Tanzania, Kenya agree to increase production of wheat

Dar es Salaam. Tanzania and Kenya have agreed to boost wheat production as the two countries seek to find a lasting solution to recurrent trade wars between them.

The two countries have repeatedly found themselves in trade wars that have seen them exchanging trade bans on several occasions.

In April for instance, Kenya banned Tanzania’s wheat flour despite from accessing its market.

The country also banned cooking gas imports through the Kenya-Tanzania border on the disguise of safety and quality concerns.

Tanzania reiterated by prohibiting tyres, cigarettes, margarine and fermented milk imports from Kenya.

At the height of trade wars, Presidents John Magufuli and Uhuru Kenyatta met in July and agreed that the two countries should end the restrictions.

The two countries also agreed to set up a joint technical committee chaired by the Foreign Affairs ministers and comprising the EAC Affairs, Trade, Finance, Interior, Energy, Agriculture, Transport and Tourism ministries and any other relevant government agency.

The committee, which met in Dar es Salaam recently thus agreed to come up with measures that would prevent the recurrent of other trade wars in the future, including the need to boost wheat production.

According to the Principal Secretary in Kenya’s Department of Trade, Ministry of Industry, Trade and Cooperatives, Dr Chris Kiptoo, apart from boosting wheat production, the two countries will also come up with policies that will compel businesspeople to trade in locally produced wheat before they think of going outside the country.

“Demand for wheat in Kenya currently stands at 1.5 million tonnes per year while the country is only capable of producing 300,000 tonnes. The country thus imports 1.2 million tonnes expensively,” he said.

The Permanent Secretary in the Ministry of Industry, Trade and Investment, Prof Adolf Mkenda shared similar sentiments, noting that boosting local wheat production will be the lasting to repeated trade wars, orchestrated by millers who import the product outside East Africa so it can be milled and sold across the region.

“Currently, Kenya produces 300,000 of wheat while Tanzania produces only75,000. I believe as Tanzania, we have the potential to produce more than that so deliberate efforts must be directed towards boosting local production,” he said.

By joining forces with Kenyan producers, Prof Mkenda is hopeful that things will improve.

“Luckily, millers have said they will buy all the locally-produced wheat first before they start importing the product. This will be good news to farmers, some of whom have not yet sold what they harvested,” he said.

According to the director for corporate relations from Bakhressa Group of Companies, Mr Hussein Sufiani, Tanzania’s locally produced wheat is less than 10 per cent of what the market demands, noting that increased production will be good for all parties.

“It has always been our policy that we will buy the locally produced wheat first before we set our eyes on importing….we are determined to buy all the locally produced one even with the planned production boost,” he said.

During the discussions, Tanzania presented a total of 15 grievances that it sees barriers to trading in Kenya while the latter tabled 16 issues that needs redress.

Tanzania’s demand for wheat is more than 700,000 tonnes per annum. To bridge the deficit, the grain is imported. Although the country has vast tracts of fertile land for crop cultivation, it is grown on only 96,000 hectares.

It is understood that Tanzania’s agriculture is mainly rain-fed and many of the growers are smallholders who are poorly equipped. Poor investment in rainwater harvesting, irrigation, fertiliser, infrastructure and technical support are constraining farmers.