Agriculture reforms will require proper funding to take root

It is less than a year since Agriculture Cabinet Secretary Peter Munya embarked on reforms to revive various agricultural sub-sectors which were either collapsed or in need of institutional and regulatory streamlining to improve value chain performance and enhance farmer expectations.

Probably apart from horticulture sub-sector, which is largely private sector driven, most of the other areas had varying degrees of capacity and systemic weaknesses. Within 2020, quick wins have been made in several sub-sectors, while others are work in progress requiring more interventions to achieve intended results.

Overall, it has not been an easy walk in the park considering existence of vested interests that benefit from the status quo, and limited budgets to stimulate and revive agriculture. Further, efforts to align objectives between national and county governments have often slowed down reform progress.

Dairy farmers were the first to benefit when the CS stopped cheap imports of milk, while also requiring New KCC to pay no less than Sh30 per kilo to farmers. In a way, the CS informally introduced a "minimum producer price" concept which so far has cushioned dairy farmers. Today milk producer prices are on average above Sh30. I am a dairy farmer, and I feel encouraged.

The ongoing maize institutional and marketing reforms are gradually achieving a stable balance between farmers, millers, and consumers interests, and will likely reduce need for imports. President Uhuru Kenyatta recently announced a minimum producer price for maize, and this too appears to have stabilised the market while rescuing the farmer.

As a policy, the ministry may need to consider setting recommended minimum producer prices for critical food security items (maize, wheat, rice, milk) while simultaneously limiting imports. Further, the CS should introduce and promote soybeans as a strategic food security crop to support supply of cooking oil and animal feeds.

The ongoing tea regulatory reforms include farmer-centric changes which will empower them economically. Implementation of tea reforms has generated much heat because sector vested interests were not ready to accept changes without resistance.

Coffee reforms may take longer to achieve intended milestones. Coffee co-operatives are the weak links in value-chains as these remain a playground for local political opportunism and corruption with many cooperatives hijacked by private millers, leaving the farmers helplessly destitute. County governments will need to prioritise revival of coffee co-operatives.

In the case of sugar industry reforms, injection of private capital appears to be the revival model adopted by the ministry. However, how to implement it seems to be in contention by various interests, resulting in reform delays.

I will now discuss the ongoing revival of pyrethrum and cotton crops. Five months ago, I was appointed the chairman of National Steering Committee (NSC) for revival of the two industrial crops, and already preliminary reports have been submitted to the CS.

Pyrethrum sub-sector revival has already commenced with Treasury allocation of some Sh500 million to the sub-sector. The first step is to revive crop production and processing capacity of Pyrethrum Processing Company of Kenya (PPCK) at Nakuru and this has already started. Secondly, existing private sector players will be supported to simultaneously accelerate pyrethrum production revival in selected counties. Thirdly, Kenya Agricultural and Livestock Research Organisation (Kalro) will be funded to undertake research to upgrade pyrethrum crop yields and quality for higher economic returns.

Cotton sub-sector revival involves introduction of high-quality hybrid seeds (both Bt and non-Bt) which will initially be imported. Secondly, Kalro will be funded to develop local capacity for hybrid seeds production to reduce dependence on imports. Thirdly, jointly with six selected counties (Bungoma, Homa Bay, Kwale, Lamu, Embu, Meru) the national government will fund construction of six new ginneries, while encouraging private investors to modernise technology and capacity in existing ginneries.

Export and local markets for both pyrethrum and cotton are ample to support thousands of new acreage and jobs while supporting agro-industrialisation and increased forex earnings. Fortunately, interest and co-operation from host counties, and absence of frustrating vested interests will help deliver notable recovery in the period 2021/22. However, the Parliament and Treasury will need to prioritise funding.

Finally, I strongly believe agricultural reforms started in 2020 will systematically enhance productive and marketing effectiveness in various crop sub-sectors, despite hardships along the way.