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: 11 May 2017; Hits: 13461

Loitoktok town selling cheapest maize

A trader wit maize bags for sale. Maize in Loitoktok si selling at the lowest price in Kenya. Photo by The Star.

As consumers continue paying an average of Sh4,510 per 90kg bag in major towns in Kenya, those in Kajiado County’s town, Loitoktok, are paying the lowest price of Sh3,800.

Suggestions indicate that the town, which is close to Tanzania, may be enjoying the low cost due to smuggling.

Although there are not official records of the entry of the maize from Tanzania, the cost of the commodity in some towns in the neighbouring country may be tempting for traders who may want to make profits.

The cost of the same quantity of maize in Dodoma for example is Sh3,009, according to the Regional Agricultural Trade Intelligence Network, RATIN.

The low cost is not, however, uniform in Tanzania. RATIN says the cost of the same bag in Iringa town is Sh5,358. This price is even higher than Kenyan towns.

Maize flour prices have doubles in Kenya this year as a result of an acute shortage. Kenya experienced a four-month drought from late 2016 causing a rise in commodity prices.

Maize is a staple food for most families in the country. Due to the prolonged drought, pastures depreciated and the cereal became the main source of food for both humans and animals. The cost of a 2kg packet of maize flour reached Sh180 by the end of April.

At wholesale, a 90kg bag of maize is selling at Sh4,600 in Nairobi, Sh4,750 in Mombasa and Sh5,200 in Kisumu.

The same quantity is selling at Sh4,000 in Nakuru and Eldoret, Sh4,000. In Kitale, the bag is costing Sh4,400 while the same is earning Sh4,500 in Embu, according to the latest commodity price watch from the Ministry of Agriculture’s Food Authority department.

The maize crisis in Kenya and indeed Africa may deepen with the invasion of the fall armyworm, which can destroy up to 100 per cent of the crop if uncontrolled. The pest from the American continents has colonised more than 10 countries in Africa since it was first detected in Nigeria in January 2016.

In Kenya, the Rift valley, Western and Nyanza regions are already invaded. It may be reported in central regions in a few weeks. The moth stage of the pest spreads at a speed of about 100km per day.

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: 10 May 2017; Hits: 9192

Global avocado demand doubles prices

Avocado farmer, Muia Kusenga in Machakos County. Global avocado demand has doubled as supply from giant countries shrink. Photo by Laban Robert.

Kenyan farmers may double avocado earnings with the increasing demand for the fruit in the international market as main competitors suffer low harvests due harsh weather and strikes.

The global avocado prices have doubled amid the short supply, with consumers in the US, the largest importer of the fruit, suffering shortages and price fluctuations.

Peru, which is one of the stiff competitors of Kenya in the export arena, experienced floods in March. This greatly affected the maturing fruits ahead of onset of the May high season of harvesting.

Kenyan farmers started harvesting avocados from mid February, but the entry of the Peruan avocado, was expected to cause competition and hence low prices in the European Union and other markets.

Mexico, which exports more than 1.4 million tons of avocados per year, experienced farmers’ strike in March. This affected the output too into the international market, according to global online marketplace Freshplaza.

Consumers in the US are already paying double prices for the product, which is hardly available. The shortage in the US domestic market has been caused by low production in California, one of the leading producers of hass variety. The state has been hard hit by a five-year drought.

In the US, the prices have reached the highest in 19 years with the average price for 10kg of avocados costing Sh2,800, according to Freshplaza. Individual consumption has also doubled in 10 years from 1.5kg in 2006 to 3.1kg in 2016.

As the Kenyan exporters expected to enjoy a window into the international market until May, this period may extend as a result of one of the main competitors, Peru, experiencing low production.

The Asian countries are also ‘going crazy’ for the avocado from Western Australia, with the main exporter from the region reported as saying the orders are bombarding despite high prices.

A Western Australian avocado export company owner, Jennie Franceschi, told Frehplaza the low production may not allow them to export more to meet the domestic demand.

Kenya exports its fruits to the European Union, Asian and other global markets. The country was expected to have its peak in May, although the four-month long drought from late 2016 may have an impact on the yields.

The US is the largest avocado importer, taking in more than 1.7 million ton of the fruit per year. Netherlands is the second largest importer of avocado, with Kenya being one of its source markets.

China is also growing in consumption of the fruit, therefore presenting another opportunity for export, into a market that was traditionally dismal.

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: 09 May 2017; Hits: 9039

Milk farmers turn to hawkers for profits

Milk in kipkelion town by African Rev.JPG

Farmers milking. Farmers are selling milk to hawkers to make more profits. Photo by Africa Review.

As dairy companies double the cost of milk for consumers, farmers are directly selling the commodity to hawkers to earn more than twice what the firms are offering.

Kericho County farmer, Robert Langat is selling one litre of milk to the informal buyers at Sh70.

“The milk companies have almost doubled the cost of the product in the last two months without taking the farmers into consideration. I am paid Sh33 per litre while a 500ml packet of milk costs between Sh60 and Sh70 in retail outlets. No need of fighting with companies when I can sell the milk to ready buyers here at Kipkelion,” he said.

About two months ago, a 500ml packet of milk cost Sh50; but the same quantity has risen to more than Sh70 after processing.

The countrywide drought caused a sharp milk deficit, necessitating the price increase. According to Langat, the farmer’s cost of production increased too, but the companies never raised the payment.

Milk in major towns like Nairobi is costing about Sh95 per litres if one buys from automated teller machines.

The hawkers, who are in the rural area, are offering more than Sh60 for every litre of milk for sale in Nairobi and other towns. This is almost double what the dairy companies are offering farmers.

“I stopped buying dairy meal. It was too expensive for me. Hay, which cost about Sh170, has risen to over Sh400. How do I recover my money if I continue selling to the dairy companies?” he posed.

Although the rains are falling and pastures are regenerating, the farmer said, once the cost of production comes down, and the milk is in plenty, he will go back to the dairy companies. He says farmers have turned to this informal market to reap from the high demand.

Langat sells 26 litres on average per day from his three hybrid cows.

The yield has dropped by half since the drought struck the country from September 2016.

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