NUTS AND OIL CROPS SUB-SECTOR GENERAL OVERVIEW

Nuts and Oil Crops subsector is important as source of processed edible oil, animal feed and industrial oil. In Kenya, the major oilseeds produced are sunflower, simsim, soya bean, rapeseed, coconut, castor, oil palm, safflower, groundnuts.

 

Among the nuts grown in Kenya, cashew nuts, macadamia nuts, ground nuts (peanuts) and Bambara nuts are the most important. The average annual production volumes are 10,000 tons for cashew nuts, macadamia nuts 8,000 tons, peanuts 15,000 tons and Bambara nuts 800 tons respectively. Other nuts grown to a very limited scale are betel nuts, chestnuts, walnuts and hazel nuts. Kenya’s nuts which are largely used as confectionary comprise cashew nuts, macadamia nuts, peanuts and bambara nuts. Kenya is a net exporter of nuts and exports have also been on the increase with exports of nuts increasing from 11,170 metric tons valued at Kshs. 0. 34 billion in 2001 to 13,057 metric tons valued at Kshs 3.1 billion in 2012

 

Kenya has over thirty (30) edible oil processing companies engaged in oil milling, solvent extraction, refining and hydrogenation with a combined installed oil extraction capacity of about 265,500 tonnes per annum (TPA) and about 342,000 TPA refining capacity. As regards nuts, Kenya has a total installed processing capacity of 60,000TPA for export oriented macadamia and cashew nuts.

 

NUTS AND OIL CROPS DIRECTORATE

The Nuts and Oil Crops Directorate of the Agriculture, Fisheries and Food Authority (AFFA) is a government agency mandated to Develop, Promote and Regulate the Nuts and Oil crops industry in Kenya. The Directorate, in close collaboration with various nuts’ associations in the country, promotes the growth of business in the industry and ensures quality and safety of both the process of production and the product itself.

QUALITY AND SAFETY

The nut processors and exporters have dedicated themselves to high level product quality standards through instituting quality checkpoints at each processing stage. The processors employ the best practices in manufacturing and processing that include: guaranteeing traceability of the final product right to its original phase. As a boost to the check on quality, the Nuts and Oil Crops Directorate in Kenya ensures compliance of the nut processors with internationally accepted product quality and safety standards.

Palm Oil: About 95% of the oil imports in Kenya comprise crude palm oil from Asia (Indonesia and Malaysia). A program to reduce overdependence on imported crude oil was initiated in 2002 which saw the introduction of cold tolerant oil palm varieties in western part of Kenya from Costa Rica. Currently, the total oil palm population in Kenya stands at 130,000 trees. This give rise to 13,704,593 metric tonnes of fresh fruit bunch that yield 2,741 metric tonnes of palm oil. This is still very low to meet the country’s demand.Challenges of inadequate planting material, and inefficient processing technologies have adversely affected the small scale farmers in the subsector. However collaborative efforts to negate this challenge are underway.

Sunflower: The oil content of sunflower seed ranges between 37-44 % used for both domestic and industrial uses. It is currently used as edible oil. The cake arising from pressing the oil gives rise to animal feed. Sunflower oil has potential to be used for the manufacturing of soaps, varnishes, and paints.Farmers though have been less motivated to grow the crop because of the low prices it is fetching. Coupled to this is the importation of crude sunflower oil that further demotivates farmers. Nonetheless, collaborative efforts are underway to revamp the potential in the subsector.

Sesame: Current annual production stands at 12,695 tons which is inadequate to satisfy the local demand. Sesame has an oil content of about 44-45 percent. Past attempts to promote sesame for oil extraction have not been successful due to high labour requirements at harvesting and competition from confectionery industries. However there is renewed vigour to bolster sesame production as overseas inquiries have yielded actual periodic demand of sesame in excess of 500 metric tons per month as a start.

Groundnuts: Kenya only produces about 20 percent of ground nuts required by local processing plants, yet it has the potential to produce more.  As such most of it is imported from Malawi and Uganda to bridge the gap. Groundnut is mostly processed in cottage factories to make roasted snacks, peanut butter and confectionery products. There is increasing demand for these products not only in Kenya but also outside the country hence making ground nuts a lucrative export product.

Macadamia: Macadamia nuts are processed by up to twenty five (25) companies in Kenya for export and local consumption. It should be noted that the many value added products derived from it such as macadamia oil, chocolate, charcoal briquettes, and confectionery products, has increased demand for macadamia. Export endeavors in here can therefore not be overemphasized.

Agriculture and Food Authority (AFA) through NOCD has since become a member of International Nut and Dried Fruit Council (INC). This membership is envisioned will help bolster the macadamia subsector. INC is an international source for information on nuts and dried fruits for: Health, Nutrition, Food Safety, Statistics, Government Standards and Government regulations regarding trade barriers and trade quality standards. INC endorses activities that provide its membership new opportunities for increasing global consumption of almonds, apricot kernels, Brazil nuts, cashews, hazelnuts, macadamias, pecans, pine nuts, pistachios, walnuts, peanuts and dried fruits.

Cashew nuts: Demand for processed cashew nuts and its accompanying value added products is increasing steadily. These nuts are in high demand in Germany and Nordic countries hence warranting investing in them. 

Just as in macadamia, the joining of AFA-NOCD to INC is expected will bolster cashew nut production and value addition. It should be noted that AFA-NOCD has also joined African Cashew Alliance (ACA) in a bid to develop the cashew subsector in Kenya. ACA was established in 2006 as an association of African and international businesses with an interest in promoting a globally competitive African cashew industry. Today, nearly 130 member companies work under the ACA banner and represent all aspects of the cashew value chain, including producers, processors, traders, and international buyers. The objectives of the Alliance are to:

  • Increase processing of cashew within Africa;
  • Improve competitiveness and sustainability of the African cashew industry;
  • Facilitate public-private cooperation for the cashew sector.