Nigeria agriclutural reforms - Ruto should copy this

[hk]

Post Ruto reforms - see how Kenya has risen in Macademia

He also banned export of raw nuts, killing the cashew nuts industry in coast. And also deprived macadamia farmers higher gate prices for macadamia as the foreign buyers were deported.
Subsidized fertilizer distorts cost of production and farmers never really increase productivity cause they're solely dependent on cheap fertilizer. Even worse the subsidy is shouldered by the public. 

That has nothing to do with Ruto. This was underway, just like dairy farming exploded in Githunguri after collapse of coffee industry. Macadamia and avocado farming are the alternative or supplement of coffee farming. https://www.the-star.co.ke/news/big-read/2018-08-17-meru-macadamia-farmers-want-to-sell-their-nuts-to-chinese/ . Even the biggest macadamia producer Australia hasn't banned export of raw nuts. 

[RV Pundit]

So the problem you have is prices? 

What I know - Ruto most likely found such policy document - and he went ahead to implement - gov has many ideas - but nobody execute them

That has nothing to do with Ruto. This was underway, just like dairy farming exploded in Githunguri after collapse of coffee industry. Macadamia and avocado farming are the alternative or supplement of coffee farming. https://www.the-star.co.ke/news/big-read/2018-08-17-meru-macadamia-farmers-want-to-sell-their-nuts-to-chinese/ . Even the biggest macadamia producer Australia hasn't banned export of raw nuts. 

[Arcadian_Dreamer]

Pure nonsense. Without fertilizers, the world would not have been able to support 7B people. Fertilizers application is through the roof outside Africa - and their agriculture thrives.

True, we would have been at 3 bn people max. Synthetic fertilizers have serious drawbacks which the world is awakening to.

1. Cost - inorganic fertilizers are obtained from fossil fuels which are imported and manufactured in energy intensive industries.

2. Serious ecological damage - algal blooms and ocean dead zones, acid rain, greenhouse gases such nitrous oxide, they pollute drinking water, etc

3. Soil fertility is compromised in the long run, you get spikes in yield but it is short lived and you require even more fertilizers to get the same yield every year. This is because inorganic fertilizers kill soil microorganisms which are essential for healthy plant growth - if soil life is vibrant you need not fertilizers and biocides. Plants will be healthy naturally. Nature has evolved an elegant system of growth for plants before industrial fertilizers were invented. Read about the dangers of fertilizers below.

https://amosinstitute.com/blog/the-health-impacts-of-chemical-fertilizers/

Agriculture is not thriving by any stretch. Soils are dying around the world due to combination of ploughing, heavy application of inorganic fertilizers, monoculture/lack of diversity, indiscriminate use of biocides, irrigation. Fertilizers are papering over serious faults temporarily but nature is undefeated, it always wins. Topsoil is being lost at alarming rate due to current agricultural practices.

Fertilizers do not take nutrients away - how is that even possible when Nitrogen is freely available in the air. We are doing 15kilos -while Egypt is doing 500kilos per hectare...and now we are importing 1.5B dollars worth of food...more if you include palm oil...and you think subsidy wont work? While we are sending 1.5B dollars every year abroad to import food we can produce?

The nitrogen that is in the air which is fixed by bacteria aka organic nitrogen is different in kind and quantity from the inorganic nitrogen gotten via industrial process - Haber Bosch, from fossil fuels. If you don't know that get up to speed.

what takes nutrient away from soil is useless crops like sugar cane and tobbaco - those are the ones that have sucked up nyanza and western soil. And the soil require heavy dosage of fertilizers to replenish their nutrients.

If there is a problem in places like Eldoret - it soil acidity - and it just need dosage of lime - from Koru.

Ukabila hata kwa kilimo, Ngai, ati useless crops, ile jeuri unayo. Your take is scientifically wrong. The same poor agricultural practices are destroying soils across this country, soils have no nutrients especially trace minerals, no carbon.

Next agricluture - cannot be done organic old stone age way - we have to go scientific - do soil testing - and apply the required dossage of fertilizers and chemicals - and voila we are food sufficent - and can export lot more food.

Organic agriculture is not enough, we need regenerative agriculture. We had agriculture that was organic for the last 10,000 years and the results haven't been good.

