Prices of animal and human feed are set to rise further in the coming months as shortages of raw materials continue to bite.
Unga Group #ticker:UNGA is the latest to warn of inadequate supplies of a wide range of commodities including maize, wheat, and soybean.
Millers are struggling with low supplies of the staple maize, in particular, a move that has seen the price of a two-kilo packet of flour jump to a high of Sh126 from Sh108 in December.
“Raw material prices are expected to remain high for the rest of the financial year (ending June 2022),” Unga said.
“This may worsen the already soaring human food and animal feeds price situation.”
Kenya households are set to feel the impact of rising cost of flour as maize stocks from Tanzania and Uganda, which play a significant role in checking high prices in the local market, are dwindling.
Capwell Industries CEO Rajan Shah said a decline in volumes from these two countries would add pressure on prices that have so far hit a high of Sh3,500 from Sh2,700 in December for a 90 kilo bag of maize.
“I can project that in the next two weeks if we don’t get good stocks from Uganda and Tanzania and if local farmers restrain from releasing their produce to the market, then the price of flour will be impacted negatively,” said Mr Shah.
Food security monitor report by Africa Food Trade and Resilience Initiative indicates that South Sudan is among the four regions in the continent where half of the population do not have access to food in what has seen available maize stocks in Uganda head to the neighbouring country.
Animal feed manufacturers have also decried a decline in supply of raw materials.
“We continue to lobby for sustainable raw material solutions through policy changes such as approval of GMO (genetically modified organisms) raw materials especially for animal feeds,” Unga said.“Though the government has allowed duty-free importation of non-GMO raw materials, high global prices have not made importation a viable option yet.”The miller added that a global shortage of soya bean pushed prices to unprecedented levels in the six months ended December. gandae@ke.nationmedia.com