Macadamia Prices Bounce Back: Kenyaโs Macadamia Industry Eyes Recovery Amid Global Market Rebound
Kenyaโs macadamia industry is showing signs of a long-awaited rebound, with farm-gate prices rising from as low as Sh20 to over Sh100 per kilogramme. This surge offers hope for renewed investment and a chance for farmers to reinvest in their orchards, much like they have in other successful export crops such as tea, avocado and coffee.
There is also a need to streamline the marketing system, which is largely controlled by middlemen, some of whom are unscrupulous and fail to pass on the benefits arising from rising prices as competition among the processors intensifies.
Yet, this resurgence remains fragile. The sector continues to suffer from deeply entrenched challenges, especially at the farm level. Recent figures show that nearly a quarter of this yearโs crop was lost due to poor orchard management, including a lack of pest and disease control. Another 25 per cent of harvested nuts were rejected for being picked prematurely, despite well-established harvesting timelines. A key factor behind these losses is the financial strain faced by farmers, which compels many to harvest and sell immature nuts. This is exacerbated by weak enforcement of harvest regulations.
Some early buyers, including those using laser technology to assess nut maturity, end up rejecting huge volumes. Instead of being disposed of, they are sold with the mature nuts when the harvest opens, causing a glut of low-quality produce. This has severely damaged Kenyaโs reputation in export markets, with European buyers imposing outright bans.
But perhaps the most overlooked threat to the industryโs revival is the unchecked influence of middlemen and the lack of farmersโ cooperative societies. Although government policy now ensures a minimum farm-gate price, brokers still determine what reaches the farmerโs pocket.
While some brokers operate fairly, taking about Sh10 after selling to processors, many others exploit the system, pocketing the gains intended for growers. These brokers pay far below the government-set prices, leveraging farmersโ lack of market access, immediate cash needs and poor bargaining power. The result is a fractured value chain where profits are siphoned off by intermediaries, leaving the farmer with the bare minimum.
Cases of manipulated weighing scales have also been cited. Calibrating and certifying these machines should be a top priority to restore fairness and transparency in the transaction process.
Kenya has taken important steps in reforming the macadamia sector, but policy alone is not enough. We must translate reforms into concrete action on the ground. That means standing firmly behind farmers with training and financial support.
Investing in efficient, transparent market systems and curbing taming rogue brokers through stricter regulation and oversight is crucial. There is a need to encourage strong farmer associations to improve bargaining power and advocate fair practices.
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