Mon 8 Mar 2010

RATIN WEEKLY MARKET REPORT: 1^st -6^th March 2010  

    

	Maize21st -27th	Wk 1st –6th	Bns21st   -27th	Wk1st6th	Rice21st -27th	Wk 1st6th	Wht21st -27th	Wk1st-6th	Sorgm 21st- 27th	Wk1st-6th	Millt21st -27th	Wk1st-6th
ARU	286	293	902	896	978			448	370	374	465	471
BUS	263	368	658	899					263	448	658
DAR	390	289	902	766	940	930	527	523	418	516	640	635
ELD	290	368	735	896					515	523	588	651
IRIN	376	146	902	542	903	941	677	672	527	292	602	598
KLA	152	213	511	462	868	854			295	373	496	488
KIG	214	354	463	663	1085	1084			374	398
KSM	353	281	658	747		1155			397	336	647	648
MBY	316	294	743	634	826	825	573	560	338	465	504	501
MBS	309	324	639	678					463	398	679	688
NRB	309	306	629	663					397	398	662	663
NKR	324	266	662	444			397	398	397	391	676	660
SOG	283	281	752	837	1105		451	448	422	418	451	478

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 and into the first week of March. 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 $147 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 price reflecting between a drop of between 40-50% from the December 2009 level 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 $900 as compared to $562 and $681 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.