Why the cost of feeds is rising

Jun 17, 2011

SAUL Lyazi, the marketing manager of Kagodo Farmers Ltd, blamed the skyrocketing prices of animal and poultry feeds on several factors, including poor market for maize grain in the previous two seasons.

By vision reporter

SAUL Lyazi, the marketing manager of Kagodo Farmers Ltd, blamed the skyrocketing prices of animal and poultry feeds on several factors, including poor market for maize grain in the previous two seasons.

Lyazi said maize supplies have reduced due to poor harvests and exportation to other countries, forcing prices to go up.

“Maize is also on high demand because birds, animals and human beings are fighting for it. The high cost of electricity is also not doing any good to solve the problem,” he noted.

Lyazi also argues that the increase in fuel prices has affected the price of maize bran. He says farmers incur huge transport costs after buying maize from distant districts like Kasese, Lira, Masindi and Kyenjojo and as a result, they are forced to pass on the transport and tax costs to their customers.

Dr. Sam Okech, the president of Uganda Veterinary Association, says at the moment, there was little that veterinary professionals can do to help the situation.

“Farmers are complaining that the quality of feeds they are buying is poor, but there is little we can do. We are in a dilemma and the only way we can avert this is by proper planning and stocking feeds in plenty,” he says.

He also advises farmers who are involved in poultry and pig rearing to consider diversifying into cultivating maize for their birds and animals, if they are to survive the hard times.

Some farmers had expected to receive support in terms of finance or feeds from the National Agricultural Advisory Services (NAADS) to help them go through the hard times, but a NAADS official told Saturday Vision they could not do much.

“We support poultry farmers with feeds until the chicken start laying eggs. Thereafter, farmers are expected to continue buying feeds out of sales proceeds,” Rahim Shakila said.

Rahim added: “The price of animal feeds is determined by both costs of production and the forces of demand and supply. NAADS has no mandate to directly influence or control market prices. NAADS effort can only be directed at increasing productivity of feed inputs like maize, soya and cassava, which can in the long run bring the prices down.”

The state minister for animal husbandry, Bright Rwamirama, says the Government was considering several interventions to save the farmers and the sector from collapsing, since it would render hundreds of Ugandans jobless.

“We are aware of the problem and the ministry has already informed the Cabinet about it. We had not experienced the problem before and the challenge we are facing might call for a policy shift,” he explains.

Countries in the East African region have been importing maize from Uganda. Rwamirama notes that the uncontrolled exportation was greatly responsible for the current scarcity.
“But the Government doesn’t intend to interfere with the exportation of maize because it is not good for a growing economy,” he adds.

Rwamirama advises farmers to temporarily resort to other feeds, like cassava flour to feed their birds, but he expresses fear that it may lead to an increase in the price of cassava in the country.

Rwamirama says he has met the executive of the poultry farmers association and directed the technical officers in the ministry to devise means of helping them.

Henry Banyenzaki, the state minister for economic monitoring in the President’s Office, asked farmers to be calm as the Government comes up with a clear position.

“The Government will have an appropriate solution to the problem. We don’t want to rush and come up with a position that will help farmers, but affect other people, like the traders and contractors,” Banyenzaki said.

He added: “Most farmers want the Government to ban the exportation of maize grain, but such a move may suddenly affect traders who have been contracted to supply maize to neighbouring countries like Sudan.”

Banyenzaki also revealed that the Government was studying whether Uganda had the potential to mill all the maize grain it produces, before exporting it if it is to consider such a ban.

“The Government is also considering engaging the World Food Programme to consider buying maize flour instead of maize grain,” he said.

Currently, the poultry population in Uganda is estimated at 50 million.

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