Kenya to keep importing maize
May 20, 2008
KENYA will continue importing maize from Uganda and Tanzania when harvesting starts in June, the Eastern African Grain Council (EAGC) has said.
By Ibrahim Kasita
KENYA will continue importing maize from Uganda and Tanzania when harvesting starts in June, the Eastern African Grain Council (EAGC) has said.
In the Regional Agricultural Trade Intelligence (RATIN) report, EAGC said importation of the maize through border trade would keep Ugandan maize prices high.
A recent survey in Kampala’s major markets revealed that maize was being sold at sh800 a kilogramme from sh200 at the end of last year.
The EAGC said Kenya’s maize stocks would run below the monthly minimum requirement of 270,000 metric tonnes in August.
The current maize harvesting season will commence in June and end in August.
“The government of Kenya has approved a plan to import 270,000 metric tonnes of white maize free of Genetically Modified Organisms through the National Cereals and Produce Board (NCPB),†the report said.
“However, the EAGC recommends involvement of the private sector during the implementation to complement the government’s efforts.â€
The report said importation of the maize was an emergency aimed at cushioning the country during the tight months of August and September.
One of the sources of white maize for Kenya is South Africa where a good harvest is expected this season.
“Although other southern African countries like Malawi and Zambia are expecting a fairly good crop, handling and transport logistics limit Kenya’s access to that maize, which would come at zero duty because the two are members of the Common Market for Eastern and Southern Africa (COMESA),†the report added.
“It is projected that about 11.5 million MT of maize will be produced in South Africa and about 1.5 million could be available for export.â€
“The NCPB will import duty-free maize from South Africa under the arrangement, which would have attracted 50% duty because it is originating from outside the COMESA region.â€
Harvesting of the GMO- free white maize in South Africa will start late June. So, the earliest Kenya can receive the maize is early August. There will be limited quantities because most of the white maize produced cannot be guaranteed to be GMO-free.
The import parity price of the South African duty-free white maize in August will be about $330/MT in Mombasa and $365/MT in Nairobi, which is different from the local market price. The local market price is $350/MT and $332/MT in Mombasa and Nairobi respectively since early May.
Maize prices have increased significantly in the last two months in Nairobi by over $40 per tonne.
“Our short-term forecast reveals that prices will continue rising steadily until fresh supplies are received,†the report concludes.
KENYA will continue importing maize from Uganda and Tanzania when harvesting starts in June, the Eastern African Grain Council (EAGC) has said.
In the Regional Agricultural Trade Intelligence (RATIN) report, EAGC said importation of the maize through border trade would keep Ugandan maize prices high.
A recent survey in Kampala’s major markets revealed that maize was being sold at sh800 a kilogramme from sh200 at the end of last year.
The EAGC said Kenya’s maize stocks would run below the monthly minimum requirement of 270,000 metric tonnes in August.
The current maize harvesting season will commence in June and end in August.
“The government of Kenya has approved a plan to import 270,000 metric tonnes of white maize free of Genetically Modified Organisms through the National Cereals and Produce Board (NCPB),†the report said.
“However, the EAGC recommends involvement of the private sector during the implementation to complement the government’s efforts.â€
The report said importation of the maize was an emergency aimed at cushioning the country during the tight months of August and September.
One of the sources of white maize for Kenya is South Africa where a good harvest is expected this season.
“Although other southern African countries like Malawi and Zambia are expecting a fairly good crop, handling and transport logistics limit Kenya’s access to that maize, which would come at zero duty because the two are members of the Common Market for Eastern and Southern Africa (COMESA),†the report added.
“It is projected that about 11.5 million MT of maize will be produced in South Africa and about 1.5 million could be available for export.â€
“The NCPB will import duty-free maize from South Africa under the arrangement, which would have attracted 50% duty because it is originating from outside the COMESA region.â€
Harvesting of the GMO- free white maize in South Africa will start late June. So, the earliest Kenya can receive the maize is early August. There will be limited quantities because most of the white maize produced cannot be guaranteed to be GMO-free.
The import parity price of the South African duty-free white maize in August will be about $330/MT in Mombasa and $365/MT in Nairobi, which is different from the local market price. The local market price is $350/MT and $332/MT in Mombasa and Nairobi respectively since early May.
Maize prices have increased significantly in the last two months in Nairobi by over $40 per tonne.
“Our short-term forecast reveals that prices will continue rising steadily until fresh supplies are received,†the report concludes.