Kenya projects wheat surplus amid fluctuating imports

The wheat balance sheet has a surplus of 13.4 million 50kg bags, the June Food and nutrition security report has shown.

The report says the private sector will import six million 50kg bags in the next three months.

Kenya relies on importation to sustain its wheat market.

“The quantities of imported wheat vary from time to time depending on demand and supply forces. Wheat and related products are more sensitive to inflation and consumers disposable incomes. Since most wheat is imported from European countries, global trade factors affect wheat imports,” the report says.

It says the quantity of imported wheat imported in June decreased to 2.22 million(50kg) bags. This is compared to 6.87 million (50kg) bags imported in May and three million (50 kg) bags of April.

The quantities of imported wheat have been fluctuating from month to month. In May had the biggest percentage (65%) of wheat imported from Russia.

“Due to bad weather in Russia and the insecurity in most sea routes, part of the April consignment was combined with May, hence the high total volumes,” the report says.

“Furthermore, during the month of May, the government introduced two percent imports levy on cereals and pulses, which took effect from July. The introduction of the levy caused panic among the cereal millers and traders and could partly explain the increased imports before the July deadline.”

The food and nutrition security report revealed that due to limited local production, Kenya is highly dependent on imported wheat, with an average monthly import of 1.65 million 90kg (or 2.97 million of 50kg bags).

On the wheat conditions in the long rains, the food and nutrition security report indicated that wheat is at planting to early vegetative stages in the northern rift counties.

Planting in North Rift is mainly in May to June and about 60 per cent has been done. In Narok and Nakuru counties, the crop is at vegetative to tillering stages and in good conditions.

Wheat is mainly grown in Narok, Meru, Uasin Gishu, Trans Nzoia, Laikipia, Elgeyo Marakwet, Baringo and Nyandarua counties.

Tags: Market, Kenya, quantities, wheat, imports