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Prices fall in cereal production zones
07 Feb 2007 03:03:00 GMT
Source: FEWS NET
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FEWS NET Monthly Report for Burkina Faso covering the period Nov 2006 to Dec 2006.

BURKINA FASO
Monthly Food Security Update
DECEMBER 2006

Prices falling in grain-producing areas

The availability of fresh crops on produce markets in most parts of the country bodes well for the food security outlook. Good food availability is attributable to the good performance of last season's maize, fonio and, in particular, rice crops.  Terms of trade are still working to the advantage of pastoralists, with rising prices for livestock and falling grain prices and the upcoming year-end holiday season.  The food security of farm families in most livelihood zones is satisfactory thanks to grain available from recent harvests. Grain prices are falling in major grain-producing areas.

 

Seasonal calendar

 

Current hazards summary

  • Risk of earlier than usual seasonal migration by livestock in certain Sahelian provinces with the bursting of dams and water control structures in the wake of recent flooding.  
  • Erosion of the purchasing power of crop farmers with steadily falling grain prices failing to generate sufficient income. 
 

Current food security

Current food security in all livelihood zones is satisfactory, and households are drawing on recent harvests to ensure their daily meals. 

Good grain availability in the livelihood zone characterized by high levels of tuber (yams, sweet potatoes, cassava) and maize production found in parts of the South-Central, Central-Western, Southwestern and Cascades regions points to a satisfactory food security outlook for 2007.

Most households in crop-producing areas in the Western and Boucle du Mouhoun regions, in livelihood zones dependent on cotton, maize, rice and fruit crops, still have storehouses full of grain, ensuring them three meals a day.

The food situation is still good in livelihood zones dependent on sorghum, millet and cotton production (in the northern reaches of the Boucle du Mouhoun region, the Central-Western region and parts of the South-Central region). However, these good conditions could be undermined by delays in payments for cotton crops, as in the case of all other cotton-producing livelihood zones.

The food security situation in livelihood zones dependent on grain, groundnut and vegetable crops is mixed. Certain parts of these areas have been identified as vulnerable to food insecurity problems in the wake of the late start of the rains, subsequent flooding, pockets of drought and this year's prematurely ending rainy season.  Right now, there is good food availability in Gnagna and Komondjari provinces with local households drawing on food reserves from recent harvests for their two daily meals.  However, food reserves in certain villages throughout these provinces could be depleted before the next regular lean period. Food availability in Ganzourgou province in the Central Plateau region is good in the south and poor in the northern part of province, where household food reserves could run out before the beginning of the next planting season. 

The food security situation in livelihood zones dependent on migratory livestock-raising activities and pearl millet production is creating hardships. With prevailing conditions during the growing season, the ensuing shortfall in crop yields and reported flooding in the Sahelian region, on-farm reserves may not cover household food needs until the upcoming lean period. 

The drought, flooding and, to a lesser extent, insect infestations have affected harvests in parts of the Northern, Sahelian and North-Central regions categorized as a livelihood zone dependent on animal and millet production. Three villages in Gomponsom department in Passor? province will definitely experience food insecurity problems during the next rainy season with the reported drought in these areas. Bam and Sanmatenga provinces in the North-Central region are showing good food availability on provincial markets and poor food availability at the departmental level. 

The food security situation is satisfactory in the livelihood zone dependent mainly on groundnut and grain (millet and sorghum) production, complemented by cross-border trade, tourism and hunting activities (in the Eastern and Central-Eastern regions).

Figure 1.  Livelihood Zones in Burkina Faso

 
Map: FEWS NET 

 

Food access on produce markets

Prices in nearly all grain-producing areas have been steadily falling since the beginning of the rainy season, eroding the purchasing power of local farmers. Without the implementation of appropriate measures by all interested stakeholders, this could undermine the food security situation of most rural households over the next few months should this downward trend in prices continue. In order to defray expenses associated with the upcoming holiday season (Christmas and Tabaski), farmers will be forced to dispose of a large part of their harvest in order to generate enough cash to pay for a sheep or hog for their holiday meal. This will only serve to increase grain availability on local markets, most likely causing prices to plunge.

Looking at trends on reference markets (Figure 2), the 20 percent drop in prices in D?dougou is attributable to the location of this market in Burkina's grain basket. The Ouahigouya market in the northern part of the country is supplied by markets in the Boucle du Mouhoun region whose capital is D?dougou, which explains the 5 percent drop in prices in this area. The small 6 percent and 4 percent hikes in millet prices on the Kaya and Dori markets, respectively, are most likely attributable to the small volume of grain coming to these markets from local wholesale markets in these regions, with traders probably busy rebuilding their inventories, taking advantage of falling prices in other parts of the country.

Figure 2.  Trends in prices for locally grown millet crops on reference markets (October 2005 to November 2006)

Source: SIM (Market Information System)/SONAGESS (National Security Reserve Management Enterprise) and Regional Departments of Agriculture; Graphic: FEWS NET

Millet prices on most reference markets are down from the same time last year. Price differentials range from 18 percent on the Ouahigouya market to as much as 66 percent on the Dori market. 

Millet prices on the Kaya market, in a region with two contiguous livelihood zones (a livelihood zone dependent on animal and millet production and a livelihood zone dependent on migratory herding and pearl millet production), are down from last year's figures and running below the five-year average (Figure 3).

Figure 3.  Trends in prices for locally grown millet crops on reference markets (October 2005 to November 2006)

Source: SIM (Market Information System)/SONAGESS (National Security Reserve Management Enterprise) and Regional Departments of Agriculture; Graphic: FEWS NET

 

Conditions in pastoral areas

Though a certain amount of time has elapsed since the end of the rainy season, there are still large supplies of dry natural vegetation, which is an essential source of food for livestock.  Right now, the availability of hay, stalks of grain plants and tops of groundnut and cowpea plants is helping animals stay in good shape. Animal health conditions are calm in most areas, and certain pastoralists are waiting for their animals to be vaccinated before beginning their seasonal migration.

Prices for Sahelian male goats in good condition are up on both the Djibo and the Kaya reference markets. What has been a steady upward trend in prices since last June has picked up speed with the upcoming religious (Christmas and Tabaski) and New Year's holidays creating heavy demand for livestock on markets around the country. 

Terms of trade are working to the advantage of pastoralists, with prices rising for livestock and falling for grain. In fact, as illustrated in Figures 4 and 5, the price of a male goat is equivalent to the cost of over two sacks of millet in Djibo and more than a sack and a half of millet in Kaya.

Figure 4.  Trends in terms of trade for millet/male goats in Djibo (October 2005 to November 2006)

Figure 5.  Trends in terms of trade for millet/male goats in Kaya (October 2005 to November 2006)

Source of data: MRA (Ministry of Animal Resources) / DEP (Research and Planning Department) / Animal Statistics Service, SIM-SONAGESS and Regional Departments of Agriculture and Regional Departments of Animal Resources; Graphic: FEWS NET

 

Food outlook and suggestions

The national food security outlook is still good, provided all stakeholders in grain redistribution efforts in different regions of the country fully play their part.  Thus, the members of the Interprofessional Grain Board of Burkina Faso need to look for solutions to help promote grain transfers from surplus production zones to areas identified as vulnerable to food insecurity problems.

Efforts by NGOs and other stakeholders to rebuild the national food security reserve and government buffer stock and to restock grain banks should be stepped up to allay concerns over the prospect of farmers getting discouraged in the face of the currently unprofitable prices for their crops.

Famine Early Warning System Network (FEWS NET)

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