FAO Food Price Index: food price posts sharpest decline since Dec

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ROME, ITALY — Prices of global agricultural food commodities declined sharply in July, led lower by steep drops in dairy and sugar, according to the Food and Agriculture Organization of the United Nations.

The FAO Food Price Index averaged 168.8 points in July, down 3.7% from June and down 3.7% from the same period a year ago.

According to the FAO, the decline marked the first significant month-on-month decline in the value of the index since December 2017, reflecting notable drops in the values of all sub-indices.

The FAO Food Price Index is a measure of the monthly change in international prices of a basket of food commodities.

The FAO Cereal Price Index averaged 160.9 points in July, down nearly 6 points, or 3.6%, from June and 1.3 points, or 0.8%, below its level in the corresponding period last year.

“The decline in July was driven by weaker export quotations for wheat, maize and rice,” the FAO noted. “International wheat prices were generally weaker during the first half of the month, but concerns over production prospects in the E.U. and the Russian Federation started to push export values higher toward the end of the month.

“In coarse grains markets, maize prices remained under general downward pressure, largely on weak demand and good production prospects in the United States. However, similar to wheat markets, maize values made solid gains toward the end of the month, on weather worries and a faster pace in export sales. International rice prices also fell, pressured by frail demand for Indica and fragrant varieties as well as currency movements in some leading exporters.”

The FAO Vegetable Oil Price Index averaged 141.9 points in July, down 4.2 points, or 2.9%, from June. The decline marked the sixth consecutive month in which the index has moved lower, and at 141.9 points it was at a two-and-a-half year low, the FAO said.

“The latest slide mostly reflects weakening values of palm oil and soy oil,” the FAO said. “International palm oil prices fell further under the influence of sluggish export demand, ample stocks held by leading producing countries, and expectations of higher production in the coming weeks. As for soy oil, the fresh drop in prices was largely driven by spill-over weakness from the soybean market and persistently high crushing rates in the United States, supported by attractive crush margins. On the other hand, rapeseed oil values trended upward, underpinned by improved demand from biodiesel producers and negative crop prospects in the E.U.”

The FAO Sugar Price Index averaged 166.7 points in July, down 6% from June and nearly 20% lower than a year ago, while the FAO Dairy Price Index averaged 199.1 points, down 6.6% from a month ago and 8% below the same period in 2017.

Source: WORLD-GRAIN.COM

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The Africa Green Revolution Forum: Agri-entrepreneurs should take full advantage

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The Africa Green Revolution Forum (AGRF) is due to take place in Kigali next month and organisers will not come empty headed.

Smart agri-business entrepreneurs might walk away from the forum with a financial windfall of between $100,000 and 5 million to invest in value addition.

Adding value to agricultural produce has been one of Rwandan farmers’ main weaknesses as many lacked the skills and the money to venture into the trade.

But going around local stands at the ongoing Rwanda International Trade Fair, things are changing. It is quite heartening to see young entrepreneurs leading the way in transforming their produce to manufacture an array of products.

Food technology is slowly picking up with many Made-in-Rwanda foodstuffs on supermarket shelves, packaging and marketing have improved tremendously but there is more room to do more.

Though local financial institutions are reluctant to finance agricultural ventures – because of unreliable weather patterns and national catastrophes – they could at least follow in AGRF’s footsteps and help fund produce transformation targeting the local and export markets.

Local agri-business persons could help allay the banks’ fears of the risk factor by taking full advantage of the AGRF opportunities.

Financial offers in agri-business do not come every day and it is an opportunity to show that value additions is one of the most lucrative part in the food chain. Maybe that will convince local financial institutions that they been holding the shorter end of the stick by failing to take a more active part in financing agri-entrepreneurs.

Source: The New Times

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INTERNET OF THINGS: Why technology will disrupt and transform our agriculture

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Agriculture is critical to some of Africa’s biggest development goals. The sector is an engine of job creation. Farming alone currently accounts for about 60 percent of total employment in sub-Saharan Africa, while the share of jobs across food system is potentially much higher.

