David Nalo

7 September 2010

opinion

Many analysts have in the recent times focused on interrogating whether Common Market is good or bad to farmers (or producers) in general.

These analyses contain some facts, but in certain instances they miss the point, primarily because of lack of appreciation of the implementation steps of the Common Market Protocol on the one hand, as well as lack of knowledge of how Common Markets work in general even in the most advanced integration regimes like the European Union.

The Common Market Protocol which came into force on 1st July 2010 opened borders of the Partner States.

The acknowledgement that cheap products from neighbouring countries can move freely is a manifestation that the EAC Common Market is working.

The EAC Common Market will bear a lot more benefits in the long term to both the producers, consumers, as well as traders in the five Partner States.

The Common Market has extended the boundaries of Kenya to entry and exit points of the community, a region now comprising of more than 126 million people and characterized with free movement of people, goods and services.

This large population gives both the producers and consumers alike a wide range of commodities which hitherto were not available at the right prices.

Kenya is now able to grow maize seed and sell to this large market which may not have been available due to previous restrictions in their various forms.

As the East African Community progressively integrates under the CMP, the current scenario where particular regions of the country experience food surplus due to improved weather and also as a result of influx of cereals from outside the country as experienced in Trans Nzoia /West Kenya Region will definitely change.

Such eventualities make the farmers to temporarily face difficulties in disposing off their produce at better prices.

Our Ministry of Agriculture needs to make necessary adjustments in the production systems geared towards reducing production costs.

The influx of cheaper cereals on the other hand is seen as a blessing to the consumers and it will act as a catalyst to induce formulation policies to cushion the farmers and adopt efficient technologies that are economical.

The changing trading regimes will render certain preset objectives to become obsolete or inappropriate as economies grow and change.

The dynamism in the marketing landscape in the common market for East Africa will offer alternative coping mechanisms to the farmers such as diversifying from consumer grain production to contractual seed maize production for seed companies which are struggling to meet the regional seed demand.

Other alternatives may include strengthening farmer capacity to value add their produce through storage and processing.

The writer is EAC ministry permanent secretary.