Newly harvested maize prepared quickly to catch the market.

June 1, 2017

Several farmers in the renown maize production locations countrywide are in the process of harvesting their grain quickly, dry and delivered it in order to capture the current high market price. Average wholesale maize price was recorded at Ugx.1660/kg although the main rural production areas recorded offer price at Ugx.1500/kg. Traders continue to speculate when the highest price will occur in order to maximize on their profits. In their bid to catch this high price, the traders mix the highly moisten new harvested maize with the old dry stocked grain and offer it as old stocked maize grain. As the supply of newly harvested maize increases, the market then offers two market prices before phasing out old stocked grain price.

Apparently there were reports from Iganga that maize price dropped to Ugx.1200/kg indicating the opening of the new maize season. It was noted that good acreage of maize was planted in the major producer locations this season and better maize harvest was expected though reduced by the dry spill that was experienced earlier.

The Mubende-Mityana, Kamwenge maize producer sub region reported a better yield last year amidst tough times and it was the first time ever for farmers in Mubende to receive Ugx.1000/kg at farm gate level. They have since opened considerable plantations of maize, however, it was also a fact that every after a deficit year production, commodity prices in the following year would most likely take a “nose-dive”.

The Kenyan traders bought large volumes of Ugandan maize at Busia at Ugx.1705/kg as we descend off season peak. In Kampala maize grain cost Ugx.1640/kg while maize flour was offered at Ugx.2740/kg wholesale price.

Livestock farmers using maize bran as their feed base were charged Ugx.700/kg. Other fresh commodities have registered a slight wholesale price decline although it appears the retailers continue to maximize profits by offering the same price when supply was very low. This is especially so for commodities such at Irish, fresh cassava, sweet potatoes and matooke. Plenty of rice was registered via Mutukula from Tanzania at Ugx.3000-3200/kg. A lot of super rice adulteration was reported going on.

Beans price continues to reduce in many locations as supply to the market increases. The price was expected to drop further by next month. The cheapest (mixed) beans were offered at Ugx.1600/kg in Kampala. Newly harvested beans were offered at Ugx.1900-2300/kg wholesale price.

Farmgain Africa.

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