Joseph Olanyo
2 May 2008
Kampala — Kenya is to import 200,000 metric tonnes of maize worth over Shs87 billion from Uganda in the next two months to avert the looming food crisis, a food expert has said.
The move is expected to meet the country's current deficit of over 270,000 metric tones (about 3 million 90kg bags) of maize, Kenya's staple food crop.
The Executive Director Eastern Africa Grain Council (EAGC) Ms Anne Mbaabu said on April 28 that a lot of maize was destroyed during the post election violence that hit the country leading to acute shortage of the widely consumed grain.
"We currently have strategic grain reserve of 270,000 metric tones for feeding school children. If we begin eating on this reserve, then it will lead to a crisis," Ms Mbaabu said.
"The 200,000 tonnes we have to buy is just to bring us to the minimum. We could buy more if it is of the right quality and grade."
Ms Mbaabu made the remark in an excusive interview during the launch of Agroways Licensed Warehouse on April 28 in Jinja.
Agroways is the first licensed warehouse to be launched in the country to issue warehouse receipts to farmers with the full protection of the Warehouse Receipt System Act of 2006.
A warehouse receipt is proof of ownership of a stated weight of commodity and that the commodity meets a recognised grade and stored safely. The system gives farmers (sellers) and buyers the comfort and assurance to trade in certainty. Before the warehouse receipt system, buyers and sellers had to rely on trust.
Ms Mbaabu said buying maize from Uganda was cheaper than importing it from outside East Africa. "We would rather buy from our neighbours than going to the world. If I am to buy from Uganda, it's a matter of weeks. But if it's outside, it will take long" she said.
Adding: "Uganda should be feeding the rest of Africa because she has good climate". At currently $260 (Shs434,200) per tonne at Mombasa and the price expected to go up to $300, this would generate export revenue of over Shs87 billion.
Locally, unprocessed and cleaned maize goes for Shs450 and Shs600 per kilo respectively. Maize prices have been rising since late 2007 and early 2008.
The Ministry of Tourism Trade and Industry (MTTI) appointed Uganda Commodity Exchange as the regulatory authority to issue licenses to warehouses. MTTI's Commissioner for Co-operatives Mr Fred Mwesigye said the ministry of trade and that of agriculture will continue to support the development of agricultural commodities, their marketing and trading.
Mr Mwesigye said a key part of development of rural livelihoods through agriculture is for producers to add value to their crops.
"The government's policy is that farmers engaged in trade should strive to use graded commodity. Producers and buyers are strongly encouraged to treat warehouse receipts as the easiest way to trade your commodities," Mr Mwesigye said.
UCE's Chief Warehouse Examiner Mr Valery Alia said the system will be rolled out to other districts starting with Mbale, Kapchorwa, Masindi, Kasese before the end of the year.
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