Monday, January 23, 2012
Poor prices a threat to trade in cashew nuts
International prices of the crop have been on a decline since September last year and are expected to drop further in coming months when major producers harvest the crop.
This has left large cashew nuts processors in Kenya who target export markets at a disadvantage.
However, it’s heyday for their local counterparts who roast the nuts for domestic consumption, who are paying farmers better prices.
Lake Kenyatta cooperative society chairman David Njuguna said farmers in the region — which produces good quality nuts in Coast Province, are getting Sh55 a kilo, owing to the local roasters who have been pushing prices up in Mpeketoni.
“We expect the situation to worsen in the coming months when more harvests from Benin, Cote d’Ivoire and Nigeria comes to the market between February and April,” Nut Processors Association of Kenya chief executive officer Charles Muigai said.
Low quality nuts
Last November, a committee of farmers groups, processors and representatives of the ministry of Agriculture agreed on a minimum price of Sh45 a kilo this season, which was an increase from Sh35 a kilo offered in the previous harvest season.
However, that price is not sustainable under the prevailing global market, especially considering that the country is unable to produce high quality nuts, said Mr Muigai.
Local roasters have limited capacity and cannot buy over 10,000 tonnes of nuts expected this harvest season that runs between November and April.
India and Vietnam, each capable of producing more than 500,000 tonnes, have started harvesting the nuts.
This post was written by: HaMienHoang (admin)
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