Potato price crash in Kenya slashes returns for producers

Junio 23, 2011
In Kenya, Potato farmers and traders are bracing for lower returns after a bumper harvest prompted a price crash, easing consumer anxiety over the rising cost of living compounded by a shortage of maize.

Favourable weather in potato growing areas has seen prices drop from Sh5,600 for an extended bag at the beginning of the year in Nairobi to a low of Sh1,400 per bag in Nakuru, turning the market in favour of buyers after four months of suppliers dictating the prices.

The National Potato Council of Kenya (NPCK) said the price crash arose from the perishable nature of the commodity as well as failure to enforce the 110-kg per sack standard.

“Farmers with excess produce compete to sell as much as possible and avoid wastage. If you do not sell, somebody else will,” said NPCK operations manager Kevin Kinusu.

According to him, some farmers were not breaking even with present prices.

Traders in Nairobi said the oversupply was from all major producing regions including Molo, Kinangop, Nyahururu and Narok. In these areas, the price has fallen by 50 per cent to Sh2,000 per bag.