Kenya Cotton Growers Association

Sauti Ya Pamba . Publication 2

noreply@blogger.com (Prometheus) — Wed, 20 Jan 2010 12:34:00 +0000

KCGA is in motion to produce the next publication of the sauti ya pamba newsletter. The Sauti ya pamba is a publication by the KCGA that supports the voice of the cotton farmer and touches on issues that are in the cotton industry.
Please find the initial news letter here:
http://sautiyapamba.blogspot.com

Report: Kenya may miss out on Agoa IV

noreply@blogger.com (Prometheus) — Wed, 20 Jan 2010 12:24:00 +0000

As the deadline for start of the fourth phase of the African Growth and Opportunities Act (Agoa) draws near, experts say Kenya is unlikely to benefit if the revival of cotton farming is not stepped up.

It could even put the local nascent textile sector that relies mainly on imported materials for manufacturing, at the risk of collapse if local raw materials are not available.

According to a report released by the government policy think tank, the Institute of Policy Analysis and Research, the country faces the challenge of increasing cotton production to tap into new opportunities offered by Agoa.

“With the implementation of Agoa phase IV, it is imperative that Kenya takes some remedial action, otherwise the country will no longer be eligible for Agoa-type preferences by September 2012,”

According to Agoa Phase IV (Agoa IV), eligible sub-Saharan African countries should use locally manufactured materials or source from other developing countries by September 2012.

The matter was adopted on September 2007, with states given five years to build capacity for producing local textile manufacturing materials.

“Kenya should grow its cotton cheaply and create employment opportunities for her people instead of continuing to import cotton from her neighbours — mainly Uganda and Tanzania,” the report says.

Textile firms at Kenya’s Export Promotion Zones also rely on raw materials from their competitors in China, India, Bangladesh and Malaysia.

The report, a comparative analysis of the Mauritius and Kenya EPZ textile firms, notes that while the country has improved its trade performance in clothing and textiles, it does not have a stronghold in the global market.

Kenya, according to the study, will find the years leading to the Agoa IV start more challenging and, unlike Mauritius, which has diversified and entrenched its place in the international market.

The fourth largest

The textile sub-sector is the fourth largest, accounting for 11 per cent of the manufacturing sector. Textile firms account for over 80 per cent of the EPZ employment.

The report says Kenya should follow the Mauritius model, and create special economic zones, which will spread out the incentives to textile firms in the country wherever they are located.

The Kenya government has already announced that the special zones will be launched in June, starting with the northern corridor.

Kenya’s EPZ, according to the report, are hampered by frequent policy changes and operational procedures, high production and operational costs, cut-throat competition, slow pace of labour and employment reform laws.

They recommend that the Government maintain incentives and remove obstacles to trade for the country to reap more from Agoa.

The government should help to rehabilitate ginneries and introduce modern technology, the report says, adding that farmers should be encouraged to increase acreage under cotton by accessing unutilised land.

High-yielding cotton seeds, affordable inputs, a reliable market and extension services should be provided.

The Government has removed 16 per cent Value Added Tax levied on locally produced and ginned cotton. It is also levying taxes on imported textiles, including second-hand clothes.

However, the experts say that further incentives will enable the textile sector to catch up with that of Mauritius.

They recommend that the private sector play a greater role in cotton production. They praise a USAID initiative which, in partnership with US firm Dunavant entreprises, wants to produce cotton on 100,000 acres in southern Nyanza, while working with the local farmers.

The experts also call on the Government to encourage greater local ownership of EPZ firms by increasing accessibility to credit, to stop the repatriation of profits and reduce moving to other countries. Foreign firms constitute 83 per cent of EPZ, which enables them to easily move to other countries.

In their recommendations, that is likely to draw the ire of trade unionists, they urge the Government to abolish annual wage increases and instead peg the pay to productivity, inflation and the nature of the sector.

Remain competitive

“To ensure that the garment firms remain competitive, the Government should abolish annual wage increases that are not pegged to productivity."

A national textile training centre should also be established or set up by upgrading the existing centres to offer training in new technologies and production methods.

The report notes that EPZ exports have been increasing over the years, but the transfer of technical, marketing and managerial expertise is not moving so fast because Kenya lacks a skilled labour force, especially in the textiles sector, and relies heavily upon foreign labour from expatriates.

The labour productivity is estimated to be 30 per cent lower than the industry optimum, caused mainly by low training levels.