At the same time, Africa’s agriculture sector is facing mounting challenges.

Africa’s population, which is projected to rise by 1.3 billion by 2050, will further strain her food system. This will require a 70 per cent increase in food production. Besides increasing productivity, such efforts require to be augmented by ensuring minimal food losses and efficient supply chain management.

ICT SOLUTIONS

The food security challenge will only grow as climate change intensifies, threatening crop and livestock production. If no adaptation occurs, production of maize –Africa’s main staple crop – could decline by up to 40 percent by 2050.

Expanding the land that is under cultivation has boosted African agricultural production in the past, but is has come at an environmental cost. Moving forward, the focus must be on intensifying production on agricultural land sustainably without harming the environment.

Technology in agriculture is expected to play a major role in agricultural growth in the developing world as many ICT solutions have proven affordable to small holder and resource poor farmers that make up about 80 per cent of the farming community in the region.

INTERNET OF THINGS

So clearly business-as-usual farming is not the right way forward.

Whether it is satellites that provide accurate climate data, Internet of Things – computer devices interconnection via the internet enabling them to send and receive data, devices like smartphones, or cutting-edge innovations like blockchain (a decentralised, distributed ledger used to record transactions across many computers) digital technology could be the game-changer in boosting agricultural productivity and building resilience in a sustainable way.

Various development partners and research institutions are incorporating precision technology into their agriculture projects around the world. For example, World Bank is exploring internet-enabled smart irrigation devices that combine automated soil water sensors and cloud-based data analytics which will boost crop yields while cutting water use.

DIGITAL GREEN

In Kenya, there is a pilot project on the use of big data from remote sensing and GIS-enabled technologies to support the implementation of agro-weather analytics that enable accurate weather monitoring and dissemination of climate information to smallholder farmers.

This data enables smallholder farmers to know how and when to apply inputs for optimal results. The pilot will be rolled out in October under the World Bank-funded Kenya Climate Smart Agriculture Project.

All over the Africa, startups and other institutions are leveraging digital technology in transformative ways.

In Nigeria and Kenya, Hello Tractor is reversing the trend of low mechanisation by allowing farmers to hire affordable tractors to work their land, using their mobile phones. Solar refrigerators are helping dairy farmers in Kenya cool their milk products and reduce spoilage. About1.2 million farmers in Ethiopia, Ghana, Malawi and Niger are learning best farming practices through engaging videos from Digital Green – a low cost way to deliver agriculture extension.

FOOD SAFETY

There is more in the horizon. The much-hyped block chain technology could expand rural finance by making financial transactions more accessible and less expensive and create more transparent and efficient system that allows farmers and others throughout the value chain to manage their supply chain more efficiently.

The technology can be applied directly to the grain trade and also expanded into other agricultural commodities. This allows for identification and removal of bad actors and poor processes and ensures ideal conditions from farm to market, and we can pinpoint source quickly in the event of a food safety outbreak.

FARM TO FORK

Blockchain technology can also be used to open new markets to farmers. The premise here is that if we can create trust and accountability among market players, there is reduced need to evaluate each person individually on their trustworthiness and ability to execute.

Throughout Africa, technology–led transformation of agriculture sector is already underway, from farm to fork. As technology improves and becomes more widely available, disruption in agriculture promises to accelerate. East African counties – notably Kenya, Rwanda and Uganda – are among those leading the way. Mobile phone penetration across the East Africa has been unparalleled.

The time is right for East Africa to leverage this mobile platform to harness its digital innovations to enable countries to achieve their agricultural potential through efficient use of resources (soil and water) to increase productivity and attain inclusive growth.

Mr Gecheo worked as an ICT and Media Advisor to the Cabinet Secretary of Agriculture and is a Member of the Universal Service Advisory Council of the Communication Authority (nmageka@gmail.com)

Source: Daily Nation

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Cooperatives in Tanzania insist on coffee auction to stop smuggling

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Coffee farmers and co-operatives in Tanzania will, starting this month, sell their produce only through the annual coffee auctions to benefit from the growing global coffee market and to stop the rampant coffee smuggling to neighbouring countries by individual growers.

