Maize prices drop as supply stabilises following harvest
Workers sort and weigh dry maize in Elburgon town, Nakuru County, on January 22.
It is a reprieve for consumers and millers as maize supply stabilises following the harvest in parts of Western Kenya and arrival of cheap produce from neighbouring countries.
The maize prices are set to decline from the current Sh5,800 per 90kg bag after the harvest of the crop in South Rift, Nyanza and Western and imports from Tanzania and Zambia.
“We’re currently receiving maize from Narok, Bomet and other parts of South Rift. The harvest of the crop in Nyanza and former Western Province has boosted our operations,” Kipng’etich Mutai, chairman of the Grain Belt Millers Association said. The ongoing rains in several parts of the country, he added, were interrupting the smooth flow of maize from harvest zones to milling plants.
But the millers still face challenges implementing the maize subsidy programme as supermarkets delay payments.
Crushing capacity
“The 45-day credit period by supermarkets needs to be reduced to facilitate cash flow to enable millers purchase more maize and increase crushing capacity to support steady flow of the low cost flour,” Mr Mutai said.
Agriculture Principal Secretary Francis Owino said Sh160.9 million has been processed for the Sh325 million invoices from 128 millers under the subsidy programme. About 3.2 million kilos of maize flour has been supplied to the market under the subsidy.
In the programme, a 2kg packet of maize is retailing at Sh100 instead of the Sh203 market price.
Maize prices have declined from Sh6,000 to Sh5,600 in Eldoret. The price of the produce has reduced from Sh5,900 to Sh5,400 in Kisumu and Sh5,600 down from Sh5,900 in Nakuru.
“The maize prices are expected to decline further due to harvest of alternative food crops and the impending harvest of the crop in parts of the region,” said Moses Kiptoo, a maize trader in Eldoret.
Fodder availability
Also on the decline are the costs of beans and milk in the last two months following steady supply, to the relief of many households. The price of vegetables has also gone down, with a bag of cabbages selling at Sh1,300 from Sh1,800 and sukuma wiki going for Sh700 down from Sh1,300.
According to the Kenya National Bureau of Statistics report released in July, monthly price per kilo of maize decreased from Sh57.62 in June to Sh53.88 in July while bean prices decreased from Sh97.91 per kilogramme to Sh94.47.
“Lack of market information and proper storage facilities force some farmers to dispose of their maize and wheat produce at throwaway prices,” Mr Paul Lang’at, an Eldoret-based land economist said.
Milk deliveries to processors increased from 37.1 million litres in May to 42.7 litres in June as the onset of rains increased fodder availability.
