Listed flour miller and animal feed company, Unga Group Limited has welcomed the cabinet approval to operationalise the recently promulgated Strategic Food Reserve Regulations, 2023, terming it as a step in the right direction.
The firm’s managing director, Joseph Choge said the regulations will provide a strategic avenue to enhance national food security ideals while strengthening the local food commodity market.
The Operationalisation of the National Cereals and Produce Board (NCPB) – National Strategic Reserve – Regulations, 2023, with a base stock greater than 90,000 metric tons, or three months’ national food requirement of scheduled agricultural produce, Choge said, will help to provide price stability for staple foods.
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He expressed optimism that the Government will consider expanding the National Strategic Food Reserve stocks to include locally sourced value-added pulses and cereals alongside Maize.
“We welcome the Cabinet approval to operationalise the NCPB’s Strategic Food Reserve Regulations as this will provide predictability and price stability. The national food security goals must continue to be strategically handled to avoid unnecessary expenses such as expensive food subsidies in the hour of need,” Choge said.
He added: “As a private sector player and stakeholder committed to supporting the national food security ideals, we welcome this development even as we continue to petition the government to consider expanding the national food reserve base stock to cover other locally sourced food items, including pulses and cereals.”
Expanding the national food reserve beyond “maize base” stock, Choge added, will also have a positive ripple effect on the national agricultural transformation goals. According to the Kenya Economic Survey 2023, the quantity of maize imported rose to 793.8 thousand metric tonnes in 2022 against a local production base of 150.8 thousand metric tonnes.
“To a large extent, a functional National Strategic Reserve will play a key role in bridging the production deficit by providing a market for farmers produce at realistic, market-driven prices,” he said.
According to a Cabinet despatch issued from State House Kakamega on August 29, 2023, the Cabinet also sanctioned the warehouse receipt system’s expedited implementation.
“Additionally, and in keeping with the imperative to realise Food Security, Cabinet authorised the operationalisation of the newly promulgated Strategic Food Reserve Regulations, 2023. Under the framework, the Government will purchase at least 1 Million bags of Maize to be maintained as part of our nation’s Strategic Food Reserve,” the Cabinet Despatch said.
Last month (August), the miller announced plans to capture a larger share of the local packaged consumer staple foods market by re-introducing an expanded range of nutritious products under its Amana brand.
The re-launch of Amana products, first introduced in 2014, is part of a Sh521 million three-year market repositioning project by the firm pursuing a comprehensive food strategy to boost its corporate value and return on investment for its shareholders with a diversified portfolio of
value-added products.
Unga serves as a strategic alliance between Unga Group and Seaboard Corporation, a US-based multinational whose diversified business has operations in North America, Central and South America, the Caribbean, Africa, Southeast Asia, and Australia. Seaboard provides technical support to the millers production operations. Its trading division also provides a platform through which Unga can optimise its procurement of internationally sourced materials and equipment.
