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Does it make any sense...
selah
#1 Posted : Monday, August 08, 2011 10:14:06 AM
Rank: Elder

Joined: 10/13/2009
Posts: 1,950
Location: in kenya
I have been watching the news and today I am looking at a pic of cattle carcasses that were bought by KMC in the Govt cattle offtake scheme.

Does it make sense to the economy when a govt buys cattle that is dying then transport it to Nairobi to obviously bury it.

Another thing that does not make sense is when a free market depends on the Govt purchasing power to dictate its future i.e why should a Maize farmer solely depend on the govt to bail him out once he harvest his crop.Cant these farmers look for other ways of making money from their harvest.

In my opinion, The Govt takes most of the responsibility when it comes to failures while other stakeholders go scot free.
'......to the acknowledgment of the mystery of God, and of the Father, and of Christ; 3 In whom are hid all the treasures of wisdom and knowledge.' Colossians 2:2-3
Insurgent
#2 Posted : Monday, August 08, 2011 10:22:40 AM
Rank: User

Joined: 8/6/2010
Posts: 594
selah wrote:
I have been watching the news and today I am looking at a pic of cattle carcasses that were bought by KMC in the Govt cattle offtake scheme.

Does it make sense to the economy when a govt buys cattle that is dying then transport it to Nairobi to obviously bury it.

Another thing that does not make sense is when a free market depends on the Govt purchasing power to dictate its future i.e why should a Maize farmer solely depend on the govt to bail him out once he harvest his crop.Cant these farmers look for other ways of making money from their harvest.

In my opinion, The Govt takes most of the responsibility when it comes to failures while other stakeholders go scot free.
You are right.


"One man gives freely, yet gains even more; another withholds unduly, but comes to poverty. A generous man will prosper; he who refreshes others will himself be refreshed." Rev Canon Karanja.

Tito44
#3 Posted : Monday, August 08, 2011 11:05:54 AM
Rank: Member

Joined: 12/16/2008
Posts: 111
selah wrote:
Cant these farmers look for other ways of making money from their harvest.



I believe that they do get do get other ways. That is why we have the current maize shortage. It is said that most of the maize harvested last season ended up in Southern Sudan.
The main concern is, why should the government import maize at far much higher prices than what the farmers are asking for? This way we will have some grain reserves, other than waiting for maize to be sold outside the country and then start the blame game.

nwamaina
#4 Posted : Monday, August 08, 2011 11:09:16 AM
Rank: Member

Joined: 3/29/2011
Posts: 102
Location: Nairobi,Kenya
What does not even make any sense futher is why wasnt there anyone who would have made products from the carcasses e.g. by products etc...from the skins and dried up meat etc
Mpenzi
#5 Posted : Monday, August 08, 2011 11:17:43 AM
Rank: Veteran

Joined: 10/17/2008
Posts: 1,234
Tito44 wrote:
selah wrote:
Cant these farmers look for other ways of making money from their harvest.



I believe that they do get do get other ways. That is why we have the current maize shortage. It is said that most of the maize harvested last season ended up in Southern Sudan.
The main concern is, why should the government import maize at far much higher prices than what the farmers are asking for? This way we will have some grain reserves, other than waiting for maize to be sold outside the country and then start the blame game.



How much is imported maize per 90kg bag? You might even find that imported maize might be cheaper than Kenyan-grown maize as is the case with imported sugar.
accelriskconsult
#6 Posted : Monday, August 08, 2011 11:18:41 AM
Rank: Member

Joined: 4/2/2011
Posts: 629
Location: Nai
selah wrote:
I have been watching the news and today I am looking at a pic of cattle carcasses that were bought by KMC in the Govt cattle offtake scheme.

Does it make sense to the economy when a govt buys cattle that is dying then transport it to Nairobi to obviously bury it.

Another thing that does not make sense is when a free market depends on the Govt purchasing power to dictate its future i.e why should a Maize farmer solely depend on the govt to bail him out once he harvest his crop.Cant these farmers look for other ways of making money from their harvest.

In my opinion, The Govt takes most of the responsibility when it comes to failures while other stakeholders go scot free.



The general idea is that the government ought to create an outlet for absorbing excess supply from the system hence making the prices of food stable and predictable to farmers. The desired measures would include creating strategic food reserves for the common staple items such as maize, beef, fish, goat meat, pork, potatoes and chicken. with the exception of maize, the government would need to build huge cold storage facilities and create a facility for mopping up excess supply. The mechanism should work the same way the the Monetary committee of the central bank works in controlling inflation. The advantages are obvious and including the following;
(1) Removal of price shocks for agricultural products. stable prices would encourage more investors into farming.
(2) Provision of food safety during years of shortage
(3) Enhancement of national security. Hungry minds are a threat to national security
(4) Potential for creation of a commodities exchange anchored on the national food reserves (think of it as a food bank)

My 2 cents
selah
#7 Posted : Monday, August 08, 2011 11:33:21 AM
Rank: Elder

Joined: 10/13/2009
Posts: 1,950
Location: in kenya
IMHO,I think the govt does not import maize, it waives the importation tax once locally produce maize become too costly such that the millers end up raising the prices of their produce.

