New miraa prices expected to improve farmers’ livelihoods, expand crop's farming
CS Kagwe explained that the government is committed to addressing market access challenges and opening new export opportunities for Kenyan miraa.
The government has announced new pricing for miraa, effective immediately, to improve the livelihoods of farmers and expand the industry.
The announcement made by Agriculture Cabinet Secretary Mutahi Kagwe on Saturday follows a review by the Miraa Pricing Formula Committee, which took into account production data, costs, supply and demand.
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Grade 1, previously priced at Sh700 per kilogramme, will now cost Sh1,300, while Grade 2's price increases from Sh350 to Sh700, and Alele goes from Sh500 to Sh1,000.
CS Kagwe explained that the government is committed to addressing market access challenges and opening new export opportunities for Kenyan miraa.
"This adjustment is part of our ongoing efforts to boost farmers' incomes, address market access challenges, and promote the overall growth of the miraa sector," he said.
The Miraa Pricing Formula Committee, formed under the Crops (Miraa) Regulations 2023, is tasked with advising the industry on pricing.
The committee's review led to a substantial increase in prices, which will directly benefit miraa farmers and traders.
This move is part of the government's broader efforts to strengthen Kenya's miraa industry and ensure its sustainability.
The government also promised to continue efforts to improve market access and expand both current and new export markets.
Miraa traders in Kenya doubled exports in 2023 following the reopening of the Somalia market but faced stiff competition from their rivals in Ethiopia.
Exports
Data from the Agriculture and Food Authority (AFA) revealed that Kenya exported 6.2 million kilogrammes of miraa in 2023, all of which was destined for Somalia.
This is double the 3.1 million kilogrammes that were exported to the Horn of Africa country in 2022, following the resumption of exports that year.
However, the exports fell five months in a row in the second half of 2023, attributed to stiff competition from Ethiopian growers of the stimulant.
"In the year 2023, a total of 6,267,781kg of miraa was exported to Somalia. This represents a 50 per cent increase compared to 3,132,802kg exported in 2022," AFA said.
"Notably in 2023, export quantities declined from the month of August to December due to stiff competition from Ethiopia" it added.
Kenya produces about 32,000 tonnes of miraa annually, valued at Sh13.1 billion. About 80 percent of the crop is sold to local consumers while 20 percent is exported.
Somalia is the main destination of miraa exports from Kenya, buying 99 per cent of the exported crop.
Miraa is mainly grown in Mt Kenya East, with 65 per cent of growers coming from Meru, according to AFA. The total acreage under the crop is 55,281 acres, with Meru and Embu accounting for 88.4 per cent of the total acreage.
Other top growers are Kirinyaga, Tharaka Nithi, and Marsabit.
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