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BARAYAN: Cash crops and rural wealth creation

How do we restore their profitability?

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by STAR REPORTER

Star-blogs20 October 2024 - 09:40
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In Summary


  • Most coastal farmers have 21 to 50 coconut trees
  • With an annual average of 10 coconut per tree and farm gate price of Sh50 each, this is an income of Sh2,500 per month

Star illustrations


By FATMA BARAYAN

One day in conversation with a friend of mine, I heard a nostalgic description of her visits to Mombasa when she was younger. She and her siblings would always compete on who would be the first to spot a coconut tree as they travelled by road to Mombasa.

The coconut tree was the undisputed sign that they were near their destination and the anticipated holiday. To many visitors to the coast, the coconut tree remains a symbol of an exotic fun-filled holiday.

Turning to the present day though, to the 100,194 coconut farmers along Kenya’s coastal counties whose livelihood depend on this crop, the coconut tree is a grave disappointment that has continued to sink them into poverty.

The trees are subjected to an unprofitable market as the farmers engage in farm gate sales with minimal value addition. They therefore are unable to participate in the production of the myriad coconut produce items like copra, the dried flesh used for oils and cosmetics; fibre products like baskets, brooms and mats; etc.

Kenya has an estimated 10 million coconut trees of which only 6.5 million bear meaningful fruit. Some 2.6 million trees are over 60 years therefore classified senile while 1.3 million are yet to reach their prime harvest age. Kenya is ranked 30th in production of coconut at 92,313 tonnes, while neighbouring Tanzania is ranked 12th with a production of 642,000 tonnes.

What is peculiar about these statistics is that coconut farming in Kenya has only 34 per cent the productivity of that in Tanzania. Why is coconut farming lagging behind in profitability as a cash crop?

The findings of a survey undertaken three years ago centred on the counties of Kwale and Kilifi, the main coconut-growing areas, identified three points of concern.

The first finding was on the level of education of the coconut farmers. The study estimated that only 19 per cent of the coconut farmers had secondary and post-secondary education.

This is a big drawback as access to information on better techniques is limited as well as willingness to adopt technological advances.

Second, and perhaps more devastating, is land tenure. In Kilifi, only 16.9 per cent of the farmers had titles to their land while in Kwale only a dismal 5.3 per cent. This anomaly brings great insecurity to the farmer as ownership can be contested by another party.

The land also loses a significant part of its asset value as it cannot be used to secure financing nor for any commensurate transactions. The incentive of the farmer to invest time and effort on developing the farm is therefore much reduced.

The last aspect found was the crop itself when segregated by age. The fact that an estimated 30 per cent of the trees are over 50 years does not augur well for sustainable profitability of this cash crop. This is especially as about only 13 per cent of the trees are still maturing and shall not be able to sustain the production levels required.

These statistics, when looked at in the context of the majority of the farmers who have between 21 to 50 trees with an annual average of 10 coconut per tree with a farm gate price of Sh50 each, works out to an income of Sh2,500 per month.

What then is a possible solution that would bring profitability to coconut farming?

The Coconut Industry Development Bill, 2021 is seen as an instrument that would bring profitability to coconut farming through establishment and operationalising of the Coconut Industry Development Board. The functions of the board shall be regulation of coconut farming, production, processing and marketing, much like the coffee and tea boards and the sugar authority.

One of the fundamental advantages is that the Coconut Industry Development Board shall have access to funds from the Commodities Fund, the successor of both the Coffee and Sugar Development funds and has the capacity to finance, provide training and technical support and establish partnership, linkages and networks to support the farmer.

What is discouraging is the lack of urgency to have the Coconut Industry Development Bill, 2021 passed, when the potential value is estimated at Sh25 billion annually, yet the coffee, tea and sugar Acts came into force in 1933, 1960 and 2001 respectively.


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