this thread is dedicated for agricultural news

The Government will establish five disease free zones for the purpose of breeding animals meant for export, Livestock Development Minister Mohamed Kuti has said.
The minister said the Government had identified creation of disease free zones as a way of beating the stringent conditions set by international markets against export of local livestock products.http://www.standardmedia.co.ke/images/monday/nhcap140909_02.jpgLivestock Development Minister Kuti: We are certain

Dr Kuti said the first such zone at the Coast is already in its initial stages of implementation and some animals have been moved in to the area.
This move, if successful, will get rid of the "diseased country" tag on Kenya by the European market thus denying it revenues from exportation of local livestock products.
Kuti said his ministry is keen on seeing the 1992 ban lifted.
Addressing pastoralists who have relocated their animals to Mt Kenya Forest in search of water and pasture, the minister said: "This year alone 9,000 heads of cattle and 25,000 goats have been exported to Mauritius earning farmers Sh250 million. The programme will continue and we are certain we will attract other richmarkets".
Kuti said after the establishment of the Coast zone the next will be the Laikipia/Isiolo Complex to serve the large pastoralist community in Laikipia, Isiolo, Samburu and other parts of northern Kenya.
Infiltrated venture
The minister said the two zones would have cost an estimated Sh3 billion upon completion.
On the ongoing animal off-take programme, Kuti urged pastoralists not to sell their animals to brokers who have infiltrated the new venture.
He said the brokers are rushing to buy animals at throwaway prices from desperate pastoralists only to sell them to the Kenya Meat Commission (KMC) at the Sh8,000 Government is offering.
"We have heard that some of you are selling animals to these brokers for as little as Sh1,000, leaving them to enjoy Sh7,000 after selling the same to KMC. We would advise you to be patient and wait for the off-take officials so you enjoy maximum benefits," he advised the pastoralists.
Livestock Ministry PS Ken Lusaka and Kieni MP Nemesyus Warugongo accompanied the minister.


^^this is where i am stakeholder and i love it:cheers:

The government has injected Sh300 million into the Kenya Tea Board (KTB) to be used for tea research and marketing, a minister has said.




Agriculture minister William Ruto said on Monday that the board will carry out the twin duties both locally and internationally in a bid to improve sales and prices of the farm produce.

Speaking in Konoin, Rift Valley Province, the minister said that the money injected into KTB was part of the government’s efforts to improve payments to small scale tea farmers which have for many years remained low.

Mr Ruto expressed concern over the poor management of the Kenya Tea Development Agency managed factories adding that the agency needed to embrace change if it was to continue running the factories on behalf of farmers.

The minister said he would welcome any meaningful amendments to the tea sector that would help weed out the many unnecessary management levels between the tea grower and seller in the world market.

Cripple operations

This, he noted, was eating into the profit margins of the tea farmer.

The minister’s comments come after a row broke out between tea savings and credit cooperative societies (Saccos) and KTDA over the latter’s registration of its own micro-finance firm.

Saccos are protesting that Greenland Fedha Ltd will duplicate their services, cripple their operations and eventually toss them out of business.

Following the registration, there are fears that farmers will troop away to the new outfit, which does not require any fund deposits for one to access loans. This is unlike Saccos where credit is given against a member’s savings.

But despite this, Kenyan tea prices have over the past few weeks hit their highest levels in more than a decade at the auction thanks to good quality and tight world supply, brokers said.

The average price for Best BP1s hit $4.03 per kilogramme, up from a previous high of $3.97 reached in August.

A 600 acre plot acquired by the Coast Development Authority in Mwananyamala, Kwale district for a citrus fruit plantation has been invaded by squatters.

The Authority managing director Nesbert Mangale said only half of the land which was allocated for the project by the government has now been left for the plantation and a planned fruit processing plant.

This has however not discouraged the authority from carrying on with the project.

''But we have also encouraged the squatters and the community around the area to go into planting citrus trees to benefit from a ready market once the plant is built and starts operating,'' he said.

“Kwale district is one of the areas best suited for citrus trees but farmers have been getting a raw deal due to lack of a steady market forcing them to sell the fruits to middlemen at measly prices.

“The project is expected to cost about Sh32million and may take between six to eight months to be completed and operational,” Dr Mangale said in an interview.

The MD was speaking as councillors from the Kwale county council took issue with the authority for not initiating any project in the area. The councillors’ complaints were contained in a memorandum presented to three members of parliament from the area.

But speaking to the nation in his office in Mombasa Dr Mangale said Kwale had the lion’s share of the projects that the authority was initiating adding that 250 acres will soon be put under rice cultivation in Vanga.

This follows a successful Sh8million wall built in Vanga to direct the waters of Umba River in the area for a rice scheme to benefit about 1, 000 households.

“The project is about 95 percent complete and is expected to increase rice production in the area. A private investor, motivated by the scheme has installed a rice milling machine which will help the local farmers in finding a ready market for the produce.

“The residents will also benefit from rice seeds that have been developed after a series of studies to get the best seeds suited for the area,” he said.

In its strategic plan for 2008 to 2012, the CDA requires about Sh10billion to enable the authority carry out its mandate of initiating and implementing projects in the region.
Among the projects earmarked include the Sh3.5billion Mwache Dam multi-purpose, an integrated project that will utilize the waters of Mwache River in Kinango district for irrigation, fish farming and power generation.

Dr Mangale said the project has been approved by the cabinet and will soon be taken to parliament for debate.

“We are happy because the project which is expected to be funded through private public partnership has received a lot of interest from international investors who want to put in money,” he said.

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By Nicholas Anyuor

It is sweet news for cane farmers after the Kenya Sugar Board allowed a private investor to establish a second factory in South Nyanza.

Board Chairman Okoth Obado said they had allowed Sukari Industries to put up a multi-billion shilling sugar mill in Ndhiwa District.

The new factory, he said, would ease pressure on the South Nyanza Sugar Company (Sony) Ltd.

He said the factory will occupy some 250 acres of Homa Bay County Council land in Kanyikela location, and would help cane farmers who have had to ferry their produce to Sony, which is several kilometres away. But some local leaders opposed the move, saying residents had not been consulted on possible negative impact of the miller.

Those opposed to the factory want construction plans suspended until all interested parties are briefed and those living around the site compensated.

Nyanza ODM Co-ordinator Monica Amollo is among those opposed to the move and has accused the Kenya Sugar Board and some local leaders of imposing the project on residents.

But Mr Obado, local MP Orwa Ojodeh and some local leaders say the project was a ‘god send’ and must be implemented.

Help farmers

Mr Dennis Orero, a local leader, said the factory would not only create employment and improve infrastructure, but would also save cane farmers the agony of taking their produce to Sony.

Councillor Dorcas Matunga said those opposed to the project were bitter after losing the 2007 parliamentary elections. "It is political. These are the people who do not want Mr Ojodeh. They see this as an achievement for him," she said.

Last weekend, a fight broke out during the burial of Councillor Lawrence Ojwang’ after a group of councillors accused Ms Amollo of writing an opposing letter to the investors.

When contacted, Amollo accepted writing to Kenya Sugar Board and the investor to stop the construction of the factory.

"I want to know why they plan to establish the factory without a feasibility study first," she said.

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Although the country’s livestock sector is not well developed, it has the potential to generate jobs and foreign exchange earnings, reducing poverty in the process.

The sector’s potential is captured in various Government documents including the Economic Recovery Strategy, the Strategy for Revitalising Agriculture and Vision 2030.

In these documents, Agriculture and Livestock are listed as key drivers to deliver the 10 per cent economic growth rate.

To harness this potential, the Government is establishing disease-free zones across the country for the purpose of breeding animals meant for the export market.

Disease-free zones

Livestock Development Minister Mohamed Kuti said the Government is creating disease-free zones as a way of beating the stringent conditions set by international markets against export of local livestock products.

The first such zones, he said last week, at the Coast is already in its initial stages of implementation and some animals have been moved into the area.

This move, if successful, will get rid of the "diseased country" tag on Kenya by the European market, which denies revenue from exportation of local livestock products.

It is estimated that this year alone 9,000 head of cattle and 25,000 goats have been exported to Mauritius earning livestock farmers Sh250 million.

Kuti said after the establishment of the Coast zone, the ministry would be setting up more zones in Laikipia/Isiolo Complex.

This zone is expected to serve the pastoralist community in Laikipia, Isiolo, Samburu and other parts of northern Kenya.

By John Oyuke
Despite its immense potential, the local livestock sector continues to be hampered by diseases, pests, inadequate technical manpower and adverse weatherhttp://images.intellitxt.com/ast/adTypes/mag-glass_10x10.gif (http://www.standardmedia.co.ke/business/InsidePage.php?id=1144026582&cid=14&#) conditions.
The situation is especially acute in Arid and Semi Arid Lands (ASALs), which is estimated to hold 75 per cent of the livestock population.
A change in fortunes is, however, expected following the infusion by European Commission (EC) of Sh414 million in a major intervention to boost livestock production.
Enhance food security
The funds, which will be channelled through Food and Agriculture Organisation (FAO), will help farmers deal with challenges that stalk livestock and help vulnerable households deal with high cereal prices, conflicts over grazing land and a decline in livestock prices, which has exacerbated food insecurity.http://www.standardmedia.co.ke/images/sunday/buscap181009_01.jpgThe face of livestock sector is set to change with EU funding a project that addresses the many challenges in the industry. Photo: File/Standard

FAO Country Representative, Castro Camarada said as a result of the drought, people in ASALs, have particularly been hit by the food crisis.
"These are facts that have led to the development of this enhanced food facility project," he said.
Under the project, livestock keepers will be helped to boost fodder production, animal health, livestock and livestock product marketing and dairy production.
Livestock Development Minister, Dr Mohammed Kuti said the FAO-driven facility forms a basis on which full-scale Government project to develop the sector can be established.
Grazing land
He said although livestock sector is not well developed, it has the potential to generate employment, foreign exchangehttp://images.intellitxt.com/ast/adTypes/mag-glass_10x10.gif (http://www.standardmedia.co.ke/business/InsidePage.php?id=1144026582&cid=14&#) earnings and reduce poverty if well harnessed.
Under the project’s fodder production component, the facility aims to both raise incomes as well as sustainability of livelihoods.
This focus stems from the fact that in the pastoral societies, dry season grazing areas are often vast distances from the main household.
By focusing on fodder production along three of the most important rivers in ASALs, the project ensures that feed is available for a core-milking herd that can support families.
Fodder will also sustain an important source of income, substituting the need to sell livestock in order to purchase staple cereals such as maize or sorghum.
The health component provides support to boost production of livestock products while livestock-marketing seeks to boost farmers’ access to markets for their products.
These set of goals would be achieved through improvement of infrastructure at key markets that serve as filters for animals entering the formal system and building capacity of community groups to engage in livestock keeping marketing processes.