[hk]

So the problem you have is prices? 

What I know - Ruto most likely found such policy document - and he went ahead to implement - gov has many ideas - but nobody execute them

That has nothing to do with Ruto. This was underway, just like dairy farming exploded in Githunguri after collapse of coffee industry. Macadamia and avocado farming are the alternative or supplement of coffee farming. https://www.the-star.co.ke/news/big-read/2018-08-17-meru-macadamia-farmers-want-to-sell-their-nuts-to-chinese/ . Even the biggest macadamia producer Australia hasn't banned export of raw nuts. 

Price affects future production. The chinese were offering ksh. 50 more than the local buyers, 42500000*50=2.1b , so basically farmers lost 2b in 2018. Basically the policy was very simple ban export of raw nuts depressing local prices, while having a backdoor to export raw nuts priced at "international prices". As a result a  macadamia cartel was created headed by Thika mp. wainanaina jungle nuts.

The reality is that production growth has slowed while avocado production has exploded .

[RV Pundit]

Fear mongering - we need fertilizers, GMOs and all the scientific goodies - to be able to feed 10B people this century. We need precision agriculture, green houses, name it. For kenya we have to go big of fertilizers and GMOs. The next generation will deal with your amargedom scenario.

Our immediate problem right now is to feed people so they can engage in wild theories like you on full stomach

Pure nonsense. Without fertilizers, the world would not have been able to support 7B people. Fertilizers application is through the roof outside Africa - and their agriculture thrives.

True, we would have been at 3 bn people max. Synthetic fertilizers have serious drawbacks which the world is awakening to.

1. Cost - inorganic fertilizers are obtained from fossil fuels which are imported and manufactured in energy intensive industries.

2. Serious ecological damage - algal blooms and ocean dead zones, acid rain, greenhouse gases such nitrous oxide, they pollute drinking water, etc

3. Soil fertility is compromised in the long run, you get spikes in yield but it is short lived and you require even more fertilizers to get the same yield every year. This is because inorganic fertilizers kill soil microorganisms which are essential for healthy plant growth - if soil life is vibrant you need not fertilizers and biocides. Plants will be healthy naturally. Nature has evolved an elegant system of growth for plants before industrial fertilizers were invented. Read about the dangers of fertilizers below.

https://amosinstitute.com/blog/the-health-impacts-of-chemical-fertilizers/

Agriculture is not thriving by any stretch. Soils are dying around the world due to combination of ploughing, heavy application of inorganic fertilizers, monoculture/lack of diversity, indiscriminate use of biocides, irrigation. Fertilizers are papering over serious faults temporarily but nature is undefeated, it always wins. Topsoil is being lost at alarming rate due to current agricultural practices.

Fertilizers do not take nutrients away - how is that even possible when Nitrogen is freely available in the air. We are doing 15kilos -while Egypt is doing 500kilos per hectare...and now we are importing 1.5B dollars worth of food...more if you include palm oil...and you think subsidy wont work? While we are sending 1.5B dollars every year abroad to import food we can produce?

The nitrogen that is in the air which is fixed by bacteria aka organic nitrogen is different in kind and quantity from the inorganic nitrogen gotten via industrial process - Haber Bosch, from fossil fuels. If you don't know that get up to speed.

what takes nutrient away from soil is useless crops like sugar cane and tobbaco - those are the ones that have sucked up nyanza and western soil. And the soil require heavy dosage of fertilizers to replenish their nutrients.

If there is a problem in places like Eldoret - it soil acidity - and it just need dosage of lime - from Koru.

Ukabila hata kwa kilimo, Ngai, ati useless crops, ile jeuri unayo. Your take is scientifically wrong. The same poor agricultural practices are destroying soils across this country, soils have no nutrients especially trace minerals, no carbon.

Next agricluture - cannot be done organic old stone age way - we have to go scientific - do soil testing - and apply the required dossage of fertilizers and chemicals - and voila we are food sufficent - and can export lot more food.

Organic agriculture is not enough, we need regenerative agriculture. We had agriculture that was organic for the last 10,000 years and the results haven't been good.

[RV Pundit]

I have no problem if gov listen to people and reverse certain policies - but all sides of the coin need to be considered.

