Market Update 10-26-18
The short rains season has begun in Kenya, with areas such as Kwale, Mombasa, Kilifi, Tana River and Lamu forecasted up to 100mm of rainfall for the current week according to a recent report published by the Kenya Meteorological Department. Looking forward, rain is expected to be consistent well into the month of November.
The price of maize has decreased over the past two weeks as expectations of a bumper harvest for maize is expected this season. While production estimates are currently at 46 million 90-kg bags, the larger problem is a lack of storage increasing the possibilities of post-harvest losses due to weevils and rodents.
Peter Munya, CS Ministry of Industry Trade and Cooperatives, says the Kenyan government is not able to ban the importation of maize due to agreements signed within the East African Community. While there is a glut in the maize market, Kenya is a deficit producer of many oilseeds such as sunflower, canola, soybean and linseed all used in creating edible oils. Kenya imports up to fifty percent of the aforementioned edible oils, opening an opportunity for farmers wishing to diversify crop portfolios.
Maize prices in the Kampala are have increased and prices are now trading at UGX 520/kg. Many suppliers are anticipating an increase in price as many large buyers have been procuring maize to be stored, only to be resold into the market in the coming months when prices do increase. It is worth noting that we’ve heard of aflatoxin levels higher in current crop.
Red Kidney beans are trading at UGX 1,900/kg in the Kampala area. The new crop is expected to enter the market over the next six weeks, however moisture levels are high. Please contact the PXAfrica team for any solutions regarding drying the crop. White sorghum is also available in the Greater Kampala area and is trading at UGX 1,350/kg Ex Works, machine cleared and packaged in 50kg bags.
Farmers throughout Uganda have begun to change their preference for which crops to plant as maize prices have been low and volatile as of recently. More specifically, farmers have been favoring soybeans as they are relatively drought and disease resistant, and prices have been relatively stable, fetching around UGX 2,000/kg. Under normal conditions, an acre of land can yield approximately seven to eight bags of soybeans during the three-month growing cycle.