Government bans macadamia harvests until March 2025 to curb immature exports

The Ministry of Agriculture has imposed a ban on macadamia harvesting, effective from November 2, 2024, until March 1, 2025, in a bid to halt the export of immature nuts.

The decision, announced by Agriculture Cabinet Secretary Andrew Karanja on Tuesday, follows extensive discussions with key industry stakeholders.

Karanja emphasised that the Agriculture and Food Authority (AFA) has been tasked with ensuring strict compliance.

“The Authority will increase inspections and surveillance to eliminate unscrupulous business dealers,” he said, adding that violators could face the revocation of their licenses.

Karanja further highlighted the export-driven nature of Kenya's macadamia industry, stating that about 95 per cent of the annual production is exported.

He noted that while farm gate prices for macadamia nuts in shell (NIS) peaked at Sh180 per kilogram in 2019, the prices had plummeted to Sh30–Sh40 per kilogram by early 2023.

To stabilise prices and help farmers manage excess stock, the ministry had previously lifted the ban on raw macadamia exports, allowing a one-year export window starting November 3, 2023, under Section 43 of the AFA Act 2013.

“This remedial measure was aimed at stabilising prices and addressing the challenges posed by global market conditions,” Karanja said.

The CS expressed concerns about the negative impact of immature nuts on the industry’s global standing, noting, “A rapid industry assessment shows many local companies lack quality stocks for processing, and the export of immature nuts has contributed to poor performance of Kenyan macadamia in global markets.”

Karanja also stressed the benefits of exporting processed macadamia nuts, or kernels, rather than raw in-shell nuts, stating that it brings more economic value to Kenya.

To implement the ban, he directed that all dealers must submit their current stock for inspection and verification by November 15, 2024.

“A minimum guaranteed farm gate price of at least Sh100 per kilogram will be implemented,” he said.

Karanja reassured that both the national and county governments would work together to enforce the Crops Act, 2013, and the Crops (Nuts and Oil Crops) Regulations, 2020, to ensure compliance with the directive.

Meanwhile, macadamia farmers have called for amendments to the law, seeking to limit the powers of the Agriculture CS on raw nut exports. They have also urged for the establishment of a price control board to regulate the macadamia export market, which they believe will help eliminate cartels blamed for low farm gate prices.

At the same time, AFA has directed all marketing agents dealing in mango fruits to register with the authority.

The new requirement, set to take effect on October 28, 2024, is aimed at enhancing Kenya's mango exports to international markets, including the Middle East, the Netherlands, the UK, and Italy.

The authority stated that all mango farmers, exporters, and processors must work exclusively with registered marketing agents.

“This follows complaints from farmers about non-payment for produce collected by some traders,” AFA’s director of horticultural crops said.

The registration process will take place across various AFA offices, with designated sites in Nairobi, Kibwezi, Machakos, Kitui, Yatta, Elgeyo Marakwet, and Mombasa.

Exporters have also been instructed to apply for physical inspection of mango consignments, specifying their pack house location, to avoid complications from overlapping avocado and mango harvest seasons.