MACNUT Association Calls For Ban On Raw Macadamia Exports

• Local macadamia nut processors are calling for the reinstatement of the ban on raw macadamia nut exports to protect local processors and farmers
• They argue that increased exports to China have left indigenous varieties unsold and driven up production costs
• With local processors using the seed coats as fuel and compost, they argue that exportation poses serious risks to the environment and foreign process use other unsustainable fuels

Muyela Roberto is a business journalist at TUKO.co.ke with over 9 years of experience in the digital media, offering deep insights into Kenyan and global economic trends.

The MACNUT Association, representing local macadamia nut processors, has urged the Kenyan government, to address challenges facing the macadamia processing industry.

Raw macadamia exports: A threat to local processing

MACNUT cited the direct export of raw, unprocessed macadamia nuts as practices that had led to financial losses for local processors, lower incomes for farmers, and job layoffs.

In 2023, the Ministry of Agriculture approved the direct export of raw macadamia nuts to mop up unsold produce, but this decision led to increased exports to China through brokers who mainly buy grafted nuts, leaving indigenous varieties unsold.

The chairperson of the association, representing macadamia nut processors Jane Maigua, said:

“While the Kenyan macadamia sector has in the last 10-15 years grown on the back of sales of Kernel to the USA and Europe, the approved directive has significantly reduced the availability of nuts for value addition by Kenyan processors for sale in global markets.

The negotiated trade agreements with USA-AGOA and EPA will not be beneficial to Kenyan farmers in the macadamia industry if the directive remains as is. Currently, the market for unprocessed nuts is only in China, which means Kenya is narrowing its market into a single market rather than diversified markets," said Maigua.

As of July 2024, Kenya had exported KSh 3.3 billion worth of macadamia kernels.

According to Maigua, the figure could have been higher if the nuts were processed locally.

Previously, the country exported processed kernels worth KSh 6.9 billion, contributing significantly to the national GDP.

Chinese buyers have been accused of rejecting low-quality nuts using X-ray machines, leaving farmers with rejected produce that is sold at lower prices locally, increasing production costs for processors.

MACNUT complained that the export of raw nuts also disrupts sustainable practices, as local processors use shells as fuel and compost, whereas new exporters rely on wood, harming the environment.

MACNUT’s recommendations to revive the industry

The association warns that Kenya’s market share in the global kernel market has fallen from 13% due to the reduced availability of kernels.

Key US and European buyers have started sourcing from other countries, risking long-standing trade relationships.

To address these challenges, the association proposed:

• Reinstating the ban on raw nut exports to protect the local processing industry.
• Educating farmers on market dynamics to ensure fair compensation.
• Introducing incentives to promote investment in local processing.
• Establishing quality standards for both raw and processed nuts.
• Promoting sustainable agricultural practices.

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Proofreading by Asher Omondi, current affairs journalist and copy editor at TUKO.co.ke.