Brewers turn to sorghum as imports costs skyrocket

Sorghum farmers in Kenya’s drought-ravaged districts are set for big fortunes as demand for the grain grows. Regional brewing giant East African Breweries Ltd is buying the crop for making beer, while the World Food Programme is buying it for relief supplies.

The interest shown by EABL and WFP has sparked a price surge, at one time hitting Sh28 a kilo for the white variety, also known as gaddam sorghum. However, intervention by the Ministry of Agriculture has since stabilised prices at Sh17 a kilo.

EABL’s interest in the crop is driven by its desire to shift from the more expensive barley that is used to brew malt beer. The brewer pays farmers instantly for their deliveries. On the other hand, the United States Agency for International Development (USAid) is funding WFP to buy the crop for redistribution in drought-hit areas, both in Kenya and in South Sudan.

According to Mr Lee Anthony Brudvig, the deputy chief of mission at the US embassy in Nairobi, the USAid/WFP initiative dubbed Buying for Progress, would also see the grains donated to the school-feeding programme and the Food for Work projects.

Mr Brudvig said besides promoting sorghum as a cash crop, buying locally produced crops was intended to give farmers a guaranteed market. “Instead of importing white maize and split peas being currently supplied for the school feeding programme, WFP will supply locally grown sorghum and other crops through the Buying for Progress,” he said.

A high-powered delegation of US embassy and WFP officials, led by US envoy to the Rome-based agency, Mr Mike Michener, recently toured sorghum farms in lower Eastern to assess the viability of the project. Ms Gabrielle Menezes, the WFP spokesperson, told the Nation that the UN agency had set aside funds to buy 700 metric tonnes of sorghum from farmers in Eastern Province.

“The initiative to buy drought-resistant crops in Kenya seeks to promote market-oriented farming and help farmers move away from the non-focused subsistence farming,” Ms Menezes said. The UN body, which fights hunger worldwide, she said, has been importing food for the last 30 years, but this was the first time it was buying grain from local farmers. “WFP is buying locally to cut down on transport costs but more importantly offer small scale farmers a market for their produce,” she said.

Joined hands

On the brewing scene, several organisations have joined hands to promote sorghum for making beer. East African Malting Ltd (EAML), a wholly-owned subsidiary of EABL, has partnered with Africa Harvest, an NGO, Kenya Agricultural Research Institute (Kari) and Equity Bank to promote the growing of sorghum.

Equity Bank is offering low interest loans to farmers to buy seeds and farm inputs while Africa Harvest and Kari are providing the technical support to ensure the best quality grains are produced for consumption by EAML. Equity Bank CEO James Mwangi last year announced the establishment of a Sh10 million revolving fund for farmers to facilitate the enterprise.

David Miano, a senior researcher with Kari says: “Due to climate change, it is becoming more difficult to grow maize in arid areas hence the need to adopt drought-resistant crops like sorghum.” For many years, brewing firms have been reluctant to use sorghum because they were not sure whether farmers could guarantee consistent supply.

Barley, the grain used to brew most beer, grows best in countries with cooler climates but its skyrocketing price due to a strong global demand and the high shipping costs have made beer increasingly expensive. This is what is driving the EABL initiative to replace barley with sorghum.

Sorghum projects have been started in Kitui, Mutomo, Mbeere, Masinga, Tharaka, Embu, Maara, Meru South, Imenti North and Imenti South districts. These areas are characterised by high levels of poverty, frequent crop failures and drought.

EAML requires more than 60,000 tonnes of barley every year for making various beer brands. The firm intends to substitute three quarters of this with local sorghum. According to Ms Rose Mutuku of Smart Logistics, the firm hired by EAML to source the grain from farmers, there is a production deficit of 25,000 tonnes.

Ms Mutuku says EAML will still be forced to import gaddam sorghum this year from Tanzania but reckons that the situation will improve in the next seasons. Dr Rose Njeru, technology deployment director at Africa Harvest says: “We anticipate that the 13 tonnes of sorghum seed planted by November last year will be harvested and bulked by our farmers, bringing much-needed income into their pockets”.

Africa Harvest CEO Florence Wambugu expects better performance in the next growing season as the project picks up momentum. She says: “It is anticipated that with the good spirit of cooperation and teamwork between the various stakeholders, the region can satisfy the growing demand for sorghum grain.”

Local leaders have welcomed the initiative and called for revision of the country’s agricultural policies to tackle challenges in line with the prevailing economic realities.