Macadamia processing is not a monopoly and with the ban - we have seen more processors - and likes of Jungle - are also creating jobs and more value chain for KRA and all. We need people like Ruto brave enough to ban export of Kenya or coffee premium tea...that is blended...and sold as Lipton tea or whatever. Nobody even know Kenya grow the best tea or coffee...the charltans buy it...mix with poor quality teas worldwide..and pass it as their own.

We get into a situation where agricluture grows - but taxes regress - because sector is untaxed - so gov has to fix agro-processing - once they fix agri part.

Gov has to exercise certain level of control and regulation. We saw Avacados get into problem. I have bought kenya avacados abroad...and they were mostly immature. Most in Europe I hear prefer to buy from Kakuzi only. Now horticulture board is regulating closely. We have the same problem with nuts - poor quality nuts.

Price affects future production. The chinese were offering ksh. 50 more than the local buyers, 42500000*50=2.1b , so basically farmers lost 2b in 2018. Basically the policy was very simple ban export of raw nuts depressing local prices, while having a backdoor to export raw nuts priced at "international prices". As a result a  macadamia cartel was created headed by Thika mp. wainanaina jungle nuts.

The reality is that production growth has slowed while avocado production has exploded .

[hk]

I have no problem if gov listen to people and reverse certain policies - but all sides of the coin need to be considered.

Macadamia processing is not a monopoly and with the ban - we have seen more processors - and likes of Jungle - are also creating jobs and more value chain for KRA and all. We need people like Ruto brave enough to ban export of Kenya or coffee premium tea...that is blended...and sold as Lipton tea or whatever. Nobody even know Kenya grow the best tea or coffee...the charltans buy it...mix with poor quality teas worldwide..and pass it as their own.

We get into a situation where agricluture grows - but taxes regress - because sector is untaxed - so gov has to fix agro-processing - once they fix agri part.

Gov has to exercise certain level of control and regulation. We saw Avacados get into problem. I have bought kenya avacados abroad...and they were mostly immature. Most in Europe I hear prefer to buy from Kakuzi only. Now horticulture board is regulating closely. We have the same problem with nuts - poor quality nuts.

Price affects future production. The chinese were offering ksh. 50 more than the local buyers, 42500000*50=2.1b , so basically farmers lost 2b in 2018. Basically the policy was very simple ban export of raw nuts depressing local prices, while having a backdoor to export raw nuts priced at "international prices". As a result a  macadamia cartel was created headed by Thika mp. wainanaina jungle nuts.

The reality is that production growth has slowed while avocado production has exploded .

There hasn't been new macadamia processor since the ban. The likes of jungle existed before the ban. The ban barely increased local jobs because macadamia needs processing before export(cleaning and removing moisture). The ban only added cracking and vacuum packing . Meanwhile farmers lost 2b,  farmers would have bought vated and excise taxed goods indirectly paying taxes more than the measly paye paid by a few processors employees.
Tea farmers should be thinking of buying a known brand that the likes of nestle are jettisoning. Most of the quality coffee produced in kenya is fresh roasted and brewed in boutique coffee shops. It's not used in instant coffee e.g nescafe. The key is to innovate to make something similar to coffee pods https://www.keurig.com/beverages/c/beverages101 and create a brand especially targeted to new coffee consumers.
Avocado; the horticulture board should have a marketing department with mark of product. Every avocado approved by the KHE would have that mark. This is what the mexican, chilean have done .
The point is banning export of commodities doesn't create value added jobs. To create value added jobs its important to have local marketed brands. Its the reason why EPZ textile jobs have stagnated and Kenya can't even meet AGOA limits.

[RV Pundit]

In commodities where we dominate; we can short-cut that and force the creation of a value chain by banning raw exports;

Tea is good candidate for us to simply put down our feet. It's going to be hard to create another market to rival mombasa tea auction. Srilanka did the banning of raw tea export - and everyone now know of Ceylon tea - nobody knows Kenya produces the best tea. Everywhere everyone think tea is either Lipton or Ceylon. And we do not need to create brands - we can force Lipton Tea to do the processing and packaging right here - creating jobs, paying more taxes and the work.

Why do we allow Uniliver to take our raw tea - and multiply it - without adding any real value? Let them move the whole  blending, packaging and factories for doing that here....or they can import uganda poor quality tea.

