Global Price Watch: June 2010 Food Prices
In Ethiopia and Kenya, staple food prices were stable or slightly declined in recent months, unlike seasonal trends (although in pastoral areas of Kenya, prices remain elevated). In Tanzania, prices have decreased, in line with seasonal trends.
While prices have been relatively stable in southern Sudan, price in northern Sudan tended to increase between May and June, from levels already well above the fiveyear average. In southern Somalia, prices have generally increased over the first two quarters of 2010
In Ethiopia, the marketing of producer stocks and the belg harvest have increased the supply of maize, sorghum, and wheat. The large amount of institutional stocks and various food distribution programs have also contributed to stabilize prices. In Tanzania, the msimu and masika harvests led to lower prices.
While the increase in cereal prices in southern Somalia is somewhat a seasonal trend, it has also been driven by other factors, including low stocks from the previous deyr harvest, the suspension of food aid in the south, and insecurity in the southern and central parts of the country.
In Ethiopia, prices are expected to remain relatively stable. In the west, good kiremt rains should lead to a good harvest and increased availability. In the marginal agricultural areas in the east, prices are likely to increase during the meher rainy season as stocks are depleted, the reliance of households on markets rises, and transportation becomes more difficult.
In Somalia, the ongoing Gu harvest for maize, sorghum, and cowpea is expected to be normal to above normal, due to good rainfall. The increase in supply following the harvest is expected to stabilize or lower cereal prices.