ReliefWeb

The Famine Early Warning Systems Network (FEWS NET) monitors and reports staple food prices in cities and towns in food-insecure countries. The Price Watch presents a summary of key trends in selected markets. Prices for all commodities and markets monitored are available in the Price Watch Annex. FEWS NET gratefully acknowledges the national market information systems, ministries of agriculture, Regional Agricultural Intelligence Network, World Food Program, various projects, foundations, and other partners for their assistance in providing price data.

EAST AFRICA

OBSERVATIONS

In Ethiopia and Kenya, staple food prices were stable or slightly declined in recent months, unlike seasonal trends (although in pastoral areas of Kenya, prices remain elevated). In Tanzania, prices have decreased, in line with seasonal trends.

While prices have been relatively stable in southern Sudan, price in northern Sudan tended to increase between May and June, from levels already well above the fiveyear average. In southern Somalia, prices have generally increased over the first two quarters of 2010

ANALYSIS

In Ethiopia, the marketing of producer stocks and the belg harvest have increased the supply of maize, sorghum, and wheat. The large amount of institutional stocks and various food distribution programs have also contributed to stabilize prices. In Tanzania, the msimu and masika harvests led to lower prices.

While the increase in cereal prices in southern Somalia is somewhat a seasonal trend, it has also been driven by other factors, including low stocks from the previous deyr harvest, the suspension of food aid in the south, and insecurity in the southern and central parts of the country.

OUTLOOK

In Ethiopia, prices are expected to remain relatively stable. In the west, good kiremt rains should lead to a good harvest and increased availability. In the marginal agricultural areas in the east, prices are likely to increase during the meher rainy season as stocks are depleted, the reliance of households on markets rises, and transportation becomes more difficult.

In Somalia, the ongoing Gu harvest for maize, sorghum, and cowpea is expected to be normal to above normal, due to good rainfall. The increase in supply following the harvest is expected to stabilize or lower cereal prices.