WEST AFRICA – The Food Agriculture Organisation (FAO) has predicted a surge in staple food prices in West Africa markets, adding that the forthcoming surge will have a far negative impact on essential foods such as rice, maize, millet, cereals, amongst others.
According to the report by FAO, the expected increase is due to a combination of factors, including reduced production, trade limitations, and global geopolitical influences.
Additionally, these developments pose potential challenges to both the accessibility and affordability of food in the region, demanding close attention from policymakers and the public alike.
The escalation of food prices, the report elaborated, was largely driven by the impending hike in staple foods, global inflation, escalating food prices, month-on-month headline inflation which reached 2.09 per cent last month, marking a 0.35 percentage point rise from October’s 1.73 per cent.
Furthermore, the report underscores that staple food prices currently surpass the five-year average across the region.
FAO also revealed that this surge is expected to impact Nigeria and other West African nations.
The report also emphasises that Nigeria’s annual inflation continues to climb, further exacerbated by the recent removal of fuel subsidies.
It predicts that prices will likely remain above average due to restricted production, sustained demand, limited humanitarian assistance, ongoing trade disruptions, and prevailing security and socio-economic challenges within the region.
Global Cereal Price Index rose in December: FAO
The Food and Agriculture Organization (FAO) of the United Nations, on Jan. 5, reported that Cereal Price Index for December 2023 reflected a 1.5% increase from the previous month of November, despite grain prices having declined sharply since the beginning of the year.
According to the report, wheat, corn, rice and barley prices all rose, partly reflecting logistical disruptions that hindered shipments from major exporting countries.
The FAO Food Price Index tracks monthly changes in the international prices of a set of globally traded food commodities,
According to the report, the index averaged 118.5 points in December, down 1.5% from November and down 10.1% from December 2022.
For 2023, the index was 13.7% lower than the average value over the preceding year, with only the international sugar price index higher over the period.
However, for the year, the index was 15.4% below the 2022 average, reflecting well supplied global markets, although FAO’s All Rice Price Index (part of the FAO Cereal Price Index) registered a 21% increase, largely owing to concerns about the impact of El Niño on rice production and export restrictions imposed by India.
The report noted that after falling for four consecutive months, wheat export prices increased in December, supported by weather-related logistical disruptions in some major exporters and tensions in the Black Sea amidst solid demand.
World corn prices also strengthened in December, underpinned by concerns about Brazil’s second crop plantings, and logistical constraints hindering shipments from Ukraine. Among other coarse grains, world prices of barley increased, while sorghum prices decreased slightly.
Meanwhile, the benchmark for world food commodity prices declined in December compared to the previous month, with the sharpest drop in international sugar quotations.
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