Saturday, October 6, 2012

Impact Of My Ten Years On Agricultural Sector

. The theme of this year’s trade fair is “Enhancing Technology and Industry for Food Security and National Growth”.  This is in tandem with our aspiration of making agriculture a prosperous and competitive sector which has undergone tremendous changes in both practice and value.In the last 10 years, as patron of the ASK, I have pointed out the contribution of the government in policy reforms, resource allocation, and given you the updates on agricultural production.
In 2003, the number of people who were living below the absolute poverty line of one dollar a day stood at 56 per cent while those who were food insecure stood at 52 per cent.
Currently, despite the difficulties of drought, climate change, increasing global fuel prices and above all the impact of the post-election violence, these numbers have declined to 46 per cent and 36 per cent respectively.
While the number of people living below the absolute poverty lines has not declined as fast as we would have wanted due to rapid urbanization, national food security has improved significantly due to increased productivity.
In the last 10 years we have increased annual production of maize from 30 to 37 million 90 kilogramme bags; wheat from 30,000 tons to 40,000 tons; and rice production from 40,000 to 91,000 metric tons.
Production was boosted when we embarked on an aggressive programme of providing subsidized fertilizer and seeds to farmers.  Under this programme 271,000 metric tons of assorted types of fertilizer worth Sh12.3 billion was distributed.  The net effect has been a reduction in fertilizer prices by more than 85 per cent.  During this season, there is 38,000 metric tons of feterlizer which has already been brought into the country ready for distribution to farmers.
In addition to grains, vegetable production has increased from 1.9 million tons valued at Sh47 billion  to 2.8 million tons, valued at Sh97 billion. Fruit production has increased from 1.9 million tons to 2.8 million valued at Sh60 billion.
In floriculture, production has increased from 97,000 to 123,000 metric tons valued at Sh42 billion. In totality the value of horticultural produce has increased fromSh 52 billion to Sh205 billion, an increase of 293 per cent over the last 10 years.
In the industrial crops sub sector, and as a result of comprehensive reforms and efforts of farmers, tea has moved from number three to our number one foreign exchange earner.
The area under tea has increased from 131,000 Hectares in 2003 to 188,000 Hectares while production has increased from 293,000 metric tons to 378,000 metric tons.
Total export earnings from tea increased from Sh33 billion to Sh110 billion shillings, a 230 per cent increase. With regard to coffee, while the value of coffee export has increased from Sh12 billion to Sh22 billion the production has fluctuated between 40,000 and 50,000 tons.
However improved international prices should see farmers increase production. In the sugar industry, production has increased from 494,000 metric tons in 2002 to over 512,000 metric tons.
Prices paid to farmers have risen from around 2,000 to 3,500.  This growth although small is attributed to improved corporate governance, reduction in the cost of production, better maintenance of factory machinery, and prompt payment for cane growers.
Since 2003, my government has supported the sugar industry with a total 8.8 billion shillings through the Sugar Development Fund. Another sector that has boosted our production is livestock.
In the last ten years we have revived the K.M.C. and the K.C.C.  Milk production in the country now stands at an all-time high of 5 billion litres, up from 2 billion litres.
Following the establishment of the Leather Development Council, income from hides, skins and semi processed leather has increased from 2.4 billion to 7.2 billion shillings.
To further boost livestock production four export slaughter houses are under construction in Wajir, West Pokot, Garissa and Isiolo. In addition, 17 slaughter houses are being constructed in various parts of the country.
Fish farming has also proved to be a source of increased employment and incomes.  With this realization, the government constructed over 48,000 fish ponds and embarked on farmer education on maximizing production and marketing of fish.
These initiatives have increased production.  Last year
fish production stood at 174,000 metric tonnes valued at Sh20 billion shillings.  Of these 19,000 metric tonnes valued at Sh4.1 billion was exported.
The strategy in boosting production involved revival of the cooperative movement.  We have over 14,000 operational co-operative societies with a membership of 10 million Kenyans and an asset base of Sh378 billion.
The cooperative movement is instrumental in supporting our small and medium scale enterprises that employ millions of our people and has enabled us to reclaim our number one position as the African country with the most vibrant and successful cooperative movement.
The government will continue to strengthen the sector through improvements in regulatory and governance structures for societies.  We must now consolidate the gains we have made in the various sectors by ensuring that we have credible and transparent leaders at the helm of our local and national institutions. Kenyans mud take an active interest in the management of the institutions in which they have a stake.
The prosperity of our country is hedged on the stability of our neighbouring countries. We will therefore continue taking steps that guarantee our security. I once again salute members of the Kenya Defence Forces and other AMISOM forces for their continued success in stabilizing the nation of Somalia.
We must however remain vigilant because the forces of terror will seek to fight back.   To the people of Somalia and those in the diaspora, I appeal to them to embrace peace, say no to agents of terror and prepare for the hard work of national reconstruction.
Kenya stands to be counted as a true friend and ally of the Government and people of Somalia and will actively support the reconstruction process.

This is an excerpt of the speech that President Kibaki delivered during the official opening of the 2012 Nairobi International trade fair held at the Jamhuri Park showground yesterday

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