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Food Prices Steady in August, Says FAO

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  • Food Prices Steady in August, Says FAO

The Food and Agriculture (FAO) said food prices remained stable in August as cereal prices rebounded while vegetable oils and sugar declined.

The Food Price Index, a monthly index, released yesterday, averaged 167.6 points in August, virtually unchanged from its revised estimate for July and 5.4 per cent below its level in August 2017.

The FAO Cereal Price Index rose 4.0 per cent during the month, with wheat prices rising twice as much due to deteriorating crop prospects in the European Union (EU) and the Russian Federation. International maize quotations rose by more than 3.0 per cent while rice prices eased during the month.

The FAO Vegetable Oil Index declined 2.6 per cent from July, nearing a three-year low as palm, soy and sunflower oil quotations all fell amid favorable production trends and, in the case of palm oil, weak global import demand.

The FAO Dairy Price Index posted its third consecutive monthly decline in August, falling 1.5 per cent amid relatively thin seasonal volumes.

While droughts may adversely affect milk production growth in parts of Europe and Australia, New Zealand’s output prospects are improving.

The FAO Sugar Price Index dropped 5.4 per cent from July to reach the lowest level in a decade, due largely to the continued depreciations of the currencies of major exporters Brazil and India.

The FAO Meat Price Index was broadly unchanged on the month, as pigmeat and ovine meat quotations rose on strong import interests from China, offsetting declining poultry and bovine meat prices, with the latter under pressure by high export availabilities from the United States of America.

FAO now forecasts global cereal production this year to reach 2 587 million tonnes, a small upward revision from July but a three-year low and 2.4 percent below last year’s record high level.

The latest Cereal Supply and Demand Brief, also released today, cut by a notable 14 million tonnes the world wheat production forecast for this year, which now stands at almost 722 million tonnes, the smallest crop since 2013. Dry and hot weather intensified yield reductions around Europe.

World rice production, meanwhile, is expected to rise 1.3 per cent from the previous year and reach a new record of almost 512 million tons this year, buoyed by larger output recoveries in Bangladesh and Viet Nam and stronger area rebounds in Sri Lanka and the United States.

FAO raised its forecast for world cereal utilization to 2 648 million tons, largely due to greater use of maize for feed and industrial use and the robust rice harvest.

Cereal stocks are also being reduced – especially in China, the European Union and the Russian Federation, and the global cereal stock-to-use ratio is expected to slide to 27.3 per cent, a five-year low.

The forecast for world trade in cereals over the 2018/2019 season has been revised up to nearly 414 million tons, about 1.5 per cent below the previous year’s record high.

CEO/Founder Investors King Ltd, a foreign exchange research analyst, contributing author on New York-based Talk Markets and Investing.com, with over a decade experience in the global financial markets.

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FG Reopens Osubi Airport Warri for Daylight Operations

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FG Reopens Osubi Airport Warri for Daylight Operations

The Federal Government on Monday said the Osubi Airport in Warri has been reopened for daylight operations.

The Minister of Aviation, Hadi Siriki, disclosed this in a tweet.

The airport was closed in February 2020 over mismanagement and debt allegation involving aviation service providers and airport management.

However, Oberuakpefe Afe, a lawmaker representing Okpe/Sapeie/vaie federal constituency, recently moved a motion for the Federal Government through the ministry of aviation and relevant authorities to reopen the airport for flight operations.

On Monday, Hadi Siriki said “I have just approved the reopening of Osubi Airport Warri, for daylight operations in VFR conditions, subject to all procedures, practices and protocols, including COVID-19, strictly being observed. There will not be need for local approvals henceforth.

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Nigerian Brand, JR Farms Acquires 11% Stake in Rwandan Firm

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Nigerian Brand, JR Farms Acquires 11% Stake in Rwandan Firm

JR Firms, an agribusiness firm with headquarters in Nigeria, has announced partnership with Sanit Wing Rwanda through the acquisition of 11 per cent stake in the company.

The CEO of the company, Mr Rotimi Olawale, explained in a statement that the partnership was in furtherance of its goals to ensure food security, create decent jobs and raise the next generation of agrarian leaders in Africa.

The stake was acquired through Green Agribusiness Fund, an initiative of JR Farms designed to invest in youth-led agribusinesses across Africa.

Sanit Wing Rwanda is an agro-processing company that processes avocado oil and cosmetics that are natural, quality, affordable, reliable and viable.

The vision of the company is to become the leading producers of best quality avocado and avocado by-products in Africa by creating value across the avocado value chain.

With focus on bringing together over 20,000 professional Avocado farmers on board and planting of three million avocado trees by 2025 through contract farming, the company currently works with One Acre Fund in supply of avocado to its processing facility.

The products of the company which include avocado oil, skin care (SANTAVO), hair cream and soap are being sold locally and exported to regional market in Kenya.

With the new partnership with JR Farms- the products of the company will enjoy more access to markets focusing on Africa and the European Union by leveraging on partnerships and trade windows available.

Aside funding, the partnership comes with project support in areas of market exposure, capacity building, exposure and other thematic support to grow the business over the next four years.

JR Farms has agribusiness operations in Nigeria, Rwanda, United States and Zambia respectively.

In Nigeria, the company deals in cassava value chain processing cassava to national staple “garri” which is consumed by over 80 million Nigerians on daily basis, while in Rwanda, it works in the coffee value chain with over 4,000 coffee farmers spread across the East Central African country.

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Shut Down Depots Selling Petrol Above Approved Price – Marketers

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Shut Down Depots Selling Petrol Above Approved Price – Marketers

The Federal Government should close down depots that are selling petrol above the approved price, oil marketers said on Thursday.

National President, Independent Petroleum Marketers Association of Nigeria, Sanusi Fari, said the sale of petrol above government approved price by depot owners would soon lead to a hike in the commodity’s pump price.

Fari told journalists in Abuja that the government through its agencies such as the Department of State Services and the Department of Petroleum Resources should curb the development to avoid crisis in the downstream oil sector.

He said some private depot owners were selling at N165 per litre to independent marketers, way above the government stipulated price of N148 per litre.

Fari said, “Our challenge is the inconsistency in the pricing of petrol. Up till a week ago, government was still insisting that the February price for petrol remained unchanged.

“And most of the private depot owners are selling above the government stipulated price. As at today ( February 25, 2021) private depot owners are selling at N165 per litre to independent marketers.”

He added, “In the last six years, only NNPC imports refined products into this country and these tank farms buy their products from NNPC under a controlled price.

“This has affected our businesses seriously because government is insisting that we sell at the rate of N165, which is not going to work.”

The IPMAN president said filling station owners buy the product at N165 per litre from the private depots and incur other expenses such as transportation, rent, etc.

“So government cannot expect us to sell less than what we buy,” he said.

Fari added, “This is why we are calling on government and agencies that are saddled with the responsibility to control petrol pricing to urgently clamp down on depots that are selling above the stipulated price.”

The Nigerian National Petroleum Corporation, the country’s sole importer of patrol, recently stated that it never hiked the cost of petrol to depots.

It also enjoined the depot owners to sell the product at the approved rate and called on the DPR to enforce the stipulated price across the depots.

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