Tuesday, April 26, 2011
Cashew nut firms may close due to shortage of supply
Cashew nut processing factories are facing possible closure due to lack of raw materials following the drought that hit the Coast Province last year.
Production of cashew nuts has been at a record low as a result of the dry spell.
As the harvest season comes to an end, most of the processors have secured only less than 20 per cent of their factory requirements, which will force them to lay off workers in the coming months.
According to the processors, the situation was worsened by smuggling of a significant amount of nuts through Tanzania.
This followed the ban on export of raw nuts which the government effected in 2009.
Kenya Nut Ltd, the largest processor, with a capacity to process 15,000 metric tonnes, secured only 1,000 tonnes.
“We will be forced to lay off the workers this season because with the raw material available we cannot sustain the factory operations,” Kenya Nut chairman Pius Ngugi said.
Similar sentiments were expressed by Equatorial Nuts Ltd.
The plant required 2,800 tonnes of cashew nuts this season but managed to collect only 800 tonnes, said the company’s general manager, Mr Johnson Muhara.
“We have almost exhausted our stock, with only 60 tonnes left,” said Mr Muhara, adding that such a situation has not been witnessed before and it will force the closure of the plant since there are no nuts left with farmers.
The situation was worse for Jungle Nuts, which started processing cashew nuts two years ago.
The firm managed to collect only 500 tonnes instead of 5,000 tonnes, said the company’s managing director, Mr Patrick Wainana.
“A 10 per cent collection is nothing we can bank on to run the plant. We will, therefore, be forced to send workers home,” he said.
Wonder Nuts Ltd managing director Bobby Thomas said that the company collected only 1,000 tonnes against capacity to process 3,500 tonnes.
The processors want the government to give them incentives to allow them to import raw cashew nuts to bridge the gap.
According to the company bosses, the government has not provided enough incentives to boost the nuts sector in the country, hence its decline in recent years.
This post was written by: HaMienHoang (admin)
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