The annual auction is scheduled to take place in Moshi this month under the supervision of the Tanzania Coffee Board, the official auctioneer and growers are required to sell their produce only through farmers co-operatives. The selling of coffee directly from farms has been banned.

The announcement was made by the Agriculture Minister Charles Tizeba when he met Uganda’s Minister of State for Co-operative Unions Frederick Ngobi Gume this week in Kagera. They resolved to monitor cross-border trade and smash the coffee smuggling rings.

Mr Tizeba said that the annual coffee auctions are properly planned to ensure that farmers are paid at market price for their crop.

Middlemen in Tanzania have been blamed for the low prices and late payments, forcing farmers to seek alternative markets. Apart from Uganda, farmers in the Kilimanjaro and Arusha regions are said to smuggle their coffee to Kenya.

Tanzania is the fourth coffee-producing country in Africa — after Ethiopia, Cote d’Ivoire and Uganda — with an annual crop ranging from 46,000 tonnes to 60,000 tonnes.

The Kagera Region alone produces about 12,131 tonnes of coffee annually, a third of which is reported to be illegally sold in Uganda due to unpredictable prices in Tanzania.

On average, Tanzanian coffee fetches Ush2,000 ($0.5) per kilo, against Tsh1,460 ($0.6) on the local market.

However, production has dropped in the past 10 years and Mr Tizeba said that the government has plans to to revive the sector by encouraging use of inputs, introduction of pests and disease resistant varieties and setting up small and medium-scale processing plants — and better marketing.

Coffee was once once a leading foreign currency earner for Tanzania, and currently accounts for about five per cent of total exports by value, generating $100 million (Tsh220 billion) annually.

SOURCE: THE EAST AFRICAN

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Seed producers advised to form cooperatives to ensure remunerative prices

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GERMAN: Project Leader of Indo-German Cooperation on Seed Development Ekkehard Schroder has advised the farmers producing seed in India to form into small cooperative groups for getting remunerative prices as farmers in Germany are benefiting with similar practice.

In a meeting on the Indo-German seed project held here on Monday with the officials of Telangana State Seed and Organic Certification Authority, TS Seed Development Corporation, Prof. Jayashankar TS Agricultural University, representatives of seed companies and farmers (seed producers) he reviewed the progress of the project.

Farmers from Warangal, Karimnagar, Nizamabad and Mahabubnagar districts attended. When the German officials enquired with the farmers as to what they would require to benefit further, several farmers said they need training on best practices in seed production, although they were being provided information in the form of brochures as part of the project.

Director of TSSOCA K. Keshavulu requested higher cooperation from Germany in seed production since Telangana was the seed bowl of India producing about 70% of paddy seed and 30% of cotton seed required for the country. Indo-German project coordinator S. Saumya also spoke.

SOURCE: THE HINDU

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Uganda moves to scale up commercial cooperation with Ghana

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KAMPALA– Uganda’s new envoy to the Republic of Ghana, Amb. Nelson Ocheger has called for the scaling up of commercial cooperation between the two countries so as to spur investment in agriculture and animal husbandry, mining, fishing and infrastructural development.

Amb.Ocheger stated this while meeting the President of the Republic of Ghana, H.E Nana Akufo-Addo shortly after presenting to the latter, the letters of credence accrediting him as Uganda’s High Commissioner to the Republic of Ghana, with residence in Abuja, Nigeria. The ceremony took place on July 17th, 2018 in Accra.

He said that the March 2018 signing, by both countries, of the Agreement establishing the African Continental Free Trade Area (AfCFTA), provides both countries with opportunity to improve trade relations and challenged all the signatories to the said Agreement to commence discussions on the creation of the continental customs union.

Amb. Ocheger added that the launching of the Single African Air Transport Market (SAATM), by the African Union, is another milestone that Uganda and Ghana can leverage to promote trade relations as well as increase technical cooperation in education, security and exploration and exploitation of oil and gas.