Poor income stains cotton sector

noreply@blogger.com (Prometheus) — Wed, 20 Jan 2010 10:52:00 +0000

Crop able to supply local garment makers as well generate adequate earnings for farmers `We can only succeed on this score by developing the sector from the farms to the fabric hence encourage the people.

With almost 90 per cent of the land at the Coast cut out for cotton growing, lack of incentives and proper marketing structures are to blame for the dismal performance of a sub-sector that can help turn around the fortunes of the area.

Even after the Ministry of Agriculture pegged the price per kilo of lint at Sh30, farmers are still not comfortable with the cash crop that despite consuming a lot of time, energy and resources to produce generates very little returns.

Mr Julius Kimotho, a farmer in Mpeketoni one of the areas with the largest number of cotton growers in Kenya said the problem is that growers have been left to fend for themselves.
"The middlemen have come out confusing farmers by dividing them and because of lack of structures to protect them from exploitation they end up selling their produce at as low as Sh24 a kilo," he said.
Heavy rains But worse still most of the farmers failed to get quality seeds for the crop and with heavy rains that are still pounding the area, the harvest for this season does not look promising. Many of them have opted for less strenuous crops such as maize and vegetables which provide food and some cash for their upkeep.
And even with the setting up of the Cotton Development Authority about three years ago nothing short of an action plan specifically targeting the region would revive the industry.
The government has pumped in about Sh700 million to help in the campaign for cotton growing which includes seed bulking.
A director of the authority and cotton farmers' representative in Coast Province Mwangi Migwi says a cotton development plan for the region has already been crafted to provide guidelines on how the sector could be revived and developed. As the situation stands now, he said, the potential alone is not enough if growers continue relying on the few ginners that make a killing at the expense of farmers who toil to produce the crop.
"We can only succeed on this score by developing the sector from the farms to the fabric hence encouraging the community to grow and process cotton to benefit from all the entire cotton value chain.
"In China for instance, there are about 20,000 small scale textile industries. The farmers there do not sell raw cotton but harvest and produce fabric and make the other products from the crop. When farmers add value to their produce they are able to command the market and, therefore, earn more money," said Mr Migwi.
The action plan, according him, proposes capacity building in terms of modern farming techniques to grow the best crop and investing in technology to process textile.
"The cotton value chain is very long and with proper incentives that are being proposed in the plan farmers could soon be making such articles as upholstery, kikoys and towels for the hospitality industry," he said.
A baseline survey done by the Ministry of Agriculture shows that the 10,000 farmers in Lamu West and part of Tana Delta can produce up to 1,000,000 bales of cotton per year through rain fed agriculture. At the current market rate for lint alone, they can earn about Sh2 billion.
Cotton seed which could also be produced by a section of farmers and seed cake are some of the products that would keep them busy throughout the year while earning decent incomes.
With the irrigation schemes revived in Bura and Tana, there is going to be an increase in cotton production that is estimated at between 200,000 and 300,000 bales per year.
Garment manufacturers operating within the Export Procession Zones are calling on the government to enhance the local production capacity to enable the country reap fully from the African Growth and Opportunity Act (Agoa).
According to the chairman of the Garments Manufacturers Association, Mombasa chapter Thomas Puthoor, the recent extension of the Agoa facility will not make any impact in Kenya if the government continues to ignore cotton growing.
Under the agreement passed by Congress in 2001 and which has been extended to 2015, African producers have preferential access to US, the world's biggest consumer.
But the garment manufacturers have warned that if they continue importing raw materials, access to American markets under the pact will only benefit countries supplying raw materials and not Africa.
"We need to build capacity and be able to produce our own cotton and fabric which will not only increase our speed to supply markets in America but will also create employment," said Mr Puthoor, who is also managing director Kapric Apparels.
Currently, garment manufacturers import fabric mainly from India and China, countries that also compete with Africa for the lucrative American clothing industry.
It takes about 150 days for a Kenyan based manufacturer to supply products to American markets from the time of ordering fabric to delivery of finished products, which if raw materials are obtained locally would be cut down by almost half to 60 days, said Mr Puthoor.

Support Kenya cotton sector, group pleads

noreply@blogger.com (Prometheus) — Wed, 20 Jan 2010 10:47:00 +0000

Extension of the African Growth and Opportunity Act (Agoa) will not make any major impact in Kenya if the government continues to ignore cotton growing. The sector will help provide the much needed raw materials for garment makers.

The government has, therefore, been urged to support the cotton sector locally to enable the country reap full benefits of the market deal.

