Brokers pushing us to poverty, Meru macadamia farmers say

Macadamia farmers in Meru County have called on the government to intervene and root out cartels which they say have impoverished them after taking control of the sector.

Between 2009 when export of raw nuts was banned in Kenya and 2012, the sector was controlled by middle men who bought nuts for as low as Sh20 a kilo.

But farm gate prices improved from Sh30 a kilo in 2013 to Sh200 a kilo last year

However, with the closure of industries after the Covid-19 outbreak early this year, prices have plummeted to a low of Sh40 a kilo currently, with farmers now accusing processors of colluding with brokers who have made a comeback.

Meru Macadamia Farmers Association Chairman Joshua Muriira said brokers have once more taken over the market and called on Agriculture Cabinet Secretary Peter Munya to step in.

Covid-19 effect

He said processors have exploited the Covid-19 situation and announced suspension of buying, yet they are receiving nuts from brokers.

“We are back to where we were before 2013 when the sector was controlled by brokers who exploited us. Processors said they had suspended buying but we know brokers are delivering the nuts to them and we call upon the minister to intervene,” Mr Muriira told Nation in a phone interview on Monday.

He said over the past three months, the middle men have been mopping up the produce at very low prices. The high season normally starts in March and ends in July but buying continues up to November.

Mr Daniel Murungi, a farmer from Kitheo in Tigania East, said that last month, he sold his 7,000 kilos of macadamia nuts at an average price of Sh60 each, making Sh420,000.

“We have been hard hit this season and it is a huge loss because last year, I sold the same quantity at an average of Sh180 a kilo. They say it is due to the pandemic but they are still buying and we don’t know where they are taking them,” Mr Murungi said.

Low demand

But agents who have been buying the produce said that currently, the demand from processors is low which has forced some of them to close their businesses.

“I have stopped buying because the business is risky at the moment. Ones needs a lot of money to buy the nuts and without a guaranteed market a broker cannot risk a lot of money. We are waiting until the market stabilises before we resume buying,” said Jackson, a buyer.

Batian Nuts Limited Managing Director James Karanja said processors are still not buying nuts due to the pandemic, adding that the market will probably rebound in the first quarter of 2021.

“Uptake of nuts is still low and we cannot buy the produce when we don’t have orders. We have instructed our field officers to find out who is buying,” Mr Karanja said in an earlier interview.