Wheat farmers in North Rift demand payment for their produce, as local production drops

Farmers harvest wheat in Moiben, Uasin Gishu County, on October 14, 2015. Wheat farmers in the North Rift region are demanding payment for their produce as local production of the crop continue to drop. FILE PHOTO | NATION MEDIA GROUP

What you need to know:

  • The ministry of Agriculture say, payments were delayed because of an oversupply of the crop to government stores.
  • Over the year production of wheat has continued to plummet.
  • The country produces an average of 350,000 tonnes against consumption of 1.08 million tonnes.

A row has erupted between millers and wheat farmers in the North Rift region over delayed payment for the produce due to a surplus of the crop that resulted in market instability.

The farmers yesterday expressed fears of incurring losses of over Sh1.2 billion due to market instability and post-harvest damage by pests following a bumper harvest of the crop this season.

“The delayed payments by millers is adding misery to farmers, who have to repay loans they invested in the last crop and plan for the next planting exercise,” said Silas Tiren, Moiben MP and a member of the parliamentary Committee on Agriculture.

The millers have secured a deal with the National Cereals and Produce Board (NCPB) to buy wheat from farmers at Sh3,000 per 90 kg bag.

According to the director of crops in the ministry of Agriculture, Johnston Irungu, payments were delayed because of oversupply of the crop to NCPB stores on behalf of the millers in wheat-growing regions.

“What we are experiencing at the moment is that the rate of wheat deliveries is much higher than what the millers can pay at a go,” explained Dr Irungu.

North Rift produced an average of 4.5 million bags of wheat from 127,825 hectares planted with the crop last season.

Kenya produces an average of 350,000 tonnes against consumption of 1.08 million tonnes, forcing the country to import the deficit.

“We agreed with millers and the ministry of Agriculture that farmers should be paid for their produce on delivery and the agreement to be followed to the letter,” added Mr Tiren.

The fears of market instability for the local wheat produce were confirmed by Cereal Growers Association chairman Farnie Kruger, who attributes the woes facing the sub-sector to imports of cheap wheat from countries where production is subsidized.

“Producer prices for wheat have since 2014 come down by over 30 per cent yet the production cost has kept on going up year on year. This is discouraging local wheat production,” explained Mr Kruger.

DECLINE IN WHEAT PRODUCTION

Some farmers say the decline in wheat production in the country is as a result of land fragmentation into uneconomical units.

“Wheat production is a mechanical process and sub-division of land into smaller units due to population pressure renders cultivation of the crop uneconomical,” said Wilson Kosgei, a wheat farmer from Moiben.

Low production of the crop is also due to an outbreak of wheat stem rust, such as Ug99, attacking all commercial varieties. Other factors are high taxation on major inputs such as machinery, fuel and county government fees.

“It is risky to invest heavily in wheat production, considering unpredictable climatic conditions and market price,” said David Sang, from Sergoit.

The ministry of Agriculture identifies inadequate information and limited access to suitable varieties and processing technologies from research as other factors contributing to the decline in wheat production in the country.

Limited availability of breeder and certified seed and instability in producer prices following limited government intervention in wheat marketing, coupled with a malfunctioning deregulated cereals market, are other contributors to low wheat production.

The failure by the private sector to take up marketing functions previously undertaken by the NCPB due to low capital investment and weak the bargaining powers of farmers have also contributed to reduced wheat production as the sub-sector struggles to reclaim its lost glory.

The farmers are now appealing to the government to support them to access better market for the produce and promote product development.