Sorghum growers upbeat as market for produce is restored

A farmer inspects her sorghum crop in Bungoma County. Farmers in Tharaka-Nithi County, who had ditched sorghum, have been advised to embrace the crop following the restoration of its market by East Africa Malting Company (EAMC). PHOTO | FILE

What you need to know:

  • However, Tharaka-Nithi Governor Samuel Ragwa said the county government would demand it signs an agreement with buyers to ensure farmers are not exploited.
  • A 50 per cent excise tax imposed on beer made from sorghum in 2014 saw the product’s sales drop by 75 per cent.

Farmers in Tharaka-Nithi County, who had ditched sorghum, have been advised to embrace the crop following the restoration of its market by East Africa Malting Company (EAMC).

A 50 per cent excise tax imposed on beer made from sorghum in 2014 saw the product’s sales drop by 75 per cent.

This left about 25,000 smallholder farmers across Kenya without market for their produce, after the largest buyer, East African Breweries Limited (EABL), which owns the EAMC, cancelled contracts it held with growers.

Farmers consequently lost confidence in the crop.

Speaking Thursday during the first Eastern and Central Counties Agribusiness Summit at Chuka University, Kenya Agricultural, Livestock and Research Organisation commercial enterprise manager Lawrence Ragwa said the market had been restored.

“We want to assure farmers that sorghum farming is profitable. The buyers are ready to sign contracts and buy the produce from farmers,”  Ragwa said.

However, Tharaka-Nithi Governor Samuel Ragwa said the county government would demand it signs an agreement with buyers to ensure farmers are not exploited.

“Farmers planted sorghum in large numbers after being assured of a ready market. The county government supported the initiative but we were let down. This time round we will demand a written agreement from the buyers.”

Sorghum Pioneer Agencies director Beatrice Nkatha, whose firm is buying the produce from farmers, assured them of a ready market.

“Since the government scrapped the excise duty, we are upbeat. We will be signing contracts with growers in Tharaka-Nithi this month,” Nkatha said.

It is estimated that the about 25,000 farmers lost Sh3.4 billion in the failed deal. EABL has been the catalyst for the growth of sorghum, being the biggest buyer for the Gadam variety used in making keg beer.