Africa Newsletter 01-10-20
East Africa Update
Millers Run Out Of Maize As Farmers Hoard 16.7m Bags
Millers in Kenya have seen a shortage of maize in the market due to local farmers holding onto their stocks in the hope of a better price for their grain. A number of millers have been buying maize at between KES 2,800 and 3,000 per 90 kg bag compared to KES 2,000 previously as report in The Business Daily.
Millers had also indicated that there would be a maize shortage in the country and have lobbied the government to ease restrictions for Uganda and Tanzania origin.
Traders are now allowed to import maize into the country but must produced quality tests and a certificate of conformity as the Kenyan authorities try to manage the quality entering the country after the recent banning due to high levels of aflatoxins.
Kenya Market Update
Maize in Kenya is trading between KES 2,700 and 2,800 per 90 kg bag as millers face lower stocks available in the market but expect the Uganda and Tanzania maize imports to help ease the price. Soybeans remain at KES 60 per kg as Malawi origin soybeans are being priced out of the Kenya market due to the Malawi government setting a high price therefore limiting export opportunities.
Uganda Market Update
Maize is trading circa UGX 650 per kg in the Kampala area as traders are now preparing to export high quality grade maize to the Kenyan market. The Kenyan Agriculture and Food Authority gave a green light but with conditions including issuance of a Certificate of Conformity and quality tests that have the maximum total aflatoxins of 10 parts per billion. Soybeans are still trading at UGX 2,350 per kg in Kampala. Maize bran is available at UGX 450 per kg.
Banana And Broccoli Farmers Urged To Tap Korea Purchase Deal
The Kenyan government is urging exporters to take advantage of the opportunities in the South Korea market especially with broccoli and bananas and has directed the Kenya Plant Health Inspectorate Service (KEPHIS) to issue phytosanitory certificates to all interested parties.
South Korea imports over 70% of its food products and in 2017, bananas were the most imported fresh produce with 834,000 tons valued at $1.24 billion with the United States remaining as the largest single exporter to the Asian country for fruit accounting for 38.3% as reported in The Business Daily.
Kenya’s key growing areas for green bananas are Nyamira, Kakamega, Bungoma, Muranga, Nyeri, Kericho and Kirinyaga.
Tomatoes Shortage In Rwanda Hits Markets As Prices Go Up
The price of tomatoes in Rwanda has risen due to the local markets limited supply and this has resulted in a kg of tomatoes increase to Rwf 1,000 from Rwf 600 in the capital Kigali.
Rwanda Today reports on how the country relies on imports from neighbouring countries such as DRC but this shortage is mainly due to the domestic production being limited. The shortage has forced households to use tomato paste as a cheaper alternative and one that also has a longer shelf life unlike the fresh tomatoes.
Tanzania Government To Invest In Cooking Oil Crops
The government of Tanzania plans to invest Tzsh 10.6 billion in the next financial year to boost the production of seed crops that will include crops used for vegetable oil production including sunflower, palm and cotton seed.
According to The Citizen, Tanzania has an annual demand of 570,000 tons of vegetable oils while the local production capacity stands at 205,000 tons leaving a shortage of 365,000 tons. The government’s plans include increasing local production to over 400,000 tons over the next couple of years in order to stop depending on imports estimated to be Tzsh 474 billion per annum.
The first year will see 5,000 tons of seeds sown to produce 625,000 tons of seeds that in turn can produce 170,000 tons of cooking oil after the processing phase. The government will lead this effort as the country has previously had poor production of seed crops as well as poor technology for the added value stage.