REVEALING VARIATIONS IN FOOD PRICES AND COMMODITY TRENDS IN NIGERIA | BY CADEF

Recent research conducted by Consumers International and Consumer Advocacy and Empowerment Foundation (CADEF) has revealed concerning trends in the pricing landscape of food in Nigeria.

The study covers six geopolitical zones, focusing on the fluctuations in food prices, particularly staple items like yam, garri, rice, beans, chicken, and groundnut oil from November to December 2023.

An earlier investigation in August by the organizations exposed a significant increase in retail/consumer prices in comparison to wholesale/market prices for essential food items. This disparity suggests that consumers bear a disproportionate burden of increased costs, raising questions about fairness in the market.

Consumers International, a global consumer representation organization, has developed the Fair Food Price Monitor tool. This tool monitors the relationship between food prices at different stages of the supply chain, utilizing data from reputable sources like the National Bureau of Statistics and FEWS NET.

Davine Minayo, Specialist in Fair Food Prices in Africa at Consumers International, highlights the importance of data-driven decision-making to address market imbalances. Minayo states, “Our collaborative efforts aim to shed light on the issues affecting consumers and farmers in Nigeria.”

The recent research indicates a continued acceleration of retail prices compared to wholesale prices, especially for beans, yam, rice, chicken, and maize. Calls for a thorough investigation by national authorities have been made, especially in markets of concern.

Analysis of Commodities:

CADEF reports that a detailed analysis of farm gate, wholesale, and retail prices for commodities such as maize, rice, beans, yam, palm oil, and chicken over the past three weeks reveals significant price fluctuations.

November and December witnessed notable shifts in the percentage changes across the value chain for key commodities — beans, chicken, maize, and yam.

These fluctuations provide insight into the intricate interplay of market forces, presenting opportunities and challenges. At the farmgate level compared to the retail level, in November, beans, chicken, and maize experienced substantial percentage changes of 127.29%, 176.16%, and 134.07%, respectively.

In December, there was a recalibration of these figures. Beans retained prominence with a reduced percentage change of 97.84%, while chicken and maize experienced shifts to 41.10% and 111.45%, respectively.

Interestingly, yam emerged as a contender in December, securing a notable percentage change of 87.34%.

Understanding the factors driving these fluctuations is crucial for market analysis and decision-making, as advised in the last press release.

These fluctuations highlight the volatility within the retail sector, where even slight changes can have palpable impacts on consumer accessibility and affordability.

Stakeholders are advised to closely monitor these trends, engage in ongoing analysis, and remain adaptable to the evolving dynamics of the commodity market.

The overarching concerns stem from price variations at each level of the value chain. The potential impacts on farmers’ income, supply chain stability, and consumer affordability necessitate collective attention.

Prof. Chiso Okafor, Executive Director of the Consumer Advocacy and Empowerment Foundation (CADEF), emphasizes the need for regulatory intervention to ensure fair pricing in food markets. Okafor states, “The findings underscore the urgent need for authorities to investigate and address any unfair practices that may be contributing to the burden on consumers and farmers.”

Recommendations and Action Needed:

In response to the identified challenges, stakeholders are encouraged to commit to a call to action. Collaborate with farmers and distributors (market associations, farmers associations, security agencies, etc.) to address farmgate and retail concerns.

Enhance market transparency and information sharing for pricing stability. Engage in discussions to address systemic issues within the food supply chain.

This nuanced analysis serves as a call to action for all stakeholders to navigate the complexities of the food supply chain collectively.

Consumer organizations recommend government actions to address the threat of unfair food prices, including strengthening competition, sanctioning anti-competitive practices, tackling monopolies, addressing multiple taxations, and supporting subsidies for farmers.

(News Source: Techeconomy)