Market Newsletter March 30th, 2017 Market Activity:

Market Newsletter March 30th, 2017

Market Activity: Maize in Kenya rallied to above 4,000 ksh/90kg across the country in the past week as a panic about maize supplies set in, and millers are having to shut plants down with no supply to feed the mills. There are rumors of farmers aiming to hold their maize expecting prices to reach 5,000 ksh/90kg. The Kenyan government still stands in limbo as to how to address the situation. Plans were announced to import maize from Ukraine, or Mexico as an alternative option, but the government claims that farmers are still hoarding stocks in anticipation of higher prices. According to Agriculture Secretary Willy Bett, “We had the plans of importing maize but we have delayed to monitor the situation… traders and farmers are still holding huge stocks basing on the recent food situation report.” Uganda is facing a similar situation, although prices haven’t jumped quite as much. Many traders are out of the maize market because prices are so high and do not want to be stuck with stock if imports finally arrive and prices drop. The United Nations FAO released the Horn of Africa Cross-Border Drought Action plan to safeguard livestock based communities, publishing requirements of $39.6 million to reach 363,000 households to protect 7.1 million livestock.

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Market Prices: Select Market Values Kenya (ksh/90kg)

Maize

Pigeon Peas

Green Grams

Sorghum

Millet

DLVD Nairobi DLVD Thika DLVD Eldoret DLVD Nakuru

4,300 4,200 4,100 4,100

5,700 5,600 6,100 6,100

9,000 8,500 9,000 9,000

3,465 3,400 3,600 3,600

7,200 7,200 6,800 6,800

FOB Isibania

3,200





















Uganda (ugx/kg)

Maize

Soya

Sorghum

Nambale Beans

Green Grams

DLVD Kampala

1,350

1,900

1,320

2,400



FOB Lira

1,350

1,850

1,300

2,170

3,250

FOB Masindi FOB Soroti FOB Gulu

1,320 1,350 1,300

1,750 1,800 1,850

1,300 1,300 1,400









Bid / Offer: Maize



Kenya (ksh/90kg)

Grains

Nairobi 3,900 / ----

Red Sorghum offered at 1,380 ugx/kg

Nakuru 4,000 / ----

in Soroti.

Thika 3,900 / ----



Kitale 4,000 / ----

Beans

Eldoret 4,000 / ----

Green Grams offered at 8100 ksh / 90 kg in Wote.

Uganda (ugx/kg) Tororo (M2) ---- / 1,500 Soroti (M2) ---- / 1,400 Kampala ---- / 1,500 Page 2 of 5

Soybean bid at 58 ksh / kg in Nairobi. Pigeon Pea offered at 3,500 UGX / kg in Tororo.

Weather Update: The badly needed rains appear to have finally arrived within the past week for much of the East Africa region. The two maps produced by aWhere show the precipitation for the week of March 20th through 26th in the first and the forecast March 27th through April 2nd. Most of Uganda as well as much of North Rift and Lower Eastern in Kenya will receive between For more information about weather and precipitation information, please contact PanXchange staff.

Market News: Kenya’s GMO Ban Continues Although genetically modified organisms (GM) could flourish in East Africa, specifically due to some drought and pest resistant qualities, Kenyan scientists will have to wait to preform trials. In a recent interview, Kenya’s Agriculture Cabinet Secretary, Willy Bett, was quoted saying “Kenya is still one of the countries that believes it should be a GMO free state.” He went on to explain that Kenya was unable to assure that GM seeds would not cross-pollinate the native crop, leaving uncertainty to when field test can take place. In 2012, the Kenyan government banned all imports of GM products. In 2016, the National Biosafety Authority (NBA) made it possible for scientists to start field research. Conducted by the Cabinet Secretary of Health, it was estimated the trials would last two years. Aimed with discovering Page 3 of 5

the differences in nutritional composition, yield performance, and pest tolerance, efforts were eventually ceased due discrepancies between government agencies. In February 2017, the National Biosafety Authority (NBA) and the National Environmental Management Authority (NEMA) held meetings to resolve the GM debates. While no concrete progress was reported, Dr. Cleopa Mailu, Kenya’s Health Cabinet Secretary, has since been ridiculed over the legality of the ban. Researchers claim that it is illegal to thwart research efforts due to a ban which focuses on imports and human consumption, and does not directly mention research. According to Willy Bett, further research must be conducted to address the environmental risks before the product is released for trials. However, the timeline of when this will happen remains the biggest question.

Maize prices reach 4,200 ksh Over the last twelve months, the price of maize has steadily been on the rise. More specifically, the turn of the new year has brought maize prices to record 10 year highs, reaching 4,200 Kenyan Shillings per 90 kilogram bag at wholesale. The Kenyan government still stands in limbo as to how to address the situation. Plans were announced to import maize from Ukraine, or Mexico as an alternative option, however the government has reason to believe farmers are still hoarding stocks in anticipation of even higher prices. According to Agriculture Secretary Willy Bett, “We had the plans of importing maize but we have delayed to monitor the situation… traders and farmers are still holding huge stocks basing on the recent food situation report.”

Historical Prices:

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Disclaimer: This Newsletter is solely for members and prospective members of PXAfrica. It is therefore not to be disseminated, distributed, or copied to other parties without our consent. This Newsletter will soon only be distributed to active members. Please contact Phineas Mwenda Muriuki at +254-723-253-452 / +254-763-356-485 or at [email protected] NOTICE: PanXchange and PXAfrica are not acting as an advisor and the opinions or views contained herein are not intended to be, and do not constitute, advice within the meaning of Section 975 of the Dodd-Frank Wall Street Reform and Consumer Protection Act. If you have received this communication in error, please destroy all electronic and paper copies and notify the sender immediately. Mistransmission is not intended to waive confidentiality or privilege. PanXchange reserves the right, to the extent permitted under applicable law, to monitor electronic communications.

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