Macadamia farmers have been at the mercy of brokers and middlemen for the last decade.
This has interfered with prices which have decreased to a low of almost Sh20 per kilo of macadamia.
Joseph Mwangi Waitathu from Mathare-ini village in Kigumo location, Murang’a County has been a macadamia farmer for close to four decades.
Until the last 10 years, Mwangi and other macadamia farmers in the county could comfortably pay school fees for their children and undertake major developments in the farm from macadamia nuts profits.
However, this has since changed as the prices have reduced drastically and there is inadequate market for the produce.
Mwangi told the Star that before the COvid-19 pandemic lockdown in 2020, a kg of unprocessed macadamia nuts at the farm gate was fetching at between Sh150-Sh200.
“Prices started dropping after Covid and went to as low asSh80-Sh90 per kilo. We thought prices would increase once the country has recovered from the pandemic but they have been decreasing ever since,” he said.
“Today, if you are lucky to get a buyer, they are buying at between Sh30-Sh50 per kilo. Brokers are taking advantage of the situation and exploiting farmers by buying as little as Sh10-Sh20 a kilo,” Mwangi said.
The farmer who has eight trees in his farm said he has harvested four and half bags of macadamia in one tree but there is no ready market.
Another farmer from Kabonge in Kerugoya County said sometimes he has had to hawk macadamia when he is in need of some quick cash.
James Karimi said farmers have resulted in selling their produce in weddings, funerals and other meetings within the villages.
"This may not necessarily a guarantee that one will fetch a good price but at least we get to make money," he added.
The farmers remain optimistic that prices will increase to at least Sh100 so that they can continue reaping benefits of macadamia.
According to Kenya Agricultural and Livestock Research Organization (KALRO), macadamia is native to south-eastern Queensland, Australia where it grows in the wild.
Although there are ten species, only two, the smooth-shelled type and the rough-shelled type, are edible.
KALRO adds that macadamia was introduced in Kenya from Australia in 1946, but it was not until 1964 that the Ministry of Agriculture initiated the planting of its seedlings by small-scale farmers mainly in Eastern and Central Provinces.
‘Since then, macadamia has undergone a lot of improvement through selection, breeding and propagation,” says KARLO.
The Kenya Nut report shows that macadamia is grown as an additional cash crop to coffee and tea.
Willis Audi, outgoing acting director general AFA attributed the current woes in the macadamia nuts subsector to dynamics in the international market.
AFA Act 2013 bars export of unprocessed macadamia, cashew nuts and other nuts.
But the legislation gives the Cabinet Secretary in charge of Agriculture the right to allow for the exportation of unprocessed nuts in case an exporter seeks permission.
“As a regulator last December, we allowed for the export of unprocessed nuts to various markets. The Government and exporters agreed that purchase of the macadamia nuts should not be less than Sh100 per kilogramme. But it seems the arrangement has not worked since then,” said Audi on phone.
He added that the absence of farmers groups (cooperative societies or farmers organisations) has contributed to poor aggregation among other miseries.
“We are still prevailing on farmers to form cooperative groups so that they can benefit in terms of price negotiations. Further, farmers will benefit from the establishment of aggregation centers and industrial parks which are being championed by the national government and counties,” he added.
Statistics from AFA- Nuts and Oil Crops Directorate shows that during the year 2022, favorable weather in major producing countries contributed to oversupply besides the unfavorable economic conditions
“These factors conspired to keep local farm gate prices very low against industry expectations defying previous season’s industry trends,” said AFA.
The price range per region during the peak season of March to May 2022 was at an average of between Sh50 to Sh83 per kilo.
In the period, the farm gate prices were highest in Meru and Embu, followed by Taita, Western and Rift Valley region at Sh60, Kirinyaga at Sh55 and Nyeri, Murang’a, Machakos and Makueni at Sh50. Factory prices ranged from Sh90 to Sh75.
AFA confirmed that the global macadamia industry is currently in turbulence.
“Whereas other segments of the economy are gradually recovering from the effects of the Covid-19 pandemic, the macadamia industry is taking longer when compared with other stable food commodities. Post pandemic, major companies which had suspended their operations are yet to return to normalcy,” the nut directorate said.
According to the Year Book of Statistics 2023, a rapid industry assessment indicates that many local companies have stocks left from the previous season, they are thus not buying in the same volumes and prices as they normally would.
In the year under review the area under macadamia crop was estimated at 8,746 hectares, 21 percent increase from 7,180 hectares reported in 2021.
The highest increment was reported in Murang’a, Meru and Embu counties accounting for more than 1,000 Ha of the total increment. This increment is predominantly in terms of intercropping with other perennial and annual crops.
“Minimal increment in area under the crop was reported in the nontraditional production areas in Nyandarua, Baringo and Busia counties. The annual production in 2022 was estimated at 40,903 MT valued at Sh2.513 billion down from 42,562 MT valued at Sh2.786 billion in 2021,’ said AFA.
Macadamia exports 2022
Audi said the Kenyan macadamia nuts are mainly exported to the U.S.A and European countries.
The nuts are popular ingredients in the confectionery, baking, ice cream, and snack food industries as roasted nuts, chocolates, and cookies sold in major supermarkets, hotels and airlines.
“The top four Kenya’s macadamia export destinations accounted for 83 percent of the total exports by value which were USA (52.7 percent), China (12.2 percent), Germany (11 percent) and Netherlands (7.14 percent),” he said.
He added; “There was a marked increase in the volume of exports from 9,136 MT valued at Sh10.55 billion in 2021 to 10,036 MT valued at Sh 12.15 billion in 2022. The augmented growth in value is attributed to the depreciation of the Kenyan Shilling against the US Dollar during the year 2022 as compared to its value in 2021,” the outgoing DG said.
