FOOD SECURITY SNAPSHOT

Production of 2012 rice and maize crops anticipated above average

Cereal imports in 2012 (January/December) remain steady

Cereal prices, mainly of rice, declining in recent months

Heavy rains affected over 800 000 people

Favourable prospects for 2012 rice and maize production

Harvesting of the 2012 main rice and second season maize crops is currently underway. Production of paddy is officially forecast at 2.8 million tonnes, 7 percent above last year’s reduced level. The increase reflects a recovery in the area sown compared to 2011 and higher yields, following abundant precipitation during the season that allowed the replenishment of water supplies in major reservoirs. The 2012 maize aggregate output is expected at around 1.6 million tonnes. This mainly reflects larger plantings, particularly in the major producing area of San Martin, in response to higher prices and strong demand from the fodder industry. Improved water supplies in coastal areas have also supported this year’s production. Hard yellow maize accounts for over 80 percent of the country’s total maize production.

Cereal imports in 2012 forecast to decrease slightly but to remain at above average levels

The country imports about 60 percent of its maize consumption requirements and over 90 percent of those of wheat. Cereal imports in the 2012 (January/December) are forecast at a high level of 3.8 million tonnes, slightly down from 2011 as a result of the increase in cereal output expected this year, but still well above average mainly on account of the growing demand from the livestock industry. Cereal prices declined in recent months

Wholesale prices of paddy started to decrease in February reflecting the good prospects for this year’s production and improved availabilities from imports in the first months of 2012. In April paddy prices were 7 percent lower than at the beginning of the year and their levels of a year earlier. The decline in prices is raising concerns among producers and the Government is promoting rice exports to neighbouring countries in an attempt to support prices. Prices of yellow maize slightly decreased in April and were 2 percent higher than at the same time a year ago.

Prices of potatoes, another basic product in the national diet, declined in the last two months with the ongoing 2012 good harvest but remained more than 20 percent higher than in April 2011.

Floods and landslides caused widespread damage across the country

Heavy rains in the past months have resulted in more than 50 deaths and affected over 800 000 people across the country, causing damage to infrastructure and agriculture. While the crop losses are limited at national level, they are significant in the affected areas, particularly in the northeast region of Loreto, where above normal rains caused the river water levels to rise and overflow. The Government has allocated USD 3.7 million to help the most affected population with temporary housing. The emergency situation declared in several departments ended in mid-May.