Africa Newsletter 10-30-20
East Africa Update
Tighter Aflatoxin Checks Loom For Ugandan Maize In Kenya
As the issue of aflatoxins in the region continues, Kenya will likely see less grain coming into the country from Uganda as tougher requirements will be implemented over the next couple of months.
The Business Daily reports on how traders will be required to have a certificate that illustrates that the maize grain that is being transported meets the standard level of maximum 10 parts per billion (ppb) which is the level that is acceptable for human consumption. The effects of aflatoxins in human consumption can lead to cancer and even death as a number of cases have been reported from Kenya.
The National Cereals and Produce Board (NCPB) have also stated that they will be setting up analytical labs in Kitale, Nakuru and Machokos along with the lab in Nairobi to monitor the aflatoxin levels of the grain coming into the market. The government is still working with private companies to fight aflatoxins and the NCPB has been supported for the distribution of Aflasafe which is a biochemical product that is used in controlling aflatoxins in crops by up to 70%.
Kenya Market Update
President Uhuru Kenyatta ordered that traders pay KES 2,500 per 90 kg for maize and this has seen the price fall to a two year low with some growing areas in the west seeing prices around KES 2,000 per 90 kg bag. Prices are expected to continue falling as more maize is expected from the North Rift from November. The National Cereal and Produce Board (NCPB) is also in support of the president’s directive by offering a discounted rate for drying maize from KES 40 per unit to KES 20 per unit.
Soybeans are trading at KES 47 per kg in Nairobi as protein demand continues for the animal feed producers. Sesame seeds are trading at USD 1,500 per metric ton from Mombasa.
Uganda Market Update
Maize in Kampala is trading at UGX 800 per kg with the price increasing as we head into the new season in December/January. The rains have been favourable to the growing areas of Mubende and the rest of Central Uganda.
Soybeans are also seeing a price increase and are quoted at UGX 1,550 per kg in Kampala with an expected of a further increase over the next few weeks. Sesame seeds are now coming into the market at UGX 3,000 per kg but more volumes are expected to be harvested next month. Maize bran is trading at UGX 475 per kg in Kampala.
Millers Ignoring Wheat Mop-up Slapped With Higher Import Charges
Millers who are not taking part in the government-led programme of exhausting the local production before seeking to import will be forced to pay the higher import duty for the raw material.
Millers who use all of their required local produce quotas will be allowed to follow up imports with a 10% duty while the millers not taking part will see a 35% duty included in their imports. The agreed rate for local production has been KES 3,250 per 90kg bag for grade 1 wheat, KES 3,150 per 90kg for grade 2 and KES 3,000 per 90kg bag for grade 3 according to The Business Daily. Nakuru and Eldoret are some of the areas that are currently harvesting and their farmers will be offered these same prices for their product.
Millers have continued to promote the idea of the government subsidising farmers in their inputs and not fixing prices as they argue that a free-market approach of supply and demand should be the modus operandi.
Little Known Company Offers Least Bid For Wheat In Ethiopia
A bid overseen by the Public Procurement and Property Disposal Service (PPPDS) of Ethiopia opened bids for the supply of wheat to warehouses in Adama, Dire Dawa and Kombolcha for a total quantity of 80,000 metric tons with companies on the shortlist including Nuhizy Alrfay Mohamed, Promising International Trading Company, Ameropa AG and Falconbridge Resources.
As reported in The Capital Ethiopia, Little known Nuhizy Alrfay Mohamed offered the lowest price at USD 342.1 per metric ton which carries a total value of USD 27.3million for the entire 80,000 metric tons. The other bids ranged from USD 349 per metric ton to USD 356 per metric ton to the different selected warehouse. Nuhizy Alrfay Mohamed is the favourite to win the contract but due to the World Bank being a key funder of PPPDS, they will seek further verification for the final approval.
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