Africa Newsletter 11-28-19

East Africa Update

Animal feed manufacturers push for importation of yellow maize

The Association of Kenya Animal Feed Manufactures (Akfema) want the government to open the window for duty-free imports of yellow maize to avert price escalation. Prices of animal feeds have gone up by as high as Sh500 a bag across all products.

The retail price of a 70 kilogramme bag of chick mash shot up to Sh3,800 from Sh3,300 in January while growers mash is retailing at Sh3,300 from Sh2,800.

White maize currently trading at KES 2,790 per 90 kg bag in Nairobi.

Uganda Market Update

Northern Uganda is experiencing heavy rains as traders are anticipating the new crop at the end of December. Maize is currently trading at UGX 1,250 per kg in the Greater Kampala area and UGX 1,100 per kg in Bweyale. Soybeans are trading at UGX 1,800 per kg. Sesame seeds are trading at UGX 4,200 per kg in Kampala.

Uganda food inflation low despite failed harvest

In spite of a failed harvest from the 2019 first crop season, Uganda has maintained a relatively low food inflation rate at 1.9 per cent wing to a spill-over of stock from the 2018 bumper harvest. This year, however, started on a difficult note. Although the first quarter is normally dry, it was affected by the two tropical cyclones that hit Mozambique and disrupted the country’s rain pattern.

The latest Food and Agricultural Organisation brief on Uganda says, “Total cereal production for 2019 is tentatively set at about 3.4 million tonnes, nearly 10 per cent down from 2018 and 5 per cent below the average of the previous five years,” however food inflation is expected to decline in December when fresh harvests will be reaching the markets.

The minister for Agriculture Vincent Bamulangaki Ssempijja said maize prices have been increasing since September and are expected to remain high for the next few months as heavy rains in several maize growing areas disrupt the next harvest. A kilogramme of maize is retailing at between Ush1,200 ($0.32) and Ush1,300 ($0.35), up from between Ush800 and Ush850 ($0.2) in June and July.

Maize price soars in Tanzania

There will be no regulation of the price of maize and other cereals despite a growing shortage that has seen the local staple food hit Tsh110,00 ($47.9) per 100-kilogramme bag, up from Tsh65,000 ($28.3) last year.

There is a high demand for maize in the Southern African Development Co-operation as well as East Africa where maize is a staple. Tanzanian farmers are free to sell their produce to Zambia, Malawi, DR Congo, Kenya and South Africa. Dar es Salaam is the most hit by the increase in maize prices. In most city suburbs, the average cost for 1kg of maize flour retails for between Tsh1,500 ($0.6) and Tsh1,800 ($0.7) compared with the previous quarter when it retailed for between Tsh1,000 ($0.4) and Tsh1,300 ($0.5).