By TechToyin
Many people are happy that food prices are coming down. On the surface, it looks like good news. But there is a serious danger most people are not talking about.
Cheaper food is good for consumers, but not always good for farmers
While buyers enjoy relief, many farmers are selling at a loss.
Cost of farming is still very high
Fertilizer, diesel, transport, labour, and insecurity are still expensive. Prices fell, costs did not.
Farmers are losing capital
Most Nigerian farmers use money from the last harvest to fund the next season. Losses now mean no money later.
Many farmers may not plant next season
When farmers cannot afford seeds, fertilizer, or labour, they reduce production or quit entirely.
This leads to future food shortages
Less planting today means less food tomorrow, which will push prices up again.
Nigeria has no strong price support system
There are no effective minimum price guarantees or working buffer stock programs to protect farmers.
Poor storage forces distress sales
Because farmers can’t store food, they rush to sell during harvest when prices are lowest.
Middlemen and traders also suffer losses
Oversupply and weak demand affect the entire value chain, not just farmers.
Price instability scares investors away
Serious investors avoid agriculture when prices swing wildly from profit to loss.
Low prices today can mean hunger tomorrow
If farmers collapse, Nigeria will depend more on imports and face worse food inflation later.
Bottom line:
The problem is not high prices or low prices. The real problem is unstable prices.
If Nigeria does not protect farmers now, today’s cheap food will become tomorrow’s food crisis.
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