This archive report was first published on 22 November 2021.
Monday, November 22, 2021
The National Cereals and Produce Board (NCPB) is facing market challenges selling 700,000 bags of maize worth Sh1.2 billion ahead of the new harvest.
The board is selling the produce at Sh1,715 per 50-kilo bag as it struggles to recover Sh12.7 billion debts owed by various government ministries and agencies.
Maize prices have plummeted in most parts of the North Rift, selling at Sh2,400 down from Sh3,200 per 90-kilo bag following the harvest of this season's crop and the arrival of cheap produce from neighboring countries such as Uganda.
"We are offloading the produce to raise capital and create space in readiness to buy this season's crop," said Titus Maiyo, corporate communications manager.
However, the board is facing stiff competition from millers and traders who purchase the produce at farm gate level and offer prompt payments.
Some commercial maize farmers are contemplating reducing the acreage under cultivation to cushion themselves against losses due to the dwindling markets.
"What the NCPB is offering is too low as compared to the increased production cost and will reverse the gains made in attaining food security," said Kipkorir Menjo, Kenya Farmers Association director.
