RIBA CAPITAL

Friday, April 25, 2008

:::RISING FOOD PRICES:::

The cost of food is rising globally and Kenya is no exception especially after the interruptions recently we might be hit even harder. Case in point I buy a litre of milk @ 11 rands which translates to about Kes: 44 per half litre. Anyway, the effects r much wider goin to bread, cereals, fruits, vegetables etc. One of the reasons is definitely commodity trading where traders are speculating heavily with food including buying in volumes and holding this waiting for prices to rise therefore reducing supply. However, thats just one side of it. Bio fuels are also shifting supply and focusing production on corn and sugarcane etc. Making farmers to stop producing other crops. But a positive is that there plans to open a commodity exchange in the country bringing the benefits of higher prices close to the farmer.

posted by Riba Capital at 4/25/2008

3 Comments:

  • Haiya, so you are back in SA?
    Hope all is going well...

    my hope is that this situtation with the prices and looming drought will be a wake up call for GoK to re-organise agriculture so we can mass produce maize and other grains such as beans, rice and wheat as well as potatoes.

    No news on REITS unfortunately

    By Blogger MainaT, At 5/07/2008 12:51 PM  

  • Everybody is talking about the food crisis. I talked to mama-mboga in my estate and to say i was impressed with her vast knowledge of the food crisis will be an under-estimation. lol!

    BTW; long time bana. Almost thought post election took you away.

    By Blogger ka-investor, At 5/12/2008 3:35 PM  

  • hope you are safe down in South Africa bro. They laughed at us when we had our problems after election and used any opportunity to show how bad it was for tourists to come here for a holiday. Funny how the dog has turned round and bit their asses big time!!! they thought that they were holier than thou but guess what? It'll hurt them as much as it did to us or maybe worse with everyone saying FIFA should move world cup elsewhere. We Kenyans won't laugh at them and play dirty tricks like they did to us. Instead, we wish them well and we forgive them:-)

    By Anonymous Super Delegate, At 5/23/2008 1:23 AM  

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