Farmers in the North Rift have now export their maize to South Sudan, Uganda and Rwanda for better prices due to rising demand.
While the National Cereals and Produce Board (NCPB) pays Sh2,400 per a 90kg bag, farmers in the region, the country’s food basket, are getting as much as Sh2,900 across the border.
This has stoked food insecurity fears as millions of Kenyans are already starving because of a ravaging drought in some parts of the country.
The NCPB is faced with challenges buying maize from farmers after most of them opted to sell to private millers and traders who offer better prices and pay upfront.
Consequently, the board might not achieve its target of buying three million bags of maize as part of the emergency stock.
According to the regional maize production estimates report, the prices are expected to remain high because of a deficit in production due to erratic weather, high inflation and conflict-related trade disruptions in Ethiopia and South Sudan that will push the cost of the staple beyond the reach of most households.
Regional demand
“Opening of closed border between Uganda and Rwanda will increase inflows of maize from Uganda into Rwanda, moderating price increase in Rwanda, but increasing prices in Uganda due to expansion of regional demand to Rwanda from Kenya and South Sudan,” stated the Famine and Early Warning System Network report for September 2021.
According to Food and Agriculture Organisation, severe drought conditions affected crop production in several eastern and northern districts of Uganda, resulting in reduced harvest.
“The poor seasonal rains resulted in the wilting of sorghum and maize crops and had a negative impact on vegetation and yields,” said the report.
The Grain Belt Millers Association, which brings together more than 35 small-scale millers, yesterday warned of further increase in maize prices as more farmers and traders eye export market driven by attractive prices for the commodity.
“Our members are unable to source adequate supplies of maize. Prices are now ranging between Sh2,400 and Sh2,600 for a 90kg bag and are expected to continue rising. Millers have stocks that are not being replenished at the rate that they are being used,” said Kipngetich Mutai, the association’s chairman.
Most farmers in Trans Nzoia, one of the country’s main maize-growing zones, have, therefore, turned to Uganda and South Sudan, where a 90kg bag is fetching Sh2,900.
“Unlike the last season when there was an influx of maize from Uganda, there is high demand for the grains in parts of Uganda and South Sudan that has resulted in the export of the staple,” said David Maina, a trader in Eldoret town.
Decline in yields
Millers have warned of a further increase in maize prices after the yields dropped by 11 million bags last season—from 44 million to 33 million bags. The declined was due to erratic rainfall and disease outbreaks, among other factors.
Maize flour prices have gone up in most retail shops in the North Rift, with a 2kg packet going for Sh100. It was Sh80 two months ago. “Some of the consumers have opted for posho mill flour as opposed to the sifted one to cut down on costs, impacting negatively on our operation and pushing some millers out of the market,” added Mr Mutai.
He disclosed that maize imports from Tanzania is going at Sh2,900 per 90kg, while that from South Africa is expected to land at Sh3,200, which will increase the cost of maize flour.
“We are staring at a looming disaster in the next six months as the maize supply in the market deteriorates after most farmers sold out the grains during the harvest period at throwaway prices.
“Most of the grains have been sold to millers and other traders after the government expressed unwillingness to buy the produce and instead introduced the Warehouse Receipt System where farmers will wait for long before receiving payment,” said Ezekiel Kosgei, an Eldoret-based private land economist.
The NCPB is faced with challenges buying maize from farmers after most of them opted to sell the crop the crop to private millers and traders who offer better prices and prompt payments.
NCPB corporate affairs manager Titus Maiyo yesterday admitted they had yet to receive maize from farmers but expressed optimism to purchase the crop.
“We urge farmers to take advantage of our prompt payment to deliver their crop to our buying centres countrywide,” said Mr Maiyo. BY DAILY NATION