AFEX, Africa’s leading commodities player, has launched its 2023 Crop Production report, foreseeing a surge in commodity prices attributed to a decline in production and rising demand for processing and exports.
The comprehensive report which was launched Thursday in Abuja captured six key commodities (Maize, Paddy Rice, Soybean, Sorghum, Cocoa, and Sesame).
The report as obtained by The PUNCH used farmer surveys and transaction-level data measurements to offer crucial insights into crop production, price trends, and market dynamics.
AFEX anticipates an increase in prices across all commodities, with Paddy Rice experiencing a notable upswing of 34 per cent in the 2022/2023 season.
Factors contributing to this surge include increased flooding and the India rice ban. The baseline pricing of N353,000/mt (per metric ton) is expected to rise to N400,000/mt and stabilize at N480,000 to N500,000/mt by Q3 2023, the report noted.
Highlighting food insecurity and a historic high food inflation rate of 30.64 per cent, the report identifies a 5.7 million metric ton shortage in Nigeria across human consumption and agro-processing.
Here are some key findings:
Nigerian farmers are rapidly adopting improved inputs such as high-yielding seeds and fertilizers compared to last season.
The report highlights food insecurity and food inflation as a major challenge for Nigeria, with a 5.7 million metric ton shortage across human consumption and agro-processing and a historic high food inflation rate of 30.64%.
The report forecasts an increase in prices for all commodities on the basis of a general due to increasing demand across processing and exports.
Demand for Paddy Rice has increased due to the ban on Indian rice. But this has also increased its price by 34% and a baseline pricing of NGN353,000/mt, which is expected to rise to NGN400,000/mt.