Rice and corn production drops 11.5% – AFEX
Nigeria's commodity market player AFEX has forecast an average production decline of up to 11.5% for commodities such as maize, paddy rice, sorghum and cocoa.
AFEX revealed this on Wednesday at the unveiling of its "Wet Season 2022 Agricultural Production Report". He, however, projected that soybeans and sesame would see an increase of around 6.5% in production levels.
The report was released at a hybrid event held at the AFEX office in Abuja and aimed to provide accurate and reliable data to facilitate understanding of the national food system through the measurement of transaction level by farmer survey.
According to the report, the most widely consumed cereals in Nigeria are currently facing declining food balance sheets, with consumption levels rising relative to production levels, thus exacerbating food insecurity.
The report tracked data for six key commodities and their performance over the previous season. The basic products are corn, paddy, soybeans, cocoa, sesame and sorghum.
He noted that price and market changes for paddy maize, sorghum, soybeans, cocoa and sesame had been affected by both predictable seasonal effects and agricultural value chain as well as macro-economies and broader events.< /p>
Speaking on the data while presenting the report's findings, AFEX Head of Data and Market Research David Ibidapo said higher prices were expected for all commodities in the report.
Specifically, he said maize, which faced an expected decline in production levels of up to 14%, was subsequently expected to fetch a higher average price between N214 .980/MT and N220.000/MT by the end of Q4 2022, compared to an average price of N210.229/MT in Q4 2021.
He also said that the price of soybeans is expected to increase by 6% by May 2023, and that the price increases forecast for commodities in the report were also mainly related to the incidence of flooding resulting from incessant rains in key regions. producing regions.
This, he noted, is expected to increase the gap between farmers' production and production levels.
He also said that the effects of the Russian-Ukrainian crisis were still being felt in the local market for agricultural products, in particular due to the increase in the price of fertilizers.
Please share this story:
Nigeria's commodity market player AFEX has forecast an average production decline of up to 11.5% for commodities such as maize, paddy rice, sorghum and cocoa.
AFEX revealed this on Wednesday at the unveiling of its "Wet Season 2022 Agricultural Production Report". He, however, projected that soybeans and sesame would see an increase of around 6.5% in production levels.
The report was released at a hybrid event held at the AFEX office in Abuja and aimed to provide accurate and reliable data to facilitate understanding of the national food system through the measurement of transaction level by farmer survey.
According to the report, the most widely consumed cereals in Nigeria are currently facing declining food balance sheets, with consumption levels rising relative to production levels, thus exacerbating food insecurity.
The report tracked data for six key commodities and their performance over the previous season. The basic products are corn, paddy, soybeans, cocoa, sesame and sorghum.
He noted that price and market changes for paddy maize, sorghum, soybeans, cocoa and sesame had been affected by both predictable seasonal effects and agricultural value chain as well as macro-economies and broader events.< /p>
Speaking on the data while presenting the report's findings, AFEX Head of Data and Market Research David Ibidapo said higher prices were expected for all commodities in the report.
Specifically, he said maize, which faced an expected decline in production levels of up to 14%, was subsequently expected to fetch a higher average price between N214 .980/MT and N220.000/MT by the end of Q4 2022, compared to an average price of N210.229/MT in Q4 2021.
He also said that the price of soybeans is expected to increase by 6% by May 2023, and that the price increases forecast for commodities in the report were also mainly related to the incidence of flooding resulting from incessant rains in key regions. producing regions.
This, he noted, is expected to increase the gap between farmers' production and production levels.
He also said that the effects of the Russian-Ukrainian crisis were still being felt in the local market for agricultural products, in particular due to the increase in the price of fertilizers.
Please share this story:
What's Your Reaction?