Thanks for the news burner. The livestock sector has been hit hard.

The fish pond farming kitty of Sh1.2 billion has received an additional Sh31 million boost from Food and Agriculture Organisation (FAO).

The funds will go towards helping farmers in Yala in Siaya, Luanda in Emuhaya and Lurambi in central Kakamega Districts to construct and stock fish ponds, said FAO’s representative to Kenya, Dr Castro Camarada.

He added that the organisation was promoting fish pond farming to help the country address the food crisis, following a drastic drop in maize production due to poor weather.

Modern farming

Speaking during a farmers field day held in Lurambi, Dr Camarada said Kenyans need to adopt modern farming technology and diversify farming practices. He said that after helping to introduce palm oil in western Kenya, FAO will also help the country acquire new technology from other countries to develop fish pond farming.

Western Kenya assistant director for Fisheries, Mr Michael Oballa, said the government has set aside Sh1.2 billion in current financial year to construct ponds in 140 constituencies.

Aqua culture

He added that the activities under the aqua culture stimulus programme and Lurambi constituency have been allocated Sh700 million for the project.

Mr Oballa said 10 young men will be hired to construct a pond costing Sh25,000, to help ease unemployment in the area and 200 fishponds are expected to be constructed in Lurambi Constituency.

The Fisheries official added that the Government has embarked on fish pond production, following a drastic drop in fish resources from Lake Victoria.

He urged farmers in Lurambi constituency to form a company and start manufacturing fish feed, as demand for the products are going to increase because of fishpond farming.

He said Kenya, Uganda and Tanzania had directed a committee of experts to come up with a solution on how to address the downward trend of fish production in Lake Victoria.

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Sugar cane farmers will retain only 49 per cent stake in the sugar millers instead of the 51 per cent they are demanding for, the Privatisation Commission has revealed.

The Commission has also said the five sugar millers will be auctioned through strategic investors.

The Commission’s Chief Executive Officer Solomon Kitungu and Chairman Peter Kimuyu said the process would take 11 months and not 14 as had earlier been planned.

They had previously said the privatisation of the sugar millers would take 14 months.

Presenting the status report on the five sugar factories earmarked for privatisation last week, Kitungu said the period had been reduced to 2012 to beat the Comesa deadline.

Comesa deadline

"The move to reduce the timeframe was to enable the Commission beat the 2012 extended Comesa safeguard period," Kitungu said.

Comesa, a regional trading bloc, gave Kenya until 2012 to restructure the sugar industry, which is saddled with huge debts, to make it more competitive in the Comesa imports market niche when the safeguard period expires.

Last week, the Commission and Agriculture Minister William Ruto rejected demands by farmers to extend the Comesa deadline.

Former Webuye MP Joash Wamang’oli kicked off the debate, when he demanded that Kenya should not tie itself to the Comesa deadline if farmers are ill-prepared to procure majority stakes.

In response, Ruto said the Government had no choice but to respond to the Comesa regulations.

There is growing unease among sugar cane-growing regions on the mode of selling the millers with farmers and their leaders insisting they should be allowed to own a 51 per cent stake in the millers.

Write off debts

But the Commission said it would reserve only 49 per cent for farmers, saying it had developed modalities to ensure the process is insulated from abuse.

Kitungu disclosed that a 24 per cent shareholding would be reserved for farmers, while an additional 25 per cent shares will be held by the State on behalf of farmers.

"The Government will warehouse 25 per cent shares in case farmers fail to raise enough money. The shares will later be sold to farmers, while the rest of the shares will be for investors," Kitungu explained.

Ruto reiterated the Government will warehouse 25 per cent shares and a caveat put to ensure the shares are sold to no one else.

The Commission proposed that debts choking the sugar industry be written off or turned into equity to make the factories viable for auction and to attract more investors.

Ruto said the Government had promised to write off Sh20 billion out of the Sh47 billion owed to farmers and suppliers in the sugar industry.

He also said the privatisation would come with modernising the millers to double the current production capacities from 30,000 to 60,000 tonnes of cane per day.

By Athman Amran
Iran has pledged to buy more Kenyan tea and help link exporters to other buyers in Central Asia.
The new Iranian ambassador to Kenyahttp://images.intellitxt.com/ast/adTypes/mag-glass_10x10.gif (http://www.standardmedia.co.ke/business/InsidePage.php?id=1144026984&cid=14&#) Dr Seyyid Ali Sharifi Sadati called for increased trade relationships between the two countries, saying the West has often unfairly benefited from trade with Africa.
"Iran is the second largest consumer of tea in the world and we get much of the tea from Sri Lanka and India. But for the past six months, 20 per cent market for our tea has been in Kenya," Sadati said.
The envoy said Iran intends to expand relationship in other sectors for the benefit of the two countries and several Central Asian nations.
"We have 15 neighbours and because most of them are landlocked, they depend on us," Sadati said.
Agriculture is one of the most critical areas at the moment and Iran is expecting a visit by a Kenyan delegation soon, led by Agriculture minister William Ruto.
An Iranian Transport Committee is also expected in the country soon for talks on stakes in Kenya ports, railways and roads.
Sadati told The Standard on Sunday that Iran and Kenya have already signed 13 agreements, which include co-operation in the aviation industry, crude oil (http://www.standardmedia.co.ke/business/InsidePage.php?id=1144026984&cid=14&#) provision and dams construction.
Other agreements focus on co-operation in scientific research, health and medicine.
"When Prime Minister Raila Odinga visited Iran recently, 10 more bilateral agreements were signed between Kenya and Iran," Sadati said.
"We can provide capabilities for Kenya and we do not emphasise on benefit. Kenya needs a lot of energy for development."
The envoy said Iran is among world leaders in dam construction technology and has acquired nuclear technology for peaceful purposes.
He said Iran is constructing the Tana River Dam and plans are under way to construct more dams.
"For the past two decades Iran has constructed dams and has one of the biggest dams in the world."


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Kenyan horticultural exporters are eyeing the Middle East in a bid to diversify from the traditional European market hit hard by global financial crisis.

The traders have already sought help in finding new markets in places like the Gulf Cooperation Council countries.

"Some of our own customers are already in talks with outlets like Spinneys among others," an official of SkyCargo, the Emirates Airlines airfreight disclosed.

The supermarket retailer in the Middle East is involved in retail and marketing of consumer goods, most notably in the food sector, and its activities are spread throughout the seven emirates.

This is why it has not been affected by the harsh global economic conditions.

The Gulf Council comprises the Persian Gulf states of Bahrain, Kuwait, Oman, Qatar, Saudi Arabia and the United Arab Emirates, which signed a unified economic agreement in 1981.

The foray by exporters into new waters comes at a time when Emirates Group, the aviation and travel services provider in the Middle East is seeking to increase presence in the local horticulture export to fast track recovery in its cargo business.

A team from the Dubai-based group was recently in Nairobi. It held meetings with growers, fresh produce exporters and freight operators to emphasise the group’s ability to provide them efficient and cost-effective global connections.

Ram Menen, the Emirates’ divisional senior Vice President Cargo said Emirates SkyCargo is looking at ways it can work with the industry to access new markets.

He said the airline wants to fit in the supply chain of the fastest growing industry within the agricultural sector by helping exporters find new market opportunities.

Growing industry

"Emirates is committed to Kenya, we are serious about the market. We have excellent links in Dubai to a network of 100 cities around the globe," Menen observed.

He said several horticulture producers and exporters are ready to work with the airline.

Flower volumes this season have been adversely affected by lack of rain and declining margins from Kenya’s the EU market.

Last year, Emirates carried about 25,000 tonnes of exports and brought about 7,000 tonnes of imports including telecom equipments and automotive spare parts into the country.

About 18,664 tonnes of exports were transported between October, last year and September this year, which represented a 25 per cent drop.

^^
I have a feeling the Middle east and Asian markets will be the next major destination for the flowers.

Kenya coffee brand to hit market soon, says Ruto

http://www.nation.co.ke/image/view/-/677926/highRes/109943/-/maxw/600/-/1150c5w/-/ruto.jpg Agriculture minister William Ruto. Photo/FILE
By NATION CorrespondentPosted Tuesday, October 27 2009 at 14:38

The development of Kenya coffee brand is on course, a minister has said.

When in place, the brand will open a third window after auction and direct marketing to enable farmers receive better returns for their produce.

“In the next three years, we expect to have turned around the coffee sector,” said Agriculture minister William Ruto.

He said the coffee sector will be restructured further to cope better in a liberalised market adding that the Coffee Bill 2008 was ready for debate in Parliament.

Sorted out

“We should have issues contained in the Bill sorted out in the next session,” he said.

The minister said among the issues will be the enhancement of funding of the sector for research and development, marketing structure and resolution of governance problems.

The minister, at the same time, announced that Mr Jeremy Block had been replaced as a member of the Coffee Board of Kenya.

The move is widely believed to be as a result of agitation by coffee stakeholders who claim Mr Block’s inclusion causes conflict of interest as he is also a player in the industry.

More reforms

Mr Ruto who was inaugurating the boards of directors of Coffee Development Fund and Coffee Research Foundation on Monday, said the coffee sector needed more reforms to reflect the changing market environment.

“The government expects to up-scale the promotion of coffee because of the international competition. We cannot rely on conventional methods of marketing coffee,” said the minister.

