Low local market sees macadamia growers suffer losses

Several Years ago, macadamia was an ordinary crop, with the nuts attracting low prices that ranged between Sh20 and Sh30 a kilo.

But the revival of the crop by the government amid rising global demand has seen its price rise fourfold, with many small-scale farmers growing the nuts and reaping big.

The outbreak of the new coronavirus disease has, however, dampened the sector, a fact worsened by the poor  local demand.

Farmers, processors and exporters are in a bigger crisis, with many clinging onto hope that the global market will open soon and business will be booming once again.

In the past few months, macadamia processors have been purchasing produce from contracted farmers at an average of Sh100 and storing them while waiting for the markets to open.

However, while this has given the contracted growers some reprieve, tens of farmers who are not contracted are having it rough.

Joseph Mwenda, an independent farmer in Meru County with 15 mature macadamia crops, says they are seeing their nuts go to waste or selling at very low prices.

AT THE MERCY OF BROKERS

“We have been expecting brokers to visit our farms but they are hardly coming. I was forced to desperately sell to a broker who showed up on my farm last week at Sh50 a kilo, which is too low since at one time I sold at Sh200. I did not have a choice.”

A similar fate befell Erastus Murungi, a macadamia farmer in Tharaka-Nithi County, who also sold his nuts to a broker at the same price, noting that non-contracted farmers have been left at the mercy of brokers.

Farmers do plenty of work before they harvest. This includes plenty of watering, especially when the tree is young, applying foliar fertiliser to supply micro-nutrients and correct some deficiencies. And as the tree matures, one should prune it to allow sunlight to penetrate for better growth. 

“The Sh50 per kilo is not worth the effort,” says Mwenda, noting the nuts are harvested and sold immediately to avoid wastage.

Limbua, a processor in Kirinyaga County, is among buyers working with contracted farmers and is currently buying organic nuts at Sh110 and storing them to wait for markets in US, Europe and Australia to fully reopen.

Kenya started exporting farm produce to Europe about a month ago, though processors like Limbua say they are doing it on a small-scale as they also work with minimal staff.

David Mugambi, a lecturer at Chuka University, called for promotion of the nuts locally to boost production.