It is called "The Miracle Down Under". It is marketed as the first of its kind where New Zealand is supposed to have eliminated all subsidies to Agriculture.
Now that is either semantics or propaganda. There were subsidies before as comparable to nowhere outside Scandinavia (arctic farming designed to keep human life in those areas). These were eliminated. However simultaneous with the so called elimination, New Zealand set up a regime of subsidies as we know them in Kenya.
Prices of inputs were reduced through careful reduction of taxes. Therefore where direct payments were made to farmers, they instead got indirect injection of cash. I have addressed the one country that made the greatest advances. Australia and Argentina did not.
GoK subsidies on Ugali may be sustained until august. After that the burden will be dumped on the citizens. Agriculture would have been damaged and we will be in the nigerian situation.
Not everything has to be profitable. Agriculture is one of those sectors where profit and profitability are managed and controlled. The accepts to go at a loss but guarantees farmers profitability for reasons from national security to pride. There is no country that makes real profit from agriculture but there are farmers who profit.
in those countries where they lack a firm policy or are faced with corruption others step in and run away with the cash. Farmers need to get organized get a voice accumulate money and learn the dirty tactics of lobbying.Otherwise the latest gazette notice allowing unlimited importation of grain and sugar is a death knell to farming
I think Argentina,New Zealand, Australia etc Are running profitable agriculture and exporting goods that are competitive in world markets. In kenya agriculture is 33% of GDP, to subsidize 33% of an economy not only is it impossible but also imprudent. The good thing is tea,horticulture, macadamia and for the most part coffee sectors are efficient enough and can compete in the world market. Yes importation of grain and sugar will be the death knell to farming of sugarcane and maize unless the farmers increase productivity. In western or in sugar growing areas legumes would be a very good replacement as there's ready market in northern kenya, somali and even middle east.