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Food suppliers expects price of seasonal produce to drop.

The cost of seasonal fruit and vegetables is expected to drop in the coming weeks, according to growers and retailers.

The weather remains a wild card for food price inflation, with adverse weather events hitting New Zealand growers over the summer.

Food prices have risen at their fastest annual rate in 32 years, with fruit and vegetables increasing by 23 percent year-on-year.

Countdown supermarket commercial director Pieter De Wet said growers were now delivering more seasonal products.

“We’ve got over 100 direct relationships with growers and they actually want to bring prices down as well because they want to move volumes as soon as they get it,” De Wet said.

Customers could expect to pay less at the checkout when more produce was available next month, he said.

“It looks like we’re already getting into a better space and hopefully next week will be the same.

“Gisborne looks like it’s going to be dry for the next week as well so we expect prices to come down”.

Major Gisborne vegetable grower LeaderBrand said the cost of seasonal fruit was expected to drop in the coming weeks.

The constant rain in August last year meant that planting was delayed and consistent rain throughout January, as well as lower sunshine hours, has impacted harvesting schedules.

New Zealand-grown watermelons had recently come into season, but wet weather meant much of the crops did not make it.

De Wet visited LeaderBrand in Gisborne last week and said up to 30 percent of watermelon crops were “under water”.

“It was quite intense to see what’s going on down there,” he said.

“The entire watermelon field we looked at was literally under water from the rain, I’d say about 20 or 30 percent of those watermelons were rotting in the water”.

LeaderBrand executive Richard Burke said growers were feeling the pinch of inflation as well.

“We know that watermelon is quintessentially summer on a plate and beloved by Kiwis both young and old. So, the pressure to grow the sweatiest and juiciest melons has been keeping me up at night.

“Our team has been watching the watermelon patch daily and the first harvest is this week and will be available until the end of March.

”The company was desperately holding out for some decent sunshine this summer, Burke said.

“There’s nothing worse than getting home and cutting a watermelon in half and it’s not that full red colour you’re looking for.

“We’ve got plenty of truck loads packed and ready to be dispatched today or tomorrow and we should see reasonably consistent numbers as we move forward.

”Supermarket giant Foodstuffs also said it was working to put a lid on inflation.Foodstuffs owns New World, Pak’N Save and Four Square supermarkets.

In December, the average cost increase from suppliers to the Foodstuffs co-operatives on the same products measured in the Food Price Index (FPI) basket was 12.2 percent.

“Domestically, input cost pressures are continuing for suppliers who are facing higher costs to grow, pick and pack produce for market, with adverse weather events still the wild card this year. It’s been a pretty tough summer so far for growing produce,” Foodstuffs NZ managing director Chris Quin said.

“Our co-operatives will stay laser-focused on helping customers fight inflation and find value within their household budgets this year.

”There was still plenty of uncertainty about how strong the economic headwinds would be this year.

“Most are predicting that 2023 will be tougher for households, but we’ll be looking towards the second quarter of this year to see whether a clearer picture has emerged.”

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Grant tax exemptions on agricultural commodities with immediate effect – Stakeholders to Finance Minister.

Stakeholders meeting with the press to address their grievances to the Finance Minister.

The delay of the Minister of Finance and Economic Planning in granting tax exemptions to agricultural commodities as requested by the Minister of Food and Agriculture has a dire consequence for the sector which is already fragile due to global Price increases in agricultural machinery and agro-input leading to the high cost of production and could further worsen the food security situation in the country.

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Monies paid by COCOBOD to investors who purchased cocoa bills withdrawn.

JoyNews is learning that monies paid to investors who purchased cocoa bills on maturity on Thursday, January 19 th, 2023 have been withdrawn from individual investors’ accounts without their consent.

COCOBOD has issued the bill to raise funds. Many had bought the bills expecting to be paid back their monies with interest on Thursday.

