Food Price Index dips 1.3% in August

NaijaAgroNet:

The global food prices have dipped in month of August as a result of prospect from bumper cereal harvests expected for larger grain inventories, reports NaijaAgroNet.

The Food and Agriculture Organisation (FAO) Food Price Index made available to NaijaAgroNet, indicated a decline of 1.3 per cent from July assessment, thus averaging 176.6 points in August.

The drop, NaijaAgroNet reported, was largely driven by a 5.4 per cent decline in the FAO Cereal Price Index, reflecting a sharp fall in wheat prices as the outlook for production in the Black Sea region improved.

FAO raised its forecast for global cereal production to 2 611 million tonnes, an all-time record. Worldwide stocks of cereals are also expected to reach an all-time high by the close of seasons in 2018, according to the latest FAO Cereal Supply and Demand Brief, also released recently.

The new estimates reflect larger anticipated wheat harvests, as improved production prospects in the Russian Federation more than offset downward revisions made for Canada and the United States of America, as well as higher maize and barley outputs in Brazil and the Russian Federation. Global rice production in 2017 is also now forecast to reach a record high, according to FAO. 

Isaac Oyimah/GEE

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Food crisis looms in Namibia

NaijaAgroNet

A major food crisis may occur in the northern communal areas of Namibia by the end of August, says the Crop Prospects, Food Security and Drought Situation Report, NaijaAgroNet can authoritatively reveal.

This has prompted Namibian government to contemplate importation of about 210 000 tonnes of cereal to ensure food security to cushion effects of the 2013 and 2015 droughts which occasioned poor harvests in these regions.

NaijaAgroNet also reports that sections of the country worse affected by the drought were the Kavango East and Kavango West regions which indicate a reduction of 80per cent below average and 73per cent lower than last season’s harvest.

As a country, NaijaAgroNet gathered, the national coarse aggregate production (maize, millet, sorghum and wheat) is estimated at 67 800 tonnes, reflecting a substantial decrease in the harvest of about 46 per cent below the average production and 49 per cent lower than last season’s harvest.

The report states that although maize production in the commercial areas recorded about 36 700 tonnes this season, over 92 per cent of this total came from irrigation projects, and dry land maize only contributed about 8 per cent of the total, while Pearl millet production showed a decrease of over 74 per cent below average and 65 per cent less than last season, NaijaAgroNet learnt.

“Sorghum production has also showed a significant decrease and is estimated at 79 per cent below the average production and 60 per cent lower than last season. Wheat is a winter crop and production thereof is ongoing. The harvest estimate for wheat is provisionally forecast at 12 700 tonnes. This reflects an increase of 21per cent above the average production and 23 per cent higher than last season,” the report says.

 “In contrast, the current domestic cereal domestic availability is only about 28 per cent of the cereal requirements; hence a shortfall of 234 000 tonnes is required to cover the shortfall. This consists of 59 800 tonnes of wheat, 118 100 tonnes of maize and 56 100 tonnes of pearl millet and sorghum.”

Cyriacus Nnaji/GEE

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