Sasini Ltd on Friday announced plans for a Sh400 million macadamia factory as part of revenue diversification strategy for the plantations company.
The processing plant will be set up on a 20-acre farm next to its coffee mills in Kiambu county. The location is proposed for a Special Economic Zone, a protectionist area where manufacturers benefit from incentives such as tax holidays.
The Nairobi Securities Exchange’s listed firm has embarked on inter-planting of macadamia with coffee bushes, chairman Naushad Merali said.
“This is being planted at desirable spacing which will not compromise on coffee production,” Merali said. “We anticipate to generate a further Sh300,000 per hectare from this venture within the coming six years when we shall be at optimal production of macadamia nuts.”
Sasini macademia project manager Caroline Kiende said there were various varieties of macadamia in Kiambu, Muranga and Embu counties.
“The seedlings we have propagated will be ready to be handed to farmers in September next year as it takes seven years for the macadamia plant to fully develop,” Kiende said.
Addressing the 10th farmers open day at Sasini Coffee mills in Ndumberi, Kiambu county, Merali said the company has planted 6,000 seedlings in its coffee plantations. More than 20,000 seedlings are in nurseries which will be planted under the expanded pilot project, he added.
“The venture is part of the plan to diversify the coffee business and within six years , we shall have optimal production of macadamia nuts,” he said. “We are going to be different from other macadamia players since the company will link the farmers with local and global markets, and we have sent researchers across the globe to look for buyers who will pay the farmers well.”
The firm’s general manager and head of coffee operations James Muriithi rubbished reports that macadamia reduces coffee productivity when the two crops are interplanted. He argued that coffee and macadamia compliment each other if well-planted
“We expect competitors to start rumours to discourage the farmers against venturing into this new area, but we have deployed a team of agronomists and extension officers to sensitise farmers,” Muriithi said.
Merali called on the national and county governments to enhance security within coffee factories, citing rampant theft that has impoverished
farmers.
“We want dishonest business people dealing with stolen coffee to be ruthlessly dealt with in accordance with the law, and coffee directorate to revoke licences of coffee millers dealing with stolen coffee,” Merali said.
