Sat 27 Feb 2010

RATIN WEEKLY MARKET REPORT: 21st-27th Feb. 2010  

	Maize14th - 20th	Wk 21st -27th	Bns14th -20th	Wk 21st   -27th	Rice14th 20th	Wk 21st -27th	Wht14th 27th	Wk 21st -27th	Sorgh14th -20th	Wk21st- 27th	Millet14th -20th	Wk 21st -27th
ARU	285	286	902	902	977	978	519		364	370	455	465
BUS	0	263	0	658	0					263		658
DAR	376	390	909	902	939	940	526	527	416	418	639	640
ELD	277	290	733	735					486	515	512	588
IRIN	376	376	902	902	902	903	676	677	526	527	601	602
KLA	158	152	497	511	867	868			326	295	497	496
KIG		214		463		1085				374
KSM	343	353	660	658					396	397	645	647
MBY	316	316	749	743	811	826	568	573	338	338	503	504
MBS	308	309	642	639					462	463	679	679
NRB	308	309	616	629					399	397	660	662
NKR	323	324	660	662			396	397	414	397	675	676
SOG	300	283	752	752	1127	1218	451	451	421	422	451	451

Commodity Trade: Maize grain continued to attract the lowest prices in Kampala as compared to the other Eastern Africa Markets as the month of February drew to a close. There has been a downward trend in the prices of the commodity since the beginning of the year largely attributed to a good harvest that was registered in many parts of Uganda from the last season.  At $152 per MT, this price is less than half what the same amount of maize was fetching in markets in Dar-es-Salaam. Barring logistical costs, it is hoped that traders in the region will move to take advantage of this increased supply to trade within the region.

This drop in maize prices which reflects between 40-50% from the December 2009 levels has come as a real blow to farmers who have to rely on middlemen to offload their produce. The situation in Tanzania is rather different with a metric ton of maize consistently going for $370-$410, from late last year. This follows crop destruction by late heavy rains early this year, thus affecting supply.

Except for sorghum and millets that are largely produced in Tanzania, the other commodities that are monitored through the RATIN network attracted higher prices in Tanzanian markets of Arusha, Dar-es-Salaam, Iringa, Mbeya and Songea. The price of beans for instance in Dar, was $902 as compared to $497 and $616 in Kampala and Nairobi respectively.Market to market comparison however shows minimal changes of between 0-5% between the third and fourth weeks of February.

Many analysts are agreed that there is a great potential for trade in the region but governments must move with haste in order to catalyze cross border trade by facilitating the removal of both tariff and non tariff barriers to trade in order to encourage cross border trade. There is also need for a regional food security strategy that will help cushion countries currently facing deficits. As the Eastern Africa Grain Council’s executive director, Ms Constantine Kandie put it, ‘it is regional policies that assume the form of export and import restrictions and bans and seasonal pricing and marketing controls that are stifling trade.” These policies are developed from individual country plans based on what is available within the borders, as opposed to availability in the region.Such policies distort production and discourage investment in the value chains and perpetuate food shortages.

It is hoped however that efforts currently spearheaded by the EAGC and USAID-COMPETE to develop a regional food balance sheet will help the region harmonize the food availability reports. Meanwhile, stakeholders in Tanzania are gearing for a one day workshop on EAC Maize Quality Standards in Dar -es-Salaam on 10th March 2010. The objectives of the workshop sponsored by the USAID Competitiveness and Trade Expansion Program (COMPETE) in collaboration with the Eastern Africa Grain Council (EAGC), are to increase awareness of EAC standards, to learn how to apply these standards, learn the skills of testing for these standards and to design approaches/methodologies of implementing the standards. This program is expected to help bring about uniformity in the standards of grain (trading) in the region.