Kenya: Cashew Nut Exporters to Set Up Plant At Coast

Nairobi — Exporters of raw nuts are planning to set up a processing unit in Mombasa following successful ban on export of in-shell nuts, which has robbed them of a significant market.

Three firms, according to Kenya Cashew nut Processors and Exporters Association chairman Mr Samuel Varghese have partnered in the venture and intend to put up the unit towards the end of the year.

The plant - initially projected to process 16 tonnes of nuts per day - is estimated to cost Sh300 million.

Easily be converted

"We have existing structures and warehousing that will easily be converted into a processing unit before the next season starts in November this year," said Mr Varghese.

He said part of the machinery will be bought from Vietnam, India and Sri Lanka before the end of this month. Exporters are already bunching the nuts, which they buy at Sh65 per kilogramme, he said.

International prices of nuts have improved this season due to a global decline in production. Kenyan processors are buying nuts at Sh46 but according to Mr Varghese, the processor can profitably offer Sh70 farm gate prices to farmers.

(Source: http://allafrica.com/stories/201103211624.html)