JoyNews understands the monies were actually paid on Thursday only to be reversed on Friday, January 20th, 2023.

Reports say, the banks have all day been under pressure from affected customers.

The banks have pointed to a directive from the Bank of Ghana ordering them to unilaterally roll over the bonds without first seeking the consent of investors.

In an interview with JoyNews, one of the affected investors shared his ordeal.

“It is cocoa bill and matured yesterday [Thursday]. When it matured, the funds were deposited into the account and I decided to go to the bank today [Friday], when I went there today, the money had been taken out of the account,” he said.

According to him, when he queried about the withdrawal, he was informed that “it is a directive that has come for all the funds to be automatically rolled over for the next 6 months.

”The affected investor expressed shock at the development since the money was rolled over without his consent.

“We were told that T-Bills were not going to be touched. If T-Bills were not going to be touched Cocoa bills were even safer because they are cocoa bonds instruments so I was just shocked.”

He added that he was surprised that COCOBOD will default in payment.

He noted that he had plans for the money.“I don’t know what I can even do about it because it is something that I had planned that I was going to pay my wife’s fees with it. Now I don’t even know how to go and break the news to my wife, because I told her that it was going to happen,” he said in a disappointed tone.

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Prices of agric products to fall by 5% in 2023 – World Bank.

Prices of agricultural products are forecast to decline by 5% in 2023, reflecting better prospects for global production alongside lower input costs, particularly for fertilizers.

According to the World Bank Food Security Update, despite these projections, prices are expected to remain above pre-pandemic levels.

In addition, the report highlights the possibility that fertiliser prices will continue to rise in response to higher natural gas prices caused by the closure of several European fertiliser manufacturers.

In emerging markets and developing economies, the report said food insecurity remains a serious concern, driven by trade restrictions, weather-related events, and conflict, including the Russian invasion of Ukraine.

Since the last update on December 13, 2022, agricultural, cereal, and export prices have remained relatively stable.

Domestic food price inflation also continues to remain high in almost all countries.

West and Central AfricaThe report said food prices are 36% above the 5-year average.

Inflation averages 18% in an unfavorable environment shaped by the war in Ukraine and devaluation of some local currencies.

It added that conflict and instability continue to drive food insecurity, especially for internally displaced persons, of whom there are currently more than 6.1 million

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Cocoa prices likely to move downward – ICCO

Cocoa prices are anticipated to move downward in major markets across the globe, as merchants and producers increased net selling positions over the Q1 of 2022/2023 crop season, data from the International Cocoa Organisation (ICCO) have shown.

The global cocoa market attained a value of nearly US$14.5billion in 2022. The market is further expected to grow at a Compound annual growth rate of 4.7 percent between 2023 and 2028, to a value of US$19.1billion.

However, the ICCO in its projection believes the size of net short positions of commercial traders in Europe and the United States over the 2020/21 – 2022/23 season period could be perceived as a demand for ‘insurance’ against price drops.

“Its change over time can be viewed as the evolution of the risk perception of merchants and producers in the cocoa futures markets,” a portion of the projection from its December 2022 cocoa market report read.

“As opposed to the first three months of the 2021/22 crop year, cocoa merchants and producers increased their net short positions on both sides of the Atlantic over October – December 2022. The behaviour of the above-mentioned category of market participants suggests that – while accounting for all cocoa futures contracts currently active – they perceive for now that cocoa prices are more likely to move downward in both Europe and the United States,” ICCO said.

The ICCO observed that in the United States, average net short positions increased by 26 percent from an average of 21,050 contracts in October to 26,563 contracts in December. Meanwhile, in Europe average net short positions went up by 50 percent from an average of 60,794 contracts to 90,897 contracts.

Ghana’s main destination for cocoa beans exports are: the Netherlands, United States, France, and partly Malaysia and Japan.

Europe is the largest importer of cocoa beans worldwide, with 56 percent of global imports. To compare, North America and Latin America together account for about 17 percent of global cocoa bean imports; and Asia for 26 percent.

