Brokers flood nut farms with low prices

Macadamia farmers have protested against an influx of middlemen who have pushed nut prices to the bottom.

The farmers said that long before the official macadamia harvesting season commences on February 15, brokers are combing through their farms offering as low as Sh60 per kilogramme from last season's Sh170.

The middlemen are said to be taking advantage of the desperation of farmers who need money to pay school fees for their children and meet other family needs.

“The brokers have pitched camps in shopping centres and move from one farm to another. They are short-changing us, but we need the money,”said Catherine Murugi, a farmer at Kiaragana.

She accused some processors of not paying promptly for macadamia nuts delivered. 

Delayed payments

“One processor owes me Sh15,000 for the macadamia I delivered this January. They were to pay us immediately, but we are still waiting,” she said.

The early buying of macadamia and delay in payment has set some processors and the Agriculture and Food Authority on a collision course with a Nut Traders Association of Kenya (NUTAK).

According to NUTAK deputy national chairman, John Kathangu the processors owe farmers Sh55 million for nuts delivered this season alone.

“We are very disappointed that AFA has failed to enforce the law on harvesting and selling dates of the crop. Two processors are reluctant to pay farmers," said Mr Gathangu.

"They fear that the payments would be evident that they bought macadamia outside the harvesting period,” he said.

The association has issued two day ultimatum to the two processors to pay farmers.

According to Gathangu,  early buying of macadamia nuts contributed to poor quality and farm theft.