Resilient, sustainable food supply chain crucial
Overall food inflation at 10% in August
With the already strained consumer and high agriculture production cost, higher fuel prices will exacerbate the pressure, Agribank said.
The Agricultural Bank of Namibia (Agribank) has urged relevant stakeholders to safeguard food security by standing together and creating a more resilient and sustainable food supply chain.
The food and non-alcoholic beverages category was the main driver of the 4.7% inflation rate recorded in August, according to the Namibia Statistics Agency (NSA).
The category carries the second largest weight of 16.45% in the Namibia Statistics Agency consumer basket. The food and non-alcoholic beverages category recorded an inflation rate of 10% in August compared to 8.8% recorded in August 2022.
Overall food inflation stood at 10.2% in August, up from 8.9% registered in August 2023. Selected food items that recorded high inflation rates include vegetables, which recorded an inflation rate of 16.9% in August compared to 7.2% recorded in the corresponding period of 2022.
In addition, fish inflation stood at 16.2% in August, relative to 5.4% recorded in August 2022. A substitute for fish, meat, recorded an inflation rate of 8.4% in August compared to 5.2% registered in corresponding month of 2022.
Moreover, bread and cereals recorded an inflation rate of 11.6% in August, compared to 9.8% recorded in August 2022.
Cost
Global events, especially geo-political tension and energy prices continue to adversely affect various sectors and the agriculture sector is no exception, Agribank said.
Tightened global energy supply due to the production cuts by Saudi Arabia and Russia, caused a sharp increase in the price of international brent crude, jumping by 8% to US$86.2/barrel in August 2023.
The developments led to Namibia announcing a petrol and diesel price increase in September 2023. With the already strained consumer and high agriculture production cost, higher fuel prices will exacerbate the pressure, Agribank pointed out.
The Ministry of Mines and Energy this month announced an increase in petrol prices for ULP95 by N$1.20, while diesel prices for both 50ppm and 10ppm rose by N$1.70. Namibia is a price taker in the international oil market, and actions or decisions that emanate from the supply forces have a significant impact on local fuel prices, the ministry said.
South Africa
South Africa is a key import market for Namibia’s food items. Fin24 reported that South Africa's competition watchdog still believes food is pricier than it should be – due in part to large profit margins among retailers and producers, along with a lack of competition. However, there is also some recognition that the cost of load shedding is keeping prices high, even as global food costs fall.
In the Competition Commission's latest report on essential food prices, it finds that the price of bread, maize meal and cooking oil are not cooling as fast as the sharp decline in global commodity prices.
The report found that producer prices have been falling for much of 2023. But these lower producer prices have not fully translated into lower prices in shops. This indicates that retailers are not passing through all cost [email protected]
The food and non-alcoholic beverages category was the main driver of the 4.7% inflation rate recorded in August, according to the Namibia Statistics Agency (NSA).
The category carries the second largest weight of 16.45% in the Namibia Statistics Agency consumer basket. The food and non-alcoholic beverages category recorded an inflation rate of 10% in August compared to 8.8% recorded in August 2022.
Overall food inflation stood at 10.2% in August, up from 8.9% registered in August 2023. Selected food items that recorded high inflation rates include vegetables, which recorded an inflation rate of 16.9% in August compared to 7.2% recorded in the corresponding period of 2022.
In addition, fish inflation stood at 16.2% in August, relative to 5.4% recorded in August 2022. A substitute for fish, meat, recorded an inflation rate of 8.4% in August compared to 5.2% registered in corresponding month of 2022.
Moreover, bread and cereals recorded an inflation rate of 11.6% in August, compared to 9.8% recorded in August 2022.
Cost
Global events, especially geo-political tension and energy prices continue to adversely affect various sectors and the agriculture sector is no exception, Agribank said.
Tightened global energy supply due to the production cuts by Saudi Arabia and Russia, caused a sharp increase in the price of international brent crude, jumping by 8% to US$86.2/barrel in August 2023.
The developments led to Namibia announcing a petrol and diesel price increase in September 2023. With the already strained consumer and high agriculture production cost, higher fuel prices will exacerbate the pressure, Agribank pointed out.
The Ministry of Mines and Energy this month announced an increase in petrol prices for ULP95 by N$1.20, while diesel prices for both 50ppm and 10ppm rose by N$1.70. Namibia is a price taker in the international oil market, and actions or decisions that emanate from the supply forces have a significant impact on local fuel prices, the ministry said.
South Africa
South Africa is a key import market for Namibia’s food items. Fin24 reported that South Africa's competition watchdog still believes food is pricier than it should be – due in part to large profit margins among retailers and producers, along with a lack of competition. However, there is also some recognition that the cost of load shedding is keeping prices high, even as global food costs fall.
In the Competition Commission's latest report on essential food prices, it finds that the price of bread, maize meal and cooking oil are not cooling as fast as the sharp decline in global commodity prices.
The report found that producer prices have been falling for much of 2023. But these lower producer prices have not fully translated into lower prices in shops. This indicates that retailers are not passing through all cost [email protected]
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