NUTS AND OIL. CROPS SECTORConsumer Price Indices and Inflation Rates for December 2022 ‘The inflation rate as measured by the Consumer Price Index (CPI) was 9.196 In December 2022; a decrease from an inflation rate of 9.596 recorded in November 2022 as shown in Table 1. “The fise in inflation was largely due to increase in prices of commodities under food and non-alcoholic beverages (13.8%); transport (13.0%) and housing, water, electricy, gas and other fuels (6.2%) be- ‘ween December 2021 and December 2022. “The CPr increased by 0.5% from an index of 128.31 | in November 2022 to 128.99 in December 2022. Re- fer to Figure 1 and 2 for more deta Table 1: Overall CPt and Rates of Inflation POPPPOPP CPOE Figure 2: Annual inflation Rate (5) PPLE POPEEE EE. ‘Consumer Price Index for specific Scheduled crops Relative to November 2022, prices of tomatoes, cas- ‘sava and groundnuts increased by 7.2%, 2.4%, and 23% in December 2022, respectively. During the ‘same period, prices of poteto (rsh, french beans, ‘carrots, dry peas, dry maize, beans, sweet potatoes, ‘dry onions, green grams and avocado dropped by 15%, 8.1%, 7.236, 6.1%, 41%, 2.8%, 2.3%, 1.3%, Seeezuuness) NFLATIONWheat Market Outlook Consumers continued paying more on wheat products for the remainder of 2022 as the cost drop projected eater in October did not occur. This was despite the fact thatthe cost of wheat a the Intemational market has dropped toa low of USD 390 a ton, but Kenyan millers had made thelr purchases in April 2022 at higher rates of USD 540 a ton. “The milers had contracts that were entered in April 2022, forthe crop that was delivered in August 2022 were. ‘based on the prevaling higher prices at the height ofthe Russlan-Ukranian war that impacted negatively on prices, The country has mainly been receiving wheat from Canada, Australia, and Latvia. Kenya received the first ship of wheat fram Ukraine on October 2022, marking the maiden consignment since the war broke out. “The price of wheat started skyrocketing at the end of February 2022 after Russia invaded Ukraine, cutting the supply of produce from the two countries. Refer to Figure 3 below for more details. Figure 3: Average Retail Prices for 1 kg Wheat Flour Year 2022 120 100 80 Kes 60 40 20 Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec — kes 79 78 80 87 93 104 105 106 107 108 108 109Sugar Industry Performance [Total sugar production during the period under review was 199,450.00 tons, representing 16% upsurge from] {the quantity produced in the same period 2021. During the quarter, the month of October 2022 recorded the Irighest sugar production at 74,082 tons while December 2022 had the lowest production, after 7 percent de- cine from 64,984 tons realized in November 2022. [Total sugar sales in the period under consideration was 194,995,00 tons, with November recording the highest ‘sugar sales at 69415 ton. “Total sugar imports in this quarter stood at 96,588 tons representing 24% decline from 126,593 tons imported| uring the same period, 2021. The fall in the volume of sugar imports is explained by the increase in local | sugar production in the period under review. During the review quarter, November registered the highest quantity of sugar imports at 48,012 tons con pared with 13,933 tons imported in October 2022, posting a 245% Increase, ascribed to rising local demand in| anticipation of bumper sales in December festive season. Is worth noting that C.F value of imported sugar was KES/Ton 81,319 in November compared with CLF va \ue of KES/Ton 83,631 that were observed in October 2022, thus imports cheaper in November 2022, ‘The total tonnage of sugar exported in the period under review was 114 while 817 tons were exported in 2021's slic pvo, transiting to 86 tons dene, Low sugar expo strut othe fc that Kenya 3 se producer and thus mos her production targeted to lol consumers. sugar Prices He average Exacary pce ofa Sky bog of suger was Nahestn December t KES 6,717, an 8% fom kes 6.236 recorded in Noverber 202, Adonaly, the average wlesle sor pce fro kg bag fl stony to KES 6044 n December rom KES 7,49 in Noveber while the etal peor ky sugr reduced by| [KES 271 fo KES 157.72 n November to KES 15501 December, For more dearer to Table 3 and (Figure 4.Sugar Industry Performance Table 3: Performance of sugar industry from October to December 2022 (Oct-22 Now-22 Source: AFA = Sugar Directorate Figure 4: Sugar Production and Imports (MT) from October to December 2022 80,000 70,000 60,000 50,000 40,000 30,000 20,000 10,000 0 Oct-22 Nov-22 Dec-22 g i 3 2 3 oct-22 Now22 Dec-22 s=Production (MT) 74,082 64,904 50,384 = Import (NT) 13,933 48,012 34,643 ‘Source: AFA Sugar DirectorateSisal Sub-Sector ‘was a drop in the volume of sisal exported in October ~ December 2022 as compared to the volume of] sisal traded in same period in 2021 by 438.10 tons, translating to 6% decine. Export value In Q2 2022 was however higher by KES 178 488,683.59 than the value collected during same period in 2021 due to a slight in- crease in price per ton of various sisal grades in the period under review. Refer to Table 4 below for more de- tals, ‘Table 4: Volume and Value of Sisal Exports 2.37: 17, {ésaiiot Vireao Laer sae os 8 ‘Source: Fibre Crops Directorate Sooo A aie Fe lallNuts and Oil Crops Sector [Tec of pt tpt ben Gas wi [np Voter cerve122 v ie ompre to hepa viene || rere gee par fms nl ns nese by Sfesane pr yer, Ts nas Sie atewee mon || Sg gute npr nas aol one nsw | ne ea de et of ASR 520 K.P || aes nah te apd kw peo ene oy ft Tate Sb, {Re'cougieexperencad a mot pare ofthe county ths Table: rade of ate ad OW Cpe oles) lesan wo tre resem inper for is pera ett Te Sie Ew fre Gai TRADE; VOLUME TN KGS nest ono (i on ober net import 39 820871.7-] ioe ams inion ‘Source: Huis and Oil Crops Directorate Re eimennie ee ee Export Volumes ss ‘hare was a 44% decrease inthe volume of export po- cei 2022 fo the patio under revit, aso ores ‘on in davai the ntematonal markt. Rfer o Table 6 er Ser canard ta the | eget po pats 9 125,332,017". Boss ol flowed dose with 2 red "seo ach month for teas quarter Rafer to Table 9 below es for more cts Eecmprcrmion ees oka prs (aa aa “Teble 7 blow shows the deat of nuts and of oops experts for ta rofen quater. The wlume of exoted macadamia fats eradsly rose tem tha month ef Octobe trough | Decor, contig the lgest proportion of exports fr the pate ude even. Faure 5 below shows the conposton of the diferent ol ‘coos di the arte, Soya Ban ol eorruted the lowest “ep Boe ngygggagadNC HU ENSUE NCE NY & Se Le) ae)