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Maize Prices Drop as Supply Surges: June Report Highlights Market Trends

254 by 254
August 6, 2024
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Maize farmers have witnessed a notable shift in the market, with the national average wholesale price for a 90kg bag of maize falling from Sh3,450 in May to Sh3,250 in June.

According to the Food and Nutrition Security Report released by the State Department of Agriculture, this decrease is attributed to favorable weather conditions, increased supply, and market dynamics.

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The report indicates that the highest wholesale prices were observed in Bomet, Busia, and Kwale, at Sh4,500 per 90kg bag, while Trans Nzoia and Uasin Gishu counties reported the lowest prices, at Sh2,500 per 90kg bag.

The report attributes the price decline to the good maize production in 2023. By the end of June, the average retail price for a two-kilo packet of unga was Sh129 in Nairobi supermarkets.

The maize balance sheet projected a surplus of approximately 28.3 million 50kg bags by the end of September 2024. This projection is based on carryover stocks of 35.2 million bags in June and an estimated 1.35 million bags in forecasted imports over the next three months.

The report notes that about 20.5 million bags, planted in January, are expected to be harvested from low-altitude counties such as Bomet, parts of Narok, Nyamira, and parts of Migori.

The improved crop production in 2023 and increased local supplies have led to a decline in imports of basic staples. Since March 2024, maize imports have been decreasing, with June’s imports dropping further from 516,151 bags in May to 389,778 bags, compared to 633,555 bags in March.

The report highlights that most maize imports came from Tanzania, with significant amounts also from Uganda. From January to June 2023, a total of 7.9 million bags were imported, whereas only 2.5 million bags were imported during the same period in 2024. This trend indicates that the government’s goal of reducing import dependency is being achieved.

Food security improved in June, with most staple foods readily available in households and markets. The prices of basic staples, especially cereals and pulses, continued to decline as farmers released previously stockpiled goods into the market. However, prices for some commodities, like cabbage, spinach, and kale (sukuma wiki), saw a slight increase compared to May.

In June, long rains seasonal crops were advancing towards maturity across all counties. The report notes an increase in the consumption of green maize in Nyanza and eastern regions, with harvesting of pulses enhancing household food security. Conversely, the southeastern lowlands and coastal areas experienced a dry spell, causing crops to mature faster or dry out. In other parts of the country, crops remained in good condition, with efforts to control fall armyworm continuing in areas where maize was in late vegetative stages.

Tags: BometBusiaFood and Nutrition Security ReportKwaleMaize farmers
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