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02 August 2016

Sudan war pushes down tomato prices as farmers incur losses


With renewed conflict in South Sudan, which is a vibrant market for various commodities from Uganda, farmers and traders are already feeling the pinch.
This is because the prices for most foodstuffs, such as tomatoes, which they export up to Juba, have dropped, as the market can no longer be accessed.


Created a monopoly
John Ntege, a tomato farmer in Bwetyaba village, in Kayunga Sub-county, Kayunga District, says the prices which rose in June to Shs170,000-Shs200,000 a box, fell after the war broke out in South Sudan. The price for a box of tomatoes now ranges from Shs50,000 to Shs80,000.
“The conflict in South Sudan cut off our main export market, creating a monopoly for traders from Kenya and a few local traders, who have since exploited us by lowering the prices,” notes Patrick Musaazi, another tomato farmer in Bukolooto, Kayunga District.


Effect of dry spells
During the dry spell last year, a box of tomatoes was Shs230,000. However, he adds, they cannot refuse a lower price given their perishability.
This is compounded by lack of proper storage facilities. “The prices have reduced in spite of a short supply on the market. The long dry spell that has been raging since May has devastated the gardens, leading to low yields.”
Farmers have incurred heavy losses because of the fall in prices as they had invested a lot in watering, mulching, fertilisers and pestcides.
However, Ntege is optimistic that prices will rise soon as there are a fewer farmers with tomatoes.
“There will be a rise in price by mid next month, a box of tomato could go up to Shs250,000 because a few farmers can afford to irrigate their crops,” he notes.
Doreen Auma, a trader from Kenya says the slump in prices is partly due to fewer traders willing to buy tomatoes as those who export them to Kenya have taken a temporary leave from business.


Explore opportunities
Vegetable traders say that despite advice by the Trade, Industry and Cooperatives minister Amelia Kyambadde to explore opportunities in other countries, such as Burundi, Rwanda and Tanzania, as they wait for the dust to settle in South Sudan, those markets are not as vibrant and viable.
“The foodstuffs market in South Sudan is good because the climatic conditions don’t favour agricultural activities in the country as much as in Rwanda , Tanzania and Burundi,” explains Tom Wakwale, an exporter.
Other than tomatoes, Uganda’s trade with South Sudan includes cereals, milling products (maize flour, wheat flour), sugar, iron and steel, cement, beers and soft drinks, motor vehicle re-exports, vegetable oils and soap and lubricants.


fmuzale@ug.nationmedia.com




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