Kenya with less corn after drought

Published May 16, 2017

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Nairobi - Kenya’s

reserves of corn dropped to less than a day’s worth of consumption after stocks

of the staple grain were released to millers, the National Cereals and Produce

Board said.

The reserve currently stands at 50 000 90-kilogram bags,

equivalent to 4 500 metric tons, NCPB Managing Director Newton Terer said by

phone Tuesday from the capital, Nairobi. The board released about 36 000 tons

to millers last week, he said.

The NCPB is awaiting information from the Agriculture

Ministry about how the reserve will be restocked, Terer said, declining to

comment further. Agriculture Secretary Willy Bett on Tuesday cancelled a second

briefing in as many days that had been scheduled to discuss food security in

the East African nation.

Agriculture Ministry Principal Secretary Richard Lesiyampe

didn’t answer his mobile phone when Bloomberg called seeking comment. Kenya had

insufficient rain in crop-growing areas in March and April, the Kenya

Meteorological Department said Monday in a preliminary assessment of the

March-May so-called long rains.

Read also:  Kenya inflation rises 

Most weather stations reported receiving less than 75

percent of their seasonal long-term average, it said. “The depressed rainfall

over most agricultural areas in the country has resulted in poor crop

performance and even crop failure in some regions,” it said.

Depleted Reserves

Kenya consumes about 288 000 tons of corn per month,

according to the Cereal Millers Association, an industry body. Of that, about

135 000 tons is packaged and sold by millers, CMA Chairman Nick Hutchinson said

in an interview on Tuesday.

Reserve corn sold to CMA members for 3 000 shillings ($29)

per 90-kilogram bag was enough for only 8-12 days and insufficient to drive

retail prices down, the industry body said last week. Millers are now forced to

buy from the market for almost 50 percent more.

Supply from Ethiopia

is limited and costs 4 200-4 400 shillings per bag, according to CMA. Zambian

imports that were yet to leave the southern African nation last week will

probably sell at similar prices. While some shipments from Mexico are already at the port in Mombasa, the berthing of

the first vessel will only take place on May 17 if the rainy weather permits,

according to the statement. It could take as long as two weeks for that grain

to reach millers.

“What NCPB gave us is peanuts,” Hutchinson said Tuesday,

adding that authorities should be clear on when fresh imports are expected. “Do

we get maize or not?”

BLOOMBERG

 

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