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August 02, 2007

Brewery barley outgrowers in Kenya say new quality requirements are unfair

Contracted barley growers in Kenya's Rift Valley Province have disagreed with a subsidiary of East African Breweries Limited (EABL) over the introduction of new quality standards for the grain. East African Maltings Limited issued the guidelines to contracted farmers late last year, with a warning that it would only purchase produce that meets the new standards.

Part of the guidelines require farmers to ensure that the barley meets a 97 per cent minimum germination requirement, up from the previous 95%. The brewer also demands that the nitrogen content be maintained at 2.2 per cent, the grains be of 2.3 millimetre in size and 13 per cent (from the previous 14) per cent moisture content.

The Barley Growers Association of Kenya (BGAK) chairman Samuel Gitonga appealed for the brewer's intervention to save farmers from possible losses. "Failure to meet the set parameters is usually due to factors that are completely outside the control of farmers such as the weather," he said.

Gitonga argues that once the firm has recruited farmers, it should be prepared to purchase any produce that comes from their farms. "If there is a shortage of rainfall, the barley grains will ultimately be small and with high nitrogen content," he said. He further describes the 13 per cent moisture requirement as an unrealistic condition that is bound to increase the cost of production.

Farmers also complained of high transport costs that consume between 40 and 60 per cent of their earnings. Besides production issues, the barley farmers are also pushing for the establishment of a pricing mechanism that reflects the brewer's performance. The farmers reckon that the payments for their produce are too low compared to the brewer's profits.

Gitonga said a committee to look into their grievances was appointed by the brewer.

Business Daily

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