Reply to thread

Message: [QUOTE="Nehanda, post: 27322, member: 2262"] Kenya millers pushed back against accusations they favored foreign wheat over local crops. Wheat farmers recently complained to the government that millers were importing wheat instead of buying from them first, leaving farmers stuck with 321,000 bags of harvested grain. The situation forced Agriculture Minister Mutahi Kagwe to tell farmers they should deliver their wheat to the National Cereals and Produce Board. Members of the Cereal Millers Association strongly denied these allegations Thursday. CMA leader Paloma Fernandes stated millers remain committed to supporting local farmers but must also meet the needs of 40 million consumers who want affordable wheat products. She explained that these claims about import preferences lack evidence and mislead people. According to Fernandes, data shows millers have purchased almost all available Kenyan wheat. She stressed that imports simply fill the huge gap between what Kenya produces and what Kenyans consume. Fernandes pointed out that millers have bought all locally grown wheat at higher-than-market prices for twenty years to encourage Kenyan production. Despite these efforts, domestic wheat output has decreased over time. Kenya produces just seven percent of the wheat it needs annually—about 1.7 million bags compared to the 24 million bags Kenyans use. The local harvest happens across eight months from July through March, making steady supply difficult. Kenyan bakers need consistent flour supplies for making chapatis, bread, mandazis, and biscuits throughout the year. The country must import 93 percent of its wheat to meet these demands. Between July 2024 and February 2025, Kenya brought in over 1.3 million metric tons of wheat under East African Community trade rules. Fernandes highlighted that Kenyan millers face stricter requirements than those elsewhere in East Africa. Millers throughout East Africa pay a ten percent duty on wheat imports. Uniquely, Kenyan millers must pay premium prices to local farmers before they can import any wheat. Millers from neighboring countries buy all wheat at standard market prices, which puts Kenyan businesses at a disadvantage. This situation prevents Kenyan millers from competing effectively when trying to export their products to other markets. The association aims to help farmers increase Kenya's wheat production from eight percent to at least 45 percent of national demand within five years. Achieving this goal requires specific actions like cutting production costs, creating tax breaks, and providing subsidies for essential farming supplies. Improving agricultural land policy and promoting cooperative farming models could boost yields substantially. Better contract farming arrangements would also help increase production. Fernandes emphasized that Kenya needs to align wheat prices with actual production costs to prevent market problems. Government subsidies for fertilizers and seeds would lower farming expenses, increasing wheat supply and naturally reducing prices. Market forces should determine selling prices based on supply and demand patterns. This approach ensures both efficiency and sustainability for the wheat industry across Kenya. The Cereal Millers Association urged government officials and other stakeholders to base their discussions on accurate information rather than rumors. This will protect food security throughout Kenya. Fernandes said they welcome discussions and teamwork to find lasting solutions that strengthen the wheat sector. They believe collaborative efforts can significantly improve local production and benefit everyone involved. [/QUOTE]

Name