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The establishment of a cement factory in Pokot will help bring down cement prices and curb shortages of the commodity in the country, Prime minister Raila Odinga has said, adding that it will also help end cattle rustling by creating jobs for youth and women, and improve the economy of the district.

“There is a high demand for cement due to rapid growth of the construction and building sector and the establishment of another cement plant will help bring down cement prices and curb a shortage of cement in the country,” he said.

The Prime minister was speaking in Sigor Constituency after he announced that the government had granted a mining license for the establishment of the Sh7 billion cement plant at Sebit village in Pokot Central district to an Indian investor, Sanghi-Cemtech.

He said the company, which intends to produce 1.2 million tonnes of cement annually beginning next year, had fulfilled all conditions given by the State and the local community, to set up a cement plant in the semi-arid district.

Feasibility studies

Mr Odinga said Ortum and Sebit areas had large deposits of limestone deposits that could last a cement factory for over 50 years according feasibility studies conducted by government geologists.

He criticised an unnamed senior public servant from the district for bragging that he would bring an investor to build a cement factory in the area, adding that no individual was capable of doing so, apart from the government and its development partners.

Regarding food security, the Prime minister said the Italian government had given Kenya a grant of Sh1 billion to expand Wei Wei irrigation scheme in Pokot Central to boost food production and incomes of the local residents.

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KENYA SETS NEW TEA PRODUCTION RECORD
NAIROBI, Oct 1 (NNN-KBC) -- Tea production in Kenya has hit an all-time high of 260 million kg in the last eight months and the Tea Board of Kenya is expecting to fetch 75 billion shillings (about 929,4 million USD) from the crop this year which will translate to more earnings for the farmers.

Tea production in Kenya, the world's biggest grower of black tea, rose in the past few months after wet weather this year ended an almost two-year drought. Production was high in the western Rift Valley Province region, increasing by more than 40 million kig.

Riding on falling production in India and China as a result of pest invasion, Kenyan farmers received a hefty bonus worth billions of shillings with the industry regulator saying farmers could be assured of better prices this year.

The world is facing a tea deficit of about 100 million kg, according to the world's largest growers, McLeod Russel India Ltd, and the shortage could widen to 130 million kg by the year-end.

However, uncertainty in the local weather patterns is also posing a big challenge to the Kenyan crop next year with forecasts predicting depressed rainfall during the short rainy season which runs from September to December.

The crop is expected to earn the country slightly more than 70 billion shillings if production and price patterns are not distorted. http://namnewsnetwork.org/v2/read.php?id=134909

^^another record for Kenya on tea production..that's a great achievement :cheers:

KSH 700M TO CUSHION KENYAN FARMERS AGAINST POST HARVEST LOSSES
NAIROBI, Oct. 7 (NNN-KBC):The government has set aside 700 million shillings to mitigate against post harvest losses.

The amount will be channelled through the National Cereals and Produce Board (NCPB) and will be used for the purchase of storage equipment to increase efficiency in the chain of supply.

The board has also introduced warehouse receipt systems that can be used as collateral for loans to farmers.

This is expected to increase produce availed by farmers to the NCPB where the government has authorised the procurement of 500 million shillings worth of maize to increase the strategic grain reserve and famine relief stocks.

NCPB has in the past been blamed for lack of a proper management system in facilitating its core business as the national grain reserve.

Key among the criticism against the board is low payment to farmers exposing them to exploitation by middlemen and delayed purchase.

This new move is expected to address the challenges especially those associated with post-harvest losses even as the weatherman predicts a looming drought in the country occasioned by the La Nina weather condition.

The funds will be utilized to purchase mobile and fixed dryers and storage equipments as well as an aflatoxin testing facility.http://www.namnewsnetwork.org/v2/read.php?id=135496

Tharaka farmers break into the global market with organic herbs

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Some of the products packaged for export to markets like Italy and Japan. Photo/STEVE MBOGO

At Tunyai village in the lower part of Tharaka-Nithi County, machines roll for almost 24 hours in a lone factory churning out processed fruits and herbs that will be flown direct to Italian and Japanese supermarkets.

The small factory that is supplied by certified organic farmers is a classic example of how Kenya’s quest for industrialisation can also be successfully driven from the rural areas.

It has created jobs, taught entrepreneurial skills to farmers and has resulted in sprouting of new market despite its remote location along the dusty Chokariga-Nkubu Road, an area forested with shrubs.

The community owned project known as Meru Herbs completes the often spoken about jargon of ‘agribusiness value chain’ by buying directly from farmers and avoiding the exploitative middlemen, value adding by processing and packaging of fruits and herbs and exporting the produce.

Moneyspinners

Meru Herbs is not a new project, but the push towards commercialisation of small scale agriculture in the last few years has given its farmer-suppliers new impetus and awareness on how they can convert their small plots into moneyspinners.

When the project was first started in 1991, the farmers earned Sh86,000 from exports.

The figure jumped to Sh11.9 million in 2001 and was Sh25.5 million in 2008, the company records indicate.

“Ours is a simple facility, but it addresses the issues that matter most to this country, like creating employment in the rural areas and empowering women. We would like to see this replicated elsewhere across Kenya,” said Gilbert Mbae, the general manager of Meru Herbs.

The company specialises in processing and packaging of mangoes, the hibiscus or rose mallow, chamomile, pineapple syrup, paw paw syrup and lemon grass.

The fruits are processed to either syrup or small cuttings that are bottled with natural preservation methods of using lemon juice while the herbs are dried and packaged or some mixed with black tea from the Imenti Tea Factory.

Alex Mugambi, for example, has been a pastoralist all a long, but in the last five years, he started clearing part of his expansive land and used water from the nearby river to irrigate his land and grew hibiscus which he supplies to Meru Herbs.

“I was encouraged by the earnings one of my neighbours was making. Now I have divided by farming between rearing livestock and being a selling organic crops to the factory,” he said.

The highest paid farmer currently earns Sh15,000 per month in addition to annual bonus equal to about 20 per cent of the annual supply.

Farmers also benefit from bursary funds facilitated by the company. This is much more that what they could have earned from the mainstream economic activity in Meru which is khat farming which is now crowded.

The Meru Herbs factory currently employs 42 permanent workers and every day hires an average of 20 casual labourers.

It also has a research and development department aimed at improving the value addition so as to grow its export business.

For example, among the ongoing projects in the R&D is the development of a natural pesticide from dried leaves, with the hope that it will kills pests ‘organically’ that have become a challenge to its contract farmers.

The project involves burning an array of dried leaves mixed with saw dust on tins that hang from the ranches of the mango trees. The smoke repeals the pests.

Natural pesticides

Last year, Mr Mbae says the organic repellent protected about 500 mango trees from pests.

Although the company has only one resident agriculture officer, Mr Mbae said they are using the traditional knowledge of pest controls that is relevant to organic farming.

“When we were young, we used to see our parents burn certain types of grass under the fruit trees and that is what we are experimenting with. The progress is good,” he said.

Most of the organic herbs farmers use the African merry gold (locally known as mubangi) as pesticide.

The crop’s juice is mixed with water and sprayed over other crops like the high value chamomile which also has natural pest-repelling qualities.

Every year, buyers visit to monitor the planting, crop husbandry and processing procedures to ensure that high food handling standards are adhered to and most importantly that the growing of crops is purely organic with no use of chemicals.

Meru Herbs is looking to turn to drip irrigation, instead of the current flood irrigation which is expensive and consumes a lot of water.


Tunyai area is generally dry and supplier farmers have to rely on irrigation.

As the volume of the water from the rivers reduces due to climate change, farmers are seeking methods that will use less water.

Drip irrigation is cheaper and ensures crops get adequate water and nutrients directly, said food security expert James Nyoro in an earlier interview.

“Irrigation must be made cheaper by switching to drip, so that small scale farmers can afford to use the technology.

Otherwise, making it expensive means it can only be used to grow high value crops that pay for the high operating costs,” said Mr Nyoro who is also the managing director of global development group Rockefeller Foundation in Africa.

Meru Herbs said it is in negotiations with the Ministry of Agriculture on how its out grower farmers can be assisted to establish drip irrigation systems.

Organic herbs farming has transformed the lives of many in Meru as some shun livestock rearing.

Among the crops that are grown, processed and packaged for export are high value products like hibiscus/carcade, chamomile or chamomile, lemon grass and fruits like mango, pawpaw, pineapple and vegetables like chilli.

Hibiscus/Carcade is rose flower like crop that matures after around six months. The flower is harvested, the seeds are removed and the husk dried.

Carcade is an aromatic, astringent herb with mild diuretic properties.

It has a cooling effect, helping lower fevers and furnishing a source of vitamin C.

In their dried form the calyces provide a rich red colour and fruity flavour to jams, chutneys and teas, often in combination with the dried flowers.

A 2008 study by United States Department of Agriculture (USDA) shows consuming hibiscus tea lowers blood pressure in a group of pre-hypertensive and mildly hypertensive adults.

Chamomile is a sedative herb is bitter and aromatic with many uses.

It relaxes spasms, relieves pain and reduces inflammation. It has beneficial effects on both the digestive and immune systems.

With numerous uses, chamomile is known as the plant’s physician, its presence allegedly healing nearby plants and the addition of chamomile tea to water containing cut flowers revives them and prolongs their life.

But the MedlinePlus database, maintained by the US National Library of Medicine in conjunction with the National Institutes of Health, lists over 100 separate ailments and conditions which chamomile has been traditionally used, for which it lists only a few as having undergone scientific study on animals and/or humans.

Lemon grass

Lemon grass is loved for its properties in oriental cooking, it also produces a delicious and distinctive infusion.

Brewing a striking green, lemon grass tea has notes of ginger, mint and lemon.

Some studies have suggested that it may have anti-bacterial properties, and is said to aid in digestion. Herb can be used for cooking with fish, poultry, soups, and other seafood.

Availability of electricity in the region has come in handy for the factory although it uses firewood to power its three boilers.

The most striking feature of Meru Herbs products is the packaging which can compete at the international standards and has been one of the leverage areas of its marketing.

