Kenya: Migori Tobacco Farmers Smile All the Way to the Bank

Source from:  Nairobi Star (Nairobi) 12/31/2011

More than 50,000 tobacco farmers in Migori County have a reason to smile after two tobacco buying firms increased their leaf prices. The farmers had in the past threatned to strike over poor prices. According to the new price list released by the two firms on Christmas eve, Alliance One will now pay farmers Sh159 per kilo of the highest grade, while BAT will offer Sh158 for the same grade and quantity. Before the increase, the grade fetched Sh114 at Alliance One while BAT bought the same quantity at Sh113 in Migori, Uriri, Rongo, Kuria West and Kuria East districts. The farmers had demanded an increase of all grades to at least Sh200. Patrick Kimani, Alliance One corporate affairs manager, said this was a Christmas gift to farmers "who have been working tirelessly to produce the crop". "With the prevailing market conditions the price is condusive for farmers of tobacco in the country" Kimani said. Farmers interviewed soon after the new prices were announced said they were happy with the move and asked the companies management to further increase the price in future. Meanwhile, farmers contracted to another company, Mastermind Tobacco Kenya, were infuriated that the firm was yet to announce its new prices while the leaf markets had opened for a week in the region. The farmers have threatned to sell their crops to rival firms if not offered good prices. They also demanded that MTK pay them their dues amounting to more than Sh90 million which have accrued in the last two seasons. Josh Kirimania, MTK corporate affairs manager, however said they were still doing their culculations to come up with the best prices to offer their farmers. But the Kenya Tobacco Farmers Association chief executive officer Joseph Wanguhu told the company to hurry up with their new prices or they stand to loose out in the purchase of the leaf this season. "We are not going to allow our farmers to sell their crops to MTK if they fail to come up with new prices by the end of this week and settle the debt in millions it owe farmers in this region," warned Mr. Wanguhu during a press conference in Migori town. Enditem