Article 3 - Is it better prices for farmers or consumers that assures national food security?

Yes to both, but which one is the wherewithal — better prices — for the farmer or the consumer? Unfortunately, political considerations come into play even in such a serious matter appertaining to national food security. It is this fundamental question, that is subject of raging debate in government circles including the Cabinet and private sector. A disturbing factor is that some in Cabinet are of the opinion that consumer pricing must take precedence over farmers’ interest. The reality, however, is that consumers would have nothing at all without farmers’ drudgery fraught with weather risks every year. This is the point that we begin to delve into the question on national food security and circles of food deficit. It is pertinent to state that, if farmers were to will it, tomorrow will never be the same again. Why? Farmers can no longer produce at current prices, which subsidise consumers for zero return. The outcome would lead to a serious food crisis. The consequences would put this country on the brink of what could prove, momentarily, to be a defining moment in national food crisis. The Government reaction would be quick to import cereals to feed the population, at any price. The ultimate question remains: Is this the wake-up call, which those in Cabinet are courting by pushing for Sh1,000 per bag of maize? Are these politicians out of touch with the hard realities of the moment? How can such a serious policy matter be delegated and not decided by the Cabinet?


Reasonable return

How can Cabinet allow a minister responsible for Special Programmes have an overriding influence over the Minister for Agriculture in such a critical matter? What has happened to the National Food Security Committee? Who is the current chair and what input does it give the Cabinet? What, then, are critical factors with respect to our agricultural sector pricing policy debate? Firstly, the country cannot achieve self-reliance in food production without pursuing policies, which engender local production. In such a quest, we must navigate a pricing regime that guarantees farmers a reasonable return, taking into account production inputs costs. However, the Government is faced with a policy-pricing dilemma of seeking to offer farmers an acceptable level of floor-prices and maintaining consumer price- ceilings at reasonable levels. This pricing dilemma and political considerations must be reconciled to achieve both, stability in the production-supply chain, and workable pricing equilibrium for farmers’ and/or consumers’. The ministries responsible for Agriculture, Planning, Finance, Office of the Prime Minister and the President must, therefore, agree on the policy formulation through a collaborative and objective analysis of all factors at play. This is one area, which must be depoliticized, as it constitutes national security. A food crisis, invariably leads to disruption in the social spectrum, political and economic stability, with disastrous consequences. Agriculture Minister Sally Kosgei is a seasoned professional, diplomat, and now politician, who with support, can make a difference in the sector.


Direct subsidies

Secondly, Public Watchdog reiterate that food security must remain a primary responsibility of any government, whether developed or in an emerging economy. Nowhere, is the agricultural sector, whether it is with respect to cereals, dairy or sugar viable without direct subsidies of input costs. Kenya cannot ignore the plight of farmers and hope to achieve progress in food production and/or claim to become self-sufficiency. Subsidy is, therefore, not a matter of choice, but what would be a sustainable level to achieve food self-sufficiency. As part of our planning vision, we must progressively increase the level of funding allocation in the proportion of our national budget to at least 20 per cent to the Ministry of Agriculture.


National security

Thirdly, food security, while it must remain a national responsibility, requires a rethink towards establishment of appropriate institutional pillars at county government level, including storage facilities. National Cereals and Produce Board (NCPB), the agency charged with market stabilization and management of food security, must be given fresh impetus. This is in terms of modern management, trading and financing re-engineering for effective fulfillment of its mandate. The Government must reimburse NCPB for its strategic role costs, with respect to market stabilization and management of strategic grain reserves. Another important factor is the pursuance of appropriate agricultural sector taxation and tariff, so as not to encourage dumping of cheap imports. In every country, food security takes the same level of attention, as national security, with sustained focus at the highest level of authority in Government. This is in the docket of the President and the Prime Minister, both of who must act resolutely on this matter, before it is too late, as a matter of compelling public interest!


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This module was developed by Moi University, Department of Economics and Agricultural Resource Management with support from OER Africa and Bill & Mellinda Gates Foundation