KENYA – The MACNUT Association, representing macadamia nut processors in Kenya, is calling on the government to curb the direct exportation of raw, unprocessed macadamia nuts.
The association warns that this practice has led to significant financial losses for local processors, reduced income for farmers, and widespread job losses across the sector.
In 2023, the government temporarily allowed the export of raw macadamia nuts to help clear unsold stock.
However, this move has had unintended consequences. The association notes that Chinese traders have exploited the window by buying grafted nuts—constituting 50% of Kenya’s crop—through brokers, leaving indigenous varieties unsold.
This has negatively impacted the income of Kenyan farmers, who typically cultivate both grafted and indigenous varieties.
The association highlights that the export of raw nuts has caused a sharp decline in revenue from processed macadamia kernel exports.
In the first half of 2024, the value of kernel exports from Kenya reached KES3.3 billion (US$25.63M), significantly lower than previous years when Kenya exported processed kernels worth KES6.9 billion (US$53.59M).
The loss in revenue due to raw nut exports is estimated at over US$50 million (KES6.5 billion).
Jane Maigua, chairperson of the MACNUT Association, expressed concern over the impact of these exports on the local processing industry.
“Our macadamia sector, which has thrived for the last 10-15 years, is now at risk. The direct export of raw nuts has drastically reduced the availability of nuts for value addition, threatening our competitiveness in global markets.”
The association also raised environmental concerns, noting that Chinese exporters are using unsustainable practices, such as burning large quantities of wood to dry the nuts, in contrast to local processors who use macadamia shells as a sustainable energy source.
The MACNUT Association is urging the Kenyan government to reinstate the total ban on raw nut exports to protect the industry and ensure its sustainability.
The association is also calling for policies to educate farmers about market dynamics, empower them in negotiations with brokers, and ensure they receive fair compensation for their produce.
Additionally, the association advocates for government incentives to encourage investment in local processing facilities, which would foster value addition and enhance Kenya’s competitiveness in global markets.
Establishing quality standards for both raw and processed nuts has also deemed crucial to uphold the reputation of Kenyan macadamia as a premium product.
Maigua concluded by stressing the urgency of the situation: “Our local macadamia nut processing industry is on the brink of collapse due to the direct export of raw unprocessed nuts to China. We are losing our competitive edge on the global market.”
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