AFEX, Nigeria’s main commodities market operator, released its 2022 Wet Season Crop Production Report on Wednesday, projecting an average fall in production of up to 11.5% across commodities such as maize, paddy rice, sorghum, and cocoa.
It does, however, anticipate a 6.5 percent increase in soybean and sesame production levels.
According to the company’s report, Nigeria’s most consumed grains are currently facing decreasing food balance sheets as demand levels climb faster than production levels, creating food insecurity.
The report was unveiled in a hybrid event held at the AFEX headquarters in Abuja, and it aims to give accurate and trustworthy data to enhance knowledge of the national food system through farmer survey assessment at transaction level.
The data from six essential commodities and their performance in the previous season were tracked in the Report. Maize and paddy are the commodities. Soybeans, chocolate, sesame, and sorghum are a few examples.
It stated that price and market changes across maize paddy, sorghum, soybean, cocoa and sesame have been affected both by predictable seasonal effects and activities in the agricultural value chain as well as larger macroeconomic and events.
Presenting the Report’s findings, AFEX’s Head of Market Data and Research David Ibidapo, stated that higher prices were forecasted across all commodities in the report.
Specifically, he said maize which faces a projected decline in production levels of up to 14 per cent is subsequently projected to reach a higher average price point ranging between N214.980/MT and N220.000/MT by end of Q4 2022. compared to an average price of NGN210.229/MT in the fourth quarter of 2021.
Also, he said soybean price is projected to rise by six per cent by May 2023, adding that the projected price hikes across commodities in the report were also tied majorly to incidence of flooding resulting from incessant rainfall in key producing regions.
This, he added, is expected to heighten the gap between production and output levels by farmers.