Sugarcane farmers are unhappy with millers who threatened to halt operations in protest of a court order raising the price of cane per tonne. The farmers believe the new price of Sh5,900 is fair, considering their production costs, reported The Standard.
“Millers are aware of our expenses,” said Charles Atyang Atiang, chairman of the Kenya Association of Sugar and Allied Products. “We barely make a profit with the Sh5,900 they offer. Before the recent closure due to cane shortage, the price was Sh6,100, and millers weren’t complaining then.”
Simon Wesechere, Secretary General of the Kenya National Federation of Sugarcane Farmers, called the millers’ threats unrealistic.
“It’s dishonest for millers to claim they aren’t profitable or hurt by the new price,” Wesechere said. “They get an unfair share of the profits from our cane. We currently split profits 50/50, whereas in other countries, millers take 30% and farmers get 70%.”
The Agriculture and Food Authority (AFA) urged millers to negotiate instead of resorting to threats.
“We understand the disagreement stems from a court case,” said Jude Chesire, director of the AFA. “The priority is for both sides to collaborate for the sugar industry’s growth. We want this conflict resolved swiftly. Our agency is available to facilitate talks between the parties so we can resume working together productively.”
On April 24, 2024, Justice Jairus Ngaah ordered all 16 Kenyan millers to raise the sugarcane price per tonne to Sh5,900 from the previous Sh5,100 set by the Sugarcane Pricing Committee (SPC). This decision came in response to a lawsuit filed by over 260,000 farmers who challenged the price reduction.
