Global agricultural markets have been in a constant state of uproar over the past five years. Trade wars between major trading nations such as China, the United States, and Australia, supply chain disruptions due to the COVID-19 pandemic, Russia’s war in Ukraine, crisis in the Middle East, and export restrictions in many countries have diverted supplies, altered trading patterns, and increased price volatility, which often makes markets less efficient and more costly. 

Does Africa need food self-sufficiency to achieve long-term food security?

Not necessarily, according to new research from IFPRI.

With food security continuing to deteriorate across the region and an estimated 600 million people expected to be chronically undernourished by 2030, shoring up Africa’s food and nutrition security has become a priority for the region’s policymakers. This perceived need has been further highlighted by recurring shocks to global food markets, including the 2008 food crisis, the COVID-19 pandemic, and the Russia-Ukraine war.

Cocoa bean prices have been rising since the last quarter of 2023, hitting a record high of $10.97 per kilogram on April 19 (Figure 1). The price spike is due to a significant drop in bean production by major global suppliers—four key producing nations in West and Central Africa account for more than 60% of the world's supply of cocoa beans: Cote d’Ivoire (with 38% of the global production in 2022), Ghana (19%), Nigeria (5%), and Cameroon (5%).1

Cocoa bean prices have been rising since the last quarter of 2023, hitting a record high of $10.97 per kilogram on April 19 (Figure 1). The price spike is due to a significant drop in bean production by major global suppliers—four key producing nations in West and Central Africa account for more than 60% of the world's supply of cocoa beans: Cote d’Ivoire (with 38% of the global production in 2022), Ghana (19%), Nigeria (5%), and Cameroon (5%).1

Cocoa bean prices have climbed to record nominal levels over the past six months, more than doubling since August 2023 (Figure 1). This price spike has largely been driven by weather-related diseases that have reduced cocoa production in key West African countries accounting for almost three quarters of world supplies.

The recent attacks of Yemen-based Houthi rebels on ships in the Red Sea have paralyzed shipping through the Suez Canal, forcing exporters in the Black Sea region and elsewhere to consider alternative—and more costly—shipping routes. In early January, A.P. Moller-Maersk A/S, the world's second-largest container ship company, announced it would suspend shipments through the Red Sea. Trade volumes in the Suez Canal are down an estimated 40% since the attacks began.

Russia’s July 17 withdrawal from the Black Sea Grain Initiative (BSGI), has sparked fears of reduced exports of wheat and other key commodities to developing countries, along with other market disruptions.

On July 17, Russia announced that it was terminating participation in the Black Sea Grain Initiative, which allowed exports of grains and other agricultural products from Ukrainian ports.

Food loss and food waste continue to pose a serious challenge for sustainable agricultural growth and food and nutrition security around the world. In many developing countries, lack of modern storage and transportation infrastructure plays a large role in food loss and waste, particularly for more nutritious and profitable but perishable foods like fruits and vegetables.