By Antynet Ford

A slowdown in export demand for coriander has reduced buying from farmers and squeezed traders’ earnings, despite exporters continuing to pay more than double the local market price.

Speaking to FarmBizAfrica, Kajiado businessman and herbs farmer Dan Mwangi, who buys coriander in bulk from farmers, said that while farmers get Sh100 per kg of coriander supplied in bulk for the local market, companies exporting the herb pay more than double, at Sh250 when market demand is weak and Sh300 when demand is strong.

However, a shift in demand had sharply reduced his buying from farmers, he said, as exporters who previously placed large and frequent coriander orders have reduced their purchases.

This follows setbacks in both of Kenya’s main markets for fresh produce. Exports to the Middle East have been disrupted by the war in the region and transport disruptions. 

Meanwhile, in the UK and Europe, the volume of grocery sales to consumers has been falling nearly every month, as the combined impact of the Russian invasion of Ukraine and the US war in the Middle East have caused ballooning energy bills and prices at the same time as AI has swept away hundreds of thousands of jobs.

In Kenya, while more farmers are now growing coriander in search of better returns than the local market offers, the reduced export orders mean buyers are sourcing far smaller volumes, leaving more producers competing for a shrinking market.

“The export market has slowed down in the last couple of months. Currently, the maximum order I have received is not even more than 500 kilograms. In the past, I would get over one tonne or upto three tonnes maximum. The quantity of order has drastically dropped. At the same time, more farmers are producing coriander because they know the export market offers better prices because it pays thrice or more than double what the local market is offering,” said Dan.

Despite the slowdown, export prices remain well above local market rates, with Dan paying Sh250 per kg during the weak demand.

But the export market requires a higher quality of coriander meaning that even when his team goes out to scout for buying, the crop must be appealing to the eyes before everything else. 

“Let farmers engage experts to help them where there is a need. The same thing applies even for those farmers who want to sell to the local market. For any farmer who wants to get into the venture, study the market first, and know the variety needed.”

“We get orders from companies that are selling to the export market. When buying coriander from the farmer, some of the qualities we look for are freshness, and the farmer has to take care of MRLs, and it has to be free from any pests or harmful organisms. After we receive the order and know a farmer has coriander, we send a team to the farm to check the quality, if it has pests…if it is not affected by any pest, we then check the spray records kept by the farmer. If it has residues, we do not take it because of the interceptions that will be made, and destroy our business together with the businesses that are exporting,” said Dan.

While he deals with other herbs for export too, Dan said coriander was an easy crop as it does not require a lot of inputs making its cost of production low, but the choice of what to buy from farmers is dependent on what the market wants. 

“If the export market is in need of coriander, that is what we supply. If it is the other herbs like rosemary, basil, or others, we also buy from farmers and supply, but coriander is easy and the best to buy and sell in bulk,” he said.

The system for supply is then well established, albeit currently substantially idle.

“If the exporter we are selling to is maybe exporting to France, UK or any other European Country, the client sends the order to them, in a wide range of volumes, then they share the orders with us, and we go to the farmers to buy and sell to them. We have a very good relationship with the farmers who sell to us and they always share referrals when we are seeking supply and they have done a crop rotation… There are also those farmers who call us to inquire whether we are buying and when we have an order, we always buy their produce” he said.

Dan’s group also uses WhatsApp groups of herb farmers and gets referrals from previous farmers and friends who know about their business.

 “The payments are made before the produce leaves the farm. The farmer does not need to wait long for them to receive their money. Once they have made the supply, a payment is made immediately. Farmers have made losses before, and they are always keen on asking for their pay before the batch leaves their farm or as soon as they have delivered the package to the airport if it was so in the agreement done. If the quality meets the standards we require, we finish it there and then.”

For coriander, farmers need to do crop rotation, soil testing to see what the soil is lacking, and use the right fertilizer, manure, right foliar, said Dan.

“It is about taking care of your crop including irrigating it properly especially for us who farm in areas which are not dependent of rain. What farmers can do to ensure they meet the market demands and increase their production plus earning is to take care of their soil because there are a lot of fungi in the soil, and get to know the composition of their soil in terms of nutrients by doing soil tests, PH tests, and also supply the right variety that the market is demanding. If you are in areas like Kajiado where rains are not guaranteed, let a farmer have a reliable supply of water. You know they are selling fresh coriander, so it needs a lot of water,” he said.