The prices of animal feeds have started falling after shipping in of duty-free yellow maize although the imports are only trickling in.
The price of a 70-kilogramme bag of layers marsh has dropped by Sh400 from June price to Sh3,000. Growers marsh is retailing at Sh2,800 from Sh2,600.
Animal feeds manufactures say they have registered significant improvement in production after months of operating below capacity due to shortage of raw material.
“We have witnessed price reduction in prices of animal feeds following importation of yellow maize,” says John Gathogo, publicity and marketing chairman at the Association of Kenya Feeds Manufacturers (Akefema).
The ministry of Agriculture, however, says traders and millers are not importing much of the yellow maize as expected despite having a duty-waiver window that will remain open until June next year.
Duty-free import was initially supposed to close at the end of this month.
Agriculture Cabinet Secretary Willy Bett says the yellow maize import is not as lucrative as the white imports, which is one reason traders are shunning the trade.
As at last month, about three ships with the consignment of yellowmaize had docked at the Port of Mombasa.
The yellow maize permits were issued to three main stream millers and about 17 animal feeds manufacturers.
The government ordered the importation of yellow maize to ease pressure on the white variety.
Animal feeds are made from the white produce, a move that worsened food situation in the country.
The price of maize flour shot to a record high of Sh153 for a two-kilopacket, before the government intervention that lowered the cost to Sh90.
Tegemeo Institute of Research says Kenya produces enough maize to feed its population based on estimated per capita consumption but when other uses like seed, feeds manufacturing are considered, there are shortfalls.