They label their products in English and then in the language of the country of destination in particular Italian and Japanese.

When products are transported from the remote location of Tunyai, they do not undergo further processing in Nairobi and are shipped directly indicating the level of simple sophistication that goes on at the factory.

Driving past Tunyai market, it is not easy to think that such a facility exists within this locality

The small growing hamlet is a direct result of the factory and got its first one storey commercial building last year.

BusinessDailyAfrica (http://www.businessdailyafrica.com/-/539546/1157064/-/item/0/-/ycjbpd/-/index.html)

Just what I love to hear,thanks for posting this.

Credit to farmers rises by Sh25bn
http://www.nation.co.ke/image/view/-/1159024/highRes/259853/-/maxw/600/-/dy85o9z/-/Plou.jpg
Financial surveys conducted in 2006 and 2009 showed that access to formal finance had grown from 19 to 23 per cent. Photo/FILE

Credit offered by banks to the Agricultural sector increased by Sh24.6 billion during the last five years.

He attributed the rise to innovations that have enhanced financial access to both urban and rural population.

Innovations such as mobile banking, he said, have improved access to financial services countrywide.

Mr Ndung’u said Kenya’s financial surveys conducted in 2006 and 2009 showed that access to formal finance had grown from 19 to 23 per cent.

Access to semi-formal finance, he said, had shot from 8 per cent to 18 per cent, informal lending declining from 35 per cent to 27 per cent and other forms falling from 38 per cent to 33 per cent.

The governor, however, said that access to finance in rural areas was still low with 64 per cent of the population unable to get formal financial services and 21 per cent being excluded from any form of banking services.

“We are glad that credit offered by the banking sector to people involved in agriculture including those in the rural areas is on the rise,” he said.

Escape poverty

“Access to finance allows a majority poor people to escape poverty by building their assets through savings and credit. We focus on financial support investment to increase productivity in the sector,” said Mr Ndung’u.

He spoke at Sarova Whitesands Beach Resort in Mombasa on Monday during the third African Rural and Agricultural Credit Association Central Banks forum.

Daily Nation (http://www.nation.co.ke/business/news/Credit+to+farmers+rises+by+Sh25bn/-/1006/1159022/-/15spmjjz/-/index.html)

Plenty of fish in Kiambu ‘but no one to buy’

http://www.nation.co.ke/image/view/-/1159038/medRes/259857/-/maxw/600/-/14ufy99z/-/fish.jpg
Tonnes of fish worth millions of shillings are being held by farmers in Kiambu County due to lack of market.

About 4,000 farmers from eight districts in the county said since the project was launched through the Economic Stimulus Package last year, they have no market for their fish.

Mr John Njuguna, the chairman of Kiambu Fish Farmers Association also said they have no harvesting equipment such as nets.

“Most farmers have eight-month-old fish, which is the recommended rearing period but we do not have fishing nets or market for the fish,” Mr Njuguna said.

He attributed the difficulty in marketing to poor fish consumption by local communities.

Early this year, Kiambu District fisheries officer Raphael Kasio said the government was planning to put up a fish processing plant in the area at a cost of Sh5 million.

The factory, he said, would have a cooling plant, storage, transport as well as a marketing department.

Mr Kasio also said they is a huge market for fish, but added that his office was facing challenges connecting farmers with potential buyers.

Mr Josiah Mureithi, a fish farmer in Thindigua village said many fish farmers have now abandoned their ponds.

“Extension officers never come to check on our progress, birds are eating the fish and tadpoles have invaded the ponds,” Mr Mureithi said.

Daily Nation (http://www.nation.co.ke/business/news/Plenty+of+fish+in+Kiambu+but+no+one+to+buy/-/1006/1159034/-/rvrco/-/index.html)

Farmers benefit from Sh1.5 billion EU projects


Farmers in four counties in Rift Valley hard hit by post election violence are reaping from Sh1.5 billion projects financed by the European Union.

The projects are on rehabilitation of livestock support services and restocking of target beneficiaries with dairy goats and heifers.

Under the programme in Nakuru, Uasin Gishu, Trans Nzoia and Kajiado counties, the infrastructure rehabilitated include 31 cattle dips, 34 milk collection centres and 45 vaccination and treatment crushes destroyed during the chaos.

The farmers also received 102 heifers, 759 dairy goats and fodder seed.

Other areas that benefited from the projects include Kitui and Makueni counties.

Speaking during an inspection of some of the projects in Nakuru County, European Union Head of Mission Lodewijk Briet said the project is also expected to reconcile communities in respective areas.

Living standards

"The projects make different communities work together in an integrated way," the EU Head of Mission said.

The delegation, which included ambassadors from France, Finland and Denmark, visited the projects as part of celebrations to mark Europe Day.

Europe Day follows the declaration by Robert Schuman on May 9 1950, which laid the ground for the creation of and development of the European Union.

Mr Lodewijk said the rehabilitation of agricultural livelihood is a first step in initiating long-term reconciliation.

Beneficiaries of the projects said they have been able to restart their lives after losing property during the violence.


"I lost most of my property and livestock but at least now I have a source of living after receiving a heifer," one of the farmers at Giwa Farm in Rongai said.

Danish Ambassador Geert Aaagaard Andersen urged women to participate in the projects in order to uplift their living standards.

"Peace building efforts through such projects is important as it is clear that majority of Kenyans do not want the violence experienced in 2008 to recur," the Danish Ambassador added.

The project, Strengthening Non-State Actors Capacities to Prevent and Resolve Conflicts in Areas Affected by the Post Election Violence in Kenya commenced in July 2009 and is working towards achieving the goals, which were set almost two years ago.

The project proposal was a reaction to the 2007 post election violence that rocked the country.

Standard Media (http://www.standardmedia.co.ke/news/InsidePage.php?id=2000034881&cid=159&story=Farmers benefit from Sh1.5 billion EU projects)

http://www.businessdailyafrica.com/image/view/-/1164594/highRes/262540/-/maxw/600/-/3ms425/-/Wheat2607.jpg

Rising international commodity prices, access to bank loans and enhanced rains of 2010 lifted agriculture to its best performance in five years even as production of traditional crops plummeted, official government data shows.

Agricultural sector expanded by 6.5 per cent, the first positive growth in three years after recording negative growths of 2.7 the previous year and 4.3 per cent in 2008.

Incidentally, the real gross domestic product (GDP) or the rate at which national wealth grows each year) also bounced back to 5.6 per cent alongside agriculture in 2010.

http://www.businessdailyafrica.com/image/view/-/1164598/medRes/262553/-/w/300/-/mhps2fz/-/agrics.jpg

“This growth was primarily driven by favourable weather although increased use of certified seeds, subsidised fertiliser to small scale farmers and good international prices also played a part,” planning Minister Wycliffe Oparanya said when he released the Economic Survey 2011 in Nairobi Tuesday.

Coffee value

But the general rise in global demand for commodities lifted foreign exchange earnings from tea, coffee, sisal, pyrethrum and tobacco, stabilising the Shilling for most part of 2010.

While the value of coffee produced during the year dropped by 22.2 per cent in 2011 to 42,000 tonnes compared to the 54 tonnes produced the previous year, better international prices lifted earnings over the period from Sh15 billion to Sh16 billion.

Source (http://www.businessdailyafrica.com/Agriculture+s+strong+growth+spurs+economy/-/539552/1164590/-/me0q87/-/index.html)

Wheat farmers seek aid after crop failure


Wheat farmers in Narok have appealed for financial aid from the government following crop failure.


Growers say they are unable to service loans secured from institutions such as Agricultural Finance Corporation.


Erratic weather patterns in the largest wheat producing area is to blame for the losses.


Wheat farmers owe the AFC Sh525 million while a similar amount is owed to other financial entities, said Narok AFC branch manager Ms Irene Koonyo.


Speaking Wednesday after taking journalists around various wheat farms in Narok North and South districts, farmers said they feared losing their animals - their other source of livelihood - if it did not rain in the next few weeks.

Outgoing national Cereal Growers Association chairman Hugo Wood and Narok Wheat Farmers Association chairman David Mpatiany predicted an average harvest of five and five bags of the grain per acre.

According to data from the Cereal Growers Association, the cost of producing wheat has shot up to Sh33,000 per acre and for a grower to break even - pay bills and make a small profit - he or she must harvest at least 12 bags per acre and sell it at Sh3,300 each.

Ravaging drought

“More than 100,000 hectares have been lost to the ravaging drought. Almost all farmers may not recoup what they spent let alone repay the loans,” said Mr Hugo.

He urged AFC to stagger the repayment over five years.

Daily Nation (http://www.nation.co.ke/business/news/Wheat+farmers+seek+aid+after+crop+failure/-/1006/1165318/-/tjyv0c/-/index.html)

^^ We could have the ministry of Agriculture helping up with the setting up better irrigation and farming methods so that farmers don't rely too much on the rains.

The government plans to set up a Sh6 billion world class fresh produce market in Nairobi that will supply goods to wholesale and retail dealers in East and Central African region.

Director of markets development in the Ministry of Local Government Mutua Nzoka said an international tender for the project that was advertised in May will close next week.

“We shall source funding beyond the exchequer. We have already budgeted for Sh6 billion that will be spread across the market development period,” he said.

Mr Nzoka said other than carrying out Environmental Impact Assessment, the consortium for the mega market project will also look at the issue of the site, development cost, design and documentation as stipulated in the international beach mark of such project.

“The market will target countries of Uganda, Tanzania, Rwanda, Burundi, Somalia and Djibouti among others. It will further create jobs and generate wealth for thousands of Kenyans,” he said.

Mr Nzoka said officials have already looked at some world class markets in the United Kingdom and South Africa as a model for the new market.

Some of big markets in Britain include Kirkgate and Mexborough with the former being regarded as one of the largest with hundreds of stalls of green groceries, pets and animals, butchers and fishmongers among others.

Mr Nzoka said the project which received Cabinet approval sometimes earlier this year, could be operational within three years depending on the construction pace.

