Maize demanded low at Busia Uganda.

January 23, 2019

Demand for maize in Kenya declined greatly in the past two weeks. As the year begun, on average 100-200MT of maize were ferried on a daily basis to the Kenyan side via informal trade routes at Busia border post. The trend declined because of the current harvest going on at Kitale. Traders from across have since disappeared from the grain market at Busia.

When compared, the farm gate price from the source areas such as Kiboga-Kyankwanzi, Hoima, Masindi rose fasters than the price offered by the visiting Kenyan traders at Busia. This situation has “warded” off business at the border market for maize.

Currently only above 50MT of maize grain were traded on a daily basis throughout the week ending Saturday 19th Jan, 2019. Good quality maize grain was bought at Ksh.20/kg (Ugx.723) while fair quality grain at Ksh.19.7/kg (Ugx.712). The least acceptable quality usually for feeds was bought at Ksh.19.5/kg (Ugx.704)

Other commodities that were demanded high from Kenya included millet and beans. Millet was ferried from western region to the border market and offered at Ksh.37/kg (Ugx.1337). An estimated 200MT were bought everyday throughout the week. Millet was loaded from Ntungamo, Kazo and Ibanda areas.

The volumes traded at Busia border market for beans had increased from about 700MT daily to 1000-1200MT daily. Yellow beans were preferred at Ksh.66/kg (Ugx.2385), while short Nambale beans at Ksh.58/kg (Ugx.2096).

Red and Kidney beans were bought at Ksh.55/kg (Ugx.1988) and Ksh.48/kg (Ugx.1735) respectively. Mixed beans were cheaper at Ksh.44/kg (Ugx.1590) and delivered from Rwanda via Uganda.

Other commodities crossing the border to Kenya included cassava chips at Ksh.19/kg (Ugx.686), groundnuts at Ksh.99/kg (Ugx.3578), Soya beans at Ksh.59/kg (Ugx.2132), Sorghum at Ksh.22/kg (Ugx.795) and green grams at Ksh.75/kg (Ugx.2711).

Maize was received in Kampala from Hoima, Kiboga, Kyanyanzi, Kyeggegwa, Fort Portal, Kyangaali, Masindi, Kibaale and parts of Mubende that have recently started harvesting. There is not mush expected this season because of the erratic rainfall received during the second and final season of 2018 that recorded low yields. However, the effects of the first season after registering an overwhelming bumper harvest left most grain farmers never to attempt cultivating maize again when they run loses because of a sudden drop in price.

When the 2nd season started, it commenced at a high price during the closing weeks of December. New maize in Kampala was offered at Ugx.600-620/kg in Kampala. In the rural areas where the maize is out sourced, it started at Ugx.450-500/kg which was considered a high price.

The supply of assorted beans to Kampala declined rending the market price on an increasing trend. Yellow and Short Nambale (Nabe1) beans price increased to Ugx.2300-2400/kg wholesale price while long Nambale beans (Nabe 4) cost Ugx.1900-1950/kg. This variety has continually lost the consumers preference and less has been cultivated. Mixed beans from Rwanda and Kabale also known as “Omusingiriro” were back on the market at Ugx.1850-2000/kg depending on quality delivered.

Super rice grown in Uganda was offered at a higher price than that from Tanzania. The supply from Tanzania influenced the market price low.  Rice was delivered to Kampala from Gulu, Lira, Mbale and some other parts of the eastern region. The current harvest was also affected by the erratic rainfall. Super rice was offered at Ugx.3400/kg wholesale while the Tanzanian super rice at Ugx.3100-3200/kg.

Harvesting of Irish potatoes is going on in Kabale and a sack of potatoes weighing 120-130 kgs cost Ugx.90,000 in Kabale. Similarly in Kapchorwa a sack weighing 100kgs was offered at Ugx.70,000. In Mbale, potatoes harvested from the hills in Wanaale cost Ugx.70,000 per sack weighing 100kgs.

Prices offered for FAQ coffee were very low due to the quality currently yielded. In Mubende, farmers were offered Ugx.4000-4250/kg while in Kyankwanzi farmers were offered cheaper market price at Ugx.3800-4200/kg. Some farmers noted that the coffee was flowering again. NUCAFE bought good quality FAQ coffee at Ugx.5400/kg Screen18, Ugx.5000/kg Screen15 and Ugx.4800/kg Screen12.

Farmgain Africa.

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