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

/0 Comments/in , , , , , , , , , , , , /by

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

The post FAO Food Price Index: food price posts sharpest decline since Dec appeared first on The Cooperator News.

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

/0 Comments/in , , , , , , , , , , , /by

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

The post The Africa Green Revolution Forum: Agri-entrepreneurs should take full advantage appeared first on The Cooperator News.

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

/0 Comments/in , , , , , , , , , , , /by

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

The post INTERNET OF THINGS: Why technology will disrupt and transform our agriculture appeared first on The Cooperator News.

Cooperatives in Tanzania insist on coffee auction to stop smuggling

/0 Comments/in , , , , , , , /by

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

The post Cooperatives in Tanzania insist on coffee auction to stop smuggling appeared first on The Cooperator News.

Seed producers advised to form cooperatives to ensure remunerative prices

/0 Comments/in , , , , , , , , /by

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

The post Seed producers advised to form cooperatives to ensure remunerative prices appeared first on The Cooperator News.