He said the government is looking at setting up a state-of-the-art market with cold storage facilities for fresh produce and flowers for export, auction and light industries among other facilities of international standard.


http://www.nation.co.ke/business/news/Kenya+to+set+up+a+Sh6bn+goods+market+/-/1006/1175398/-/xakrw5/-/index.html

Farmers fault scrapping of cereals duty

A lobby group for farmers has objected to last week’s scrapping of excise duty on maize, wheat and rice in the budget, arguing that it exposes local producers to unfair competition from imports.

The Cereal Growers Association (CGA) said the move could hurt long-term supply as farmers cut back on future production.

“Scrapping excise duty is beneficial to customers buying imported maize, but local farmers do not benefit from the zero rating on the three grains,” said CGA chief executive David Nyameno.
continue reading.. (http://www.businessdailyafrica.com/-/539552/1180264/-/66hsu9z/-/index.html)

Farming fails to get adequate funding
The Agricultural sector has not attracted the required levels of credit with banks still hesitant to lend to farmers.

The government Tuesday said recent studies by the Ministry of Finance had placed the amount required at Sh130 billion, but only Sh40 billion is currently available.

Finance Minister Uhuru Kenyatta said commercial banks should take advantage of the risk-sharing facility to increase lending to the sector. He said that despite agriculture contributing 24 per cent to national wealth, it attracts a mere 3 per cent of total credit in the country.
continue reading (http://www.nation.co.ke/business/news/Farming+fails+to+get+adequate+funding/-/1006/1180880/-/wvewwa/-/index.html)...

Poor Kenyans change diet as food prices rise

Kenyans are changing what they eat, while others are eating far much less than they used to because of the rising cost of food, according to new research.

The changing trend could trigger investment in less expensive food.

“76 per cent of respondents in Kenya said they have had to change their diet – the highest percentage recorded worldwide – with 79 per cent blaming the rising price of food,” said a report released by Oxfam on Wednesday.
source (http://www.businessdailyafrica.com/Poor+Kenyans+change+diet+as+food+prices+rise/-/539552/1183652/-/n9on7k/-/index.html)

Bad weather to keep tea earnings down
Earnings from tea are projected to be flat this year despite a weak shilling and a surge in prices at the global markets.

Traders say production has slumped because of the drought that has ravaged the agricultural sector, offsetting the gains that would have come from higher prices and the strong dollar.

Even though the Kenyan shilling has gained some ground since last month’s move by the Central Bank of Kenya to raise its overnight lending rate to banks — in an attempt to rein in inflationary expectations and curb speculative trade in the shilling — it had earlier fallen to a record low of Sh91.90 to the dollar.

The depreciation was seen as a blessing to local exporters but tea auction dealers now say this will not count for much.

“Though the exchange rate has favoured the pricing, the stocks are inadequate,” said East African Tea Trade Company managing director Geoffrey Rimbere.

Tea production in Kenya has gone down by 18 per cent in the past two years in line with unpredictable weather patterns witnessed globally due to the effects of climate change.

Statistics from Kenya Tea Board (KTB) indicate that tea production in the country could drop by 12 per cent this year due to frost and dry weather experienced in parts of the Rift Valley. The board places this year’s output at between 353 million and 360 million kilograms, compared with 399 million kilograms in 2010.
BusinessDailyAfrica (http://www.businessdailyafrica.com/Bad+weather+to+keep+tea+earnings+down/-/539552/1196336/-/113lwpn/-/index.html)

Kenyan farmers reap the fruits of regional integration

Lydia Kagema, a farmer from Nyeri District, is certain that a part of the billions of shillings that Kenya earns from export trade with her neighbours in East Africa has trickled down to dairy farmers in her rural village.

As the chairperson of New United Tetu Dairy Cooperative society, Ms Kagema is in a group that collects milk from farmers around Nyeri for processing at the New KCC plant in Kiganjo before the final products get to markets in the region.

“The first time we felt the direct benefit of the expanded EAC market was last year when the New KCC began to pay us an additional Sh5 on top of the normal Sh25 per litre as an incentive bonus to groups that meet delivery targets,” Ms Kagema said in Nairobi last week as the region marked the first year under common market.
BusinessDailyAfrica (http://www.businessdailyafrica.com/Kenyan+farmers+reap+the+fruits+of+regional+integration/-/539546/1194990/-/27orf3z/-/index.html)

Pokot turning green and reaping big

Updated 6 hr(s) 4 min(s) ago
By Vitalis KimutaiIn any given day, the midday sun is blazing hot in West Pokot County, forcing some residents to take cover under the few tree shades in the arid area.

Many others are in busaa and chang’aa dens while herdsmen armed with AK 47 rifles, bows and arrows have taken hundreds of their cattle to to far away areas in search of grass.

Women and young girls walk to the river to fetch water, bathe or wash their clothes while boys are engaged in various games including bird shooting.

Four-wheel cars, most of them belonging to the government and non-governmental organisations kick up billowing dust as they speed along the earthen roads.

The vegetation is dry as it has not rained for several months.

But former herdsboy Silas Kitum and a few other villagers in Wei Wei Sigor Division moved away from this stereotype and are engaged in a rare economic activity in the area.



A farmer admires his maize plantation under sprinkler irrigation in Wei Wei. The benefits of farming have been great with school enrolment going up and children are healthier.
Kitum is a farmer and his 2.5 acre maize plantation is under irrigation. “This is the first season maize crop I have grown this year, but I have twice harvested beans and kales from the farm,” says Kitum, proudly pointing at his vast farm.

In the last season, Kitum earned Sh80,000 from growing maize and he expects the earnings to increase this season.

“We grow the crops twice a year under a contract with the Kenya Seed Company which provides us with seeds, fertilizer and other inputs,” Kitum said.

Turned bloodyBefore he started farming, Kitum was a herds boy who regularly joined others to raid neighbouring communities. They stole livestock but sometimes the raid turned bloody.:ohno:

“We usually armed ourselves with sophisticated weapons, which we learnt to use at a tender age, and raided Turkana, Marakwet and other communities in Uganda. Such raids left many people dead,” Kitum said.:ohno:

But for him, life changed when a relative introduced him to farming which he was initially reluctant to take up. However, after toying with the idea for days, he decided to give it a shot and he is not looking back,

“Farming has turned my life around. I am now able to feed my family, educate my children and provide them with medication,” said Kitum.

He continues: “Previously, I had nothing to show for being a herds boy other than scars, bad memories and being a ‘hero’,” Kitum said slowly, wiping pearls.

Kiptum is among 225 farmers who have been contracted by Kenya Seed Company to grow maize seeds under an irrigation pilot scheme in the arid area.

ScenicThe maize plantations besides being a major economic activity in the area, have made it scenic. The Pokot pastoralists traditionally don’t value agriculture but are now benefiting and have seen some changes due to increased income.

“School enrolment among children and retention has tremendously improved since the project was implemented and people are now healthier,” says Richard Kalemunyang, a local leader.:banana:

Peter Leboo, a resident, says farming in the area is putting children through colleges and universities. And interestingly, points out Leboo, even girls are benefiting in a community known to marry off young daughters for bride price.

Decent houses“But this is changing. Also, people are building decent houses with the earnings from farming while others have started businesses in the local trading centre,” Leboo says.

For many years, Leboo says, his people depended on handouts from donors and politicians but with the booming economic activities, this is gradually becoming a thing of the past.

“I can assure you that some politicians are having sleepless nights as a result of people being economically empowered. They know they will no longer be dependant on them.”

Esther Masit is happy the nomadic lifestyle and raiding is being phased.

“In the process, conflict has reduced between us and our neighbours especially pertaining to cattle rustling which had been a menace many years,” she says.

The farmers signed the contract with Kenya Seed Company through their association — Wei Wei Farmers Association.

“The association has employed 26 members who perform various tasks including advising the farmers on crop husbandry and financial management,” says Pedro Amechan, the association’s manager.

Amechan said that during the last harvest season, farmers earned more than Sh34 million from their produce which were sold to Kenya Seed.

“A farmer earned Sh136,000, an amount he handled for the first time in his life. You can imagine how much he can do with this money. The project has changed the lives of the locals,” Amechan says with pride.

The Italian government pays for the water for irrigation, which is pumped from the Wei Wei River, whose source is Cheranganyi catchment water tower.

Phase one of the project, which was started some 24 years ago, has 70 hectares while the second phase implemented in 1990 has 225 hectares. The third phase, which is soon to kick off, will cover 330 hectares.

Under the government’s Economic Stimulus Project, there is another irrigation programme in Sigor division that would enable 800 farmers grow food under sprinkler irrigation.:banana:

Esther Bii, the Kenya Seed chief production officer, says more farmers were being encouraged to take up irrigation farming and make a profit from their investment instead of engaging in archaic cultural practices.

Value added tea lifts volume of Kenya’s exports

Manufacturers of value added tea have doubled their contribution to Kenya’s exports after a special mark of origin pointing out the products’ distinct qualities was introduced last year .

The Tea Board of Kenya says value added tea comprised only six per cent of the export two years ago and the jump in volume to 12 per cent reflects the benefits of branding the beverage.

“We are working on a policy that will identify areas of intervention to export value added tea from Kenya,” said Sicily Kariuki, the managing director of Tea Board of Kenya.

So far, 25 tea exporting companies have been audited to ensure that they are exporting 100 per cent branded Kenyan tea to world markets, especially the new ones in Southeast Asia.

Kenya is the world’s biggest tea exporter accounting for 26 per cent of total volumes. Over 95 per cent of tea produced in the country is exported, largely in bulk through the weekly Mombasa auction. Kenyan tea is used as a benchmark for blending teas of other origins.

Value added tea exports promise to help the industry address the problem of oversupply in the global market caused by relatively new entrants, while earning farmers enough to offset rising input costs.
[..continued]

BusinessDailyAfrica (http://www.businessdailyafrica.com/Value+added+tea+lifts+volume+of+Kenya+exports/-/539552/1204820/-/eonn4i/-/index.html)

Fruit farmers gain as firms battle for juice market

The Kenyan fruit farmer is set to benefit from multinational firms seeking a bigger market in juice production.

