Competition on wheat supply heats up after Kenya allows America to start exporting wheat

Competition on wheat supply heats up after Kenya allows America to start exporting wheat

February 27, 2020 0 By mykenyancareers
close up of wheat 326082 - Competition on wheat supply heats up after Kenya allows America to start exporting wheat
The move comes at a time when wheat farmers have petitioned the government to protect local producers from imports that have flooded the market/COURTESY

NAIROBI, Kenya, Feb 27 – Kenyan wheat farmers should brace themselves for
increased competition after the United States was granted permission to export wheat
to Kenya.

US Secretary of
Agriculture Sonny Perdue announced Tuesday that Kenya had agreed to lift a ban
on US wheat, following a deal between President Uhuru Kenyatta and his American
counterpart President Donald Trump.

The decade old
prohibition had locked out states such as Idaho, Oregon, and Washington from
shipping to Kenya.

The move
therefore gives America access to a market worth well over Sh50.4 billion.

“American
farmers in the Pacific Northwest now have full access to the Kenyan wheat
market,” said Greg Ibach, U.S. Department of Agriculture (USDA) Under Secretary
for Marketing and Regulatory Programs.

“This action
proves our commitment to securing fair treatment and greater access for U.S.
products in the global marketplace,” he added.

  • Farmers’ problems

The move comes
at a time when wheat farmers have petitioned the government to protect local
producers from imports that have flooded the market.

In January, Kenya Farmers Association Director Kipkorir Menjo said their harvest was being threatened by imported tonnes of wheat adding that they only contribute to 20 percent of what is consumed in the country annually.

Kenya produces
an estimated 350,000 tonnes of wheat annually, against annual consumption needs
of up to 900,000 tonnes, hence relies heavily on imported wheat.

Locally, the amount of wheat produced rebounded last year attributable to good weather conditions.

Experts are yet to determine whether the current locust outbreak will interfere with the amount of wheat produced this year.