Posted on July, 18, 2019 at 10:57 am
By GERALD ANDAE
Animal feeds manufacturers have warned of further increase in prices as their maize stock is set to be depleted in a week’s time.
The processors say if they do not get more stocks after this week, the prices would further rise, forcing farmers and consumers to absorb the extra cost.
Association of Kenya Feeds Manufacturers chairperson Joseph Karuri said the stocks given by National Cereals and Produce Board (NCPB) are on the verge of exhaustion.
“The prices are expected to go up because of the tight supply of maize in the market at the moment, which has increased the cost of raw material significantly,” said Mr Karuri.
Mr Karuri said processors are currently buying a 90-kilo bag of white maize at Sh4,000 up from previous Sh3,300.
“Once we exhaust this batch of NCPB maize, then be assured that the prices of animal feeds will go up in response to the high cost that we shall be paying for the purchase of white maize,” he said.
NCPB earlier sold the grade three maize to millers at Sh1,600 a bag. Animal feed manufactures were issued with 300,000 bags to ease the current shortage and lower the cost of feeds. The price of a 70-kilogramme chick marsh that was selling at Sh3,300 as late as in April has shot up to Sh3,600 while growers marsh is now going for Sh3,100 from previous Sh2,800. Standard dairy meal is now retailing for Sh4,500 up from Sh4,200.
The association also wants the government to move with speed and resolve the stalemate that has threatened the import of maize following sharp differences between the Agriculture ministry and the Strategic Food Reserve.
Whereas the ministry said the country will import 12.5 million bags, the Strategic Food Reserve board has opposed the move saying there is only need to ship in two million bags.
The ministry had indicated that out of the 12.5 million bags, two million would be yellow maize meant for animal feeds.
Source: Business Daily