The chairman of the Garments Manufacturers Association, Mombasa chapter, Mr Thomas Puthoor, said that if they continue importing raw materials, access to American markets under the pact will only benefit countries supplying such input and not Africa.
Under the agreement passed by Congress in 2001 and which has been extended to 2015, African producers have preferential access to the US, the world’s biggest consumer.
“We need to build capacity and be able to produce our own cotton and fabric, which will not only increase our speed to supply markets in America, but will also create employment,” said Mr Puthoor, who is also the managing director of Kapric Apparels.

Currently, garment manufacturers import fabric mainly from India and China, countries that also compete with Africa for the lucrative American clothing industry.

It takes about 150 days for a Kenyan manufacturer to supply products to American markets from the time of ordering fabric to delivery of finished products. If raw materials are secured locally, the period would be cut by almost half to 60 days, said Mr Puthoor.

Lack of incentives for producers, high production costs and red tape are among challenges that have stifled growth of the industry, he added.

Little to show

The official said that despite the country benefiting from the Agoa arrangement for about 10 years now, little has been done to enable Kenya produce its own fabric.
“If you consider that two years ago there were 44 garment manufacturers most of which have shut down leaving about 10, then you should know there is a problem here that needs to be fixed if we seriously want to benefit from Agoa,” Mr Puthoor said.

Giving cotton its fluff back

noreply@blogger.com (Prometheus) — Wed, 20 Jan 2010 10:38:00 +0000

At the peak of the country’s textile industry in the 1980s, it was a matter of pride and sense of class for any Kenyan to don a cotton product with Rift Valley Textiles (Rivatex) garments or Raymond Woolen Mills’ Kaunda suits a must-wear for all.
Since then, the industry’s fortunes have plummeted to such an extent that the then hugely popular Kaunda suit is presently, at best, a relic.
In fact, it even sounds ridiculous today to imagine that at one time both the rich and poor would become instant village celebrities by simply donning the four-pocketed jacket popularised by founding Zambian President, Kenneth Kaunda.
“It is regrettable that we have left such a highly significant industry to collapse from such a pre-eminent social and economic status in a short period, “ says Dr John Akoten of the Institute of Policy Analysis and Research, a Nairobi based independent think-tank.

The cotton sector’s fall from grace is a product of various challenges facing the textile sector as a whole.
They include poor infrastructure, non-payment or late payment of farmers, poor quality government services and low productivity as a result of an inefficient labour system, poor quality lint and obsolete machinery
Others are lack of a clear vision and effective strategy, frequent policy changes and operational procedures, high production and operational costs and lack of a training system for industry players.
In this regard, while the country has the potential to produce about 140,000 bales of cotton per year, it currently produces well below optimum levels, which saw it produce about 40,000 bales last year.
Although official statistics says the industry supports about 200,000 farmers, industry sources say the figure could have fallen to as low as less than 50,000 farmers.
Dr Romano Kiome, the Agriculture Permanent Secretary, says the industry is critical to the economy.
Although he admits that Asian countries are flooding the global market, the PS disputes that there is no ready market for the local farmers due to the competition from the Asians. He cites Rivatex as a viable option.
“It is the short supply of locally produced cotton that forces Rivatex to process only 9,000 bales per month against its potential of 20,000 bales per month,” he said.
The company, which collapsed in 2000, has since then been revived and acquired by Moi University.
Dr Akoten, who is a research fellow coordinator, real sector, at IPAR, concurs with the PS.
He says the industry is labour-intensive giving it a huge potential to create many employment opportunities, reduce poverty and therefore raise the income of farmers through backward and forward linkages with other sectors.
Noting that the garment export share in national exports has been increasing steadily in the past decade, he says, the conversion of the Export Processing Zones into special economic zones will create more opportunities for the sector to grow.
Powon Micah Pkopus, the managing director of the industry regulator—Cotton Development Authority, says the industry has a long value chain that is capable of spurring the creation of other industries.
“It is a major source of income in the arid and semi-arid (ASAL) areas where there are limited economic opportunities or non-existent at all,” says Mr Powon.
Besides creating a market regulator, he says the government is addressing all the issues bedevilling the sector as outlined late last month by Agriculture minister, William Ruto, aimed at resuscitating the sector.
They include farmers being paid up-front for their cotton supplies, registration of all cotton buyers by the Cotton Development Authority and waiver of the 16 per cent tax levied on locally produced and ginned cotton.
Mr Ruto also proposed that all taxes levied on imported textile including second hand clothes or mitumba be utilised in boosting the production of cotton.
However, analysts say more needs to be done especially in developing and implementing a good policy strategy before the sub-sector can get out of the woods.
“The ministry must obtain buy-in and support from line ministries on various strategies to jump-start and promote the sector,” says Dr Akoten.
Peter Kegode, an agribusiness specialist, is more blunt and says the biggest challenge facing the sector is the lack of political goodwill backed by substance.
“The measures by the minister are part of positive rhetoric coming from the ministry showing good intentions but lacking in action,” says Mr Kegode.Mr Jacob Mwirigi, who is the chairman of the Kenya Cotton Ginners Association, says the minister should try and address specific issues. “It is not easy to address all problems in the sector at once but priority must be given to the issues affecting the farmers to boost local production,” says Mr Mwirigi.
Without a clear system to ensure farmers access quality seeds, farmers are exposed to unscrupulous seed merchants and distributors. Mr Powon says the Authority aims to address all problems affecting the sector including enabling farmers to access seeds.
This will see the Kenya Agricultural Research Institute (KARI) producing basic seeds for the Kenya Seed Company and other CDA registered seed merchants to produce them commercially. But the Kenya Plant Health Inspectorate Service (Kephis) will certify the seeds.

