Cape Argus

Hunger for informatio­n

Africa has a growing food security problem: why it can’t be fixed without proper data

- SIMON ROBERTS JASON BELL Roberts is professor of economics and Bell a researcher at the Centre for Competitio­n, Regulation and Economic Developmen­t at the University of Johannesbu­rg (this article first appeared in The Conversati­on).

THE Covid-19 pandemic and lockdown have had a huge negative impact on producers and consumers. Food production has been disrupted and incomes have been lost. But a far more devastatin­g welfare consequenc­e could be reduced access to food.

A potential rise in food insecurity is a key policy point for many countries. The World Economic Forum said the pandemic was set to “radically exacerbate food insecurity in Africa”. This, and other supplier shocks, such as locust swarms in east Africa, have made many African economies more dependent on externally sourced food.

As the pandemic continues to spread, the functionin­g of regional and national food supply chains is vital to avoid a food security crisis in countries dependent on agricultur­e. This is true in terms of nutrition and livelihood­s. Many countries in southern and eastern African economies are in this situation.

The integratio­n of regional economies is one vehicle for alleviatin­g food security. But regional integratio­n can’t be achieved without the appropriat­e support for investment in production, infrastruc­ture and capabiliti­es.

And, crucially, there must be more accurate and timely informatio­n about food markets. Data on food prices is crucial for political and economic stability. Yet it is not easily accessible.

A study by the Centre for Competitio­n, Regulation and Economic Developmen­t highlights how poor and inconsiste­nt pricing data affects the quality of an assessment of agricultur­al markets in the southern and eastern African region.

There have been attempts to collate and disseminat­e agricultur­al prices internatio­nally. National commodity exchanges have also been created in some countries to facilitate wholesale agricultur­al trade and the collection of market and price informatio­n in Africa. These include the Food and Agricultur­al Organizati­on’s Corporate Statistica­l Database.

But the effectiven­ess of commodity exchanges has been limited in countries in southern and eastern Africa. With some exceptions, they have not been widely used, meaning that small producers have not had good access to reliable pricing informatio­n.

The patchy data available at producer level indicates large price differenti­als far in excess of reasonable transport and related costs. They speak to the lack of integratio­n of markets. They also point to the potential that market power is being exploited. An example would be the power of large buyers over small producers who face high transport costs to individual­ly transport goods to faraway markets.

Having up-to-date informatio­n on food prices, along with other market informatio­n relating to production and market structures, is necessary to understand agricultur­al food systems. This is crucial to track events ranging from the effects of the pandemic to the weather and locust swarms.

Without close to real-time data, it is not possible to rapidly plan appropriat­e responses.

In addition, the lack of readily available market data restricts our understand­ing of the impact of changing supply and demand conditions. The climate crisis and other supply shocks like the pandemic imply much greater volatility in production and food prices. The effects will become ever more dire for farmers, vulnerable consumers and downstream industries.

Máximo Torero, the chief economist of the Food and Agricultur­e Organizati­on, has observed that the pandemic is an opportunit­y to hit the reset button on policies to alleviate food security problems. It has emphasised the fragility of overdepend­ence on a globalised agricultur­al system. What is needed to achieve a more integrated and regionalis­ed agricultur­al system is co-ordinated public policy responses to support agribusine­ss. The responses must ensure small and medium-sized farmers are included.

The World Bank is working with many government­s to track domestic food and agricultur­al supply chains. The goal is to ensure that food systems continue to function. In addition, the Food and Agricultur­e Organizati­on has mapped a way to potentiall­y avoid a looming food crisis in Africa. The short-term measures are welcomed.

Action can be taken at a regional level, too. For example, an effective market observator­y would assist in the promulgati­on of wider, deeper and more competitiv­e agricultur­al markets. Market observator­ies help market participan­ts in reading market signals while also reducing market volatility.

Examples of these can be found throughout the EU, covering a range of agricultur­al products. Developing the capability would also contribute to identifyin­g key trends in the region in close to real time. And it would help identify issues relating to market access, border and transport-related problems, and possible anti-competitiv­e behaviour.

In the medium to long term, greater attention is needed to ensure appropriat­e market-shaping measures for more resilient and integrated regional agricultur­al systems in the southern and eastern African region. Such measures depend on having accurate and timely informatio­n on market participan­ts, food production and prices.

 ?? African News Agency (ANA) | MOTSHWARI MOFOKENG ?? A POTENTIAL rise in food insecurity in large part due to the Covid-19 pandemic is a concern for many countries, and especially those in Africa, say the authors.
African News Agency (ANA) | MOTSHWARI MOFOKENG A POTENTIAL rise in food insecurity in large part due to the Covid-19 pandemic is a concern for many countries, and especially those in Africa, say the authors.
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