Brokers blamed for cashew nut price fall

Casual workers at a cashew nut factory in Kilifi County. Falling production has been blamed on lack of market link between local farmers and processors. Photo/FILE

What you need to know:

  • The processors have accused farmers of not commercialising the crop, which has affected production and farm gate prices.

Diminishing production of cashew nuts in Coast region has been blamed on lack of a market link between farmers and the processors.

The processors have accused farmers of not commercialising the crop, which has affected production and farm gate prices.

The last harvest season saw the industry record a decline from an average of 11,000 tonnes in 2011-2012 to 7,500 tonnes this season. Although bad weather affected the crop, poor crop husbandry and cutting of cashew nut trees also contributed to the decline.

The situation has led to fresh debate on whether to allow more players by lifting a ban on export of raw nuts that was imposed in 2009.

Nut Processors Association of Kenya (NutPAK) chief executive officer Charles Muigai Wednesday said that although over 500 collection centres have been created in the past three years, farmers are still selling nuts to middlemen.

He said in the last season, processors closed at Sh45 per kilo but farmers who failed to deliver the crop to collection centres received as little as Sh20 from middlemen who bought and sold them to the centres.

A working committee of processors, Ministry of Agriculture officials and cashew nut farmers was formed in 2010 and agrees on a minimum price before any harvest season. Without proper linkage, the work of the committee and efforts to revive the industry has not worked properly, according to Mr Muigai.

“The problem of the nut industry is lack of connection between processors and farmers. Although the collection centres are at a distance of two kilometres for every farmer, they still sell their produce to middlemen,” he said, adding that efforts to organise them into groups have failed.

Safari Mumba, the chairman of the Cashew Nut Growers Association, said common interest groups that existed when the cashew sector was vibrant have all collapsed. Efforts to form new ones have faced serious challenges due to financial constraints, Mr Mumba said.

“We are engaging county governments in all cashew nuts catchment areas to organise farmers into groups and take immediate action to save the industry,” he added.

A task force that was formed by Agricultural ministry in 2009 recommended the ban to allow processors bunch enough produce for creation of employment in the labour intensive sector.

“Although the lifting of the ban will increase the prices in short term, it is not sustainable since once exporters have driven other players from the market, they will lower the prices as they have done before,” said Mr Mumba, adding that county governments should instead create a strong regulatory mechanism to protect farmers.

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