Consumers International and Consumer Advocacy and Empowerment Foundation (CADEF) has lamented on the sudden increment of food prices in the market.
In a recent research, the foundation unveiled concerning trends in Nigeria’s food pricing landscape. The research spans six geo-political zones and focuses on fluctuations in food prices, especially staple items like yam, garri, rice, beans, chicken, and groundnut oil between the months of November and December, 2023.
The organisation in its earlier research in August, 2023 revealed a substantial rise in retail/consumer prices compared to wholesale/market prices for essential food items.
According to the organisation consumers are disproportionately burdened with increased costs, raising questions about fairness in the market.
Consumers International, representing consumers worldwide, developed a tool called the Fair Food Price Monitor. This tool tracks the relationship between food prices at different supply chain stages, utilizing data from reputable sources such as the National Bureau of Statistics and FEWS NET.
Specialist in Fair Food Prices in Africa at Consumers International, Davine Minayo emphasizes the importance of data-driven decision-making to address market imbalances.
Minayo said: “Our collaborative efforts aim to shed light on the issues affecting consumers and farmers in Nigeria.”
The foundation noted that the recent research indicates a continued acceleration of retail prices compared to wholesale prices, particularly for beans, yam, rice, chicken, and maize therefore calls for a thorough investigation by national authorities have been made, especially in markets of concern.
“Detailed analysis of farm gate, wholesale, and retail prices for commodities such as Maize, Rice, Beans, yam, palm oil, and Chicken over the past three weeks reveals notable price fluctuations. November and December brought forth noteworthy shifts in the percentage changes across the value chain for key commodities—beans, chicken, maize, and yam. These fluctuations serve as a lens through which we can examine the intricate interplay of market forces, presenting opportunities and challenges alike. At the farmgate level compared to the retail level, in November, beans, chicken, and maize took the spotlight with substantial percentage changes of 127.29 per cent, 176.16 per cent, and 134.07 per cent, respectively. The stage altered in December, witnessing a recalibration of these figures. Beans retained prominence, albeit with a reduced percentage change of 97.84 per cent, while chicken and maize experienced shifts to 41.10 per cent and 111.45 per cent, respectively. Intriguingly, yam emerged as a contender in December, securing a notable percentage change of 87.34 per cent,” CADEF said.
Executive Director of CADEF, Prof. Chiso Okafor, emphasizes the need for regulatory intervention to ensure fair pricing in food markets.
Okafor said the findings underscore the urgent need for authorities to investigate and address any unfair practices that may be contributing to the burden on consumers and farmers.
In response to the identified challenges, stakeholders are encouraged to commit to a call to action. Collaborate with farmers and distributors (market associations, farmers associations, security agencies) to address farmgate and retail concerns. Enhance market transparency and information sharing for pricing stability. Engage in discussions to address systemic issues within the food supply chain. This nuanced analysis serves as a call to action for all stakeholders to navigate the complexities of the food supply chain collectively.
Consumer organisations therefore recommend government actions to address the threat of unfair food prices, including strengthening competition, sanctioning anti-competitive practices, tackling monopolies, addressing multiple taxations, and supporting subsidies for farmers.
