Macadamia backlog prompts export ban review in Kenya

Macadamia growers in Kenya have renewed calls for government intervention to address challenges in the sector, including the possible temporary suspension of the ban on exporting raw macadamia nuts to help reduce growing stockpiles.

Speaking at a stakeholders’ meeting convened by the Agriculture and Food Authority (AFA) at KALRO Seeds in Thika, Mt Kenya Macadamia Cooperative Society chairman Gitonga Gathua said growers are facing difficulties due to a backlog of unsold produce.

According to Gathua, the meeting focused on challenges across the macadamia value chain, particularly the inability of processors and traders to purchase nuts from growers because of limited processing capacity.

“We had a very good meeting called by AFA to discuss the current teething problems affecting the macadamia sector and the bottlenecks existing within the value chain,” said Gathua.

He noted that many growers continue to hold large volumes of macadamia nuts in storage and on farms due to limited market capacity.

“Farmers are crying because a lot of nuts are still lying in stores and on farms. Statistics shared by AFA indicate that a significant portion of the current produce is still with farmers, yet they need to sell and get money,” he said.

Stakeholders discussed a number of proposals, including government-backed commodity financing to enable cooperatives to purchase produce directly from growers before supplying processors. Another proposal involved the temporary suspension of the ban on exporting in-shell macadamia.

Gathua said recommendations from the meeting would be submitted to the Cabinet Secretary for Agriculture, including a proposal to suspend the ban for at least six months.

“It has been extensively discussed, and suggestions have been made that it may be useful to suspend the ban for at least six months to clear the backlog,” he said.

He also warned that prolonged storage could affect product quality. “The farmers are crying and need to sell their produce. The longer the nuts remain in stores, the more they risk getting mouldy, which will affect both farmers and processors,” he added.

Acting AFA Director of the Nuts and Oil Crops Directorate John Athola acknowledged the challenges facing growers and said efforts are underway to improve market access and financing.

“We are aware of the challenges facing macadamia farmers, especially the struggle to secure reliable markets for their produce. The government is working on providing adequate financing to processors so they can buy nuts directly from farmers, while also partnering with county governments to promote value addition and strengthen the sector’s competitiveness,” said Athola.

The discussions come months after the government imposed a ban on in-shell macadamia exports as part of efforts to increase domestic processing and value addition.

Source: The Standard