Bumper maize harvest signals price stability

The update published by the Ministry of Agriculture has projected that the country will not need to import any maize from beyond its East African neighbours in the next five months /Reuters

What you need to know:

  • The update published by the Ministry of Agriculture has projected that the country will not need to import any maize from beyond its East African neighbours in the next five months.
  • The ministry expects a surplus of 9.8 million bags of maize as at the end of December, even after providing for a 15 per cent post-harvest loss.
  • Millers said a steady supply of the produce and imports from within the region is expected to keep the prices of maize meal and any by-products including animal feed in check through the end of the year.
  • It is also expecting 18.2 million bags from the long rains harvest and an additional 2.5 million bags from the coming short rains, bringing the total available stocks to 32.19 million bags.
  • Last month, the cost of living fell to 7.74 per cent, mainly due to continued declines in prices of several food products such as sukuma wiki (kales), milk, potatoes, tomatoes, cabbages, onions, beans, green maize and spinach in July compared to June.

Kenya will not need to import maize from outside East Africa since the long-season harvest will produce enough stocks to last up to the end of the year, a new food security situation report has indicated.

The update published by the Ministry of Agriculture has projected that the country will not need to import any maize from beyond its East African neighbours in the next five months.

The ministry expects a surplus of 9.8 million bags of maize as at the end of December, even after providing for a 15 per cent post-harvest loss.

“The balance sheet assumes the current projected longs rains crop harvest shall be realised and that short rain cropping season shall remain normal. Furthermore, it assumes that the inflows from neighbouring countries shall remain normal with no exports during the projected period,” notes the report.

Millers said a steady supply of the produce and imports from within the region is expected to keep the prices of maize meal and any by-products including animal feed in check through the end of the year.

“I think prices will stay stable,” said Diamond Lalji, the chairman of the Cereals Millers Association.

He added that the high maize prices in Kenya will ensure adequate supply from countries such as Uganda, Tanzania and others in the region.

According to the report that projects the food security situation in the country through the next five months, the ministry expects about 1.2 million bags of maize to be imported from the region up from 600,000 in April.

It is also expecting 18.2 million bags from the long rains harvest and an additional 2.5 million bags from the coming short rains, bringing the total available stocks to 32.19 million bags.

Mr Lalji said that the maize price in Kenya was one of the highest and that farmers from as far as Malawi would make a profit by selling their produce here adding that the country does not have adequate supply.

He said that even after removing transportation costs farmers in the region still make a profit.

David Nyameino, chief executive of the Cereal Growers Association, said that the maize disease that hit parts of the South Rift would, however, create some pressure on demand because the areas affected not only supply maize, but are also high consumers.

“Definitely there will be a slight deficit,” he said adding that imports from the region are expected to bridge the gap between what has been affected by the disease and any supply shortfalls created.

The price of a 90-kilogramme bag of maize has remained below a high of Sh3,800 reached in July last year.

The price of a two-kilogramme packet of maize meal remained flat between June and July with the ministry projecting a drop going forward.

Last month, the cost of living fell to 7.74 per cent, mainly due to continued declines in prices of several food products such as sukuma wiki (kales), milk, potatoes, tomatoes, cabbages, onions, beans, green maize and spinach in July compared to June.

“As harvesting of maize continues in August, prices of most brands are likely to decline,” notes the Ministry of Agriculture report.

The ministry said that despite the overall food security improvement, some regions such as the North Eastern, lower parts of Eastern and Coastal strip continue to experience food scarcity due to poor food distribution systems from high potential areas.

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