Posted on September, 26, 2022 at 09:19 am
Animal feed producers who imported yellow maize in bulk last month are staring at losses after the price of local white maize fell below that of their imported stock, leaving them struggling to find buyers without taking a price hit.
A 90 kilogramme bag of the imported yellow maize is selling at Sh5,600 against Sh5,300 that white maize is selling locally.
Large-scale millers had imported the yellow maize for their own use and for sale to other small-scale feed manufacturers who did not have the financial muscle to ship in the grain. At the time of importing, local grain was selling at Sh6,000 per bag.
The higher cost means that even if they process the yellow grain into feed, they would still require to sell it at a higher price than what other millers using local white maize are selling, making their product uncompetitive in the market.
“Millers who imported yellow maize are now stuck with it because it’s expensive to sell it locally when compared with available white maize at the market,” said Joseph Karuri, chairperson Association of Kenya Feed Manufacturers.
The situation could get worse as farmers in some parts of the country are about to start harvesting the main season crop, meaning that the cost of the produce will drop even further, subjecting millers in possession of the yellow maize to massive losses.
Source: Business Daily