Kenyan politics affects produce trade at Busia.

August 1, 2017

Produce trading at the Uganda/Kenya borders posts drastically declined and very limited trading was reported in the past week. This situation was attributed to the current presidential campaigning that continues and some presumed major purchase of grain by Kenya from elsewhere.
Maize price dropped below Ksh.27/kg and demand likewise dropped due to fact that there were no traders turned up to purchase the grain. Minor purchases were reported for animal feed grain which registered stock piles of maize at Busia produce traders market. Estimated volumes bought informally were only 300-200MT and below compared to 1000-800MT at the beginning of the month.
There was unverified information from the border traders that the Kenyan government through the cereal boards had imported unspecified volumes of maize grain from Ethiopia to carter for their food requirement during this period. Apparently the grain price was report high at Ugx.2010/kg (Ksh.58) in Nairobi the week ending 28th July, 2017.
Meanwhile back home in Kampala the grain price declined slightly to Ugx.830/kg in Kisenyi Kafumbe –Mukasa market. Retail traders dealing with grains and pulses also reduced their margin after releasing major supply to the market. The reduction in sales at Busia seems to have created an increment in other markets including Kampala.
Several major grain traders in Kampala started stocking maize in different locations with concentrated maize production. In Masindi, Afgri-Kai and Joseph initiative bought maize at Ugx.800-900/kg. Aponye Uganda bought good quality white grain at Ugx.850/kg while Export trading bought in the eastern region at Tororo.
Maize in Arusha and Dar el salaam was offered at Tzsh.60,000-95,000/100 kgs sack reported by the Ministry of Industry, Trade and Investment. In comparison, Tanzania offered its maize at an estimated cost per kilo Ugx.969-1534/kg depending on location while Kenya bought Ugandan maize at Ugx.939/kg Busia, Nairobi at Ugx.2010/kg ; rendering Kampala a cheaper maize source at Ugx.850-900/kg good quality unsorted grain.
Farmgain Africa

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