EXECUTIVE SUMMARY

Context

The macadamia nut tree was introduced to Kenya around 1944. However, its widespread planting did not start until twenty five years later, when Kenyan authorities were sensitized to the suitability, agricultural integrability, and commercial potential of the tree.

Macadamia nuts and by-products have multiple uses: the fresh or salted kernels could be used for desert, snacks, confectionery ice cream and chocolate making; the oil could be used for salad, cooking, cosmetics or soap manufacturing; the cake is good as livestock feed; the hard shells could be used as fuel for home and charcoal making; and the wood produces a hard and very durable timber. The macadamia kernels are rich in unsaturated fatty acids and, thus, macadamia nuts are considered to be a health food product as unsaturated fatty acids keep blood cholesterol levels in check. Moreover, the macadamia nut tree can be interplanted with other cash crops and has a wide ecological suitability. It can readily integrate in the existing farming systems.

Towards the end of the 1960s, the Government called for the private sector to instate a macadamia nut industry. This called for the establishment of nurseries and plantations, distribution of seedlings, purchase of in-shell nuts from farmers and their processing, and marketing of the kernels in the domestic and world markets.

The Intervention

The Kenya Nut Company Limited (KNC) was formed in 1974 and was appointed by the Government to spearhead and invest in the development of the macadamia nut industry in Kenya.

Main Activities

KNC established a nursery to multiply and distribute the most suited macadamia seed selections. It also established contact with the macadamia tree growers and encouraged them to sell their produce to KNC. The company now purchases all the nuts-in-shell from growers, processes them and markets the kernels domestically and on the world market.

The Government established macadamia nut research and extension facilities and staffed them with the help of bilateral aid from Japan. A training program was offered to Kenyan scientists to help them increase their knowledge on all aspects of macadamia tree cultivation.

Results

Currently, the number of macadamia nut trees reaches about 900,000 planted by about 100,000 small farmers. The annual production averages 4,000 MT of in-shell nuts, equivalent to 800 MT of marketable kernels. At Ksh 23/kg ($0.42/kg) of in-shell nuts, the macadamia nut farmers are earning Ksh 92 million ($1,672,727) per year, which translates into an average earning of $16.7/farmer/year.

The main macadamia nut commercial production and marketing is in the form of kernel for food consumption. Oil is extracted and marketed in limited instances.

Implementation Problems

The growth of the macadamia nut industry has been slower than expected. For one, financial constraints hindered KNC from producing planting material in sufficient quantities to meet the actual demand. At the same time, research and extension have not fully accomplished their planned agenda. At present, a number of pests and diseases of the macadamia nut are causing some economic losses. Actually, KNC's potential is not being fully used as the company is equipped to market much larger quantities than what the Kenyan farmers produce at the moment.

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