The climax of the second season started mid-January. The variation in the rainfall distribution countrywide corresponded with the production levels in the usual production locations where surplus crop production was reported in areas that received above to normal rainfall and less yield in areas that registered reduced volumes of rain especially in eastern Uganda.
Less maize yield was realized in the eastern region especially Busoga where farmers substituted maize for sugarcane due to the input support such as fertilizer and seed and the current sugarcane market price influence. The sugarcane demand from several factories countrywide has also facilitated the shift. This situation has left Busoga region with less maize production and higher grain prices.
Similarly, less maize production was noted in Masindi because of the same shift. The seasonal opening grain purchase price started at Ugx.700/kg in Masindi higher than usual.
The northern region’s second harvest was good and arrived earlier than usual due to the good rainfall distribution received. Several staples grown in the region registered a good harvest. Traders from Kampala purchased maize and other commodities from this region during the month of January. The maize price in the northern region dropped to Ugx.700/kg at wholesale which attracted several transit traders to the region including Rwandan traders who purchased maize and sorghum from this region throughout the month of January. The effective demand for grain pushed the market price high on the market to approximately Ugx.1000/kg especially in Gulu city.
The Central region registered a fair maize yield in areas such as Kiboga, Kyankwanzi and Kibaale districts and stockists have since held onto their crop speculating for a better price in the near future. They will most likely release some grain to the market in order to facilitate their children’s return to school.
The western region harvested last in the final weeks of the month of January compared to other production locations and some areas such as Rakai are yet to harvest their crop.
In Kampala market, new maize grain was reported delivered throughout the month of January. The climax of a seasonal supply was expected mid-January. However, supply fluctuated given the demand from other regional markets. The grain price was reported between Ugx.900-980/kg at wholesale throughout the month of January.
The regional border market of Busia registered maize at Ugx.1029-1050/kg (Ksh.36-37) in the opening week of January with an estimated 1000MT of grain exported to Kenya formerly directly from Busia daily. Supply fluctuated given the fact that maize was still drying. Likewise, traders received maize from the northern region first and concluded with the western regional supply. Most of the grain was destined for Mombasa and the Kamba region (central Kenya markets).
The grain price declined in the course of the month to Ugx.1,022/kg (KSh.36) midmonth due to increased supply to the border market from different production locations. An estimated 2000-2500MT were recorded daily then. Some domestic purchase was reported destined for Soroti district distributed further north to Karamoja region.
In the final week, demand for maize declined greatly to an estimated 400-500MT daily mainly because of the increase in the stockists’ price in the rural production markets which rendered Ugandan maize more expensive than the Tanzanian supply delivered to the same market.
The main market in Kampala received millet from two production locations in the northern and western regions. Millet from Mbarara sub-region was more priced at Ugx.2600-2800/kg at wholesale while that from the northern region (Lira) cost Ugx.2300-2500/kg at wholesale delivered to Kampala.
The harvest of sunflower ended in the northern production locations of Acholi and Lango sub-regions including part of Teso sub-region. Currently the majority of the yield is held with the rural stockists and the oil press/manufacturers. Local sunflower seed cost Ugx.1400-1500/kg depending on location while the hybrid sunflower at Ugx.1600-1700/kg.
An estimated 600-1200Mt of assorted beans varieties were delivered to Kenyan markets from Busia Border produce market in the opening week of the year. Kenya’s first school opening term started in the first week creating demand for beans from the Ugandan side. Approximately 500Mt of beans was likewise ferried informally through the porous border daily. Demand for beans was high and the market price was recorded increasing. Yellow beans price increased from Ugx.3946/kg (Ksh.138) to Ugx.4061/kg (Ksh.142) in the course of the two weeks. Nambale beans increased from Ugx.3060/kg (Ksh.107) to Ugx.3260/kg (Ksh.114) while Wailimu beans increased from Ugx.2288/kg (Ksh.80) to Ugx.2373/kg (Ksh.83) and mixed beans increased from Ugx.2230/kg (Ksh.78) to Ugx2345/kg (Ksh.82). Rwandan and Sudanese transit traders also pitched camp at this border market for Millet/Sorghum and cassava.
An increase in the market price for beans was registered towards the end of January as less supply was delivered. Mixed beans increased to Ugx.2385 (Ksh.84), Nambale to Ugx.34076/kg (Ksh.120) and apparently Yellow beans declined to Ugx.3692/kg (Ksh.130).
In the final week, only 600MT of beans were sold to Kenyan markets daily from Busia and an estimated 300MT daily via informal means. Yellow beans price declined to Ugx.3587/kg (Ksh.125). Wailimu beans increased to Ugx. 2439/kg (Ksh.85). Mixed beans price increased to Ugx. 2410/kg (Ksh.84) while Short Nambale increased to Ugx. 3357/kg (Ksh.117).
Other commodities demanded at Busia at the close of the month included soya beans at Ugx.2400/kg (Ksh.83), cassava at Ugx. 688/kg (Ksh.24), millet at Ugx.2783/kg (Ksh.97), red sorghum at Ugx. 1435/kg (Ksh.50), white sorghum at Ugx.1205/kg (Ksh.42), green grams at Ugx. 3300/kg (Ksh.115), red beauty groundnuts at Ugx. 7175/kg (Ksh.250) and simsim at Ugx. 5740/kg (Ksh.200).
Supply of beans declined day by day into the month of January. The second harvest had been completed before the end of year and most beans stocks were with rural stockists/transit traders. Large Nambale beans were offered cheaper at Ugx.3100-3200/kg due to abundant supply when compared to other varieties. Short Nambale was slightly costly at Ugx.3400-3600/kg at wholesale in the opening week. Yellow beans were preferred at Ugx.3800-4000/kg at wholesale. A generally stable market price was maintained for beans mid-month. However, supply of Yellow beans from Tanzania dropped the Yellow beans price to Ugx.3500-3600/kg wholesale delivered to Kampala. Rosecoco beans were supplied at Ugx.2800-3000/kg wholesale.
In the final week, there was a slight increment in the beans market price offered in Kampala. Large Nambale cost Ugx.3300-3400/kg, Rosecoco beans at Ugx.3200/kg, Yellow beans at Ugx.3600-3800/kg and Short Nambale at Ugx.3500-3700/kg depending on quality.
Farmgain Africa