But for other sectors - yes I agree - we need to come up with brands - as we grow production. Coffee can do much more - Uganda is doing 10 times our production and they started recently.

We cannot be comfortable exporting raw materials - even in low hanging fruits - like agro-processing.

Jobs creation is not just about PAYE. Farmers are educating kids -exporting raw materials - and expect their kids to get jobs where? If they do not create a value-chain that would multiply jobs?

And we should not be afraid of losing 2B in short term - if in the medium and long term - we will grow an entire industry and value chain.

There hasn't been new macadamia processor since the ban. The likes of jungle existed before the ban. The ban barely increased local jobs because macadamia needs processing before export(cleaning and removing moisture). The ban only added cracking and vacuum packing . Meanwhile farmers lost 2b,  farmers would have bought vated and excise taxed goods indirectly paying taxes more than the measly paye paid by a few processors employees.
Tea farmers should be thinking of buying a known brand that the likes of nestle are jettisoning. Most of the quality coffee produced in kenya is fresh roasted and brewed in boutique coffee shops. It's not used in instant coffee e.g nescafe. The key is to innovate to make something similar to coffee pods https://www.keurig.com/beverages/c/beverages101 and create a brand especially targeted to new coffee consumers.
Avocado; the horticulture board should have a marketing department with mark of product. Every avocado approved by the KHE would have that mark. This is what the mexican, chilean have done .
The point is banning export of commodities doesn't create value added jobs. To create value added jobs its important to have local marketed brands. Its the reason why EPZ textile jobs have stagnated and Kenya can't even meet AGOA limits.

[hk]

In commodities where we dominate; we can short-cut that and force the creation of a value chain by banning raw exports;

Tea is good candidate for us to simply put down our feet. It's going to be hard to create another market to rival mombasa tea auction. Srilanka did the banning of raw tea export - and everyone now know of Ceylon tea - nobody knows Kenya produces the best tea. Everywhere everyone think tea is either Lipton or Ceylon. And we do not need to create brands - we can force Lipton Tea to do the processing and packaging right here - creating jobs, paying more taxes and the work.

Why do we allow Uniliver to take our raw tea - and multiply it - without adding any real value? Let them move the whole  blending, packaging and factories for doing that here....or they can import uganda poor quality tea.

But for other sectors - yes I agree - we need to come up with brands - as we grow production. Coffee can do much more - Uganda is doing 10 times our production and they started recently.

We cannot be comfortable exporting raw materials - even in low hanging fruits - like agro-processing.

Jobs creation is not just about PAYE. Farmers are educating kids -exporting raw materials - and expect their kids to get jobs where? If they do not create a value-chain that would multiply jobs?

And we should not be afraid of losing 2B in short term - if in the medium and long term - we will grow an entire industry and value chain.

There hasn't been new macadamia processor since the ban. The likes of jungle existed before the ban. The ban barely increased local jobs because macadamia needs processing before export(cleaning and removing moisture). The ban only added cracking and vacuum packing . Meanwhile farmers lost 2b,  farmers would have bought vated and excise taxed goods indirectly paying taxes more than the measly paye paid by a few processors employees.
Tea farmers should be thinking of buying a known brand that the likes of nestle are jettisoning. Most of the quality coffee produced in kenya is fresh roasted and brewed in boutique coffee shops. It's not used in instant coffee e.g nescafe. The key is to innovate to make something similar to coffee pods https://www.keurig.com/beverages/c/beverages101 and create a brand especially targeted to new coffee consumers.
Avocado; the horticulture board should have a marketing department with mark of product. Every avocado approved by the KHE would have that mark. This is what the mexican, chilean have done .
The point is banning export of commodities doesn't create value added jobs. To create value added jobs its important to have local marketed brands. Its the reason why EPZ textile jobs have stagnated and Kenya can't even meet AGOA limits.

Actually sri lanka hasn't banned export of raw tea. Sri lanka export 45% of its tea in value added form the rest raw.  Everyone wants to value add and capture as much of value chain as possible.  Arbitrarily banning export of commodities doesn't create value addition especially in commodities that the country doesn't have great leverage. Tax policy, innovation and encouraging creation of brands is how to add value. The tea development board should have a marketing department to market kenya brands internationally.  Sri Lanka it has taken them more than 20yrs to create a global brand.