The launching of the Single African Air Transport Market (SAATM), by the African Union, is another milestone that Uganda and Ghana can leverage to promote trade relations

He emphasized that commercial and technical cooperation between the two countries will not only benefit their peoples but should ultimately key into infrastructural, economic and political integration of Africa-an ideal that both President Yoweri Kaguta Museveni of Uganda and Nana Akufo-Addo, do cherish.

In his response, President Nana Akufo-Addo welcomed Amb. Ocheger to Ghana and assured him of his Government’s commitment to accord him all the necessary support required to facilitate the consolidation cordial bilateral relations between the two countries.

He underscored the importance of strong ties between Ghana and Uganda and called on the public and private stakeholders to take advantage of the good relations for the mutual benefit of both countries in particular and Africa generally.

President Nana Akufo-Addo pointed out that the infrastructural deficit experienced in the two countries; and indeed the African continent has militated against intra Africa trade. To this end, he challenged African countries to invest more in road, rail and air transport in order to facilitate economic cooperation between and amongst African countries and sub regions.

The meeting was attended by officials from the government of Ghana and Uganda High Commission in Abuja

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Low maize prices worry MPs, government tasked to prevail over falling prices

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Members of Parliament are worried about the low maize prices in the country and have tasked government to explain the reasons behind the price stagnation.

Hon Pentagon Kamusiime (NRM, Butemba County) told Parliament that his constituents are concerned of the impending poverty because of the sustained poor prices of maize.

“I come from an agricultural area where we largely depend on crops and animals but now a kilogram of maize goes for shs200; the people I represent are being pushed into poverty,” said Kamusiime.

Kamusiime explained that markets that used to consume maize from his constituency such as Tanzania, Congo, South Sudan and Rwanda were closed, adding that the available markets in Kenya and Somalia cannot consume much of their produce.

He wondered why government through NAADS gives out seeds to farmers but cannot protect farmers from price fluctuations.

Hon Gaffa Mbwatekamwa (NRM, Kasambya County) decried the situation in Mubende district saying “currently in Mubende, one has to sell 50kg of maize to buy one kilogram of meat”. He asked government to come up with a price stabilization fund as it used to be done in the past.

Hon Wamanga Wamai (FDC, Mbale Munic.) urged government to re-introduce silos and regional stores where produce is stored until prices are stable.

“It is prudent that we think about silos and regional stores so that at such a time, government could buy maize from farmers at good prices, store them and later distribute them in times of need,” said Wamanga warning that whereas maize is currently in excess supply, hunger would soon be unavoidable.

The Government Chief Whip, Ruth Nankabirwa, told Parliament that the President had been briefed about the poor maize prices and asked the House to allow Cabinet discuss the matter before government can make a statement to Parliament on Tuesday.

SOURCE: PARLIAMENT

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I have never told you to plant maize –President Museveni

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By BARBRA NALWEYISO

Mityana- President Museveni has advised farmers to grow high value crops that are marketable locally and can penetrate international markets.

He was speaking at a thanksgiving and launch of a Sacco, Kisoboka Foundation, aimed at empowering the people of Mityana North to improve livelihoods.

The President, who was named patron of the group, observed that farmers in Mityana went against his advice of planting profitable and marketable crops when they planted food crops such as maize that can only bring in high returns if grown on big chunks of land.

“I have never told you to plant maize, cotton, tobacco and to rear local breeds. I advised you to plant crops which are marketable like coffee and fruits which are on high demand world-wide,” Mr Museveni said.

He added that other countries stopped importing Ugandan maize because of its poor quality.

Volatile market

The maize market has been volatile with a kilogramme costing as low as Shs300 in some parts of the country compared to last year’s Shs2,000.

In Teso Sub-region, low farm gate prices have left farmers in pain since they are selling eight kilogrammes of maize for a bar of soap.

“You reap what you sow,” said the President.

The Sacco was initiated by the Tourism minister, Mr Godfrey Kiwanda Suubi, who is also the area MP.

Mr Museveni said in the 1980s, the government set up a Price Stabilisation Fund to regulate fluctuating prices where it intervened to set a minimum price through which a given crop could be sold.

