East Africa maize trade down by 8pc in Quarter 4 of 2018

Harvested maize. The commodity trade volume within East Africa fell during the fourth quarter of last year, compared with a similar quarter in 2017. PHOTO | FILE

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  • Maize trade among East African countries shrunk by eight per cent during the fourth quarter of last year, when compared with similar quarter of 2017, the new regional report has said.

Dar es Salaam. The East African region traded an estimated 111,000 tonnes of maize grain during the fourth quarter of last year, eight per cent lower than a similar quarter in 2017.

According to the East Africa cross border trade bulletin for January 2019 by the regional Grain Council, the seasonal decrease in maize trade was attributed to high maize availability among most countries in the region, following the October-to-December harvests.

Uganda, Tanzania and Kenya accounted for 57 per cent, 32 per cent and nine per cent of the total exports respectively. The main destinations for the regional exports were Kenya, South Sudan, Rwanda and northwestern Tanzania, which accounted for 56 per cent, 17 per cent, 15 per cent and nine per cent of the total respectively.

The seasonal reverse flow of maize from Kenya to northwestern Tanzania including the major markets of Musoma and Mwanza, attracted a seven per cent price premium because the Kenyan maize was well dried, sorted, and packed in standard 90kg bags, thus reducing costs to Tanzanian millers.

According to the bulletin, maize exports from Uganda to South Sudan surged by 167 per cent above the recent five-year average level, as staple food businesses started expanding in Juba in expectation of implementation of the 2018 Peace Agreement.

Still traders were capitalizing on high turnover with minimum storage due to high risks in the market.

Exports to Rwanda from Uganda and Tanzania were also above average because of a structural deficit in production amidst growing demand for maize and flour for domestic consumption and re-exports to the eastern Democratic Republic of Congo (DRC).

Meanwhile, maize grain prices have been below $300 per tonne in most countries in the region and Kasama in Zambia, except for the deficit producing countries of South Sudan and Burundi (Bujumbura) which are in a poor economic situation.

“The prices are expected to follow seasonal trends and enhance more exports from Uganda to other regional markets because of lower prices and surplus availability from two seasons of production every year,” the bulletin states.