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Flour mills say huge wheat harvest hard to fully absorb

Posted in Cereals & Tubers

KENYA - Millers say huge quantities of local wheat this year has created unusual pressure, making it difficult for them to accommodate all produce.

Cereal Millers Association chairman Nick Hutchinson says good rains in the year saw farmers’ harvest their crop in large quantities posing logistical challenge to the milling firms.

 “Due to the rains, local harvest is available sooner and in greater quantities than has been in the past. This is placing unusual pressure on the buying end of the value chain,” he said.

Government projections show farmers are likely to harvest more than 350,000 tonnes of wheat this year compared to last year’s less than 300,000 tonnes. Last week, farmers complained millers were not taking in wheat due to large volumes of imports.

Cereal Growers Association (CGA) of Kenya had pointed out imports were making it difficult for local stuff. “When massive importation coincides with the harvesting season, farmers are subjected to low prices on their produce,” said CGA chief executive officer Anthony Kioko.

Kenya is a net importer of wheat with an annual consumption of 900,000 tonnes.

The price of wheat at the international market has been low this year in response to the record global production levels.

November 30, 2015; http://www.businessdailyafrica.com/Flour-mills-say-huge-wheat-harvest-hard-to-fully-absorb/-/539552/2978856/-/hfdhyp/-/index.html