Macadamia Farmer Crisis: Export Ban Leaves Nuts to Rot
Macadamia farmers in Kenya are facing severe challenges due to changing government export policies. Initially, when the government temporarily removed the ban on selling raw, in-shell macadamia nuts in November 2023, farmers experienced a significant boost. The price per kilogram increased dramatically, rising from Sh20 to Sh100. Consequently, a substantial amount, exceeding 1,000 tonnes, of raw nuts were exported within just two months.
However, the situation has reversed, leaving thousands of farmers in a difficult position. The government has reneged on its commitment to further extend the suspension of section 43 of the Agriculture and Food Authority (AFA) Act, 2013. This legislation prohibits the sale of unprocessed nuts. While the government had indicated in September 2024 that the export window would be extended for six months, starting November 3, 2024, it ultimately limited the extension to only 30 days.
This sudden change has resulted in farmers, aggregators, and processors being left with vast quantities of unprocessed macadamia nuts. Kirinyaga Senator James Murango, a macadamia producer himself, reports that he is holding onto large amounts of his harvest, as the renewed ban has halted purchases by aggregators and processors. He also states that the farm gate price has drastically decreased, from Sh150 to Sh70 per kilogram, allowing middlemen to profit while the remaining produce deteriorates on farms.
“Farmers are suffering because they have no one to sell their nuts to. Those buying macadamia offer very little. It is a case of ‘take-it-or-leave’. Why should you tell farmers to produce macadamia and traders to buy when you will not allow them to sell abroad?” the senator asks. “Why aren’t there such restrictions on maize, coffee and tea? Why should the government insist on macadamia farmers adding value to their nuts? That is not happening with the other crops.”
A visit to a macadamia aggregator in Thika, Kiambu County, confirmed the severity of the situation. The facility had over 400 tonnes of macadamia nuts stored in its dryer. According to a manager, who requested anonymity due to fear of repercussions from Ministry of Agriculture and Livestock Development officials, the company has ceased purchasing nuts from farmers for the past two months, as they are burdened with their existing stock.
“We have not bought nuts from farmers for the last two months as were are stuck with what we already have,” said the manager. “We had 1,000 workers but have had to scale the number to 40. Even the ones remaining have been told to stop working because we don’t know if or when the ban will be lifted.” Before the ban, the company was exporting approximately 500,000 kilograms of macadamia nuts to China each month. The manager expressed concern that the nuts would lose quality due to a lack of moisture.
Additionally, the manager highlighted that processing the nuts is not a viable option for most local traders or farmers’ cooperatives due to the high cost of processing machinery. “One machine costs at least Sh1 billion. Only wealthy cartels can afford such a processor. It appears the government is working with middlemen posing as macadamia processors. They have no capacity to process macadamia,” she says. Senator Murango is critical of Agriculture and Livestock Development Cabinet Secretary’s decisions, saying, “The minister should get out of the office and go to farmers on the ground. Those in the boardroom do not know the challenges facing farmers. Why are farmers being forced to sell to particular entities?”
The senator warns that Kenya risks losing its significant macadamia in-shell market in China if the ban is not reversed. He suggests that the government implement a quota system, allowing 40 percent of the nuts to be exported, while the remainder is allocated to local processors. “It is only in Kenya where we have a problem with exporting in-shell macadamia. China is waiting, but for how long? The cartels posing as processors want to see farmers suffer,” he says.
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Macadamia Farmer Crisis: Export Ban Leaves Nuts to Rot
