KENYA – The government has lifted the ban on the export of raw macadamia nuts for a one-year period in a move to increase sales for Kenyan macadamia farmers.
This decision comes in response to plummeting farm gate prices, which have dropped from a high of KES 180 (USD 1.39) per kilogram in 2019 to between KES 30-40 (approximately USD 0.23-0.31) per kilogram in early 2023.
The Agriculture Ministry, under Section 43 of the AFA Act, 2013, had announced the ban from November 3, 2023.
This newly announced one-year window is expected to give farmers a chance to manage excess stock, which has been a major issue due to global market conditions.
The Ministry’s decision aims to offer temporary relief to the struggling macadamia sector. “We are hopeful that this measure will provide the much-needed breathing room for farmers and stabilize prices,” said an official from the Agriculture Ministry.
Kenya’s macadamia industry is heavily reliant on international markets, with 95% of the nuts exported. However, the recent price drop has been largely attributed to an oversupply of immature nuts in the global market.
A rapid assessment by the industry found that many local companies are struggling with low-quality stocks, which affects Kenya’s competitiveness.
To prevent further damage, the Ministry is taking steps to address these quality issues. “Exporting immature nuts has hurt our reputation in the global market,” the body added.
As part of the new measures, a ban on macadamia harvesting will take effect from November 2, 2024, to March 1, 2025, to curb the harvesting of immature nuts.
In addition to these measures, the Agriculture and Food Authority (AFA) will be enforcing stricter compliance.
Companies dealing in macadamia must submit their stocks for inspection and verification by November 15, 2024. The Authority will also be monitoring the market to eliminate unscrupulous dealers.
“A minimum farm gate price of Kshs 100 (USD 0.77) per kilogram will be implemented to protect farmers,” the Ministry announced. The government has also pledged to increase inspections and surveillance to ensure compliance with these new regulations.
Farmers push back against raw export law
Despite the government’s move, many farmers are opposing the idea of exporting raw macadamia. They argue that the long-term benefit of exporting processed nuts, which adds value to Kenya’s economy, far outweighs the short-term profits of selling raw nuts.
Leading the charge, Peter Mwabili, chairman of the Taita Taveta Macadamia Cooperative Society, voiced concerns over the impact of raw exports on the local market and future growth.
“Exporting raw nuts may give us quick money, but we lose out on the added value and jobs that processing here in Kenya creates,” Mwabili emphasized. “We want to see the laws favor processed macadamia, not raw exports.”
Farmers are also pushing for a review of the current Crops Act, 2013, which they say gives the Agriculture Cabinet Secretary too much control over export decisions.
“We need clearer guidelines and stricter limits on raw exports, so farmers and the country benefit,” Mwabili added.
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