Africa Newsletter 07-23-19

After the duty-free maize import period was cancelled by the agriculture minister, the price jumped sharply, by an average of Kshs 200 per 90kg bag for the farmers who still have inventory to sell.

This year’s harvest will begin next month, and most farmers are anticipating a good price despite a bumper harvest, as the country will need to refill depleted reserves.

This would depend on the legal status of Ugandan and Tanzanian imports, however, as their harvests are expected to come just before Kenya’s, and a surge in imports could depress prices.

The dry season has begun for most of the country, which has raised concerns about a potential impact on this year’s harvest, as crops in many areas were planted later than usual amid a very wet end to this year’s rainy season.

The harvest is underway with maize coming into Mubende at UGX 800 per kg but still of high moisture while dryer maize in Kampala is quoted at UGX 1,050 per kg. The season will be going into September as maize prices are expected to fall to as low as UGX 700 per kg. Local traders are looking at Kenya for market even with the conflicting reports on maize prices there and whether or not the Kenyan governments will remove a waiver to allow more imports. Soybeans are currently quoted between UGX 1,700 per kg and UGX 1,750 per kg. Soybeans continue to be in demand from Kenya and Rwanda.