Macadamia farmers are set to laugh all the way to the bank after the government announced the prices of the nuts will rise to Sh100 a kilo in the next two weeks.
This is even as senators pushed the government to allow the farmers export their produce and deal directly with outside markets to eliminate cartels and brokers.
Appearing before the Senate’s Agriculture on Tuesday, Crop Development PS Kello Harsama said they have told exporters to make sure they buy the crop at Sh100 from farmers up from the current Sh20 a kilo.
The committee is chaired by Kirinyaga Senator James Murango.
Murango has been the voice behind the push to permanently lift the ban on export of macadamia nuts to eradicate middlemen exploiting farmers.
The Kirinyaga senator has sponsored the Bill seeking to amend section 43 of Agriculture and Food Authority which restricts local farmers from directly exporting the nuts.
“We wrote to the Ministry to open up market for more exporters, and also help the farmers to increase the macadamia prices. We are glad they have done that,” Murango said.
On Tuesday, Harsama attributed the sharp drop in the price of macadamia from Sh200 a kilo to Sh20 a kilo to the Covid-19 pandemic.
“The reduction in price of macadamia is not the making of the ministry or Agriculture and food authority but a Covid-19 making. The global market has not recovered ever since,” Harsama said.
He added, “To ensure farmers are not taken advantage of, we have told exporters to make sure the price of a kilo of macadamia rises to Sh100 in the next two weeks.
The PS appeared before the panel to shed light on a statement sought by Embu Senator Alexander Mundigi on the state of macadamia nut production and marketing.
Senator Mundigi, who chaired the session, had expressed concerns on why the Agriculture ministry is not keen on letting the macadamia market to be free to allow for farmers to connect to the outside market directly.
“Allow us to amend the law to set the farmer free by allowing them to deal with the market directly,” Makueni Senator Dan Maanzo said.
However, Harsama said the ministry has been opening up the macadamia market to allow for raw export of the crop as well as processing of the crop by local factories.
He said Agriculture CS Mithika Linturi last week allowed nine exporters to sell the crop to China in raw form for the next three months after a meeting with them.
“Other exporters or farmers who want to export macadamia are free to get permission from the cabinet secretary,” he said.
He said the ministry has been encouraging local processing.
Last year, the numbers of local processing plants grew from five to 38 employing many Kenyans.
This, he said, was the reason the ministry has gone slow on allowing mass export of raw macadamia.
Nonetheless, senators questioned why the CS was still hellbent on holding onto the regulatory role when agriculture is a devolved function.
“Why is the ministry holding onto the agriculture function saying their role is regulatory. Why don’t you work with governors to make sure there is promotion of these crops?” Maanzo posed.
The PS, however, defended the CS saying his role is regulatory and is important to wade off cartels who have invaded the market because of lack of regulatory measures as well as failure or complacency in enforcement of the regulations.
He said the role of the CS is not excessive in any form and is aimed at creating a balance between local manufacturing and export in raw form.
“We can still allow local manufacturing and export in raw form while also allowing the CS to continue with the regulatory role,” Harsama said.
Senator Mundigi decried that the fee charged for export permit are expensive for farmers hence they get locked out.
Nevertheless, Agriculture and Food Authority (AFA) acting Director-General Willis Audi added that they charge a Sh10,000 annual licence fee for an exporter and is keen on stringent regulations to ensure coordinated export.
“Our concern is that being an export-oriented crop, we want to make sure the produce meant for export meets the quality standards. There are also challenges of cartels if we open up the market,” Audi said.
“But be as it may, even a farmer can be an exporter provided they meet the requirements by writing to the CS,” he added.
The senators also pushed for the amendment of section 43 of AFA Act giving the CS the sole responsibility to allow or not the export of pyrethrum and other agricultural produce.
