendly.

The price of the final product has appreciated threefold with PPCK getting better payment of between Sh35,000 and Sh40,000 per tonne. A minimum of 1,000 tonnes can earn PPCK between Sh35million and Sh40million per sale depending on the Kenyan shilling against the dollar.

“Pyrethrum is earning me good money. It does not require a huge piece of land compared to other crops like tea, maize, coffee or macadamia,” said Baraza Njoroge, a farmer in Mau Narok, Nakuru County. Farmers have received Sh6.2 million in payment from PPCK in the last three years. According to projections and the increase in farmers venturing into pyrethrum farming, the state agency targets paying farmers Sh120 million at the end of this year.

“If this industry gets maximum support from the national government, it is capable of earning this country billions of foreign cash,” said Justus Monda, a director at PPCK.

The latest statistics at the Nakuru-based factory indicate that the number of farmers growing pyrethrum in Kenya has doubled from about 8,000 to 17,000 due to good earnings.