Fairtrade Cotton, Kenya

noreply@blogger.com (Prometheus) — Mon, 12 Oct 2009 10:14:00 +0000

This two-year project aims to improve the lives of small-scale cotton farmers in two of Kenya’s poorest districts, Kitui and Mwingi.

What is the problem or need the project is addressing?

The cotton sector in Kenya is struggling, with production at a mere 8.2% of national capacity. Most cotton farmers are small-holders with limited land who produce low yields of poor quality cotton fibre. Farmers’ groups are not well organised, the cost of cotton inputs is rising, the seed used is of poor quality, and imports of second-hand clothing into Kenya (along with cheap imports from China and South East Asia) has dampened demand for locally-produced cotton.

The situation is particularly bad in Kitui and Mwingi districts, where the incidence of poverty is extremely high (as much as 76% in Kitui South). Cotton production is one of the few means farmers in these arid and marginalised areas have to earn an income for basic needs such as food, clothing, healthcare, and schooling. However, their earnings from cotton are low since their yields and cotton quality are poor, and they have limited access to markets.

If the problems these small-scale cotton farmers face could be overcome, then there is great opportunity for them to earn a good living. Market opportunities exist for Kenyan producers in the international cotton market, particularly in the fair trade and organic cotton niche markets. In 2006 alone, UK sales of fair trade cotton products soared by almost 4,000 per cent in volume and just over 3,000 per cent in value.

What is the project doing?

This two-year project will enable small-holder farmers in Kitui and Mwingi to increase their income from cotton by helping them improve their production and linking them into a fair trade supply chain through a local ginnery. Guaranteed fair trade sales will mean farmers receive an increased and consistent price for their cotton and are able to improve their families’ standard of living. In total, the lives of 2,500 farmers and their families (12,500 people) will be improved.

The main activities in this project include:

Strengthening cotton producer groups in Kitui and Mwingi
Improving linkages between the cotton producer groups and the local ginnery
Achieving fair trade certification for their cotton
Increasing production through provision of technical support and advice

KCGA at The Nairobi International Trade Fair

noreply@blogger.com (Prometheus) — Mon, 28 Sep 2009 13:41:00 +0000

KCGA will be at the Nairobi show that begins on the 28th of september 2009.
The Nairobi International Trade Fair and Agricutural Show begins today with an increase in the

Number of Exhibitors. Kenya Cotton Growers Association will showcase at the trade fair in the CODA (Cotton Development Authority Stand). with the quest to incorporate more members KCGA will be registering Interested Cotton Farmers at the Show Ground in bid to increae awareness on the Value of cotton in this country.

Despite the slump in the international economies, and a ravaging drought which has affected many parts of the country, organizers say they registered 355 exhibitors, compared to last years 335.

The chairman of publicity at the Agricutural Society of Kenya (ASK) show, Mr Kauli Mwembe, said that while last year the show had 265 local and 70 foreign exhibitors, this year 278 local and 77 foreign exhibitors will be showcasing their products at the fair.

President of the Republic of Kenya Ho,n. Mwai Kibaki is slated to officially open the show on wednesday, 30th September, 2009.