[RV Pundit]

No. Banning of raw exports works. Macademia is good example.
Look at this http://nuts.agricultureauthority.go.ke/index.php/sectors/overview-nuts
On obscure crop like macademia, cashew nuts and coconuts - they are nearly 200 companies.
That is an impressive value chain.

Now imagine Tea - Srilanka produce less than us but earn more than us.

We already dominate the export market - if we agree with Uganda, Rwanda, TZ and Malawi - to jointly ban raw export of tea - where will they get tea? India cannot satisfy internal demand. And Tea is not something you can wake up and grow tomorrow - assuming you have the climate for it.

The same for Ghana and Ivory coast - they get 2-4B dollars - while chocolate industry is worth 100B - and you have little countries like Switzerland profiting.

We need to ban raw exports of our goods. That simple.

We have done the same on hides and skins. Macademia. Next will be tea.

This only way to kick start manufacturing through agro-processing - and our export value.

Right now we are stuck at 6b dollars - and our imports have grown to 20B dollars - and with debt situation - we are playing with fire.

To improve manufacturing and export -  we must ban any export of raw materials - and given local companies incentivies through EPZ model - so they can compete international.

Also the Liptons can come to kenya - and be given EPZ license - they can set up in Dongo Kundu Free Port - get as nearly same conditions as they would in Netherlands - but Keep JOBS here - the DOLLARS here - and multiplier effect.

And they should proudly display MADE in KENYA.

Actually sri lanka hasn't banned export of raw tea. Sri lanka export 45% of its tea in value added form the rest raw.  Everyone wants to value add and capture as much of value chain as possible.  Arbitrarily banning export of commodities doesn't create value addition especially in commodities that the country doesn't have great leverage. Tax policy, innovation and encouraging creation of brands is how to add value. The tea development board should have a marketing department to market kenya brands internationally.  Sri Lanka it has taken them more than 20yrs to create a global brand.

[RV Pundit]

HK reading a tea factory feasibility done in 2009 - near my home

Can you imagine kenya tea locally sold is more expensive that rubbish export

The current market price for processed tea is Ksh 280/= per kilogram in the local
market and Ksh 220/= for export

Heck look at Ketepa - cheapest kenyans buy is 1000 per kilo plus - while we are exporting for 200shs
https://www.jumia.co.ke/ketepa/

Modern day slavery - we are struggling to sell a kilo for 200shs to pampered foreign buyers - tea farmers themselves cannot buy half a kilo for that

[hk]

HK reading a tea factory feasibility done in 2009 - near my home

Can you imagine kenya tea locally sold is more expensive that rubbish export

The current market price for processed tea is Ksh 280/= per kilogram in the local
market and Ksh 220/= for export

Heck look at Ketepa - cheapest kenyans buy is 1000 per kilo plus - while we are exporting for 200shs
https://www.jumia.co.ke/ketepa/

Modern day slavery - we are struggling to sell a kilo for 200shs to pampered foreign buyers - tea farmers themselves cannot buy half a kilo for that

Adding value is what every commodity producer is aiming for.  Banning raw export is populist but does little to address the underlying impediments to value addition.
https://stir-tea-coffee.com/tea-report/kenya%E2%80%99s-tea-taxes/



This is part of the obstacles. Nobody is against value addition, the question is how to. Sri lanka had some serious entrepreneurs also who have propelled the industry. KTDA doesn't have the wherewithal, expertise or risk tolerance. Gold crown beverages seems to be doing it https://www.wsj.com/articles/kenyan-tea-a-reliable-export-brews-a-market-at-home-1488796208

[RV Pundit]

Explain to me why kenya cannot use it market dominance in black tea to force packers, blenders and brands to create value-chain?
Recently we forced a reserve price - I see market had no option but accept it. They cannot find alternative black tea.
Kenya now produce about 560K tonnes of tea...that is more than all the 9 countries.
Our competitor would be both China and India at 1.5m-2m - but they can hardly fulfil their market demand.
we should negotiate....we put our foot down...and global brand already existing will shift their operation to kenya.
Why cant these global brands package the tea in Mombasa? Why wont Uniliver not build their factory in Mombasa?

