Macadamia industry recovers following ban on raw exports

The once-struggling macadamia industry is on the rebound, thanks to a raft of reforms aimed at protecting farmers and restoring order to the value chain.

The key changes include the reinstatement of a ban on raw nut exports and stricter enforcement of harvesting timelines to curb the problem of premature harvesting and underpricing.

According to Agriculture and Food Authority (AFA) Director General Dr Bruno Linyiru, these interventions have brought much-needed stability to the crop.

“We now have a stable crop this season, and we have fully addressed immature nut sales,” he said, adding that the farmers were already feeling the benefits.

With global demand rising, farm-gate prices have surged from a low of Sh20 per kilo in 2023 to over Sh100 per kilo this season.

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In macadamia-rich regions, such as Meru and Embu, some farmers are reportedly fetching as much as Sh130 per kilo through direct sales to licensed processors.

A global forecast by the Business Research Company projects $2.28 billion in value for the macadamia industry by 2029. This means it will grow at a rate of 10.3 per cent each year.

The main reasons for this growth are people having more money to spend, the rise of retail stores, a shift toward plant-based diets, new and creative products, a focus on eco-friendly and fair practices, and many uses for macadamia.

“It’s a new dawn for farmers in Meru,” said Charles Karimi, a local grower. “We’re finally earning what our hard work is worth,” said Dr Linyiru.

The reforms have successfully dismantled a broker-driven supply chain that previously encouraged the harvesting of immature nuts for export, particularly to China.

These nuts, which were often shaken from trees too early, resulted in poor-quality produce and caused long-term damage to yields.

Industry experts estimate that up to 40 per cent of these harvests were rejected because of quality issues, harming Kenya’s reputation in global markets.

“Unscrupulous brokers undermined the sector for years,” said Jane Maigua, Chairperson of the Macadamia Nut Association of Kenya (MACNUT).

“The current measures are a step in the right direction,” she added.

She said that the industry has also seen a significant increase in licensed processors, rising from just four in 2009 to more than 15 today. This competition has helped to drive the prices up.

Currently, Kenya produces about 45,000 metric tonnes of macadamia annually, far below the installed processing capacity of 120,000 metric tonnes.

AFA is rolling out additional interventions to bridge the gap. They include enforcing a minimum farm-gate price of Sh100 per kilo and conducting a nationwide macadamia tree census.

AFA is also reviving farmers' cooperatives, deploying patrols to deter premature harvesting and restricting purchases to licensed processors and agents who must adhere to set price floors.

A recent proposal by the Nuts Traders Association of Kenya (NUTAK) to allow up to 30 per cent of nuts to be exported raw was met with resistance.

Experts argue that with production still relatively low, the focus should remain on value addition and building a robust domestic processing industry.

Dr Linyiru reaffirmed the government’s commitment to a farmer-centric model. “We are laying the groundwork for a traceable, competitive, and farmer-driven industry,” he said.