By Mercy Kachenge
Nairobi, Kenya: To tackle the direct exportation of unprocessed macadamia nuts, the Macadamia Nut Processors Association (MACNUT), representing local processors, is calling upon the Kenyan Government, through the Ministry of Agriculture, to address the pressing challenges faced by the Macadamia nut processing industry.
According to MACNUT, the Ministry of Agriculture’s recent approval of direct exports of unprocessed macadamia nuts in their raw form has had severe financial repercussions for farmers. This decision has led to layoffs among employees of processors and suppliers who rely on them, further exacerbating the situation.
The macadamia sector in Kenya has thrived immensely through the export of processed kernels to USA and European markets. However, the current policy by the Ministry of Agriculture has reduced the availability of nuts for value addition by local processing companies thus jeopardizing the long term relationship in the markets.
Jane Maigua, Chair of the MACNUT Association of Kenya, highlights the detrimental effects of the direct exportation of unprocessed macadamia nuts on Kenya’s economy. This practice has resulted in significant revenue losses, with estimates ranging from $50 to $20 million due to the export of raw, unprocessed nuts and an additional $30 million in post-harvest losses. Furthermore, the decline in local processing and export activities has led to a loss of income for local businesses and individuals.
“The direct export of raw unprocessed macadamia nuts has created an uneven playing field for local professors who offer higher prices to local processors reporting losses that exceed 50% in the last year that forced them to close or face debt collectors,” said Mrs Maigua.
Mrs. Maigua highlighted that Kenyan farmers are selling their produce at approximately 30 percent which is a lower price that makes it difficult to sustain their farming operations.
The MACNUT Chair emphasized the need for processing macadamia nuts before exporting them, particularly to kernel export markets. This practice has resulted in Chinese buyers employing X-ray machines to identify and reject low-quality nuts, leading to decreased income for farmers.
Furthermore, direct exportation of unprocessed macadamia nuts to China has caused a significant concern. Key buyers and large retailers from European and US markets are shifting their attention away from Kenya and towards other macadamia-producing countries due to the shortage of quality kernels from Kenya. This situation threatens to disrupt the long-standing relationships between processors and buyers.
“If the correct action is not taken as soon as possible, it will lead to Kenya having an unredeemable market position in global markets, with Kenya’s market share falling from 13 percent due to reduced availability of kernels for export,” she said.
The MACNUT Association urges the Kenyan government to act swiftly to safeguard the local nut processing industry, ensuring the sustainability of the entire value chain.
Joel Kobia, Vice Chair of the MACNUT Association, stressed the significance of planting macadamia trees as a pivotal solution to the pressing issue of climate change. These trees have the remarkable ability to sequester carbon from the atmosphere, offering a crucial means to mitigate the adverse effects of global warming.
“The innovation of converting macadamia shells Into a biochar which is an organic fertilizer will not only enhance soil fertility but also attract and fix the carbon in the soil which contributes to sustainable farming practices,” he said.
Mrs. Maigua emphasized the importance of the government reviewing its policy on direct exportation of unprocessed macadamia nuts. She called for the reinstatement of the ban on such exports to protect the local processing industry.
MACNUT Association also urges the government to establish quality standards for raw and processed nuts to uphold Kenyan macadamia reputation and ensure it remains synonymous with excellence.Also promoting of sustainable agricultural practices among farmers to improve the quality of macadamia nuts production and long term viability of their livelihoods and the environment.
She also emphasized the importance of developing initiatives such as educating the farmers about market dynamics, empowering them in their dealing with brokers and ensuring they receive fair and equitable compensation for their produce.
In July 2024, exports from Kenya reached KES 3.3 billion for kernels which could have attracted a significantly higher price if Nut In Shell (NIS) was readily available for value addition. Before the restriction, Kenya exported Processed Kernel to diversified markets worth KES 6.9 billion, marking a significant revenue and to Kenya contribution to national GDP.
“Planting of macadamia trees will earn the country 40,000 carbon credit every year which translates to approximately 3.5 million US dollars in earnings. The concern is direct as NIS not only affects the livelihoods of farmers but also the employment of young workers”, the Vice Chair, Joel noted
Adding that macadamia industry in Kenya supports over 200,000 farmers with most producers based in regions as Meru, Kirinyaga, Nyeri, Embu among other regions.The local factories that process macadamia nuts employs 35,000 to 40,000 people with more than 80% of the workers being men.
Mrs. Maigua urgently urged “Our local macadamia nut processing industry is on the verge of collapse, and with it, the livelihoods of thousands of Kenyans. We need the government to act now to protect the future of this industry and the people who depend on it.”
