0
0
Parliament Buildings, Thursday, 19 September 2024: The Senate Committee on Agriculture met with Dr. Andrew Karanja, Cabinet Secretary for Agriculture and Livestock Development, alongside representatives from the Agriculture and Food Authority (AFA), to discuss the future of the ban on raw macadamia nut exports, set to expire on November 2, 2024. The discussions come at a crucial time for Kenya’s macadamia industry, a vital part of the country’s agricultural economy.
Dr. Karanja highlighted that 95% of Kenya’s macadamia production is exported to international markets such as the U.S., Asia, and Europe, where demand is high in the snack and confectionery industries. In 2023, production rose by 14% to 46,385 metric tonnes, and a further increase to 48,000 metric tonnes is expected in 2024, buoyed by improved farm gate prices.
Despite this growth, the industry faces challenges including price volatility, premature harvesting, and pest damage. The CS stressed the importance of local value addition, with Kenya’s 40 processing facilities capable of handling over 120,000 metric tonnes annually. He warned that the continued export of raw nuts, especially to China, undermines local processing, reducing job opportunities and potential revenue.
To balance the needs of local processors and exporters, Dr. Karanja proposed a hybrid model. This would involve ending the export ban in November while implementing periodic reviews. Other suggestions included creating a harvesting calendar to improve quality, establishing fair pricing mechanisms, and maintaining open dialogue with stakeholders.
Macadamia production in Kenya is concentrated in Central Kenya, the Rift Valley, and Western regions, with smaller contributions from areas like Taita Taveta, Machakos, and Makueni. The outcome of these discussions will be crucial in determining the future of the sector, which plays a key role in the country’s economy.
