Consumer products: cereal prices are soaring

2023-11-06 08:35:56

• Weak supply and income involved

• Government actions made it possible to hold on to the lean season

• +36% on sorghum in 5 years

Dn the market monitoring bulletin for September 2023, the World Food Program (WFP) and the National Food Security Stock Management Company, Agricultural Market Information System (SONAGESS), took stock of prices means of cereals. What to remember from the balance sheet? “The cereal supply remains average across all reference markets. Cereal availability is at its lowest level of the year among producers in production areas and the markets are supplied by traders who still hold stocks to meet demand,” declare the two institutions in the published document. last October 23.

In the north of the country, this cereal supply is low on the markets, facing strong demand linked to the large number of vulnerable people. The weakness in supply is mainly linked to the low income of the population, which does not encourage traders to stock up on larger stocks.

However, there is good news in this area of the country: the market supply is also reinforced by the interventions of the State and its partners for the benefit of vulnerable people, in order to facilitate their access to cereals and basic foodstuffs. These include, among other things, the sale of cereals at a social price in SONAGESS sales points and the free distribution of food by Social Action, the WFP and humanitarian NGOs. Actions which have enabled the prices of basic cereals to maintain their relative stability since the start of the year, despite the lean period. To this must be added the good production of the previous year, the ban on the export of cereals and cowpeas, but also the various humanitarian interventions by the State which made it possible to reduce the pressure on the markets.

What about the prices of other imported food and non-food products?

At this level, SONAGESS and WFP report that with the exception of oil, the prices of other imported basic food products have increased compared to the same month of the previous year. Thus, we see an increase of +13% for wheat, +17% for pasta, +23% for salt; +21% for sugar and +10% for imported rice. And the Bulletin recalls that the price level of imported food products is linked to the price at the international level.

Boxed

Increase in different cereals over a 5-year average

• +28%: The average price of corn increased by 28%

• +32%: The average price of local millet recorded an increase of 32%

• +36%: The average price of sorghum increased by 37%

• -2%: The average price of cowpea fell by 2%

• +29%: The price of imported rice increased by 29%

Box 2

Price variations animals

UA decline in the supply of large ruminants has been recorded in most livestock markets. This decline is more pronounced on the markets of pastoral regions, explained by transhumance departures, but also because of insecurity and livestock theft. For small ruminants, the supply has increased; the sale of small ruminants is the main source of income, in order to cover the lean period but also the expenses linked to the start of the school year. Compared to last year and the average of the last 5 years, the supply of animals has fallen significantly.

In view of the drop in supply, but also the drop in demand, animal prices have seen a slight drop, compared to the previous month. In pastoral regions, average prices were 33,125 FCFA for goats, 71,750 FCFA for sheep and 325,000 FCFA for cattle. These prices are overall down 7% for goats, 3% for sheep and -4% for cattle compared to the previous year, at the same period.