Uganda food prices collapse in wake of pandemic

Farmers in Uganda have produced a bumper harvest, but disruption of transport and reduced demand for their crops has led to a collapse in food prices.

Agriculture continued throughout the coronavirus pandemic, but now farmers are being forced to sell their produce at almost giveaway prices, because shops and traders have cut the amount of food they are buying.

It is common to see food dumped around marketplaces and farms in Uganda, as prices of fruit and vegetables are half what they were five months ago.

Dr James Kanyije, the Chief Executive of KK Fresh Foods, which exports food to Europe, has told the BBC that the industry has been hit hard by rising costs and disruptions to transport.

He is especially concerned about the high costs of sending food to Europe by air cargo.

“The exports and prices of food have fallen due to high costs of flights into the European Union and the demand yield has been affected by late movement of products due to transport,” he said.

He also reminded us about the impact of telling people to stay at home, as part of measures to contain the spread of COVID-19.

“In April it was almost 90 percent reduction due to total lockdown of all transport means.”

Mr Kanyjie is also hopeful of recovery for exports of food when aviation is fully reopened, saying “it will only increase when the airports and all value chains are reinstated across the world.”