New Lease of life for Meru Ginnery in Sh53m Funding

noreply@blogger.com (Prometheus) — Tue, 22 Sep 2009 09:34:00 +0000

Meru Ginnery could get a new Lease of life following fresh efforts to boost cotton production. It is set to get Sh53.2 million from the world bank-funded matching grant fund programme seeking to revitalise the cotton sub-sector by uplifting more than 5,000 cotton growers technical know-how and double production to 800kgs/ acre. Other ginneries that have benefited from the programme are Mwea and Makueni. Although Meru and Tharaka ginneries have capacity of eight million kilogrammes of seed cotton per season, only one million was ginned last year.
When the farmers embarked on cotton production in 1970's, production was as high as 1,000 kgs/ acre.

Agricultural experts say a well grown rainfed acre of cotton can produce upto 1,200 kilos.

Increasing African Cotton Markets in Asia

noreply@blogger.com (Prometheus) — Wed, 16 Sep 2009 09:06:00 +0000

The Chairman of the KCGA Executive Board Mr. Dennis M. Ochwada [pictured] is currently attending a Cotton Training Workshop in Beijing, China At the International Trade Center.
The theme of the conference is "Increasing African Cotton Market in Asia." we thank ITC (International Trade Center) for facilitating this trip that will see KCGA gain more in the Cotton Industry.
This Follows immediatley after an AGRITERRA sponsored Workshop Held in Machakos, Kenya between 6th-11th of september that focused on creating a Strategic Plan for KCGA 2009/2010-2015. Updates on the workshop will be posted on this blog.

About Kenya Cotton Growers Association

noreply@blogger.com (Prometheus) — Fri, 11 Sep 2009 07:03:00 +0000

Kenya Cotton Growers Association [KCGA] was formed in the year 2000 as the only national cotton farmers representative body. KCGA is an umbrella body of district cotton farmers group.Its membership is made up of District level associations which inturn bring together grassroot farmer groups in their various forms. The objective of KCGA is to provide an advocacy voice for the cotton farmers in furtherance of their interests by advising, lobbying and making representations to other stakeholders on matters of policy, legislation, financing and other matters of concern in the cotton industry; to facilitate an inclusive, participatory and consultative forum for all farmers in matters concerning cotton.

KCGA Strategic Planning Workshop

noreply@blogger.com (Prometheus) — Fri, 11 Sep 2009 07:03:00 +0000

Kenya Cotton Growers Association (KCGA) with the help of AGRITERRA held a Strategic Planning workshop at the Machakos ATC from the 6th to 11th September 2009.

The purpose of the workshop was to draft a Strategic Plan for KCGA for the year 2009/2010-2015.

Farmers leaders from different cotton growing areas in Kenya that include ;
Lamu, Kisumu, Kitui, Homabay, Tharaka, Mbeere, Bungoma, Busia, Teso, Taita Taveta, Rarieda, Rachuonyo, Malindi and others were invited to contribute towards drafting of the new Strategic Plan.
To assist the farmers in the process KENFAP (Kenya National Federation of Agricultural Producers) and ASCU (Agricultural Sector Coordinating Unit) sent Charles Mbuthia and Nicholas Karuku respectively.
Also to facilitate and train the farmers in the SP (strategic plan) was Tom Dienya (Maseno University) and economist Simon Gicheru (Ministry of Agriculture). The two facilitators took the farmers and other participants through the program for the five days.

It was during this workshop that KCGA mission , vision and core values were defined and used as a guide throughout the meeting. Challenges facing cotton farmers were highlighted and strategies put forward to tackle these problems with the purpose of elevating the cotton industry in Kenya.

In the SP workshop the KCGA members through a Special Annual General Meeting elected a new KCGA board. The board members include;
• Chairman: Maj. Dennis M. Ochwada.
• Vice Chairman: Mr: Wilfred Lesilale.
• Treasurer: Mr. Tom Awara.
• Secretary: Mr. Albert Chebyegon.
• Ass. Secretary: Mrs. Monicah Mkamachi.
• Board member: Mrs. Mary Mutoka.
• Board member: Mr. Moses Mugwate.
• Board member: Mr. Daniel Magondu.
• Board member: Mr. Stephen Mwanzi.

The KCGA workshop was a success with the completion of the draft document. The publication and distribution of the Strategic plan is expected in the beginning of next year. The KCGA staff and board would like to thank those who participated in the workshop and also the sponsor AGRITERRA for their support in this process.