Africa Economy: Kenyan maize farmers lose earnings due to cheap imports

Maize imports from neighboring countries into Kenya through cross-border trade remain high despite bumper harvest and drop in prices in the East African nation.

Traders in search of low prices continue to import tonnes of maize into Kenya each day, particularly from Uganda. Other cereals being shipped in include sorghum, millet, rice and beans, according to data from Regional Agricultural Trade Intelligence Network (RATIN) received Friday.

The Kenyan traders, according to RATIN, are importing over 1, 500 metric tonnes of maize from Uganda each day, mainly through the Malaba, Busia and Lwakhakha border points in western Kenya.

The price of the produce in Kenya averages 26 U.S. dollars per 90kg bag as set by the National Cereals and Produce Board (NCPB) last month when it started buying farmers' produce.

In Uganda, according to traders, the price is lower by about 4. 4 dollars, making traders to sustain the inflows through cross- border even as farmers in Kenya grapple with market.

Kenya's Ministry of Agriculture set the 26 dollar price per 90kg bag following a glut in the East African nation. Farmers had expected at least 33 dollars per bag.

On Thursday, according to RATIN, which is run by the East African Grain Council, Kenyan traders imported over 1,917 metric tonnes of maize through the Busia, Malaba and Lwakhakha border points.

The inflows were a considerable increase from the previous day, where the traders imported 1,110 metric tonnes of maize through the three border points, with over 1,000 metric tonnes coming in through Busia.

Farmers in Kenya have pleaded with the government to control the importation of the produce from neighboring countries to curb drop in prices.

They said continued importation of cheap maize, particularly from Uganda, has made it difficult for them to sell maize for profit. Among those buying maize from Kenya's neighbors are millers.

"The government should control cross-border inflows to make maize farming a profitable venture. Every season things are worsening because farmers are forced to dispose their maize at a loss," Joseph Kipkoech, a farmer in Uasin Gishu, said in a recent interview.

Before NCPB started to buy farmers' maize, the price of the commodity in Kenya's breadbasket regions had dropped to 11.1 dollars per 90kg bag as traders massively imported the produce from Uganda, anticipating to sell it to the government.

Kenyan farmers, according to the Ministry of Agriculture, produced about 40 million bags of maize last season, with NCPB buying only 3 percent of the produce for its strategic grain reserves.

This means a lot was left in farmers' hands, which they have to dispose at lower prices affected by cheap imports.

Bernard Moina, an agricultural extension officer in Kitale, noted cheap imports from neighboring countries, including Tanzania, are a big problem to Kenyan farmers.

"Currently in Kitale a 90kg bag of maize is being sold at 17 dollars or lower. Those farmers who did not manage to take their produce to NCPB are making losses," said the officer.

He said that it is hard for Kenya to control cheap imports from Uganda and Tanzania because there is free trade between the countries.

"What we need to do as a country is to bring the cost of production lower to compete favorably with our neighbors," he said. Endi