The global agricultural commodity prices are anticipated to experience gradual decline through 2024 stabilising in 2025 even as trade restrictions, weather disruptions, and a slowdown in global growth continue to represent significant risks.
According to the latest industry report, Annual Commodity Review & Outlook 2024 by AFEX, Africa’s leading commodities platform, agricultural commodities may experience a decrease of 2% and 3% in 2024 and 2025 following World Bank stats.
In fact, driven by improved grain and oilseed supplies and diminishing effects of El Niño, maize prices may decrease as global supply recovers. Soybean prices are also expected to weaken with increased South American production whereas rice might rise due to weather and policy responses.
Additionally, Sorghum and cocoa prices could rise due to shifting demand and supply and infrastructure limitations.
In Nigeria, for instance, staple commodities like Maize, Soybean, Rice, Sorghum, and Cocoa last year experienced price surges due to production deficits, trade policies, and heightened demand, aggravating food affordability and security issues.
In this, the report indicates that domestic markets for key commodities such as Maize, Soybean, Rice, Sorghum, and Cocoa this year are poised for significant surges in prices.
This upward trend is primarily attributed to a confluence of factors, with sustained and heightened demand coupled with severe limitations in the supply chain.
Need for continual monitoring and strategic adaptation
The AFEX report signifies a complex balance amidst geopolitical, economic, and environmental factors, demanding continual monitoring and strategic adaptation. The unpredictability of these factors highlights the necessity for vigilance in navigating this landscape.
“Given the multifaceted challenges facing global economies, concerted efforts are imperative to address and navigate the complexities of commodity markets,” state the report in part.
“Policymakers should focus on measures to enhance domestic agricultural production, streamline trade policies, and establish strategic reserves to cushion against market volatility and ensure food security.”
Additionally, international collaboration for stable and fair-trade practices are required to mitigate the impact of geopolitical tensions on commodity markets, fostering stability and resilience.
Modern agriculture revolution
The evolution of modern agriculture has been a tale of triumph and tribulation, marked by the persistent pursuit of higher yields amidst the looming spectre of environmental degradation.
In this delicate balance between sustenance and sustainability, the report suggests that the concept of Diversified Crop Rotations (DCR) emerges as a beacon of hope, offering a transformative approach to address the pressing challenges of contemporary farming.
The report further explores how diversified crop rotation holds the potential to revolutionize agricultural sustainability.
