Just the other month tomatoes were expensive and hard turned into a luxury to many who could not afford them. In less than a month, the same product price is retailing at ksh 1. Per piece in open markets, an equivalent to ksh 20 per kilo. A kilo of red bulb onions retailing at ksh 200 in January is now going for ksh 40.
My greatest pain and wonder is, If this are the retail prices what are the farm gate prices? For sure, the farm gate price for most produce is below ksh 10 per kilo. A huge loss to farmers.
How is this happening while we have low production going on? Low purchasing power is the main cause of the low food prices experienced currently. Consumers have little disposable income to buy in bulk. They are only buying what can sustain them for that day. In return, sellers are forced to lower prices to avoid dead rotten stock.
There are plenty of vegetables in the market from small-scale farmers. This has played a great role in reducing the demand and hence prices.
Check out This:Onions, cabbages and other crops not to plant in August
Supermarkets have lowered vegetable prices below mass-market prices. This has simplified work for consumers by getting everything under one roof. A spot check at Carrefour showed onions and tomatoes were cheaper than in mass some markets.
In the end, most farmers have quit farming and are no longer in production. This means low purchase of farm inputs and Job losses in the whole production chain.
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