In December 2022, prices of the front-month cocoa futures contract averaged US$2,514 per tonne and ranged be­tween US$2,392 and US$2,635 per tonne in London; while in New York the first position contract traded at an average price of US$2,515 per tonne and oscillated between US$2,432 and US$2,629 per tonne.

The Impact on economy

Cocoa is a significant contributor to Ghana’s economy, as the country is the second-largest producer of cocoa in the world with a 20 percent market share.

It ranks second only to mineral exports in terms of foreign exchange earnings, and makes up about 3.5 percent of GDP and 25 percent of total export receipts. The sector also provides a major source of income for farmers, with two-thirds of their income coming from cocoa.

According to Statista, cocoa was projected to contribute GH¢3.41billion (around US$454million) to Ghana’s GDP in 2022 – with a projected increase to GH¢4.01billion (around US$533million) by 2025, the highest contribution within the period observed.

Ghana’s cocoa export projection

The Ghana Cocoa Board (COCOBOD) is forecasting 750,000 tonnes of cocoa production in the 2022-2023 crop season, higher than the 2021-2022 season.

The country’s graded and sealed (G&S) cocoa arrivals stand at 350,000 tonnes since the start of this year’s harvest on 1 October – up 76 percent from 199,000 tonnes in same period of the previous season.

The G&S is cocoa that has been quality-checked and sealed in bags by the regulatory body, and is ready to be shipped.

The cocoa regulator expects that the producer price to be paid at all buying centres will be GH¢384 per load of 30 kilogrammes for grade 1 and 2 cocoa beans, or GH¢800 per bag of 64 kilogrammes. A tonne comprising 16 bags is however going for GH¢12,800 (circa US$1207.10).

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Kenya leads the Climate Smart Agriculture Youth Network’s Centers of Excellence in Africa.

To foster the development and localization of the SDGs across the African continent and beyond, the Climate Smart Agriculture Youth Network Global (GCSAYN) is serving as the driving engine, and Kenya has taken the lead.

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CSIR-CRI and Ghana Cassava Center of Excellence collaborate to increase Cassava Production in Ghana.

The Crops Research Institute (CRI) of the Council for Scientific and Industrial Research (CSIR) has signed an agreement with a private-sector, cassava extension agency to improve the agronomy and utilization of cassava in Ghana.

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Heat and drought have ‘significant influence’ on food security and agricultural production, new review argues

Heat and drought are the utmost limiting abiotic factors that pose a major threat to food security and agricultural production, and are exacerbated by “extreme and rapid” climate change, according to a new paper in CABI Reviews.

The team of international scientists suggests that it is critical to understand the biochemical, ecological and physiological responses of plants to the stresses of heat and drought in order for more practical solutions and management.They state that plant responses to these challenges may be divided into three categories: phenological, physiological and biochemical.

Lead researcher Dr. Aqarab Husnain Gondal, of the University of Agriculture Faisalabad, Pakistan, argues that due to physical damages, biological disruptions and biochemical abnormalities, sub-optimal water supplies and unusual temperatures negatively affect crop development and yields.

Supported by colleagues from Yarmouk University, Jordan, the National University of Huancavelica, Peru, and the Citrus Research Institute Sagodha, Dr. Gondal says a distinctive aspect of the phenomenon is comparing fundamental behavior with abiotic stresses.

The scientists, referring to a study examining data from research published between 1980 and 2015, state that drought has reduced wheat and maize yields by up to 40% around the world. They also highlight that projections suggest that for every degree Celsius rise in temperature, this would result in a 6% loss in global wheat yields.Dr. Gondal said,

“This review gives a thorough description of the adaptation of plants towards heat and drought stress with a particular emphasis on identifying similarities and variations. Abiotic stresses are reducing crop yield all around the world.