Adding value is what every commodity producer is aiming for.  Banning raw export is populist but does little to address the underlying impediments to value addition.
https://stir-tea-coffee.com/tea-report/kenya%E2%80%99s-tea-taxes/



This is part of the obstacles. Nobody is against value addition, the question is how to. Sri lanka had some serious entrepreneurs also who have propelled the industry. KTDA doesn't have the wherewithal, expertise or risk tolerance. Gold crown beverages seems to be doing it https://www.wsj.com/articles/kenyan-tea-a-reliable-export-brews-a-market-at-home-1488796208

[hk]

Explain to me why kenya cannot use it market dominance in black tea to force packers, blenders and brands to create value-chain?
Recently we forced a reserve price - I see market had no option but accept it. They cannot find alternative black tea.
Kenya now produce about 560K tonnes of tea...that is more than all the 9 countries.
Our competitor would be both China and India at 1.5m-2m - but they can hardly fulfil their market demand.
we should negotiate....we put our foot down...and global brand already existing will shift their operation to kenya.
Why cant these global brands package the tea in Mombasa? Why wont Uniliver not build their factory in Mombasa?

Adding value is what every commodity producer is aiming for.  Banning raw export is populist but does little to address the underlying impediments to value addition.
https://stir-tea-coffee.com/tea-report/kenya%E2%80%99s-tea-taxes/



This is part of the obstacles. Nobody is against value addition, the question is how to. Sri lanka had some serious entrepreneurs also who have propelled the industry. KTDA doesn't have the wherewithal, expertise or risk tolerance. Gold crown beverages seems to be doing it https://www.wsj.com/articles/kenyan-tea-a-reliable-export-brews-a-market-at-home-1488796208

And where would farmers take their tea if the buyers withdrew from auction? Its not like the farmers have great option either. Solution either buy existing global brand  e.g lipton https://www.wsj.com/articles/tea-giant-weighs-giving-up-on-tea-11580380902 or create a global brand. Already uniliver wants to exit the business so imagine forcing them to value addd in kenya.

[RV Pundit]

Yes we better buy it. This how gov can assist farmers. Unless value chain is built here - we will become slaves of export market. I believe where we have market dominance - we should make it work.

Surely if kenyans can afford to buy dust - for more 1,000 ksh - why are we selling premium tea abroad for 190-300shs?

We surely talk to other countries - and all coordinate to ban export of unpacked tea. What is complicated about branding and packaging tea - and we start selling them for 10-20usd instead of 2 dollars - that is like 10 times more value. Most of difficult manufacturing we do here.....it just branding, marketting and the works.

Let us start to build Brand KENYA - through our tea.

And where would farmers take their tea if the buyers withdrew from auction? Its not like the farmers have great option either. Solution either buy existing global brand  e.g lipton https://www.wsj.com/articles/tea-giant-weighs-giving-up-on-tea-11580380902 or create a global brand. Already uniliver wants to exit the business so imagine forcing them to value addd in kenya.

[Arcadian_Dreamer]

Yes we better buy it. This how gov can assist farmers. Unless value chain is built here - we will become slaves of export market. I believe where we have market dominance - we should make it work.

Surely if kenyans can afford to buy dust - for more 1,000 ksh - why are we selling premium tea abroad for 190-300shs?

We surely talk to other countries - and all coordinate to ban export of unpacked tea. What is complicated about branding and packaging tea - and we start selling them for 10-20usd instead of 2 dollars - that is like 10 times more value. Most of difficult manufacturing we do here.....it just branding, marketting and the works.

Let us start to build Brand KENYA - through our tea.

And where would farmers take their tea if the buyers withdrew from auction? Its not like the farmers have great option either. Solution either buy existing global brand  e.g lipton https://www.wsj.com/articles/tea-giant-weighs-giving-up-on-tea-11580380902 or create a global brand. Already uniliver wants to exit the business so imagine forcing them to value addd in kenya.

Little Rwanda did it with coffee but Kenya can't do it.

Maajabu ya Musa

Something is wrong with this country.

