- The Ministry has charged the Agriculture and Food Authority (AFA) with enforcing these new regulations, ensuring that only compliant dealers remain licensed.
- Those possessing macadamia nuts must submit their stocks for inspection, verification, and clearance.
- Many local processors reported a lack of quality stock for processing, attributed to unscrupulous market players exporting immature nuts, which has further tarnished Kenya’s reputation in global markets.
As part of a broader strategy to protect the macadamia industry, the Kenyan government has reintroduced a ban on harvesting from November 2, 2024, to March 1, 2025.
In an official statement released on October 22, 2024, the Cabinet Secretary for Agriculture Dr. Andrew Karanja said this measure aims to curb the export of immature nuts and protect the industry’s long-term health.
“We cannot allow the continued export of immature nuts to undermine the integrity of Kenya’s macadamia on the global stage. This ban is crucial for ensuring that only mature, high-quality nuts make it to the market, and that Kenya retains its competitive edge,” Dr. Karanja asserted.
The Ministry has charged the Agriculture and Food Authority (AFA) with enforcing these new regulations, ensuring that only compliant dealers remain licensed.
Those possessing macadamia nuts must submit their stocks for inspection, verification, and clearance by November 15,2024. Non-compliance will result in severe penalties, including revocation of export licenses.
“We are not just making these announcements; we will back them up with strict enforcement. The AFA will be increasing inspections and monitoring activities to ensure compliance,” Dr. Karanja stated. He also remarked that collaboration between national and county governments will be essential in enforcing these regulations.
Moreover, unscrupulous dealers who have exploited system loopholes to the industry’s detriment will face serious consequences.
“We are tightening the reins to ensure that those trying to cheat the system are removed from the industry,” he added.
Benefits of Macadamia
Macadamia nuts offer a range of health and skincare benefits. They are rich in antioxidants like flavonoids and tocotrienols (Vitamin E) that help neutralise free radicals, reducing the risk of diabetes, Alzheimer’s, heart disease, and cancer. They support weight loss by providing fibre and protein, keeping hunger at bay, and contain monounsaturated fats that lower cholesterol and inflammation, improving heart health.
These nuts also help control metabolic syndromes, aiding in diabetes management and weight control, and have neuroprotective properties that protect against conditions like Alzheimer’s. For skincare, macadamia nuts nourish and boost collagen production, offering anti-aging benefits, improving skin elasticity, and keeping it radiant. They are also rich in nutrients, making them a healthy addition to diets, although portion control is essential due to their calorie content.
Macadamia-based skincare products, like cleansers, creams, and oils, enhance skin hydration and maintain its youthful glow, while products for lips and body provide deep nourishment. Overall, macadamia nuts are a versatile superfood, beneficial for both health and skincare routines.
Genesis of a Crisis
Kenya’s move to slap the ban on macadamia exports comes in the wake of turbulent times that farmers in the macadamia industry, a vital contributor to the agricultural sector, have recently faced. Macadamia farmers are confronted with a fall in prices compared to the prosperous year of 2019, when they enjoyed prices as high as Ksh180 per kilogram of macadamia nuts in shell (NIS).
Since 2023, the market has presented a much bleaker picture. Prices plummeted to between Ksh30 and 40 per kilogram, leaving farmers wrestling with reduced profits and the potential for significant losses.
In response, the Ministry of Agriculture and Livestock Development has announced a series of measures to rescue the industry and stabilise it for the long term.
The CS revealed that the measure was driven by the urgent need for intervention in the macadamia market.
“We’ve been monitoring the situation closely, and it’s clear that immediate action is required to protect our farmers and ensure the sustainability of this crucial industry,” he stated.
Why Prices Dropped
Multiple factors have contributed to the collapse of prices in the macadamia market. A significant issue has been the oversupply of nuts in both local and international markets, driven by fluctuating global demand.
Many local processors reported a lack of quality stock for processing, attributed to unscrupulous market players exporting immature nuts, which has further tarnished Kenya’s reputation in global markets.
“Unfortunately, we’ve seen an influx of immature macadamia nuts in the market, which compromises not only the quality of the final product but also Kenya’s standing as a reliable exporter. This has had a cascading effect on prices,” Dr. Karanja noted during his speech.
Temporary Export Window
In a bold move to alleviate the surplus issue, the Ministry had lifted the ban on raw macadamia exports for one year, starting from November 3,2023.
This decision, made under Section 43 of the AFA Act, 2013, aims to assist farmers in offloading excess stock that has been detrimental to their profitability.
Farmers will now have the opportunity to sell their raw macadamia nuts in the international market, providing essential relief as they navigate these challenging times.
Dr. Karanja clarified: “This is a short-term measure to ease the pressure on farmers. We expect this window to help stabilize prices, allowing them to make enough returns to stay afloat during these tough times.”
However, the government acknowledges that exporting raw macadamia nuts is not a long-term solution. Processing the nuts domestically and exporting the kernels yields higher returns for the country and creates more local jobs.
“This is a temporary measure, not a permanent shift in strategy. Our goal remains to enhance local value addition, which is far more beneficial to Kenya than exporting raw nuts,” emphasised the CS.
To further protect farmers from market volatility, the Ministry has introduced a minimum guaranteed farm gate price of Ksh100 per kilogram of macadamia nuts. This price floor is intended to provide farmers with security during this transitional period.
“Our farmers deserve to be compensated fairly for their hard work, and we believe this minimum price will offer some much-needed stability,” Dr. Karanja remarked.
The Road Ahead
Looking forward, the Ministry is dedicated to ensuring that Kenya remains a key player in the global macadamia industry. Beyond the one-year export window for raw nuts, the focus will shift back to enhancing local processing capabilities, ensuring that the country adds value to its agricultural products before exporting them.
Dr. Karanja concluded with an optimistic outlook: “Our primary goal is to build a resilient, high-value macadamia industry. Through collaboration, stringent regulations, and strategic interventions, we are confident that we can overcome these current challenges and position Kenya as a leading exporter of quality macadamia nuts.”
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As the government and stakeholders work together to implement these changes, macadamia farmers can hope for better times and emerge as stronger and more resilient industry players as the industry navigates the current crisis and exits from this turbulent phase.
Farmers can anticipate immediate relief from the one-year export window, while the introduction of the price floor and stricter regulations are likely to restore long-term stability.