Heat and drought stress causes plants to respond in a variety of ways—the most notable of which is by altering their development and morphology.

“While the capacity of plants to withstand these pressures differs significantly across species, it is worthy to note that recent advances have been achieved in limiting the adverse consequences—either through the use of genetic methods or by the induction of stress tolerance.

“The scientists maintain that despite the fact that heat and drought stress may have a negative impact on the plant’s growth and development, reproductive growth is the most affected.

Anthesis or grain filling stress may have a major impact on crop production if it is mild while damage to the photosynthetic machinery, oxidative stress and membrane instability are also caused by these forces, they say.

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Donors supporting about 40% of Ghana’s agric production expenditure is a great threat.

Food security could be under serious threat, with the country increasingly reliant on donor agencies and development partners (DPs) to fund local agricultural production and development. This is despite an expected reduction in donor funding support for the country due to the global economic crisis.

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COCOBOD offers instant job to the best graduating student.

A 39-year-old man, Abdulai Ismaila, who braved the odds and emerged the overall best student at the maiden graduation and matriculation of the Bunso Cocoa College, has been offered instant employment by the Ghana Cocoa Board (COCOBOD).

The college has been affiliated to the University of Cape Coast, and offers diploma programmes in Agronomy and Extension in Coffee and Cocoa Production.

The graduation ceremony, dubbed: “Raising the Manpower for Resilient Tree Crop Sector”, witnessed the passing out of 69 students, 21 of them obtaining First Class, while 14 grabbed Second Class Upper, and a further 31 got Second Class Lower.

Mr Ismaila, who secured First Class in Agronomy, Coffee and Cocoa Production, was given a standing ovation as he walked over for his academic scroll.

The Chief Executive Officer (CEO) of COCOBOD, Joseph Boahen Aidoo, praised Mr Ismaila for his academic performance, and instantly declared him an employee of COCOBOD.

He stated that Ghana’s economy highly depended on primary production of mining and agricultural produce, mainly cocoa, which were exported for foreign exchange.

He said the agricultural sector, which alone accounted for an average of 35 per cent of the country’s Gross Domestic Product (GDP), would continue to determine the success of Ghana’s development growth path.

Value addition

Dr Boahen said agriculture must, therefore, be seen as business and a value addition venture.

He indicated that the export of cocoa, gold and timber accounted for the bulk of mechanised exports.

He explained that until recently, agriculture, particularly small-scale agriculture, was viewed from the lenses of rural development, and that strategy had used agriculture as a tool to manage rural poverty.

He indicated that agriculture value chain was changing national policies, strategies, and programmes to attract investments, especially in export value chain, and stressed, however, that most small-holder participants in that sector remained under-invested.

Dr Boahen said although successive governments invested heavily in the agricultural sector, such investments had not yielded the necessary impact in terms of propelling the sector to drive the country’s economic development.

Dr Boahen explained that technology and research were the driving force needed for the transformation of the economy, and that the future of the agricultural sector was all about science, technology and education.

While congratulating the students and staff of the college, Dr Boahen stressed the need for the institution to broaden its scope of programmes it offered to include cocoa industrialisation, food nutrition and farm management.

He urged the management of the college to introduce innovative programmes that would produce the next generation of local engineers to transform the local cocoa processing sector through artisanal chocolate manufacturing.

Employment

The acting Rector of the Bunso Cocoa College, Dr Mercy Asamoah, encouraged companies, organisations and individuals, as well as the business community interested in developing the tree crop sector, especially cocoa, to offer employment for the graduands.

She also appealed to COCOBOD to consider offering employment either permanent or on contract basis to the graduands.

Dr Asamoah said the college’s infrastructure such as lecture rooms, constructed in 1950, had become old and inadequate, along with the boarding facilities. Other challenges, she stated, included staff bungalows and the lack of a fitting library.

She also appealed to COCOBOD to offer scholarship for graduands intending to further their education.

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