Unga prices to remain high as millers dismiss NCPB maize

By , K24 Digital
On Tue, 23 Jul, 2019 08:00 | 2 mins read
NCPB silos. Photo/File
Nicholas Waitathu @PeopleDailyKe

Millers have not collected 414,000 bags of maize from the National Cereals and Produce Board (NCPB) depots, one month after they were allocated the stock.

At the same time, maize flour and animal feed prices have not eased with millers saying the quantities allocated are not enough to warrant a price decrease.

Strategic Food Reserve Oversight Board (SFROB) Secretariat yesterday confirmed that millers who were allocated maize on June 7 are yet to collect the same for the production of flour and animal feeds.

“Out of the total two million bags, we have so far allocated 1.5 million bags to millers and processors for production of maze flour and animals feeds and 414,000 bags had not yet been collected from NCPB depots as at end of last week,” said Omar Salat, the head of SFR secretariat.

He said some millers allocated did not have enough cash to pay for the stock or they had maize in their premises which had not been exhausted.  

Once the 414,000 bags are collected, NCPB stores will be left with two million bags which can only be enough to feed the country in terms of flour and animal feeds for one month.  

The country consumes 4.2 million bags every month in terms of flour, animal feeds and Githeri among other uses.

Salat said to ensure every stock is allocated, the board has started reallocating the same maize to other millers. 

Some millers have delayed collecting the maize, claiming it is discoloured and thus will require fresh white maize for mixing. Some also do not have the capacity to mix the flour.

Currently, millers and traders are importing maize from Tanzania and soon imports are expected from Uganda.  

But Strategic Reserve board Chairman Noah Wekesa dismissed the claims, saying millers knew what they were applying for when an advertisement was placed in the local media.

A spot check by People Daily showed that prices of stocks in most retailers and major supermarkets have not stabilised prices as expected, as the current price ranges between Sh110 and Sh124 with most common brands -Pembe, Soko, Jogoo and Jimbi retailing at an average of Sh122. 

Animal feeds

Animal feeds increased by Sh300 for a bag in April this year, pushing up the cost of production to farmers. The retail price of a 70kg pack of chick mash shot up to Sh3,600 from Sh3,300 while growers marsh sold for Sh3,100 from Sh2,800 previously.

Increases were also recorded in the price of a standard dairy meal, which has been selling at Sh4,500 up from Sh4,200 recorded early in the year. 

This has led to the closure of companies manufacturing animal feeds.  The Association of Kenya Feed Manufacturers yesterday confirmed that feeds prices are still high as the supply of maize is low. Out of the two million bags, the government released last month, 300,000 bags were meant for animal feeds production.

The agriculture ministry said the market requires a lot of maize stocks for the prices to ease below Sh110 per 2kg maize flour packets.

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