The firms would also guarantee them higher and predictable prices.

Coca-Cola and Del Monte have unveiled multi-million shilling expansion plans that will see them hinge on local farmers for fruit supply. Local firms too, led by Kevian — makers of ‘Pick and Peel’ and Afia juice brands — have announced expansion plans.

As a result, these manufacturers are going heavy into contract farming to cut their reliance on fruit imports and match their growth plans. They are also planning to lease large tracts of land for plantation that would earn landowners annual incomes and create employment opportunities.

On Thursday, Coca Cola said it is scouting for farmers in the Rift Valley, eastern and central regions to feed its juice processing plant with fruits such as mango and passion in what looks set to boost Kenya’s fresh produce sector.

“We are targeting about 54,000 small-scale farmers in Kenya and Uganda to join our supply chain by 2014,” said Lionel Marumahoko, Coca-Cola’s general manager for Central East and West Africa. “Currently, more than 36 per cent of produce in farms do not get to the market. Our partnership seeks to increase this to about 50 per cent.”

Already, the beverage company says it has recruited 15,300 farmers in Kenya who have earned Sh150 million in the past one year, a 28 per cent increase in what it paid them in the previous year, after supplying about 7.3 tonnes of mango and passion fruits.
BDA (http://www.businessdailyafrica.com/Corporate+News/Fruit+farmers+gain+as+firms+battle+for+juice+market/-/539550/1209596/-/d782g6z/-/index.html)

Kenya tea output slumps due to erratic rainfall

Erratic rains have squeezed tea production by 16.2 per cent in the first half of the year even as official statistics indicate growing demand for Kenya’s produce in the domestic and international markets.

The country produced a total of 178.4 million kilogrammes of tea in the first six months of 2011 compared to 212.4 million kilogrammes in the same period last year, Tea Board of Kenya’s (TBK) half-year results show.

Output from smallholder farmers contracted by 124.3 million kilogrammes to 105.8 kilogrammes as plantations produced 72.6 million kilogrammes— a 18 per cent dip over last year’s.

In Kenya, the small holder segment normally accounts for 59 per cent of the total production, with the enterprises producing and processing tea and branding it for the domestic market.

TBK managing director Sicily Kariuki said in spite of production decline, consumption of tea has grown steadily in the last six months as packers intensified brand promotional activities to meet expectation of health conscious customers

“In addition to traditional tea, high value teas for accelerating life pace have become new favourites of the market.” Mrs Kariuki said Thursday.

In the domestic market, tea consumption grew by more than 16 per cent in the period ending June 2011 to stand at more than 10 million kilogrammes, up from 8.6 million kilogrammes consumed within the same period last year.

Mrs Kariuki also attributed the growth To TBK’s sustained strategy of promoting tea drinking for better health.

She added: “Allowing factory gate sales have also worked for us, providing an awareness platform and encouraging repeat sales at the grassroots level.”

At the global market, Kenya’s tea won more export markets in the first six months of 2011, bringing to 48 the number of export destinations.
[..continued]

BDA (http://www.businessdailyafrica.com/Corporate+News/Kenya+tea+output+slumps+due+to+erratic+rainfall/-/539550/1209616/-/sp24k5/-/index.html)

demand at home has grown 16% for tea, and over 45 export destinations for tea in the last year while production has slumped by over 46.9 million kilograms...I'd be surprised if the price of tea per kg hasn't jumped yet.:lol:

Tea board eyes processing zones to boost earnings
BDA (http://www.businessdailyafrica.com/Tea+board+eyes+processing+zones+to+boost+earnings+/-/539552/1225190/-/item/0/-/qh3b2mz/-/index.html)

The government will establish a special zone for processing and packaging tea to tap higher foreign income from the beverage. Tea Board of Kenya (TBK) managing director Sicily Kariuki said the government would partner with private sector investors to set up the facility.

The bulk of tea produced in Kenya and the East African region is exported in raw form through the weekly Mombasa auction.

Taxation and lack of industry support services such as packaging machinery and paper are some of the biggest impediments to value addition of Kenyan tea exports.

TBK has advertised for tenders to set up facilities for value addition where investors will be given incentives to increase earnings from the sector.

“We shall know what shape the designated facility will take once a feasibility study is carried out,” Ms Kariuki said.

Kenya has been unable to market her tea as a premium brand since it is exported in bulk and used for blending with poorer quality teas.

Discerning customers

Ms Kariuki said the incentive was meant to add value to tea and tap higher earnings from exports to more discerning customers. Kenya exported 410,035 tonnes of tea last year valued at Sh91.6 billion, up 33.2 per cent.

Export of value added tea has increased to 12 per cent of total volume compared to five per cent two years ago. This is largely attributed to TBK’s efforts to promote local tea.

The government has already audited 31 tea exporting companies to ensure that they export 100 per cent branded Kenya tea to world markets, especially the new ones in South East Asia.

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October rainfall expected to bring down cost of food
BDA (http://www.businessdailyafrica.com/Corporate+News/October+rainfall+expected+to+bring+down+cost+of+food/-/539550/1232154/-/rufd6ez/-/index.html)

Predicted normal rains in the final quarter of the year have rekindled hopes that the high prices of goods facing many households will ease significantly.

The Meteorological Department said yesterday most parts of the country are likely to receive near normal rains in the period between October and December, marking a break from January when the country has had to deal with poor rains.

“The distribution is expected to be generally good over most areas except in the northeastern and northwestern regions,” Dr Joseph Mukabana, the director of the department said.

Poor rains since the start of the year have affected production of electricity and key staple foods such as maize, leaving thousands of households especially in northern Kenya facing starvation owing to limited and unaffordable supplies.

The high cost of food rations, coupled with expensive electricity and import fuel caused the country’s inflation to rise for 10 months in a row to 16.67 per cent in August.

Farmers to gain from Kenya Seed plan
http://www.businessdailyafrica.com/image/view/-/1241246/medRes/297055/-/maxw/600/-/7s0y3l/-/kenya+seed.jpg

The Kenya Seed Company plans to lease land to increase its output to match a sharp rise in demand for certified maize seeds both locally and in the region.

Managing director Willy Bett said the parcels offered for lease should be in Trans Nzoia and Uasin Gishu, measure at least 100 acres, be within a seed production block and be detached by 200 metres from commercial fields.

The company invited individual landowners, companies or co-operative societies to take the opportunity on a renewable one-year contract. They only need to show prove of ownership.Kenya suffered an acute shortage of certified maize seed for the long rains planting season in April when more land was needed to be put under maize to shake off the effects of a biting drought last year on maize stocks.

Source: BusinessDailly

Most farmers in the Rift Valley maize growing areas had to endure high prices for the limited available stocks of certified seed while others opted for ordinary low-yielding material for planting.

KSC blamed the shortage on the sale of seeds meant for the Kenyan market to traders from neighbouring countries such as Uganda, Tanzania, Rwanda and Burundi who are reported to have been buying seeds from stockists in Kenya.

Demand for certified seeds in East and Central Africa is high owing to ongoing reforms to boost food production. However, most countries in the region now depend on Kenya after the previous main supplier, Zimbabwe cut its output against the backdrop of an economic crisis.

The shortage of seed in April was also blamed on the drought that hit the country in the 2008 and 2009 and adversely affected the seed production.

But in an attempt to address the demand pressures both locally and from the region, Kenya Seed Company plans to have more acreage of land under seed crop. The seed firm has recently increased the number of farmers contracted to grow maize seeds at the Bura and Hola irrigation schemes, where total land stands at 9,000 acres. Other farmers under contract are in Baringo, Taita Taveta, Ahero, Trans Nzoia and Wei Wei.

The Ministry of Agriculture said last week it expects a marginal surplus of about 2.2 million 90kg bags of maize by the end of this year supported by enhanced harvests from the long and short rainy seasons and a steady flow of duty-free imports.
It projected that the country would harvest 6.8 million bags of maize from the ended long rainy season between March and May and boost supplies.

Statistics showed that the national maize stocks as at August 31 stood at 11.3 million bags, with the state-run National Cereals and Produce Board holding 2.8 million bags.^^ Good move!;)

Sugar production rises by 18pc despite shortage of cane
BDA (http://www.businessdailyafrica.com/Corporate+News/Sugar+production+rises+by+18pc+despite+shortage+of+cane/-/539550/1242718/-/item/0/-/11l1yj9/-/index.html)

Improved efficiency by millers saw sugar production increase by 18.1 per cent in the first seven months of the year, defying biting cane shortages.

The Kenya National Bureau of Statistics data shows millers had processed 337 metric tonnes of sugar at the end of July, an 18.1 per cent increase from the 288 metric tonnes produced over a similar period in 2010.

Cane deliveries, on the other hand, increased by a marginal 2.7 per cent.

ugar prices more than doubled to Sh200 a kilo last month on what millers said was a drop in cane deliveries.

Research analysts at Standard Investment Bank said the growth in production “probably reflects better factory efficiency”.

Mumias Sugar Company said it had updated its technology to get more sugar out of a unit cane and reduce wastage. The miller accounts for up to 60 per cent of Kenya’s total sugar production.



Farmers receive Sh40bn in tea bonus
Nation (http://www.nation.co.ke/business/news/Farmers+receive+Sh40bn+in+tea+bonus/-/1006/1242266/-/tmvwc7z/-/index.html)

The Kenya Tea Development Agency has announced a record payment in excess of Sh40.5 billion to small-scale tea farmers.

The record payout for the financial year 2010/11 represents a 6 per cent rise in farmers’ annual earnings from last year’s earnings that stood at Sh38 billion.

Of the total returns for this year, farmers have already received Sh10 billion as an initial payment made on a monthly basis over the financial year at an average rate of Sh12 per kg of green leaf delivered.

The balance of Sh30.5 billion will be paid next month as the second payment, popularly known as the tea bonus. There are about 560,000 small-scale tea farmers in Kenya.

KTDAs chief executive Lerionka Tiampati attributed the good results to stable tea prices, a favourable exchange rate, efficient management of factory processes and effective cost management through the automation of field and factory operations.

