Listed food-processing firm Unga Group has announced it will sell sugar as part of its growth plan that involves an expanded range of products portfolio.
This is in addition to its primary products of maize, wheat and porridge flour.
The sugar will be sold under the firm’s brand ‘Amana’ which was launched in 2014 and currently features pulses including yellow, black, rosecoco and nyayo brands of beans alongside green grams, basmati and pishori rice.
The expanded portfolio will also include long grain rice, and soon pasta, which will progressively be introduced to the local market, the firm said.
The decision to tap into the sugar market comes amidst decry of the state’s influence in the cereal industry, especially the maize flour sector that has seen prices for the staple commodity hit highs of Sh200 per 2kg.
Unga Group chairman Isabella Ochola said they have tried to see the cost of unga back to its normal but in vain, mainly because of the unhealthy competition for the limited maize stocks for animal and human feeds.
“We have witnessed a shortage in maize production in the past one year because of uneven rainfall patterns and increased cost of inputs for production," Ochola said.
"The government’s step to import more grains and subsidise fertiliser for farmers to boost the stocks and increase production, respectively, was well welcomed.”
However, the importation of both white and yellow maize without clear guidelines on the purpose of each variety has made efforts to lower prices futile.
"The strive to strike a balance between using the maize for human and animal feeds has had adverse implications on the available stock, making it scarce thus unable to meet the market demand leading to increased prices," Ochola said.
She added that Kenyans do not like the yellow maize flour for their ugali anyway, urging the government to consider classifying imported white maize exclusively for human consumption and yellow maize for animal feeds.
State Department for Crop Development PS Phillip Harsama who was present gave a nod to the petition saying the classification will reduce the prevailing raw material pressure for both human and animal feeds as both compete for white maize supplies.
"The government is also encouraging farmers to grow alternative animal feed and edible oil crops to bridge the current local production deficit," Harsama said.
According to the firm's managing director Joseph Choge, the move to tap into the new range of products is banking on the growing demand for nutritious foods.
“As a fully integrated foods business engaged in the manufacturing, processing, and trade of food products, we sought to create value propositions that inspire moments of togetherness,” Choge said.
He added that the firm is aligning its growth plans to emerging market trends inspired by changing dietary needs and increased demand for nutritious foods.
“The demand for quality nutritious packaged staple foods including pulses, cereals and related products in the local retail market is growing at a rate of more than 30 per cent annually due to increased health consciousness."
