Kenya's macadamia rolls on in the local and international markets

Macadamia markets            by Mwangi Mumero

Rising global demand coupled with sector regulation has boosted Kenya’s macadamia production and earning in the last few years.

Global trends towards plant-based oil products as well as health conscious consumers have anchored increased demand- boosting farmers’ earnings.

Used as food, macadamia nuts are rich in unsaturated oil, iron, manganese as well as vitamins A and B. It also has the cancer- fighting antioxidants.  In the cosmetic industry, it is used as a face scrub.

In the last two years, price of macadamia nuts have shot from Ksh 50 to Ksh 150 per kilo at the farm gate.

Unpredictable earnings from coffee has endeared farmers to shift to less risky but lucrative crops such as macadamia- salvaging the fortunes of mostly small holder farmers that live in the rainy Central Kenya and western highlands.

Production is mainly done by over 11,000 smallholder farmers in 16 counties unlike in the market leaders, China and South Africa, where macadamia in grown in large scale farming.

Kenya is the third largest macadamia producer with 20 percent of the market share.

Kenya has about 200,000 small farms that currently produce an estimated 42,500 tonnes of in-shell nuts annually.

But with the soaring demand of the nuts, farmers are increasing acreage under the crop.

According to Kenya’s Economic Survey 2018, the area under macadamia rose to 16,153 hectares in 2017 compared to 15,512 hectares the previous year, leading to an additional production of 1.443 metric tonnes of nuts over the period.

The total value of crop rose from Ksh 4.3 billion in 2015 to Ksh 5.1 billion in 2017 due to rising global demand.

While the majority of the farms are located in the Mt. Kenya region in the counties of Murang’a, Kiambu, Nyeri, Embu and Meru, farmers in non-traditional areas are taking up the crop.

Farmers in Uasin Gichu, Elgeyo Marakwet and Nandi counties- traditionally Kenya’s food baskets, known for their maize and wheat production- are moving to macadamia.

Even in traditional macadamia producing regions, there is an observable move to the crop.

“Macadamia farming is far better than coffee. It has fewer risks and overheads. Less bureaucratic marketing channels translates to better and more reliable returns,” said Mrs. Julia Wanja, a farmer in Mumwe area in Nyeri County and one of the pioneer macadamia farmers in the region.

Regulation of the macadamia sub-sector has however been the major catalyst for increased interest in the crop.

Previously, farmers would harvest the raw nuts and sell to brokers and smugglers across the borders- prompting rising thefts, low prices and demoralized farmers.

Banning of this practice has seen increased production of mature nuts from 11,000 metric tonnes to over 45,000 metric tonnes in the last decade.

The number of nut processors has also shot from 4 in 2009 to 30 in 2018- indicating the increased prospects of the sector, according to the Nut Processors Association of Kenya (NutPAK), the umbrella body that bring together processors.

The government regulator, Agriculture and Food Authority (AFA) has also set the timelines for harvesting to safeguard the quality and curb entry of raw nuts into the market.

“Regulation and surveillance in crop areas deter early harvesting. Premature harvesting increased losses on farmers as buyers leave some nuts during selection,” observed Charles Muigai, NutPAK chief executive officers lauding the government on its role in streamlining the industry.

NutPAK has also developed a code of conduct to ensure that its members harmonise quality of nuts and safeguard the Kenya’s international market, according to Muigai, whose members include 90 percent of the processors.

Farmers have also been supportive of the increased regulation of the previously chaotic marketing.

“We are establishing nut collection centres in villages across Kenya to weed out middlemen who exploit farmers. The law prohibiting exportation of raw nuts has been a boon for us farmers,’ said Edward Maigho, the national chairman, Macadamia Farmers Association of Kenya, which links up 10,000 members.

Over 98 percent of Kenya’s macadamia produce is sold globally.

Key competition for the Kenyan produce comes from China, South Africa, Malawi, Australia and Vietnam, according to NutPAK.

These nations have put in place harvesting practices as well as other code of regulations to also safeguard their market share.

Global production is estimated to increase from the current 200,000 tonnes to 276,000 tonnes in 2020.

Experts say that a mature tree of macadamia can produce 80kg to 300 kg of nuts although most farmers get a maximum of 50kg mainly due to poor crop husbandry practices and weak clones.

“Production of nuts depends on the amount of rainfall and will fall especially where farmers have no access to irrigation water. An acre of land can hold up to 71 trees,” noted Dunson Munene, a field operations officer at Afrimac Nuts Company.