Kenya's macadamia industry is experiencing a notable price recovery, with farm-gate prices rising from approximately US$0.15 to over US$0.75 per kilogram. This improvement offers farmers a chance to reinvest in their orchards, similar to developments seen in other key export sectors such as avocado.
However, the marketing system remains dominated by intermediaries, many of whom fail to pass on the benefits of higher prices to farmers despite growing competition among processors. The sector continues to face several issues at the farm level. Poor orchard management resulted in the loss of nearly 25% of this year's crop, while another 25% was rejected due to premature harvesting. Financial pressure forces many farmers to sell immature nuts, a problem worsened by weak enforcement of harvest regulations.
Some early-season buyers use laser technology to assess nut maturity and reject underdeveloped produce. Despite this, immature nuts are often mixed with mature ones, leading to a glut of low-quality output. This has negatively impacted Kenya's export reputation, even resulting in bans from some European buyers.
The dominance of brokers and the lack of strong farmer cooperatives present further risks to the sector's recovery. While the government has set a minimum farm-gate price, brokers frequently determine what farmers receive. Some operate fairly, taking a margin of about US$0.07 per kilogram, but others exploit the system, paying below the official rate. Contributing factors include limited market access, urgent cash needs, and poor bargaining power among farmers, resulting in a fragmented value chain where intermediaries capture most profits.
Concerns have also been raised about the manipulation of weighing scales. Ensuring calibration and certification of these machines is vital for fair and transparent transactions.
While reforms in Kenya's macadamia industry are underway, further action is required. Key priorities include farmer training, financial support, the development of transparent market systems, and the regulation of brokers. Strengthening farmer associations could help improve bargaining power and promote fairer practices across the value chain.
Source: Daily Nation