[Georgesoros]

Explain to me why kenya cannot use it market dominance in black tea to force packers, blenders and brands to create value-chain?
Recently we forced a reserve price - I see market had no option but accept it. They cannot find alternative black tea.
Kenya now produce about 560K tonnes of tea...that is more than all the 9 countries.
Our competitor would be both China and India at 1.5m-2m - but they can hardly fulfil their market demand.
we should negotiate....we put our foot down...and global brand already existing will shift their operation to kenya.
Why cant these global brands package the tea in Mombasa? Why wont Uniliver not build their factory in Mombasa?

Adding value is what every commodity producer is aiming for.  Banning raw export is populist but does little to address the underlying impediments to value addition.
https://stir-tea-coffee.com/tea-report/kenya%E2%80%99s-tea-taxes/



This is part of the obstacles. Nobody is against value addition, the question is how to. Sri lanka had some serious entrepreneurs also who have propelled the industry. KTDA doesn't have the wherewithal, expertise or risk tolerance. Gold crown beverages seems to be doing it https://www.wsj.com/articles/kenyan-tea-a-reliable-export-brews-a-market-at-home-1488796208

And where would farmers take their tea if the buyers withdrew from auction? Its not like the farmers have great option either. Solution either buy existing global brand  e.g lipton https://www.wsj.com/articles/tea-giant-weighs-giving-up-on-tea-11580380902 or create a global brand. Already uniliver wants to exit the business so imagine forcing them to value addd in kenya.

You are right. Right policies can create good business environments. A ten year tax incentive, starting at 0 tax the first few years, can incentivize businesses to add value before export instead of outright banning exports. Farmers lost because they had nobody to buy their crop.
Even tea processing can take the same approach, starting with coops. S. Korea does it and they make good cash. But they dont get tax subsidies.

[Georgesoros]

Yes we better buy it. This how gov can assist farmers. Unless value chain is built here - we will become slaves of export market. I believe where we have market dominance - we should make it work.

Surely if kenyans can afford to buy dust - for more 1,000 ksh - why are we selling premium tea abroad for 190-300shs?

We surely talk to other countries - and all coordinate to ban export of unpacked tea. What is complicated about branding and packaging tea - and we start selling them for 10-20usd instead of 2 dollars - that is like 10 times more value. Most of difficult manufacturing we do here.....it just branding, marketting and the works.

Let us start to build Brand KENYA - through our tea.

And where would farmers take their tea if the buyers withdrew from auction? Its not like the farmers have great option either. Solution either buy existing global brand  e.g lipton https://www.wsj.com/articles/tea-giant-weighs-giving-up-on-tea-11580380902 or create a global brand. Already uniliver wants to exit the business so imagine forcing them to value addd in kenya.

Little Rwanda did it with coffee but Kenya can't do it.

Maajabu ya Musa

Something is wrong with this country.

The Rwanda leadership has created a vision for the country, so they've been able to accomplish a lot in such little time. It appears that policies drive most of everything in Rwanda. Leadership is just there to push it. In Kenya, leaders have created a vision for their tribe (meaning those they /steal/eat/collude with), and progress has been slow.

[RV Pundit]

We already do tea processing here
What we do after that - sell our processed tea in bulk
What they go and do outside kenya is to mix our tea with low quality tea - and PACKAGE it.
At best they only buy mixer - to add herbs.

We need to ban selling of unpacked tea.

Sudan had even banned import of unpacked tea - but Kenya run to Sudan - pleading to be allowed to sell tea in bulk.

We cannot be nice when we have worked to dominate the black tea market.

Let them go and find other teas and see how far they go...meanwhile if pakistani buyers want to pack tea - do it in Mombasa  - and gov will charge them requisite taxes...

Our tea value will increase ten fold.

You are right. Right policies can create good business environments. A ten year tax incentive, starting at 0 tax the first few years, can incentivize businesses to add value before export instead of outright banning exports. Farmers lost because they had nobody to buy their crop.
Even tea processing can take the same approach, starting with coops. S. Korea does it and they make good cash. But they dont get tax subsidies.

[RV Pundit]

Why are we being nice?  The tea packers should pack their tea here in small packages, blend here and write a big made in kenya; and pay the taxes here; There is no processing they are going to add in their country. It's like Toyota allowing us to import their cars - and stick a made in kenya badge.