The World Food Price Index report released by the Food and Agricultural Organisation (FAO) has predicted that Nigeria, alongside Egypt and Madagascar, would lead the rebound of African rice production.
The report showed that food prices rose significantly in November, reaching the highest point in more than two years. The price increase is said to be as a result of the rise of the international prices of meat and vegetable oil as cereals price dropped.
Details of the report: World rice production is likely to reach 515 million tonnes, a mere 0.5% drop from the record set in 2018. It had an average of 177.2 points over the month, up 2.7% from October and 9.5% from the same period a year earlier.
The report stated, “The FAO Vegetable Oil Price Index rose by 10.4% in November, as palm oil price quotations rose amid robust global import demand, increased use for the production of biodiesels and expectations of possible supply shortages next year. Rapeseed and soy oil values also rose.
“The FAO Meat Price Index increased by 4.6%, its largest month-on-month increase in more than a decade. Price quotations for bovine and ovine meats rose the most, buoyed by strong import demand, especially from China ahead of year-end festivities. Pig and poultry meat prices also rose.
“The FAO Cereal Price Index, by contrast, declined by 1.2% amid stiff competition among the world’s leading wheat exporters. Rice values also fell while U.S. maize export prices remained under downward pressure even as those for Argentina and Brazil were generally firmer.”
About the FAO Food Price Index: It is a measure of the monthly change in international prices of a basket of food commodities. It consists of the average of five commodity group price indices, weighted with the average export shares of each of the groups. They include Vegetable oil, Sugar, dairy, cereal, and meat.