Dry weather threatens food production-Agribank

• By Confidente Reporter

THE anticipated occurrence of a La-Nina continues to threaten food production and global food prices, making imperative for Namibia, including Agribank, to expedite resource mobilisation towards climate adaptation and resilience projects for farmers, Agribank has warned in its latest monthly market watch report.

The report also said food, fertiliser and soft commodity prices remain high post Covid-19 as the demand for the commodity in question continues to outweigh the supply.

“This is further exacerbated by the depreciating Rand to USD/ZAR which stood at 17.3 at the end of November,” the report reads.

However, the monthly market watch report also said commodity prices were expected to ease in the next two years but would remain considerably above the five-year average level.

On the issue of grain and energy prices, the report said disruptions in wheat exports from Ukraine and Russia (both key grain exporters) would once again interrupt global supplies as they did in the early stages of the war.

“Further increases in energy prices or disruptions in energy supplies, especially natural gas and coal, which are key inputs to fertilizers could exert upwards pressure on grain and edible oil prices,” the report states.

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