Macadamia Prices in Kenya to Possibly Climb Over Ksh 200 Per Kg In 2020

macadamia farming in Kenya
Macadamia Production In Kenya FILE PHOTO-NMG

The harvesting season is set to start in February and the already lucrative macadamia farming agribusiness sector has all indications of rewarding the nut farmers in Kenya even more this year (2019)

At the start of the harvesting season last year, the Macadamia Farmers Association of Kenya had announced a farm-gate price of Ksh170 per kg. This was the price that had been reached at in a meeting between the farmers association and the Agriculture and Food Authority.

However, the Nuts Processors Association of Kenya (NutPAK) seemed to disagree with the price saying that it was speculative given the quality of nuts that the farmers were supplying at the time, and the fact that major macadamia nut buyers had not started buying.

Quality a major determinant of macadamia prices in Kenya

Nut Traders Association of Kenya (Nutak) chairman Johnson Kihara commenting on the issue said, “We were ready to buy them at even Sh300 a kilo but AFA does not control quality as expected. We cannot buy low quality nuts at such a price because we will not get a market for them.”

But by the close of the harvesting season in 2019, the price of a kilo of macadamia had climbed to Ksh 230.

The Macadamia Farmers Association of Kenya has its foot on the ground in advocating for better prices saying the farmers have been exploited for long. The buyers are yielding to the pressure saying the only thing limiting the prices macadamia farmers in Kenya are paid is quality.

“We sell over 98 percent of our macadamia to global markets. Our buyers dictate quality. If we don’t adhere to best practices in this highly competitive market we will be edged out,” said Mr. Muigai, the NutPAK executive officer.

Improved Macadamia Varieties

The awareness on the importance of producing high quality macadamia nuts to fetch better prices has been rising among farmers. Many are now replacing old trees with improved varieties such as Muranga 20.

Regulations have also been put in place to prevent harvesting of immature nuts. The farmers, having realized that such regulations are meant to protect them, are towing the line and thereby producing high quality nuts. With this trend, the prices will be much higher than Ksh 200 per kg this year.


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Anonymous said...

Farmers have responsibility to agree to own the process so as to benefit.

Anonymous said...

Farmers have responsibility to agree to own the process so as to benefit.