Recent research conducted by Consumers International and Consumer Advocacy and Empowerment Foundation (CADEF) revealed concerning trends in Nigeria’s food pricing landscape.
The study, which covered six geo-political zones and examines fluctuations in food prices between November and December 2023, indicates a continued acceleration of retail prices compared to wholesale prices.
This trend is particularly evident for beans, yam, rice, chicken, and maize.
In a press statement to Daily Sun, CADEF emphasized the need for a thorough investigation by national authorities to ensure fair pricing in food markets, especially in markets of concern.
The organization’s previous research conducted in August underscored a notable surge in retail/consumer prices compared to wholesale/market prices for essential food items. This disparity suggests that consumers bear a disproportionate burden of increased costs, prompting questions about fairness in the market.
In response to these concerns, Consumers International, representing consumers worldwide, developed a tool known as the Fair Food Price Monitor. This tool enables tracking the relationship between food prices at various supply chain stages, utilizing data from reputable sources such as the National Bureau of Statistics and FEWS NET.
A Specialist in Fair Food Prices in Africa at Consumers International, Davine Minayo, underscored the significance of data-driven decision-making in addressing market imbalances.
Minayo stated, “Our collaborative efforts aim to shed light on the issues affecting consumers and farmers in Nigeria.”
“Detailed analysis of farm gate, wholesale, and retail prices for commodities such as Maize, Rice, Beans, yam, palm oil, and Chicken over the past three weeks reveals notable price fluctuations.
“November and December brought forth noteworthy shifts in the percentage changes across the value chain for key commodities—beans, chicken, maize, and yam.
“These fluctuations serve as a lens through which we can examine the intricate interplay of market forces, presenting opportunities and challenges alike.
“At the farmgate level compared to the retail level, in November, beans, chicken, and maize took the spotlight with substantial percentage changes of 127.29%, 176.16%, and 134.07%, respectively. The stage altered in December, witnessing a recalibration of these figures.
“Beans retained prominence, albeit with a reduced percentage change of 97.84%, while chicken and maize experienced shifts to 41.10% and 111.45%, respectively.
“Intriguingly, yam emerged as a contender in December, securing a notable percentage change of 87.34%”.
“As advised in our last press release, understanding the factors driving these fluctuations is crucial for market analysis and decision-making.
“These fluctuations underscore the volatility within the retail sector, where even slight changes can have palpable impacts on consumer accessibility and affordability.
“Stakeholders are advised to closely monitor these trends, engage in ongoing analysis, and remain adaptable to the evolving dynamics of the commodity market.
“The overarching concerns emanate from price variations at each level of the value chain. The potential impacts on farmers’ income, supply chain stability, and consumer affordability necessitate collective attention,” the group explained in the statement.
Executive Director CADEF, Prof. Chiso Okafor, emphasized the need for regulatory intervention to ensure fair pricing in food markets.
She said, “The findings underscore the urgent need for authorities to investigate and address any unfair practices that may be contributing to the burden on consumers and farmers.”
In response to the identified challenges, stakeholders are encouraged to commit to a call to action by collaborating with farmers and distributors, including market associations, farmers associations, security agencies, and others, to address farmgate and retail concerns.
The group emphasized that nuanced analysis serves as a call to action for all stakeholders to collectively navigate the complexities of the food supply chain.
“Consumer organizations recommend government actions to address the threat of unfair food prices, including strengthening competition, sanctioning anti-competitive practices, tackling monopolies, addressing multiple taxations, and supporting subsidies for farmers.”
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