Monday, May 4, 2009

Kenya: Cashewnut industry set for revival

The government has set up a taskforce to look into ways of revamping the ailing cashew-nut industry in the country.

Agriculture Minister William Ruto who spoke in his office, said the cashew-nut, sub-sector fell victim to unplanned liberalization of the agriculture sector 15 years ago, leading to the collapse of the sub-sector.

Ruto said following the closure of the Kilifi Cashew Nut Factory in Mombasa, over 3,000 jobs were lost together with revenue to the government.

"The cashewnut industry has the potential to employ some 5,000 people and at the same time contribute over Kshs 5 billion to the exchequer," said Ruto.

He said the cashew-nut sub-sector had a turnover of Kshs 2 billion 15 years ago and currently just manages some Kshs 160 million.

Ruto said the sector has the potential to contribute some Kshs 5 billion to the exchequer if well managed. the Minister appointed former MP and Managing Director of Kilifi Cashew Nut Factory, John Safari Mumba to the taskforce.

The others are; Nancy Kabeyeka Abisai, Francis Muniu, Margaret Kavenge Masaku and Nasaro Hada. The taskforce has 14 days in which to present the report to the Minister who said it is the intention of the government to see cashew nut factories up and running before the end of the year.

The Cashew Nut sub-sector met its waterloo following a government policy decision to allow the export of raw cashew-nuts, in effect leading to the closure of the then vibrant Kilifi Cashew Nut Factor in Coast province with others following suit.

The sub-sector has currently 2 million trees that produce 10,200 metric tonnes of cashew nuts this translates into 5.1 kilogram per tree, compared to 30 kilogram per tree if well managed.

80 per cent of the trees are said to be suffering from mildew. Other challenges include lack of a policy for the sub-sector.

Among a raft of proposals the Minister said the government intends to regulate the cashew nut industry by first regulating the sale of nuts.

"traders will not be allowed to export raw cashew nuts, they will only be allowed to sale the produce from farmers to local factories for processing," said the Minister.


Source: kbc.co.ke

Publication date: 5/4/2009

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