I think the problem with this country is lack of a proper distribution network such that farmers have no power or know how of how to exploit the available channels of distribution to get full value for their products.

Building strategic storage facilities for consumer goods that are produced in plenty I think is a waste of resources

cooperative movement is the only vehicle that can help farmers in North Eastern and Riftvalley get value for their produce. This cooperatives can have a higher bargaining power than individual farmers.

'......to the acknowledgment of the mystery of God, and of the Father, and of Christ; 3 In whom are hid all the treasures of wisdom and knowledge.' Colossians 2:2-3
bwenyenye
#8 Posted : Monday, August 08, 2011 11:58:53 AM
Rank: Elder

Joined: 5/24/2007
Posts: 1,805
Good People,

It will never make sense for the government to waste money buying dying cows. The probelm we are having in North eastern Kenya is that of trying to sustain an impractical lifestyle and culture among the Turkana et al. Their lefstyle breeds laziness and they need to change as their land reduces. Unless we change their outlook of life, we can always count on a next round of help next year. The regions problem is not lcak of food, but lack of a means to acquire it.

I can assure you that if they had the means to buy the maize,or grow it, there would be a food shortage elsewhere. Perhaps the real question is how to make the region have purchasing power. Believe you me, they have ALOT of resources there including rivers, Gums and resins. But the folk believe in the easier life of walking around with animals while the 'wazee' idle away time playing ajua... Even the young Maasai are now changing!from herding to transport, farming, kiosks etc.
I Think Therefore I Am
accelriskconsult
#9 Posted : Monday, August 08, 2011 12:25:04 PM
Rank: Member

Joined: 4/2/2011
Posts: 629
Location: Nai
selah wrote:
IMHO,I think the govt does not import maize, it waives the importation tax once locally produce maize become too costly such that the millers end up raising the prices of their produce.

I think the problem with this country is lack of a proper distribution network such that farmers have no power or know how of how to exploit the available channels of distribution to get full value for their products.

Building strategic storage facilities for consumer goods that are produced in plenty I think is a waste of resources

cooperative movement is the only vehicle that can help farmers in North Eastern and Riftvalley get value for their produce. This cooperatives can have a higher bargaining power than individual farmers.



Selah what would happen if the central bank did not know how much money was in circulation in the economy, or did not maintain a strategic reserve of the currencies that an import economy of ours relies on such as USD and Euro? A strategic reserve bank does not absorb all the excess food, what it does is to create buffer stocks. This inevitably stabilises prices for both buyer and seller.

Improvement of distribution is a quick win and can be implemented at low cost, but creation of the food banks is the long term solution. A sort of equilibrium must be maintained.

On to other matters, most Kenyans who are arguing that the Turkana are lazy and could have done better on their own are ill informed and I have the benefit of experience having grown up in one of the most neglected areas of the country.

We take into granted simple things like the oxygen we breathe every day. Those who were born around the Railway line tend to think that they did anything special to achieve what they have today. The truth is that a biological accident placed them where they are and if they were born say in Turkana or Mandera, they would not be what they are today.
selah
#10 Posted : Monday, August 08, 2011 12:27:37 PM
Rank: Elder

Joined: 10/13/2009
Posts: 1,950
Location: in kenya
@bwenyenye Well said take this example in Turkana.

Quote:
As 400,000 families face starvation in Turkana, farmers on the banks of the rivers Turkwel and Kerio have more than enough food.

The farmers, with the backing of the Turkana Rehabilitation Programme, invested in an irrigation scheme and harvested more than 930,000 kilogrammes of grain from land that the locals thought was not fertile enough for crop production.

"The region has over 76,000 hectares of arable land under irrigation but less than 7,000 hectares is utilised," said Turkana Rehabilitation Project programme director James Kipkan.

"Humanitarian agencies should consider investing in assets where locals can be assisted to generate their own food instead of depending on aid," appealed Mr Kipkan.http://allafrica.com/stories/201108010885.html


Now after the govt invests in irrigation schemes the farmers will want the same govt to buy the produce which negates the purpose of free market and self sustaining development project objectives.
'......to the acknowledgment of the mystery of God, and of the Father, and of Christ; 3 In whom are hid all the treasures of wisdom and knowledge.' Colossians 2:2-3
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