SH300 INCREASE

Animal feed prices go up as maize release delays

Feed manufacturers have paid the governmen Sh1 billion without maize release.

In Summary

• Out of 200 small millers, 50 have closed shop due to maize shortage.

• Supremacy war between SFR and NCPB delaying release of two million bags.

Maize stocks at NCPB Eldoret depot
DWINDLING: Maize stocks at NCPB Eldoret depot
Image: MATHEWS NDANYI

Animal feed millers have paid Sh1 billion to the government for maize but they are yet to receive supplies three weeks down the line.

Association of Kenya Feed Manufacturers secretary general Martin Kinoti said millers have paid for maize that they cannot access it and this has affected their businesses.

“Millers have got no cash at the moment to buy maize from the market given that they paid in the hope that they would get the grain from the NCPB shortly after,” he said.

 

Kinoti said the shortage of maize in the country has led to an increase in maize prices and this has escalated the cost of animal feeds by Sh300.

A bag of maize in the market has gone up to a high of Sh3, 900 to Sh4, 000.

There is a tug of war between the Ministry of Agriculture, the Strategic Food Reserve and the National Cereals and Produce Board which has delayed the release of two million bags of maize to millers. Out of this, feed millers were supposed to get 300,000 bags.

Grain Mill Owners Association secretary Peter Njuguna said out of 200 millers who are members of the association, 50 have closed shop due to the shortage. This has affected over 1,000 employees.

He said if the government does not take immediate action, more millers will close down and this will impact on livestock production.

“The cost of production will increase and this will affect the prices of milk and eggs in the market,” Njuguna said.

He said Kenyans also risk running out of flour in the next couple of days if the delay continues.

 
 
 

Njuguna further said the maize at NCPB is in a bad state and further delays are compromising its quality.

“At some point, we shall decline to take that grain on account of quality, which is deteriorating. We can say with certainty that our flour is going to be out of the shelves in the next couple of days if the maize is not released immediately for milling,” he said.

The millers have petitioned top government officials including Cabinet secretaries in charge of Interior, Agriculture and Irrigation and National Treasury on the issue.

“We have also served Aden Ali Sheik, chairperson Agriculture Committee, chairman Strategic Food Reserve Oversight Board Noah Wekesa, chairman NCPB Mutea Iringo and National Security Intelligence Service boss Philip Kameru," Njuguna said.

"We would also want to urge the government to expedite the process of imports of both white and yellow maize because the available stocks can only last up to July." 

(Edited by R.Wamochie)

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