Agriculture is a key pillar of Kenya`s economy.It constitutes over half of the country`s GDP and plays an important role in food security, a source of employment and also foreign exchange for cash crops which are exported to international markets.It also sustains different industries being a source of raw materials and even market for various output.
Key among the industries that heavily rely on agriculture is the alcohol industry where brews are made from harvest obtained from Agriculture. The East African Breweries Limited has strategically partnered with individual farmers and farming groups to provide a ready market for the farmer`s output e.g., Sorghum, millet, barley etc.
The mutual relationship has not only ensured that the Brewer`s products are constantly available in the market due to the availability of raw materials used as ingredients in their production but also ensures that farmers know where to sell their output too. This offers direct market to farmers.
Agriculture is said to have been started by early man to provide the needed ingredients for various brews, In fact, the growing of wheat was not started to facilitate bread making but to provide wheat for making brews. There theories also insist that early man considered brews to be safer than drinking water as bacteria is killed during the brewing process.
Intense research conducted by various stakeholders has lead to the establishment of drought resistant sorghum variety that is suitable for areas where rain and other weather elements have become unreliable, e.g., Tharaka Nithi. Here, self help groups, mostly constituted by women, (Women form a big percentage of Small scale farmers in Kenya have partnered to form larger associations where individual farmers deliver their farm output which is in turn delivered to their main client, East African Breweries Limited. The association enables farmers to reach the quotas as agreed in the contracts signed with the brewer while also giving them bargaining power. Members who may sell directly to the brewer risk fines and expulsion from the group.
EABL is the largest malt beer manufacturer in the East African region and uses over 500 metric tons of Sorghum annually to brew one of its most popular malt beer brands, Senator. See more examples of malt beers at drinks delivery Kenya company, Dial A Drink Kenya from their website www.dialadrinkkenya.com.
According to dial a drink Kenya, beer consumption in Kenya is increasing at a high rate, in fact, beer is said to be more consumed than coffee, even though coffee is Kenya`s highest export product. From digital marketing research done by Kenya market insights there is a large number of Kenyans looking to buy beers online every day.
Previous tax regimes have hurt the growth of sorghum in Kenya, but a later repealing act of parliament lifted the higher taxes that had been imposed on Sorghum based beers. The reduction of taxes led to increased production of Sorghum as more farmers put more of their farms for the production of the crop as demand for malt based beers grew rapidly.
Data obtained from Dial A Drink Kenya, a startup offering beer delivery services in Nairobi and its environs shows that the uptake of local beers to be more than twice in volume compared to other types of beers. Although Senator beer is synonymous with low-income earners, other malt based beers available in Kenya, e.g., Tusker Malt, are a preserve of the middle class and also some high-class beer consumers.