Business
2011 Grain Output, Prices Rise – FAO
World cereals output is expected to rise to a new record in 2011 due to more planting and improved yields, the UN’s Food and Agriculture Organisation (FAO) said.
“But low stocks are set to keep prices high and volatile,’’ FAO said on Tuesday in its first estimate of 2011 total global crops.
FAO noted that the global cereals output was expected to rise 3.5 per cent to 2.315 billion tonnes this year, recovering after a 1 per cent fall in 2010.
According to its key Food Outlook report, world wheat output is seen rising 3.2 per cent to 674 million tonnes this year; down from an earlier forecast of 676 million due to unfavourable weather in North America and parts of Europe.
Wheat outlook in the main producing countries is patchy with the European Union’s output seen flat at 137 million tonnes, U.S. crops falling 8.5 per cent to 55 million hit by bad weather.
Russia’s output is expected to jump 32.5 per cent to 55 million, recovering after 2010’s severe drought.
The Rome-based agency said that the weather in the coming months remained critical for shaping final crop outcomes.
The FAO said increasing global grain production this year would not be sufficient to rebuild strong stocks which could stabilise prices, adding that demand growth was expected to slow down this year, especially from the biofuels sector.
World cereals stocks at the end of 2011 and 2012 season were expected to edge 0.8 per cent higher to 494 million tonnes, still well below 534 million tonnes at the end of 2009/10 season.
Wheat stocks are seen down 2.6 percent at the end of 2011/12 season to 183 million tonnes.
“With total cereal production barely meeting consumption, international prices are likely to stay high, especially in the wheat and coarse grain markets,” it said.
It however noted that surging international prices of grains and vegetable oils were likely to help raise global costs of imported foodstuffs by 21 per cent this year to a record of 1.29 trillion dollars.
This it said would surpass the $1 trillion mark for the third time in the past four years.
“The poorest countries are going to be hit hardest because their food import bill is expected to surge 30 per cent and account for roughly 18 per cent of all their import spending.
“That compares to a 20 per cent jump in the food import bill for developed countries.
“But even increased spending on food imports would not guarantee greater food availability in poor countries where bigger imports would only compensate for falling domestic supplies,’’ it said.
“Payment of tuition fees for undergraduate/postgraduate studies shall be subject to a maximum limit of $25,000.00 per semester,” the Manual states.
The expansion of international card limits also reflects growing confidence among lenders that foreign exchange liquidity has improved enough to support retail dollar transactions.
Speaking recently at the BusinessDay 14th Annual CEO Forum in Lagos, CBN Olayemi Cardoso, governor of the CBN said buying and selling activities now increasingly determine outcomes in the foreign exchange market, unlike in the past when market participants relied heavily on routine Central Bank interventions.
According to Cardoso, Nigeria’s net foreign exchange reserves have risen from just over $3 billion at the start of the reform programme to more than $40 billion, while gross reserves have climbed to about $52 billion, providing stronger confidence for investors and enabling the Central Bank to reserve interventions for periods of market stress rather than day-to-day liquidity management.
The restoration and expansion of international naira card spending limits are increasingly being seen as one of the clearest signs that the benefits of the CBN’s foreign exchange reforms are beginning to reach households, students and businesses making legitimate cross-border payments.
The Secretary-General and Chief Executive Officer, WEC, Dr Angela Wilkinson, disclosed this in a statement, last Thursday.
“Nigeria’s participation comes at a pivotal time as the country seeks to expand energy access, strengthen energy security, accelerate gas development and mobilise the capital required for industrialisation and sustainable economic growth.
“WEC Nigeria will convene leaders from across the energy ecosystem, apply the WEC’s globally recognised Energy Trilemma framework to Nigeria’s unique context, and promote evidence-based dialogue, practical collaboration and informed policymaking.
“It will also ensure that Nigerian and broader African perspectives contribute meaningfully to global energy conversations,” she said.
Wilkinson expressed confidence that Nigeria would play a significant leadership role at the World Energy Congress scheduled for Riyadh in April 2027 and beyond.
The statement also quoted the Chairman of WEC Nigeria, Isa, as describing the country’s participation as an opportunity to deepen national and African leadership within the global energy community through practical solutions tailored to regional development priorities.
He said the platform would promote collaboration across sectors and attract sustainable investments into Nigeria’s energy sector.
The Chief Executive Officer of WEC Nigeria, Wunti, was quoted in the statement as saying that the council would connect leadership, evidence and investment to build a secure, affordable and sustainable energy system.
“This system will be capable of driving economic growth and shared prosperity.”
According to him, the platform will also connect Nigerian institutions and businesses with international knowledge, technology, partnerships and investment opportunities through the World Energy Council’s global network.
Recall that WEC, founded in 1923, is the world’s oldest independent and impartial community of energy leaders and practitioners, advancing informed, collaborative and practical action across the global energy system.