Market Update 09-12-18
The prices of maize and most beans have remained steady over the past two weeks while the market faces headwinds of uncertainty. As many farmers throughout the Rift Valley are still holding stocks from the previous season seeking stronger prices, market prices for maize could face a major ceiling as it is becoming apparent markets will be well supplied. As the current crop is harvested and introduced to the market, the price of a maize could near 1,000 ksh/90kg at farm gate.
This trend is only further exemplified by The National Cereals and Produce Board (NCPB) having troubles selling maize that was imported through the recent subsidy program. Millers throughout the country are hesitant to buy the NCPB maize, currently retailing at Ksh 2,300 per 90-kilogram bag which was recently imported at the price of Ksh 4,000 per 90-kilogram bag. As of last week, estimates show the NCPB is still holding 350,000 out of the 630,000 bags it had procured from Mexico last year before the end of the subsidy program on December 31, 2017.
The price of maize has remained consistent over the past two weeks, trading at UGX 400 per kilogram in the Kampala area, and UGX 350 per kilogram in Mubende due to large stocks still readily available in the market. While maize has remained unchanged, the prices of nambale and red kidney beans are slightly stronger, trading at UGX 1,550 per kilogram in the Kampala area. Although Kenyan import demand for maize is uncertain due to fears of a bumper harvest, import demand for beans has increased.
The price of soybeans have also been on the rise, and are currently trading at UGX 1,800 per kilogram in both Kampala and Mukono.
Through a recent initiative sponsored by the African Development Bank (AfDB), 12 countries including Kenya, Uganda, Tanzania, Rwanda and Ethiopia in Eastern Africa, three countries in Southern Africa, and an additional four in West and Central Africa. Through the program, each country will receive a grant of Ksh 180 million (1.8 million US dollars) to increase maize productivity. In addition to distributing water-efficient maize hybrids, the program will focus on reducing post-harvest losses.