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New State-Driven Business Opportunities for Rice Farmers

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Nyakundi Report

Newsroom 2 min read

This archive report was first published on 7 August 2020.

Published on August 7, 2020, by Elizabeth Ojina, a senior scheme manager at the Ahero Research Station of the National Irrigation Authority (NIA) in Kisumu, Joel Tanui, shared insights on why rice farming has yet to change many farmers' fortunes and the existing opportunities for growers.

Kenya relies heavily on imports, with Pakistan accounting for 74% of the total imports. However, rice growing remains a profitable venture, boasting the highest net margins per hectare compared to other cereals.

The high cost of production has been a significant setback, but the presidential directive has set better local prices, improving net margins and paving the way for a better future in the sub-sector.

As climate change effects unfold, rice farmers have been battling quelea birds, which have tripled in number over the last four years due to abundance of food and limited control measures. The NIA is currently testing acoustic stimuli methods and motorized scaring devices as alternatives to chemical spraying.

President Uhuru Kenyatta's directive for government institutions to purchase rice from local farmers has been a game-changer. The Kenya National Trading Corporation (KNTC) is currently buying milled rice from cooperatives across all schemes and paying promptly, providing competitive prices for farmers.

With the government's efforts to expand the area under rice irrigation, Kenya hopes to become rice sufficient by 2030. The available options for farmers include value addition through the presidential directive, which has provided opportunities for farmers to add value to their rice through purchase of local produce.

Farmers are now accessing milling services from government-owned factories, enabling them to pack and sell a finished product. Apart from rice, farmers can grow alternative crops such as seed maize, green grams, soya, sorghum, and fresh vegetables, thanks to the crop intensification and diversification programmes introduced in 2016.

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