Business

State rolls out game plan to revive ailing cashew nut sector, put cash in pockets

Thursday, January 28th, 2021 00:00 | By
Cashew nut.

FARMERS: The government is putting in place measures to revive co-operative societies in coast region as it seeks to restore cashew nut sector to the old days of glory.

Collapse of primary co-operative societies that were under the once vibrant Kilifi District Co-operative Union (KDCU) left a lacuna as farmers’ link to the market was effectively blocked and brokers started streaming in.

Kilifi Cashew Nuts Company,  a parastatal established in 1974, was the first casualty of the collapse of co-operative union.

The national and county governments in conjunction with private sector, development partners, processors and farmers have agreed to embark on reviving the cashew value chain.

Linking growers

Agriculture Food Authority (AFA) said collapse of key value chain institutions that sustained the growth of the cashew nut farming for years – linking growers to the market – is largely to blame for the problems in the coastal region.

It said apart from most farmers losing confidence in value chain as a source of revenue and thereby neglecting the cashew nut trees leading to low production, the downfall of the key institutions also led to entry of new players.

The development led to small traders managing collection centres and big companies setting up factories for processing of the nuts and middlemen.

AFA Acting director general Anthony Muriithi said the farm gate prices averaged Sh70, Sh72 and Sh77 in Kwale, Kilifi and Lamu, respectively during the 2019 harvest season compared to an average of Sh65 per Kilo of raw cashew nuts prices during the 2018 production period. 

“The low prices are blamed for farmer apathy resulting in crop neglect,” he added.

Muriithi  said that by promoting the revival of co-operatives and establishment of collection centres in production areas will enhance farmers’ bargaining power and reduce influence of brokers.

Other strategies the government is pursuing include development and implementation of a comprehensive cashew nuts revival strategy, research, extension services, market linkage with farmers and agro-processors. 

It also seeks to develop and implement a cashew nut export market diversification and expansion strategy and provide incentives to increase the number of cottage factories and product range.

Agriculture Principal Secretary Hamadi Boga said the government has partnered with ETG Farmers Foundation (EFF), a registered non-profit organisation that has extensive experience in transforming agriculture value chains. 

“We are currently reviewing a seven-year proposal from EFF which aspires to transform the livelihoods of communities living in rural coastal regions by impacting over 700,000 smallholder farmers,” he said recently.

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