The Mityana Municipality mayor, Mr Easter Ndyanabo, inquired about when the Uganda National Roads Authority (UNRA) would complete the construction of the Mityana Station Road that stretches from Buswabulongo Village to Kigogwa and the Kampala –Mityana Road via Kiyinda Mityana.

He appealed to the President to prevail over UNRA to speed up the construction and add more three kilometres to the stretch to save residents from dust.

The President replied: “Pigs don’t need tarmac roads.” He explained further that pigs can still be transported to the market even without tarmacked roads.

The president asked the people of Mityana to seek God first, freedom and wealth.

SOURCE: DAILY MONITOR

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Rwanda agriculture sector to receive multimillion dollar cash injections

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By Jean de la Croix Tabaro

The Kigali Special Economic Zone and the agriculture sector are to receive new multimillion dollar cash injections – courtesy of agreements signed Monday evening in Kigali.

The new financing is part of eight cooperation agreements sealed between President Paul Kagame and his latest guest Indian Prime Minister Narendra Modi. The agreements were signed by ministers on both sides – just less than three hours after Modi landed in Kigali.

The economic zone will get $100m and the other portion will go to expanding the country’s food production. Both are lines of credit.

Six other agreements were also signed between both countries.

They include; cooperation in defense, trade cooperation framework, cultural exchange program, amendment of MoU on cooperation on agriculture and animal resources and a MoU on leather products development. The two sides also penned agreement on agriculture development and education.

After witnessing the signing with his guest, President Kagame said that Rwanda and India have a special bond.

“On the global stage, Rwanda and India share a commitment to peace and security as major troop contributors to United Nations peacekeeping missions,” Kagame said.

“We are pleased that an Indian business delegation has accompanied the Prime Minister. Our respective private sectors will discuss the prospects for collaboration between Rwanda and India at tomorrow’s business summit.”

Kagame thanked Modi for a gift of 200 cattle that will be delivered to Rweru village in Bugesera district this Tuesday. Kagame confirmed that he will accompany the Indian PM to Rweru.

For his part, Modi thanked President Kagame for taking Rwanda from the abyss following the the 1994 Genocide against Tutsi that left more than a million dead. He said Kagame’s “able leadership” is what enabled Rwanda to make it.

Modi said; “It is a matter of pride that India has been an economic partner of Rwanda.”

He added; “We shall continue to contribute to economic development for Rwanda; in financial management, rural development, ICT and agriculture to mention but a few.”

PM Modi promised that his country will increase capacity building support for Rwanda – citing the development of an online syllabus for hundreds of students who have had to travel thousands of kilometers to India for further studies.

On trade cooperation, Modi said a scheduled forum with the business community tomorrow Tuesday, “will help to further trade relations between both countries.”

Indian PM also announced his country will soon open a high commission in Rwanda. The embassy in Uganda also covers Rwanda.

Rwanda has had a high commission in New Delhi for many years, currently manned by Ernest Rwamucyo as envoy.

SOURCE: KT PRESS

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REPORT: Tanzania losing out on intra-Africa trade

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Intra-African trade is estimated to have amounted to $371 billion last year, but Tanzania was not among the major beneficiaries, a new report suggests.

According to the Africa Export and Import Bank (Afreximbank) report, Tanzania is among five countries that registered steep declines in their trading with the rest of the continent last year. Others are Mali, Botswana, Zimbabwe, Gambia and Libya, which collectively account for around 11 per cent of total intra-African trade.

The Afreximbank’s African Trade Report 2018: Boosting Intra-African Trade – Implications of the African Continental Free Trade Area Agreement (AfCFTA) says these economies registered steep declines in trading with their peers, which averaged over 20 per cent.

“The champions of intra-African trade remained largely the same in 2017 as in 2016, with South Africa, Namibia and Nigeria contributing over 35 per cent of intra-African trade. This compares with ten other countries – Zambia, Côte d’Ivoire, Swaziland, Botswana, Zimbabwe, DRC, Mozambique and Kenya, Morocco and Ghana – which also account for 35 per cent of intra-African trade,” reads the report.

Source: IPP Media

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