Market Update 07-10-2019
Kenya Market Update
In an attempt to steady markets amid supply concerns, the Kenyan National Cereals and Produce Board has been distributing reserve maize to millers at Ksh 2,300 per 90 Kg bag. As maize stocks in the strategic food reserve dwindle, however, maize flower prices have risen to Ksh 124 Per 2 Kg packet, with buyers and sellers pricing-in the potential of future shortages.
This comes after the Kenyan government announced the opening of a duty-free import period of 12.5 million bags of maize, between the end of July and the end of October. Ten million bags earmarked for importation will be white maize for household consumption while 2.5 million will be yellow maize for processing of animal feeds. The announcement had been delayed by the latest round of the ever-present debate regarding Maize imports, with the government and millers prevailing over the local farmers association, which opposes imports. It is this delay which has caused the supply concerns, and thus the rise in prices.
Uganda Market Update
Overall export receipts for the month of April dropped, pulled down by sharp declines in the volumes of gold and coffee, Uganda’s top traditional forex earner. Vanilla, sugar and maize exports, according to the Performance of the Economy report, a monthly tracker produced by the Ministry of Finance, recorded growth. During the month of April 2019, the Middle East was the main destination for Uganda’s exports, followed by the East African Community, the report indicates. The Finance Ministry attributed the decline in trade with the EAC to a drop in exports to Rwanda following the closure of the Uganda-Rwanda border at Gatuna and Chanika in February, which affected the movement of cargo trucks. While Rwanda recently reopened the Gatuna border for two weeks, trade did not pick up and the border has since been closed again.