KENYA – Ongoing onion shortage and price variations have unexpectedly shifted the dynamics of the onion market, giving Kenyan farmers newfound control over pricing, challenging the traditional influence of brokers.
Kenya is currently grappling with a significant onion shortage, primarily attributed to adverse weather conditions affecting its main onion supplier, Tanzania.
Heavy rains in Tanzania have led to a substantial reduction in onion supply, triggering a ripple effect across Kenya’s local market and neighboring countries.
Joseph Waiganjo, a farmer from Laikipia County, sees promise in the evolving market landscape. He notes that increased prices, driven by competition from buyers across East Africa, have allowed local farmers to negotiate better deals.
This departure from the past, where brokers held sway over pricing, is a positive development for Kenyan farmers.
Waiganjo remarks, “The current market situation has given us, the farmers, an opportunity to negotiate better prices. The demand is high, and Kenyan traders are offering competitive rates due to the scarcity of onions in Tanzania.”
Charles Wambugu, an exporter at Nairobi’s Marikiti market, sheds light on the challenges faced by traders amid the ongoing rains in Tanzania.
He highlights the impact of exchange rate fluctuations between the Kenyan and Tanzanian currencies, further complicating the trade landscape. The disruption in supply has created both opportunities and challenges for Kenyan onion farmers.
Wambugu explains, “The rains in Tanzania have not only affected the crops but also led to exchange rate fluctuations, making it difficult for traders to navigate the market. Despite the challenges, the increased demand for Kenyan onions is a silver lining for local farmers.”
While Tanzanian onions are preferred in the market due to superior agronomy practices that contribute to the longevity of their produce post-harvest, the scarcity has led to a substantial increase in prices for Kenyan onions.
This shift presents both opportunities and challenges for Kenyan onion farmers, including difficulties related to bulk buying due to the prevalence of small-scale growers and logistical hurdles in aggregating produce.
Kenya’s onion sector has been on a consistent upward trend. In 2019, Kenya produced approximately 171,036 tons of onions with 17,084 hectares of land dedicated for onion cultivation.
The fresh onion market in Kenya is dynamic, with the HS Code for fresh onions being 070310. Kenya both imports and exports fresh onions, contributing to the overall market share.
While Kenya’s onion production falls short of meeting the high regional demand, neighboring countries such as Tanzania, South Sudan, and Uganda rely on onion supplies from Kenya.
Proper post-harvest treatment and handling allow Kenyan onions to remain in the market for an extended period.
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