Potato farmers and traders are bracing for lower returns after a bumper harvest prompted a price crash, easing consumer anxiety over the rising cost of living compounded by a shortage of maize.
Potato farmers and traders are bracing for lower returns after a bumper harvest prompted a price crash, easing consumer anxiety over the rising cost of living compounded by a shortage of maize.
Favourable weather in potato growing areas has seen prices drop from Sh5,600 for an extended bag at the beginning of the year in Nairobi to a low of Sh1,400 per bag in Nakuru, turning the market in favour of buyers after four months of suppliers dictating the prices.
The National Potato Council of Kenya (NPCK) said the price crash arose from the perishable nature of the commodity as well as failure to enforce the 110-kg per sack standard.
“Farmers with excess produce compete to sell as much as possible and avoid wastage. If you do not sell, somebody else will,” said NPCK operations manager Kevin Kinusu.
Breaking even
According to him, some farmers were not breaking even with present prices.
Traders in Nairobi said the oversupply was from all major producing regions including Molo, Kinangop, Nyahururu and Narok. In these areas, the price has fallen by 50 per cent to Sh2,000 per bag.
Farmers delivering potatoes to Jubilee Market in Kisumu said it would be difficult for them to recover the costs incurred to cultivate the crop because poor roads and bad weather caused some of the produce to rot before reaching the market.
“Kenyans should change their eating habits instead of living on maize as a staple food,” said Pacifica Kerubo, a potato supplier. She estimated that potatoes would be in adequate supply until October.
Potatoes sold in many urban centres in Kenya are usually produced in Rift Valley, Central and Eastern provinces. At the Mackinon Market in Mombasa, traders said they were buying a sack of potatoes at Sh3, 000, down from Sh7, 000 in April. However, it was now taking three days to sell one sack unlike previously when a sack could be sold in a day.
“We are being undercut by hawkers who are taking the commodity right to the doorstep,” said Mr Said Salim, a trader. Other traders said they had resorted to pooling resources to buy one sack each day for sale, easing their cash flow. In March, the traders were getting the commodity from Tanzania because of shortages locally.
Traders at the Nakuru Wholesale Market said an extended bag was selling at Sh1,400, down from Sh4,800 in February.
“With fuel costs and potatoes in plenty, we are feeling the pinch,” said Mr Gerald Kihonjo.
Transporting potatoes from Mau Narok to Nakuru costs traders Sh300 per extended bag, besides a fee of Sh40 as municipal costs and another Sh45 as unloading fee.
Last year, when fuel prices were lower, the traders would transport a bag at a cost of between Sh200 and Sh280 per bag.
The traders said that selling the produce wholesale was a profitable option which left them with a return of between Sh200 and Sh400 per bag.
Vendors at the Nyeri Wholesale Market were Wednesday selling a bag at Sh2,200 down from Sh5,000 last month. After paying Sh600 for transport from Mau Narok and Kinangop and Sh200 for labour, the traders said they were getting less profit.
Mr Francis Munene, a retail vendor at an open-air market in Githurai 44, said a 2-kg tin of potatoes was going for Sh50 down from Sh120 in April.
The low prices will come as a relief to thousands of families who heavily rely on potatoes for food at a time when high commodity prices and double-digit inflation are forcing many to tighten their household budgets.
Potatoes, sukuma wiki, oranges and spinach all recorded a dip in pricing. The country has about 500,000 growers and over 120,000 hectares under potatoes with a total production of over two milion tonnes a year.
Additional Reporting by Amol Akoo, Amina Kibirige, Elizabeth Wanjiru and Bernadine Mutani
PAYE Tax Calculator
Note: The results are not exact but very close to the actual.
