Source: The Star
Author: Moses Wekesa
Context and Background:
In a growing concern for Kenya’s sugar industry, small millers are urging the government to take immediate action against rampant sugarcane poaching, which they claim is threatening their survival. Moses Wekesa, writing for The Star, reports that sugarcane factories, particularly the smaller ones, are struggling as larger and more established millers engage in poaching practices that divert sugarcane supplies meant for smaller operations.
This practice of poaching involves millers harvesting or purchasing sugarcane from contracted farmers without the consent of the millers with whom the farmers have original contracts. The resulting supply shortages are severely undermining the operations of small-scale millers, leading to significant financial losses.
Impact on Small Millers:
The smaller sugar factories argue that the ongoing poaching practices are putting them at a disadvantage, as they are unable to compete with the financial clout of larger millers who lure farmers with higher prices. This has disrupted the supply chain for small millers, leading to operational inefficiencies and in some cases, factory closures. Small millers are now facing difficulties in meeting production quotas, further threatening their profitability.
Call for Government Action:
Wekesa notes that small millers are calling on the government to step in and regulate the sector more effectively, urging it to curb poaching through stricter enforcement of contractual agreements between farmers and millers. Millers are also advocating for policies that will level the playing field and ensure fair competition across the sector, protecting smaller operations from being pushed out of the market by unfair practices.
Farmers’ Involvement:
Farmers, on the other hand, are often drawn into poaching practices due to the higher prices offered by larger millers. Many farmers, particularly those facing financial pressure, are willing to breach their contracts in exchange for immediate payments, leaving small millers short of the sugarcane they had anticipated. This dynamic highlights the complexity of the problem, where both market forces and contractual enforcement need to be addressed.
Opinion:
Can government action effectively stop sugarcane poaching, or are deeper reforms needed to create a fairer sugar industry for all millers?
Government intervention is essential to address the immediate issue of sugarcane poaching, but it must be part of broader reforms in the sugar industry. While stricter enforcement of contracts can help curb poaching, the root causes—such as the unequal distribution of market power and the financial pressures on farmers—need to be tackled through comprehensive policy measures. A fair regulatory framework that protects small millers and promotes competition is key to ensuring the long-term sustainability of Kenya’s sugar industry.
Sourced by: Rosemary Wambui of AFA - Sugar Directorate