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Kenyan farmers switch from coffee to more profitable macadamia nuts
来源： 编辑：编辑部 发布：2018/05/02 11:48:20
KENYAN farmers are switching from coffee beans to growing macadamia nuts on the back of surging demand from China, making the East African nation the world's third-largest grower of the nut.
Farmgate prices for unshelled nuts have risen to as high as KES180 (US$1.80) a kilogramme this season from KES70 at the start in December, and may climb to KES200, according to head of Kenya's state-run Agriculture and Food Authority Alfred Busolo. By contrast, many coffee farmers operate at a loss with their beans earning $0.55 per kilogramme, according to a report last year by Fair Trade based in London.
"Farmers are beginning to discover that this is gold," Loise Maina, one of three founders of Nairobi-based agro-processor Nawiri Agribusiness EPZ Ltd was quoted as saying in a Bloomberg report. "Wherever coffee is grown, macadamia is also grown and farmers are now aware of the opportunity with macadamia."
Kenyan coffee production has dwindled after years of mismanagement by the industry regulator to 38,620 tonnes last year from a peak of 130,000 tonnes in 1989. Macadamia production increased by five per cent to 41,614 tonnes last year.
At current prices, last year's macadamia crop was worth KES7.49 billion. The coffee industry earned KES15.9 billion last year, according to the Nairobi Coffee Exchange.
The US is the biggest importer of shelled macadamia, followed by China and Japan. Producers exported 31,187 tonnes in 2016, or double the shipments made a decade earlier. Kenya's production is expected to increase within the next four years when saplings with better yields mature, according to Mr Maina, who sources the nuts from subsistence farmers.
Nairobi-listed agriculture companies including Kakuzi Plc and Sasini Plc have joined small-scale farmers in diversifying into the high-value nuts that are eaten raw, roasted or added to confectionery.
Kakuzi has been producing kernels since 2016, having planted macadamia trees where it once had coffee. Macadamia sales doubled to KES371.6 million last year, according to its latest annual report, making the nuts the company's second-biggest earner after avocados.
Smaller rival Sasini, which has been growing coffee since the colonial era that ended in 1963, is constructing a macadamia-processing factory that is scheduled to crush its first nuts this month.
Kenya now has 27 licensed macadamia processors, up from just five in 2013, Mr Busolo said. Other than ensuring there is regulation to govern the sector, the agency will stay out of the industry, he said. With coffee, poor management by the state proved harmful, farmers say.
"We want the private sector to play a key role, unlike coffee, which had a lot of government involvement," Mr Busolo said.
Farmgate prices for unshelled nuts have risen to as high as KES180 (US$1.80) a kilogramme this season from KES70 at the start in December, and may climb to KES200, according to head of Kenya's state-run Agriculture and Food Authority Alfred Busolo. By contrast, many coffee farmers operate at a loss with their beans earning $0.55 per kilogramme, according to a report last year by Fair Trade based in London.
"Farmers are beginning to discover that this is gold," Loise Maina, one of three founders of Nairobi-based agro-processor Nawiri Agribusiness EPZ Ltd was quoted as saying in a Bloomberg report. "Wherever coffee is grown, macadamia is also grown and farmers are now aware of the opportunity with macadamia."
Kenyan coffee production has dwindled after years of mismanagement by the industry regulator to 38,620 tonnes last year from a peak of 130,000 tonnes in 1989. Macadamia production increased by five per cent to 41,614 tonnes last year.
At current prices, last year's macadamia crop was worth KES7.49 billion. The coffee industry earned KES15.9 billion last year, according to the Nairobi Coffee Exchange.
The US is the biggest importer of shelled macadamia, followed by China and Japan. Producers exported 31,187 tonnes in 2016, or double the shipments made a decade earlier. Kenya's production is expected to increase within the next four years when saplings with better yields mature, according to Mr Maina, who sources the nuts from subsistence farmers.
Nairobi-listed agriculture companies including Kakuzi Plc and Sasini Plc have joined small-scale farmers in diversifying into the high-value nuts that are eaten raw, roasted or added to confectionery.
Kakuzi has been producing kernels since 2016, having planted macadamia trees where it once had coffee. Macadamia sales doubled to KES371.6 million last year, according to its latest annual report, making the nuts the company's second-biggest earner after avocados.
Smaller rival Sasini, which has been growing coffee since the colonial era that ended in 1963, is constructing a macadamia-processing factory that is scheduled to crush its first nuts this month.
Kenya now has 27 licensed macadamia processors, up from just five in 2013, Mr Busolo said. Other than ensuring there is regulation to govern the sector, the agency will stay out of the industry, he said. With coffee, poor management by the state proved harmful, farmers say.
"We want the private sector to play a key role, unlike coffee, which had a lot of government involvement," Mr Busolo said.