Orient Enterprises: Why it is vital not to allow Nut-In-Shell Export of Macadamia

Nut-In-Shell Export have tremendously affected the previously booming profitable business as indicated by Orient Enterprises

Kenyan macadamia widely renowned on a global scale, has seen a thriving growth of nuts with the central regions of the country soaring in delivery of up to 5 million tons of macadamia nuts in a season. This range of production has stamped the Kenyan brand name of macadamia not only for its nutritious values but also for the quality of the nut. “Made in Kenya Macadamia is our heritage and footprint in a world full of nuts all around,” says Mr. Rajiv Pandya.

Mr. Rajiv Pandya, the managing director of Orient Enterprises Limited (OEL) in Juja, Kiambu County, expresses his love for their superior value-added macadamia products. These have earned them recognition as a boutique company, scaling the ‘made in Kenya’ far and beyond. He reveals that through the value addition of the macadamia nuts for the production of kernels, oil, milk, butter, and premium roasted nuts, they are able to transform a farmer’s life more than when exporting in-shell.

Mr. Rajiv Pandya points out that good policies are an instrumental pillar for the macadamia nuts to thrive in Kenya as history has shown. He further highlighted how in January, and the whole of early 2023 the macadamia sector faced the lowest-ever time in sales of the nuts, as a result of opening up of borders for in-shell exports. A move he decries to have unreversible effects on the sector as the exports largely to China, has disadvantaged the Kenyan processors and farmers.

“We work hand in hand with the farmers who offer the raw materials and build initiatives that ensure the thriving of the sector. We walk the journey with our farmers by not only creating jobs in communities but also conserving our ecosystems for longevity. Well, this is something an in-shell buyer doesn’t consider at any point, rather they concentrate on purchasing the produce,” says Mr. Rajiv.

Being a processor, he details how they offer farmers better macadamia seedling varieties based on the region, offer support in dealing with pest infestation, diseases, and also provide harvesting manpower, do the dehusking, and handle the logistics of transporting the nuts to the factory. In addition, they purchase at a higher price, more than double as compared to the brokers.

According to Carolyne Mulilya, Production, and Quality Assurance OEL, through Enterprise Resource Planning (ERP), there is a seamless flow of macadamia weighing to payment of the farmer. “Through the ERP payment system, we can track from farm to fork of the macadamia nuts. This has improved our payment systems as we can send an update to the farmer details such as accepted quantity, rejected quantity, and amount payable via the digital system,” says Carolyne.

Export of unprocessed macadamia should be banned

Orient Enterprises Limited (OEL) dealt with nut in-shell export until early 2020 when they moved to value-added nuts. The shift was informed by the realization that it was more profitable and it increased traceability.

The government is set to deliver its consideration of lifting the ban on exports of the macadamia in-shell in November 2024, and Mr. Rajiv hopes that there is a firm stance on the regulations with interests of the Kenyan people at heart. To him, this is a question of salvaging the situation or worsening it as he considers macadamia a vital export for the economy of the country.

“As we await to hear of the ban of in-shell export this coming November, all we hope for as farmers and Macadamia Nuts Association (MacNuts) is the restoration of our prestige. Recognizing that processors support the farmers in spraying pesticides, offering biochar, and most tolerant varieties of macadamia seedlings, consequently increasing yields for mutual benefits,” said Mr. Rajiv.

Orient Enterprises, full value addition and direct distribution of macadamia to US and UK markets, has made it possible for them to employ 200 employees and up to 30 field officers who visit at least six farms daily and export up to 25 tonnes of value-added products. However, with the current situation, they had to reduce their workforce by almost half.  

Gender Balanced Staff

The company has a gender-balanced staff, with 50% women in the executive and over 60% of their staff in production being women. Grace Muchiri, Finance Manager at Orient Enterprises, emphasizes that the operations within the firm need women for their efficiency to some levels, revealing that there are stations where women perform outstandingly well as compared to men in the company.

“Women are significantly needed in the sectors of sorting and crosschecking where over time they have performed exemplary compared to men. This has earned the sections a nickname, ‘women’s job’ whereas the men are well versed with sections where masculine work is involved such as loading. This division and specialization of labor has been a critical aspect for our company in delivery of quality products,” added Ms. Muchiri

Corporate Social Responsibility Initiatives

Orient Enterprises Limited is focused on transforming lives by giving back to the community to propel mutual growth. The company has a seedling propagation scheme tagged to the Greening Earth Initiative, that aims at distributing one million seedlings, yearly. The farmers are also able to get the most eligible seedlings with more tolerant traits, ensuring easier survival and better yields.

Another project of giving back to the community is the investment on a biochar production system enhanced by the company. This is executed by breaking down the shells and husks which are then decomposed to form 80-90 tons of biochar product. This is crucial for boosting soil health in turn giving farmers better yields.

OEL has also ventured into supportive programs like financial literacy trainings, and women health education, improving the living standards of the farmers and community.

Moreover, they have a Sacco which empowers the over 1,000 registered farmers in monetary needs like; emergency loans to cater for medical emergencies, to pay school fees dues, and other needs.

A testament to the power of financial literacy training is the recorded increase in the farmers’ savings within the Sacco. The other major outcome is a reduced number of farmers and staff members asking for loans or advances as they can plan themselves better.

Macadamia Growing

The nuts production, with macadamia in central regions of Kiambu, Murang’a, Embu, and Meru, while cashew nuts mainly in coastal regions, has placed Kenya on the global map as a quality nuts producer.

Based on the nutritious values of the macadamia, there’s an increasing demand for value-added products in the international markets. With the anticipated macadamia high season, farmers are urged to avoid dealing with brokers and rather deal with processors directly for better gains.

Mr. Rajiv urges more farmers to venture into the production of these lucrative nuts and call on Orient for their seedlings that go for 300 ksh each. Macadamia growth is now expanding to counties such as TaitaTaveta, Machakos, Bomet, Kitale, and Nyandarua among others.