A stevia farmer in Kericho. Kenyan outgrowers of natural sweetener stevia are set to cash in following the European Union’s (EU) approval of sale of its extract. PHOTO | FILE
What you need to know:
The European Food Safety Authority (EFSA) has allowed Malaysian-owned PureCircle, which buys stevia from farmers through agricultural firm James Finlays, to sell the sweetener rebaudioside M, or Reb M, a formulation from the stevia leaf.
The sweetener is used for food flavouring and medicinal purposes.
In Kenya, stevia farmers have been increasing their acreage since 2008 when the Malaysian firm started promoting the growth of the plant.
Kenyan outgrowers of natural sweetener stevia are set to cash in following the European Union’s (EU) approval of sale of its extract.
The European Food Safety Authority (EFSA) has allowed Malaysian-owned PureCircle, which buys stevia from farmers through agricultural firm James Finlays, to sell the sweetener rebaudioside M, or Reb M, a formulation from the stevia leaf.
PureCircle, which is listed on the London Stock Exchange, has been fighting to have Reb M approved for sale in the EU.
The company said in a statement posted on its website that the EFSA had concluded that Reb M was safe and could be used across the EU. The sweetener is used for food flavouring and medicinal purposes.
Terming it as a “significant milestone”, PureCircle said it was currently scaling up the production of the sweetener using traditional breeding techniques.
“Through our PureCircle Stevia Agronomy programme, we have been scaling stevia leaf naturally and increasing the volume of sugar-like steviol glycosides, such as Reb M, with traditional breeding techniques,” said the firm’s chief operating officer Jordi Ferre.
In Kenya, stevia farmers have been increasing their acreage since 2008 when the Malaysian firm started promoting the growth of the plant. The promotion followed the entry of PureCircle into the local market after forming a joint venture with James Finlays, the agricultural firm associated with tea growing around Kericho.
Early this year, the outgrowers around Kericho received loans amounting to Sh91 million from two microfinance institutions –Ndege Chai Sacco and Agricultural Finance Corporation – as PureCircle Kenya made the commitment to buy the stevia crop to ensure that they were able to repay the loans. Some 2,200 farmers are engaged in growing the crop.
Global demand for the commodity has risen with Coca-Cola and Pepsi having started to use it as a sweetener. Confectionary industry is also using it. Exports for the half year to December 2014 stood at Sh4.4 billion ($43.3 million).
Several global retailers are also stocking the product. “The period [half year] has also seen a wide range of stevia sweetened product launches from major retailers across Europe and America and iconic brand adoption in categories as diverse as ketchups, yogurts and confectionery,” said the company when it released its half-year results.
The Malaysian firm injected Sh2 billion ($20 million) into the stevia venture in 2008 in a move that immediately enabled James Finlays to set up a factory to refine the extract from the plant’s leaves. The Kenyan firm was also to be served by a group of outgrowers.
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