Africa Newsletter 11-27-20

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Africa Newsletter 11-27-20

East Africa Update


Grain Shortage Hits Flour Vendors In Kenya In Six Arid Counties

Operators in Turkana, Mandera, Samburu, Isiolo, Marsabit and Wajir counties have seen the availability of maize flour significantly reduce by 83% due to the invasion of locusts on the farmlands. The supply of beans has also taken a large hit with estimates at 80% according to a survey by the Kenya Cash Consortium (KCC) in partnership with Oxfam and Concern Worldwide as reported in the Business Daily.

Other products that have also experienced a slump in supply include wheat flour at 71%, rice at 68% and sugar at 67%. The desert locusts invasion into Kenya has caused an economic and social impact in the areas in the northern part of the country and especially for the pastoralists. Other countries in the region affected included Somalia, Ethiopia and Uganda.

Kenya Market Update

Maize In Nairobi continues to trade just above KES 2,500 per 90 kg bag as more of the North Rift grain enters the market and as traders prepare for the new regulations that will come into force in January regarding levels of aflatoxins in maize from origin markets such as Uganda.

Soybeans are still in demand but the price remains between KES 48-50 per kg in Nairobi with Uganda and Ethiopia being the key origins. Processors expect to see an increase in supply from next month as the price is expected to steady and harvests in the region will begin. Soybeans remain a highly sought-after raw material for the animal feed industry due to its rich protein content and it is estimated that Kenya’s demand is 50,000 metric tons per month.

Uganda Market Update

Maize in Kampala is trading at UGX 850 per kg as stockists in the capital push to release their product in anticipation of the new season from next month. A number of large millers and animal feed processors continue to buy but traders have been unable to increase exports into Kenya due to the low demand.

Maize bran is trading at circa UGX 480 per kg and maize grit also remains available. Soybeans have seen a price increase to UGX 1,650 per in the Greater Kampala area but demand is also steady as the Kenyan market also look to Ethiopian origin.

Tanzania Government ‘Aware’ Of Soaring Cooking Oil Prices

According to traders of vegetable oils, global prices have affected the price of a 20 litre jerrycan in the country which has seen the increase from Sh57,500 to Sh63,000 from September this year and as high as Sh66,000 in October but the government have assured the industry that it is aware of the increases and will address the matter.

The Citizen reports on how traders of the product continue to charge upto Sh66,000 per jerrycan in Dar es Salaam for the in-demand staple which has seen a local production amount of just 200,000 tons per annum compared to the country’s demand of 500,000 tons leaving a deficit of 300,000 tons to be covered by imports. The country spends over $80 million per year on imported cooking oils mainly from Malaysia and Indonesia but some small amounts do come from within the COMESA trading area.

Coffee Prices Up In Kenya On Demand Ahead Of December Holiday

Coffee has seen a price increase of 4% at the Nairobi auction as traders continue to stock for the end of year festivities. The Business Daily reports on the Nairobi Coffee Exchange (NCE) indicates a 50kg bag at KES 28,512 from KES 27,432 on the previous lot.

The increase in price can also be attributed to the good quality of the beans coming from farmers following the main season. The price of coffee had dropped over the last few months as lower quality beans were being received in the market after the main crop in central Kenya had come to an end.

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