Scaling Up Kenyan Fair Trade Macadamia Exports

The project began in 2010 with funding from the COMPETE Grants program. The reporting period spans from July 1, 2010, to September 30, 2010, with the report submitted on October 15, 2010. The project's objectives include relocating and improving plant equipment to achieve full food-grade processing capacity, increasing plant capacity to process 100 tons per season, purchasing macadamia from local growers at a fair trade minimum price, and providing social premiums for community projects. The project also aims to provide technical assistance to growers, achieve fair trade and organic certification, and export processed nuts to the US market. Key achievements during the reporting period include obtaining KEBS certification for the first product shipped to a US customer on August 17, 2010. The project has also purchased 34,163 kg of macadamia from Taita growers at an average price of 40 Ksh/kg and 1,700 kg from Meru growers at an average price of 48 Ksh/kg. Social premium payments of 5 Ksh/kg for Taita have been set aside, pending the successful completion of their fair trade audit. The project has also made progress in providing technical assistance to growers, with an agronomist employed full-time to work with growers in Meru and Taita to achieve crop improvements. The project has also ensured transparent elections in the Taita grower association, with an adequate voter turnout and a successful outcome. However, the project has faced challenges, including inadequate drying capacity, which has resulted in a drop in plant capacity to approximately 300 kg/day. The project has also struggled to source adequate nuts in shell due to a late entry into the season. Despite these challenges, the project is making steady progress, with good progress made on organic and FLO certification, particularly in Taita. The project's financial situation is also being monitored, with cost overruns reported for Trade Fair participation and the Organic Audit. The project is exploring alternative financial sources to complete the Organic Audit, which will likely need to be repeated next year. The project has also reported a low amount remaining in the Trade Fair participation budget line, which is not significant as the project is able to market and sell the product without trade fair participation. Overall, the project is making progress towards its objectives, despite facing challenges. The project's achievements and challenges will be closely monitored to ensure that the project stays on track to achieve its goals.