Afex 2024 Report Predicts A Decline In Commodity Production Levels

AFEX, a commodities player in Africa, launched its 2024 Wet Season Crop Production report at a hybrid event held at its Abuja office. This annual report provides comprehensive insights into factors influencing the commodities landscape, such as production levels, price trends, and market outlook. For the first time, AFEX's research includes data on Kenya's agricultural sector and Nigeria, offering a broader view of key commodities like maize, paddy rice, soybean, sesame, ginger, cocoa, and sorghum.

The report, based on data collected from over 51,000 farmers across Nigeria and Kenya, serves as a resource for stakeholders in the agricultural sector, guiding policy development and data-informed trading decisions.

The Nigeria section highlights the untapped agricultural potential hampered by high input costs, limited financing, climate challenges, and pest infestations. Despite a general decline in production, crops such as sorghum, ginger, cocoa, and sesame show upward trends, benefiting from expanded cultivation and market response efforts following last year's price increases.

Paddy rice production , however, is projected to decline by 2.6 , reaching around 8.1 million metric tons. Contributing factors include high fertilizer costs, insecurity in major rice-producing areas, and severe flooding, which has led many farmers to switch to more cost-effective and resilient crops like sesame and sorghum. This shift is expected to impact rices availability and price, raising food security and affordability concerns.

Maize production in Nigeria is also set to decrease by 5.6 , mainly due to reduced cultivated land and lower fertilizer usage, exacerbated by adverse weather conditions. The report anticipates a significant increase in maize prices during the 2024/2025 season, affecting farmers and consumers.