INSIGHT-How Africa risks reeling from a health crisis to a food crisis

Published 24/04/2020, 07:00

* COVID-19 lockdowns hinder food imports, deliveries
* Key rice exporters like India limiting shipments
* Sub-Saharan Africa imports about 40% of its rice
* Restrictions also threaten domestic rice-planting

By Libby George
LAGOS, April 24 (Reuters) - In Nigeria's Benue state, the
food basket of the country, Mercy Yialase sits in front of her
idle rice mill. Demand is high across the nation, but she
already has mounds of paddy rice that are going nowhere amid the
COVID-19 lockdown.
"I can't mill because the marketers are not coming," Yialase
said, referring to wholesale buyers, as she sat at a market
stall in the city of Makurdi with dozens of other millers.
Although food truck drivers are meant to be exempt from
lockdown restrictions, many are afraid for their own safety, or
fear they will be fined or arrested by overzealous police.
The situation in Nigeria, Africa's most populous nation, is
reflected across sub-Saharan Africa.
Trucking logistics firm Kobo360 said 30% of its fleet across
Nigeria, Kenya, Togo, Ghana and Uganda was not operating as a
result. Several farmers said crops were rotting in the fields or
at the depots waiting for trucks that never arrive. And millers
cannot get their milled rice to buyers.
"There is no clarity around what can move around ... or what
is essential transportation," said Kobo360 co-founder Ife
Oyedele, adding that truck bosses were afraid. "They're scared
to go out and have their drivers on the road."
Millions of people in the region are at risk of not getting
the food they need due to coronavirus disruptions, according to
the United Nations and World Bank.
While domestic crops and capacity go to waste, the imports
the region relies on have also dried up as major suppliers,
including India, Vietnam and Cambodia, have reduced or even
banned rice exports to make sure their countries have enough
food to cope with the pandemic.
Meanwhile, scarcity has driven up prices of the main staple
food beyond the reach of some people since lockdowns were
announced in three states at the end of March to tame the spread
of the virus.
Sub-Saharan Africa, the world's largest rice-importing
region, could be heading from a health crisis straight into a
food security crisis, the World Bank warns.
More widely, the United Nations says coronavirus disruptions
could double the number of people globally without reliable
access to nutritious food, to 265 million.
"There is no question about it that there is an imminent
problem of food insecurity, not only in Nigeria, but also in
nations all over the world," Nigeria's Agriculture Minister
Muhammed Sabo Nanono told Reuters.

STRATEGIC RESERVES
Nanono said Nigeria had at least 38,000 tonnes of grains in
government-controlled strategic reserves. It is looking to
replenish with 100,000 additional tonnes.
However the region has among the lowest inventories relative
to consumption, so export restrictions mean rice shortages
"could happen very quickly," according to John Hurley, lead
regional economist for west and central Africa for the U.N.'s
International Fund for Agricultural Development.
Nigeria has substantially increased domestic rice production
in recent years. But figures from the U.S. Department of
Agriculture (USDA) show it still imports at least a third of
what it consumes. Across sub-Saharan Africa, countries rely on
imports for roughly 40% of rice consumption.
This puts these countries at particular risk.
India, the world's largest rice exporter, temporarily
stopped new export agreements earlier this month, while
lockdowns and supply chain disruptions in Pakistan, Vietnam and
Cambodia have limited available exports. Since only 9% of global output is traded internationally,
the curbs hit prices immediately, the USDA said.
"We need to make sure we're not taking policy measures that
are going to hurt the rural poor and people in developing
countries, said Hurley.
The price of a bag of imported rice rose by more than 7.5%
in Abuja and Lagos between the third week of March and early
April, according to SBM Intelligence, while bags of local rice
became about 6%-8% more expensive.

LOCUSTS PLAGUE
In Kenya, panic-buying and government programmes to
distribute rice to low-income households have already depleted
reserves.
If imports don't pick up, East Africa alone could face a
shortfall of at least 50,000-60,000 tonnes by the end of the
month, said Mital Shah, managing director of Kenya-based
Sunrice, one of the region's largest rice importers.
"The entire supply chain has been disrupted," Shah said. "In
the next couple of weeks, East Africa is going to have a huge
shortage."
Getting the bills of loading for imports into Kenya has also
stretched from three to four days to three to four weeks. In
Nigeria, clearing imports has gone from weeks to months.
Senegal's rice imports have fallen by around 30% due to
international supply disruptions, said Ousmane Sy Ndiaye,
executive director of UNACOIS, a Senegalese commerce industry
group. He estimated the nation had enough in storage to cover
two months.
Growing rice in nations outside East Africa, such as Nigeria,
is also more important now due to a plague of locusts in East
Africa that has decimated crops this year.

BROKEN CHAINS
Domestic movement restrictions and import delays are also
hindering farmers, and some are warning that production will
fall if governments do not act.
A survey by AFEX Commodities Exchange Limited, a Nigerian
company that assists the agriculture sector with logistics and
financing, found that Nigeria's fertilizer stocks are currently
20% below normal levels. There are only enough seeds and other
inputs to farm 1 million hectares out of the roughly 30 million
typically farmed, the study showed.
Other farmers say the lockdowns are hindering farm
inspections by banks, putting their financing at risk, and
creating problems physically getting tractors - which are often
hired - to fields. Planting rice would typically start in May.
"Most people in the industry I speak with are worried," said
Dimieari Von Kemedi, managing director of Alluvial Agriculture,
a farm collective.
Nigeria's government has created a task force to minimize
the coronavirus's impact on agriculture. Nanono said it was
creating ID cards for those in the agriculture sector, from
farmhands to food truck drivers, to enable them to move freely.
He said the government was taking steps to make sure
farmers, millers and marketers could operate. The agriculture
ministry is working to increase locally produced fertilizers,
while the central bank would look to expand financing for
farmers, he added.
Help cannot come soon enough for Yialase in Benue, who is
awaiting the day marketers return.
"When they start to come, I can mill everything here, and
they will buy."

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Top Regional Rice Importers 2018 https://reut.rs/2XZRg2v
Months of crop use held in stocks by region https://reut.rs/39xIPxx
Regional Rice Production 2018 https://reut.rs/3cJA2uB
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