Africa Newsletter 07-24-20
East Africa Update
Fall In Yellow Maize Price
Kenyan animal feed producers have seen a decline in the yellow maize price as imports have seen prices in Nairobi quoted at KES 2,700 per 90kg bag compared to KES 3,200 per 90kg in June as suppliers that have been holding onto their stocks start releasing in order to avoid competing with more of the expected imported grain.
The window for imported yellow maize with a reduced import duty of 10% ends at the end of this month and after that will see the duty back to its original 50% according to Business Daily. This duty is for grain that originates from outside of the East African Community, namely Uganda, Tanzania, Rwanda, Burundi and South Sudan.
Uganda Market Update
Maize in Kampala is now seeing a market value of UGX 750-800 per kg depending on the moisture content as maize in the central region still contains higher levels with some reaching 20% compared to the industry standard requirement of 13.5% from millers and animal feed producers. Maize bran continues to trade circa UGX 550 per kg in the Greater Kampala area but some traders in the city are quoting UGX 600 per kg.
Soybeans are still trading at UGX 1,350 per kg in Kampala while nambale beans are now being quoted at UGX 3,200 per kg with the expected demand from Kenya expected to increase over the next month.
Kenya Bans Sugar Imports
Uganda sugar manufacturers face a huge challenge in the coming months as the Kenyan government banned imports and revoked import permits from traders after their claims that imports are having a negative affect on local production and leaving producers with huge stockpiles unable to compete.
The Monitor reports on how the Uganda Sugar Manufacturers Association currently has 150,000 metric tons of sugar in stock with prices ranging from UGX 130,000 to UGX 150,000 per 50kg bag locally. The Ministry of Trade confirmed that Uganda produces 510,000 metric tons with 360,000 of that consumed locally leaving 150,000 metric tons targeted for the export market within the region.
Bank of Uganda’s data states that Uganda earns USD 98 million from sugar exports annually with the main markets being Kenya, Rwanda, Tanzania, Zambia and DRC.
For updates on restarting the global trade please see our report Hot Commodities at panxchange.com/hot-commodities