Feed Manufacturers To Import Duty-Free Yellow Maize

The government will next year allow animal feed manufacturers to import 350,000 tonnes of duty-free yellow maize for a period of one year.

Agriculture cabinet secretary Mithika Linturi said the move is aimed at cushioning Kenyans from the high prices and easing pressure on white maize which has also hit a historic high.

“The government will waive duty on yellow maize imports for animal feed manufacturing for a period of one year,” said Linturi.

Feed millers had urged the government to extend the importation of duty-free raw materials to three years when the supply of basic animal feeds raw material will stabilize. The millers argued that the extension would give them more options of where to source the commodity, especially yellow maize and Soya given the global price variance which impacted local prices.

Raw materials for feed in Kenya including cereals, soybeans, and oilcake are imported from the East African Community and Common Market for Eastern and Southern Africa (COMESA) member states such as Uganda, Zambia, Malawi, and Tanzania. This is because of the low tariffs, geographical proximity, and GE-free products.

The Association of Kenya Feed Manufacturers chairman, John Karuri said the prices on the global market have eased and they are likely to get the product at a fairer price.

“The prices of yellow maize are now stabilizing and we are expecting to procure it at a good price that will see the cost of feeds come down by February next year,” said Karuri.

Feeds account for over 70 percent of the cost of production for eggs and 50 percent of milk production. When the prices are high, it means the prices of these products are also high. So hard hit are the dairy, beef, pig, and poultry farming sub-sectors.

Currently, a 70kg bag of a dairy meal has shot to 2,800 shillings, layers mash to 4,500 shillings, and broiler starter mash to 4,750 shillings from 2,400, and 3,800 shillings respectively. On average, raw material prices have gone up by about 30 to 60 percent.

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