The total gross revenue of KTDA factories rose from Sh51.7 billion in the 2009/10 financial year to Sh54.6 billion in the 2010/11 financial year, representing a 5.6 per cent increase.

With total production costs at 25 per cent of total revenue, the average return to farmers for green leaf deliveries was 75 per cent.

The average rate of pay for the second payment rose from Sh31.52 per kg of green leaf delivered last year to Sh36.40 this year.

That brings the total pay (initial and second payment) per kilogramme of green leaf to an average of Sh48.40, up from last year’s Sh43.76.

This makes Kenya’s small-scale tea farmers the highest paid in the world, with Sri Lanka’s coming second at an average rate of Sh40.48 per kilogramme of green leaf delivered.

Mr Tiampati said KTDA is looking to diversify business and products to boost farmers’ earnings even higher.

KEVEVAPI tasked on produce, marketing of vaccines
Capital FM Business (http://www.capitalfm.co.ke/business/2011/09/27/kevevapi-tasked-on-produce-marketing-of-vaccines/)

The Kenya Veterinary Vaccines Production Institute (KEVEVAPI) has been challenged to play a greater role in the manufacture and marketing of high quality vaccines to ensure the production of healthy livestock in the country.


Livestock Permanent Secretary Kenneth Lusaka opined that through carrying out its mandate effectively and efficiently, the institute can greatly contribute to the revival of the livestock industry.

“The Vision 2030 has identified the creation of Disease Free Zones as one of the flagship projects whose main objective is to ensure production of clean animals. KEVEVAPI has a great role to play to protect our livestock,” the PS emphasised.

The sector, which contributes about 12 percent of the country’s Gross Domestic Product and 50 percent of the agricultural industry, has had to grapple with disease outbreaks which have in turn affected its competitiveness in the global arena.

The situation has in the past been made worse by the fact that the industry has been operating in a vacuum without proper policies to for instance deal with disease outbreaks and other pandemics.

However, with the help of the institute which has been lauded for developing world class vaccines such as that against rinderpest, the PS exuded confidence that they can reverse this trend and boost the performance of the sector.

Besides enabling the country to capture a larger share of the international market, an enhanced sector, the Lusaka observed that having healthy livestock can greatly help to contribute to sustainable livelihoods for the millions of households that depend on livestock raring for their upkeep.

To harness the potential and ensure that the sector thrives, the government has adopted a holistic approach that includes the implementation of programs such as electronic traceability and branding which is an animal identification initiative.

“We have managed to put boluses into about 30,000 animals in the cattle rustling prone areas and we are targeting about one million and I’m sure that we will achieve this target,” the hopeful PS said.

The PS spoke when KEVEVAPI launched its strategic plan and its implementation framework for the next five years and one that have been formulated to propel it to the next level of development.

The organisation has been operating without set guiding principles but with the new framework which runs from 2010 to 2015, Chief Executive Officer George Muttai hopes that the vaccine producer will re-engineer itself to contribute effectively to national development.

The parastatal also wants to embark on an ambitious expansion program that will see it venture into countries such as Uganda, Rwanda, Burundi, Mauritius, Lesotho and Saudi Arabia.

Sh7b EU funding to grow agricultural sector
Capital FM Business (http://www.capitalfm.co.ke/business/?p=13066)

The Government has signed a Sh7.82 billion (£60 million) loan agreement with the European Union to boost the agricultural sector.

The money, to be spread over three years, will go towards solving challenges of accessing credit as well as developing insurance products for farmers.

EU Head of Development cooperation in Kenya Bernard Rey said on Monday that the country has potential to scale up the impact of agriculture on the economy and the financial assistance will go towards speeding up the process.

“We are working with the Ministry of Agriculture in trying to solve bottlenecks that have slowed down the growth of the sector from access to credit to creating markets for produce,” Rey said.

Agriculture Permanent Secretary Romano Kiome said the ministry was working on a structure to prioritise agricultural activity to achieve maximum output.
[/B
“[B]We have not had a good mechanism of prioritising agricultural sub-sectors because we have not known which sector is better than the other. We have also fallen into a trap of trying to please everyone (farmers) with what they are producing,” Kiome said.

Kiome said the ministry had set out a strategy where seeks to change the perception of farming to make it a more commercially viable venture.


The ministry has identified horticulture, dairy, tea and sugar as the four key sectors it intends to focus and grow.

“If we take those four and make the best out of them in terms of contributing to the economy we think we can influence the world,” Kiome said.

Other thematic areas the ministry is looking to improve include availability of farm inputs, creation of ready markets, access to finance and increasing arable land under irrigation.

The PS said that there was also need to raise the application of technology in farming to boost yields.

Tea farmers’ share of Sh40b bonus cut by debts
Standard Media
(http://www.standardmedia.co.ke/business/InsidePage.php?id=2000045116&cid=4&)

Tea farmers across counties in Mt Kenya region will share Sh40.5 billion as a second payment – popularly known as bonus – for their crop.

But even as the farmers attached to some 35 tea factories spreading from Kiambu to Meru counties head for the banks, not all will be smiling.

For one, tea farmers are usually highly indebted to commercial banks as well as to their own savings and credit co-operatives (Saccos), which will be getting the first and prime chunk of the second payment.

The bonus follows payment of Sh10 billion loans while a further Sh266 million may be swallowed by interest on the same.

Farmers at Imenti Tea Factory in Meru County will earn the highest bonus per kilo at Sh45.80, underlining the benefits of a mini- hydroelectric generation plant commissioned there almost two years ago.

It will be followed closely by Ngere Tea Factory in Thika at Sh45.20, a high payment hinged on the fact that this is one of the biggest players in private tea sales. Unlike Imenti, which will be reaping the benefits of decreased operation overheads attributed to generation of its own power, Ngere, which is aligned to Britain’s tea packaging giant, Lipton, is reaping the benefits of an exclusive export agreement.

This ensures it gets a better pricing than most tea factories in the Mombasa Tea Auction stable.

Also registering impressive earnings will be tea factories of Makomboki (Sh45.15), Kagwe (Sh42.40), Rukuriri (Sh42.70), and Mungania (Sh42.25).

Sugar prices to stay high, says Kidero
Nation (http://www.nation.co.ke/business/news/Sugar+prices+to+stay+high+says+Kidero+/-/1006/1257678/-/86rupy/-/index.html)

Sugar prices are likely remain high due to shortages locally and in the global market.

Mumias Sugar managing director Evans Kidero said the current prices mirrored the international prices and an acute shortage of cane that has reduced local output and the situation was unlikely to improve soon.

A kilo of sugar now retails at Sh200 in most supermarkets in the country.

Speaking during the signing of a contract between Mumias Sugar and Kenya Agricultural Research Institute to improve on productivity, he added that the cost of production had increased by 30 per cent over recent months.

Sugar deficit

“The current prices are a matter of supply and demand. We have shortage locally, and internationally where we used to buy a metric tonne at $500, now it is $1050,” Dr Kidero said.

The world market had a 3.5 per cent sugar deficit, he said, hence putting pressure on sugar prices in the international market. The problem has been made worse by increased use of sugar for production of fossil fuels.

Africa imported half of its sugar requirements, while countries in the Common Market for East and Southern Africa imported 20 per cent, Dr Kidero said.

Kenya needed 340,000 metric tonnes to cover the deficit, he said, but only 300,000 metric tonnes was allowed.

About 60,000 metric tonnes of this come from Comesa countries. Kenya’s annual sugar consumption averages 800,000 metric tonnes, but it only produces 520,000 metric tonnes.

“There is a mismatch between supply and demand, with population increase and improved incomes increasing consumption.

“This will not change in the short term, Comesa safeguards notwithstanding,” said former Kenya Sugar Board director Saulo Busolo.

New Research Unveils New Food Safety Plan

Scientists from Egerton University have developed an aggressive plan that could ease the pressure that Kenyans have exerted on maize as the main source of food.

The scientists drawn from the department of Agriculture and Research are of the view that sorghum can be used to alleviate hunger and poverty that is facing the country.

The University has opened a field study where some 91 varieties of sorghum are currently being developed with a view of providing a long-lasting solution to the food problem in the country.

The research is being under taken in conjunction with the Kenya Agricultural Productivity and Agribusiness Project (KAPAP). The organisation has channeled some Sh 24 Million towards research programmes for the next three years. “We have decided to go out to the field because that is the only way we will assist the society to combat the food problem,” said Prof. Alfred Kibor, director research and extension.

They have embarked on a research geared towards easing the pressure on maize by promoting sorghum as an alternative. Sorghum is seen as an apt replacement of maize flour, it is also used in the making of beer.

Those who spoke during the function said that sorghum has a high economic value and a big market. Mr. Silvester Ndeda of East African Breweries Ltd said they are targeting 20,000 tonnes of Sorghum annualy.

Millet and cassava are also excellent alternatives to maize flour. We really need to diversify our eating habits.

And cassava. Also an inexpensive food, although I don't know how much rain is required to grow it.

And cassava. Also an inexpensive food, although I don't know how much rain is required to grow it.


Our food insecurity is caused in large part by inefficient distribution networks related to infrastructural challenges like bad roads from high production sites to deficit areas. This is also related to insecurity in those areas. Infrastructure also directly influences security. So to fight food insecurity we need a multi-prong approach of growing drought resistant varieties of various crops, i.e. various varieties for various weather and climate patterns in the country, developing infrastructure to facilitate transportation of produce and widening food varieties. Bananas, potatoes, rice, wheat, sorghum, millet, etc are foods that can substitute maize and release pressure on its demand. Too much attention has been given to areas around Nairobi, Kisumu, Mombasa, and other areas but many other areas in the northern frontiers are neglected, creating an imbalance.

I think the government should put emphasis on the greenhouse technology and help farmers acquire more greenhouses. look at how Naivasha is doing. This technology is also ideal for city farming

Harvests in Rift push down cost of maize flour
BDA (http://www.businessdailyafrica.com/Corporate+News/Harvests+in+Rift+push+down+cost+of+maize+flour++/-/539550/1273832/-/l8rtus/-/index.html)

Maize imports from Tanzania and ongoing harvests in the Rift Valley have pushed down the price of flour to an average of Sh115 for a two-kilo packet from a high of Sh150 earlier in the year.

