In recent times, Kenya has encountered an onion shortage due to heavy rainfall in Tanzania, impacting the primary supply source. This situation has altered market dynamics, providing Kenyan farmers with leverage to set prices. The scarcity has shifted control from brokers to producers, marking a significant change in the local agricultural sector. According to Mr Joseph Waiganjo, a Laikipia County farmer, this period has allowed Kenyan growers to demand better prices, especially from Tanzanian and other East African buyers. The shortage in Tanzania, caused by adverse weather conditions, has escalated competition among buyers, elevating demand for Kenyan onions across the region.
Moreover, the fluctuating exchange rate between the Kenyan and Tanzanian currencies post the 2022 General Election has introduced additional challenges, as noted by Mr Charles Wambugu, a Nairobi-based exporter. The stronger Tanzanian shilling has made imports more expensive for Kenyan traders. Additionally, Tanzanian onions are preferred due to superior agronomy practices, as highlighted by exporter Mr James Maina, which contrasts with the rapid cultivation methods employed by some Kenyan farmers. Despite these challenges, the disrupted supply chain from Tanzania has forced Kenyan importers to purchase local onions at higher prices, creating a profitable situation for Kenyan farmers, who are now selling their produce at significantly elevated rates.
However, this boon for Kenyan growers comes with its own set of challenges, including logistical issues associated with sourcing produce from small-scale farmers and fluctuating prices due to varying demand.
Source: theeastafrican.co.ke
Photo source: Dreamstime.com
