E-Malt.com News article: Kenya: East African Malting Limited releases three new malting barley varieties in collaboration with Syngenta and the Kenya Agricultural Research Institute

East African Malting Limited has released three new varieties of barley seeds to improve Kenya farmers’ yields and increase raw material supply for its malting plants, Daily Nation reported on October, 8.

The new varieties — Cocktail, Quench, and HKBL5 — have been developed by Syngenta and the Kenya Agricultural Research Institute and will be distributed to farmers in the next planting season.

Speaking to Smart Company, EAML general manager Patrick Kamugi said the new seeds are expected to boost barley supply to the company’s plant, which is currently deprived of the raw material.

“We expect to see an increased drought resistance and better yield per acreage to bridge the gap between our demand and supply. Farmers will also benefit because they will have a chance to earn more money from this development,” said Mr Kamugi.

He noted that farmers’ yields have been progressively dwindling because of challenges associated with vagaries of the weather, crop disease, and pest infections.

The new varieties have a stronger resistance to these challenges and are expected to withstand different climatic conditions, too.

The firm, which supplies brewing raw materials in the form of malt, barley, and sorghum to the brewing units of East African Breweries Limited, has contracted over 600 farmers across the country to grow barley for use in processing the malt used in brewing beer.

EAML requires about 70,000 tonnes of barley annually to produce enough malt for the brewer, but farmers, taking a beating from dry weather, only managed to raise 43,000 tonnes last year from the 50,000 tonnes harvested the previous year.

“We have been suffering because of insufficient raw material supply, but the country has a lot of potential to produce enough for use, storage, and even export,” said Mr Kamugi.

The company has increased producer prices by 12 per cent to Sh2,800 per 90 kilogramme bag for the least earning farmer as it seeks to encourage more producers to take up barley as a cash crop.

According Mr Kamugi, talks are going on to expand the malting plant, which depends on availability of raw materials.

“We will be touring other plants in the developed world in the next few months to learn better practices and newer models to guide the expansion project. But we have to be assured of enough supply of the raw materials locally instead of relying on imports,” he said.

Through a contract between EAML and the Cooperative Bank, farmers receive loans to purchase seeds and inputs, and meet labour costs. Once the crop is ready and harvested, EAML pays growers through the bank, which deducts its dues.

CIC Insurance, through a contract with the Cooperative Bank, covers the crop, thus ensuring that farmers are not hit so hard if the crop fails.

The company said it has now settled complaints raised by farmers in Narok earlier in the year over the appointment of Cooperative Bank and CIC Insurance to partner in the project without their knowledge.


10 October, 2012