Commodities
Uganda assures Kenya on supply of cheaper eggs as prices increase
Friday February 10 2023
A man transporting live chicken and eggs in his motorbike along Thika Highway. FILE PHOTO | NMG
Uganda has assured Kenya that it can supply cheaper eggs in the coming weeks as the landlocked nation has managed to address the high cost of the commodity that had seen traders cease imports after the price shot through the roof.
Uganda’s Minister for Agriculture Frank Tumwebaze said the high cost had impacted negatively on production, limiting the supply of eggs in the regional market.
Kenya relies on imported eggs from Uganda to stabilise the price of the commodity locally given that the ones produced here are very expensive.
Read: Egg price falls 20pc as post-Covid recovery increases supply
“The price of maize, which is a key component in making raw material, had shot up significantly but it has now dropped by 60 percent, this will see the cost of production drop in the coming days,” said Mr Tumwebaze in an interview in Nairobi.
The price of eggs locally has shot up significantly from a low of Sh380 a tray in December to a range of between Sh450 and Sh520 depending on whether one buys from local shops or major supermarkets.
Stakeholders have attributed the sharp rise in shortage locally due to the high cost of production that has seen a good number of farmers cut on output.
In Uganda, the cost of a tray of eggs has shot from Sh205 in December to Sh308 currently, making it difficult for Kenyan traders to procure stocks there as they will have to incur another cost in transport, making it expensive when it gets to the country.
The Ugandan minister said Kenya and Uganda are at an advanced stage of trade talks that would eliminate non-tariff trade barriers in agriculture commodities that have impacted effective trade between the duo.
“Soon, a trade agreement will be reached that will allow increased trade between our countries in areas where we have disputes,” he said.
Kenya has been embroiled in a trade war with Uganda in some commodities such as milk since 2020. The dispute is yet to be resolved.
Locally, the prices of animal feed are due to fall in the next few months after the government allowed millers to import duty-free yellow maize.
Kenya has opened a duty-free window between now and December to allow millers and traders to ship in the commodity for processing of feeds with the view to lowering the cost.
Read: Egg prices jump 25pc on taxation
The price of a 70-kilogramme bag of layers marsh is selling at Sh4,500 from Sh3,800 in April last year, chick mash is going for Sh4,940 from Sh4,200 while dairy meal is selling at Sh2,850 from Sh2,500.
