This archive report was first published on 7 January 2020.
January 7, 2020
Kenya is facing a potential maize shortage, with the Strategic Food Reserve (SFR) struggling to buy the crop from farmers due to stiff competition from millers.
Millers have been offering farmers attractive prices, with some firms paying up to Sh3,400 per 90 kilogramme bag, amid fears of a looming shortage of the staple crop.
Dr Noah Wekesa, the SFR chairman, admitted that the agency might not meet its target of buying four million bags of maize this season, citing insufficient funds and high prices offered by millers.
‘We are likely to buy three million bags of maize mainly from small-scale farmers due to insufficient funds, considering that millers and traders are offering high prices due to the projected shortage of the produce,’ Dr Wekesa said.
The anticipated shortage of maize has seen millers flock to markets in the North Rift region, the country’s food basket, in panic buying to stockpile the staple.
Kitui and Mombasa millers, as well as Unga Limited, are among major milling firms that have pitched tent in the region to mob up the grain from farmers.
‘Prices are likely to skyrocket to the advantage of the farmers due to low production last season caused by disease outbreak, drought and damage of the crop by rainfall during harvesting,’ said Mr Kipnetich Mutai of Ineet Millers.
He added that millers were not receiving adequate supplies from Uganda due to high demand of the crop in East and Central Africa.
‘Most Ugandan traders have opted to sell the crop to Tanzania, DR Congo and South Sudan where it fetches more money,’ Mr Mutai said.
Maize production is projected to drop from 44 million bags realised last season to 33 million bags due to reduced acreage under the crop, prolonged drought during the planting season, repeated outbreaks of the dreaded fall army worm and post-harvest losses.
