Africa Newsletter 04-16-21
East Africa Update
Millers Fault Slow Maize Imports Clearance Nod
The Cereal Millers Association (CMA) in Kenya has lobbied the government to start issuing certificates of conformity to allow the importation of maize grain from Uganda and Tanzania to avert a possible shortage in the country as prices remain high.
According to Business Daily, the millers argue that any shortage will see the price of flour increase further without an urgent intervention as millers have been receiving maize grain at KES 2,800 per 90 kg bag compared to KES 2,500 a few months ago with a pack of flour now retailing at KES 1,500.
The Ministry of Agriculture had directed that all maize importers must register and all exporters must produce certificates of conformity in order to have clearance into Kenya after the official ban was removed for Uganda and Tanzania origin maize.
Maize in Nairobi is being quoted between KES 2,700 and KES 2,800 per 90 kg bag as millers continue to request the government to allow imports to start entering Kenya even though the authorities argue that they are in the process of setting up the required regulations. Soybeans remain at circa KES 60 per kg with animal feed producers now looking at the Malawi and Zambia crop for new supply.
Maize is trading between UGX 650 and UGX 700 per kg in the Kampala area as exporters await the final decision from Kenyan authorities allowing Ugandan maize back into the Kenyan market despite the official ban being removed. Maize bran is still trading at UGX 500 per kg from the larger millers as they anticipate the maize price to continue rising and affecting the prices of feed ingredients. Soybeans are still at a high price level with Kampala seeing UGX 2,350 per kg quoted but most large buyers have held of the purchases as they await the new crop and any imported soy from COMESA.
Uganda Tomato Prices Up As Demand In Kenya Rises
Ugandan prices for tomatoes, onions, carrots and green pepper has seen an increase in the past month after a jump in demand from Kenya and South Sudan.
According to The Independent, tomatoes have been quoted for UGX 380,000 to UGX 420,000 per box from UGX 260,000 to UGX 280,000 per box in February and March. Other vegetables have seen an increase too with green pepper costing between UGX 200,000 and UGX 210,000 a bag up from UGX 160,000 in February.
This comes at a time when tensions remain between Kenyan authorities and Ugandan traders with the recent blockage of maize, dairy products and sugar. Kenyan traders have now been reported to be entering the Ugandan market and buying directly farmers for fresh produce due to the high prices.
Bread Prices Rise On Higher Wheat Costs
Bread prices in Kenya have gone up again due to the cost of purchasing wheat grain from the global markets with a 400 gram loaf of Superloaf bread retailing at KES 55 from KES 50 and an 800 gram loaf now retailing at KES 100 from KES 92.
Kenya wheat requirements are covered by 75% of imports from large producers including Ukraine and Russia and this has seen the price for the grain rise to KES 34,240 per ton from KES 25,300 per ton last year as reported by The Nation.
Silver Lining For Bralirwa In Lockdown As Beer Sales Go Up
Bralirwa Plc in Rwanda has reported an increase in beer sales of 7.2% as consumption of beer during the lockdown has remained positive after the company focused on expanding in shops, supermarkets and restaurants.
Rwanda Today reports on the company’s income increasing to Rwf 9 billion compared to Rwf 1.2 billion in 2019 with capital expenditure in 2020 increasing to Rwf 14.6 billion compared to Rwf 12.5 billion in 2019 which was mainly due to expansion of the company’s brewhouse, fermentation and storage tanks.
Bralirwa remains the market leaders in Rwanda with 70% of market share but the company continues to face competition from Skol Brewery Rwanda that is owned by Unibra of Belgium that has been increasing its distribution points. Bralirwa is one of the largest buyers of sorghum, maize grits and broken rice in the country.