Data from the Ministry of Agriculture indicates that national maize stocks rose from 13.08 million bags of 90kg each in September to 14.4 million bags last month.

This increase is expected to further reduce prices of flour which majority of households use to make the staple ugali. The price of a 90kg bag of maize has also dropped from Sh4,200 in July to Sh3,200 this month.

Dr Romano Kiome, the permanent secretary in the Ministry of Agriculture, said national stocks would increase over the next nine months because of favourable rainfall and the lifting of an export ban by Tanzania.

“By June next year, we shall have surplus of maize,” he said.

Data shows that by June 2012, Kenya will have maize stocks of 32,790,367 bags compared to the consumption requirement of 32,670,000, resulting in a surplus of 120,367 bags.

Last month farmers held 9,795,053 bags, traders had 2,019,257 bags, millers 424,053 bags while the National Cereals and Produce Board held 2,206,004.

“These figures are likely to increase further in the coming month as harvesting continues,” noted the Ministry of Agriculture’s latest Food Security Report.

Further drop in the cost of maize flour will help to bring down food inflation. Consumer prices of food and transport have been the main drivers of inflation, increasing by 26.2 per cent and 22.22 per cent respectively in October 2011 compared to October 2010.


Nyeri factory to sell tea directly to UK’s Marks and Spencer
Standard (http://www.standardmedia.co.ke/InsidePage.php?id=2000046794&cid=14&j=&m=&d=)

A tea factory in Othaya, Nyeri County, has launched an ambitious marketing programme that will see farmers sell their tea directly to supermarkets in Britain.

Iriaini Tea factory launched the pilot marketing bid in partnership with Mark and Spencer and Fairtrade International, which operates in 21 countries in Europe.

In the programme, the about 6,000 small-scale farmers from the factory – including President Kibaki – will process and package the premium tea locally, and sell it directly to UK supermarkets. This would scrap the need for the middle-business that involves trading at the Mombasa tea auction.

Ms Louise Nicholls, the head of Responsible Sourcing at Marks and Spencer said the tea would be sold out in its more than 700 chain stores.

International business

"Marks and Spencer has over 700 UK stores, plus an expanding international business with 360 stores in a further 40 countries," said Nicholls.

Since 2004, Marks and Spencer has been running the third largest coffee shop in the UK, and has been selling Fairtrade tea and coffee.

Nicholls said Kenya is the fourth most important market to Mark and Spencer, saying the firm was buying goods worth £100 million (about Sh15.5 billions) from Kenya annually. "Kenya is particularly important for flowers, vegetables, tea and coffee," she said.

The project, which was initiated last year after a successful application to the Food Industry Challenge Fund. Iriaini factory was then awarded 55,000 pounds (about Sh8.5 million), which helped in matching the investment with technical and commercial support.

"The project is about demonstrating how small farmers can benefit from adding more value to their products by producing direct for international retailers as well as learning key skills to be able to sell high quality retail product for their home markets," she said.

2011/12 export earnings expected at 28 bln shillings
BDA (http://www.businessdailyafrica.com/Corporate+News/Kenya+2011+12+coffee+export+earnings+seen+rising/-/539550/1274790/-/452ny9/-/index.html)

Kenya expects its coffee export earnings to rise by 7 percent in the 2011/12 (Oct-Sep) season, buoyed by high international prices and increased volumes, the ministry of agriculture's top official said on Thursday.

Statistics from industry regulator Coffee Board of Kenya showed east Africa's biggest economy earned around 26 billion Kenyan shillings ($277.7 million) from exports of the commodity in 2010/11, up from 16 billion shillings a year earlier.

"We expected the current high prices to persist for some time and pull the overall earning this season," Agriculture Ministry Permanent Secretary Romano Kiome told reporters.

"We are looking at an earning of 28 billion (shillings) for this year because we have conducted major reforms to boost production and this has been iced by very good prices."

Kiome said production for the 2011/12 season was expected at about 52,000 tonnes as growers ramped up investments in existing farms and expanded to new areas to take advantage of the high prices of coffee.

"We expect production to climb going by the competition for seedlings," he said. "The more favourable prices are drawing growers back to the farms and that will reflect on output volumes."

Kenyan firm launches livestock centres
Capital FM
(http://www.capitalfm.co.ke/business/2011/12/kenyan-firm-launches-livestock-centres/)

Sidai Africa Limited, a newly established social enterprise, has unveiled plans to roll out full scale livestock service centers across Kenya.

The ultra-modern centers will offer a wide range of veterinary services and quality products to livestock farmers, through a strategy that will promote preventive herd and flock health care in different parts of Kenya, including the marginalised Arid and Semi Arid Lands.

At a media briefing, Sidai Africa Managing Director Anthony Wainaina said that the company had so far rolled out 16 Sidai franchises in North Rift, North Eastern Province, Kajiado and Narok.


“Through these franchises, we are not only creating a link for small scale farmers but going the extra mile by offering other quality extension services necessary to raise healthy and productive livestock”, he said.

The company targets to open up 150 livestock service centers by 2015, with an initial focus on areas that have traditionally failed to attract professional veterinary extension services.

These centers, which will operate as Sidai franchises, will create a strong support system that ultimately enables livestock farmers to increase their yields and gain better returns.

Mango supply deal intensifies battle for fruit farmers
BDA (http://www.businessdailyafrica.com/Mango+supply+deal+intensifies+battle+for+fruit+farmers+/-/539546/1287678/-/l6w2ofz/-/index.html)

Up to 1,000 farmers at the Coast are set to sign supply contracts with a government-funded mango processing plant amid increased private-sector interest in fresh produce.

The Coast Development Authority (CDA), a government agency, has imported machinery for the plant from India and construction work for the Sh75 million project in Hola, Tana River County, is under way.

The plant will start operations in January, saving farmers millions of shilling lost every harvest season due to lack of a proper market, poor infrastructure, and exploitative middlemen.

“The plant will process up to 30 tonnes of mangoes every day,” said CDA agriculture officer Mcharo Mwalugha. He said the machinery has capacity to process mangoes and other fruits beginning this harvest season that runs from November to March.

“Our initial aim was to process ready-to-drink juice, but we are also working on the possibility of producing pulp for other juice processors,” Mr Mwalugha said.


The plant will also process other farm produce such as tomatoes and paw paws, which have great potential in the agricultural rich region.

The plant sits on a 200 acre land that was acquired from Tana River County and will also host a honey refinery with capacity to process a tonne of honey per day. It will also host an agriculture training institute.

Premier Foods Ltd, owners of the Peptang brand, is also set to open a juice plant in Mombasa in January, stepping up the battle for fruit farmers among private manufacturers including Del Monte and Coca-Cola.


Nairobi based Premier Foods, which makes canned fruits, jams, and sauces, kicked off the search for fruit farmers in Coast region last month to feed its plant with passion and mango fruits for production of 25,000 tonnes of concentrates.

Coca-Cola and Del Monte have unveiled multi-million shilling expansion plans that will see them rely on local farmers for fruit supply.
Contracted farmers will be provided with fast maturing mango seedlings and technical support to grow the crop.

HELP TANZANIANS!!

Tanzania is in TROUBLE.....

Dog Food Offered To Tanzania By White People !!!

http://www.bnvillage.co.uk/news-politics-village/79872-dog-food-offered-africans-white-people.html

http://forums.civfanatics.com/showthread.php?t=160191


....I think....The Big and Super economy like Kenyan can save us from this...PLZ guys help us..Tanzanians ...pls....!!!!

Tea earnings to hit Sh100b
http://www.capitalfm.co.ke/business/2011/12/tea-earnings-to-hit-sh100b/

The tea industry hopes to replicate its success in 2010 with foreign exchange earnings expected to hit the Sh100 billion mark this year, buoyed largely by a weak shilling and high international demand.

Tea Board of Kenya Managing Director Sicily Kariuki told Capital Business that although the overall output is projected to fall by 40 million kilograms compared to the volumes posted last year, the sector expects reprieve from a weak currency which at one point hit an all time low of Sh107 to the dollar.

“The statistics already show that as at the end of October (2011), we stood at Sh97 billion. If you look at (earnings in) November and December, clearly we are headed for another record year,” the MD said.

Kenya expects maize surplus by June 2012
http://www.the-star.co.ke/business/local/54435-kenya-expects-maize-surplus-by-june-2012

Kenya expects a surplus of 6.45 million 90kg bags of maize by the end of June 2012 thanks to improved rains, its agriculture ministry said in a brief seen by Reuters. The ministry said its maize stocks as at November 30 stood at 16.58 million bags from 14.4 million the previous month, with the state-run National Cereals and Produce Board (NCPB) holding 2.29 million bags.

Farmers had in their custody 11.45 million bags, while traders and millers held 2.22 million and 0.6 million bags, respectively. “From this balance sheet, if anticipated...rains production is achieved, imports sustained at current rates with no exports, the national stocks level as at June 30 2012 is estimated to be a surplus of 6,454,296 bags,” the ministry said.

Dairy production gets boost with 53 cooling plants
http://www.businessdailyafrica.com/Corporate+News/Dairy+production+gets+boost+with+53+cooling+plants/-/539550/1296308/-/7laxj2/-/index.html

Dairy farmers will have more capacity to add value to milk under a three-year plan to build 53 additional cooling plants.

Livestock Development assistant minister Danson Maanzo said the plants will be owned by county governments as part of their mandate to enhance the value of co-operatives run by farmers.

Although the government is still assessing where the coolers will be located, Mr Maanzo said areas which consistently produce more than 100,000 litres of milk per day will be front-runners. The areas should also have a co-operative society with a track record of profitability.

That implies Murang’a, Kiambu, Nyandarua, Embu, Meru, Nakuru, Uasin Gishu, Nandi and Bomet counties will benefit from the coolers.