Current Trade News

Many people still think of climate change as a phenomenon that we will only face in the distant future. Perhaps that's partly because climate change projections about rising temperatures and extreme weather events are tied to future dates: 2030, 2050, or 2100, for instance.
But it's important to realize that we already are experiencing climate change, and have done so for some time now. Over the past century, global temperatures have increased by approximately 1°C. Sea level rise is already starting to affect certain low-lying coastal communities. The world is experiencing more frequent and intense extreme climate events.
The Intergovernmental Panel on Climate Change's (IPCC) 6th Assessment Report: Physical Science basis, released in September 2021, contains a comprehensive - and largely grim - assessment of the state of both recorded and projected climate change globally. The IPCC is the United Nations body for assessing science relating to climate change - a group of expert scientists from around the world, who author scientific reports on the state of the earth's climate and future climate change projections.
Its latest report compiles research from 1400 papers, and will serve as an important reference document for the COP26 meeting in Glasgow, Scotland, from October 31 to
November 12. It's there that science is turned into policy.
Such policy is critical for the whole world - and urgent for southern Africa, which is particularly vulnerable to climatic changes. The region has already been experiencing climate changes that are more rapid, and with impacts that are more severe than the global average. It also struggles with a low adaptive capacity: there's little capital available for investment in measures to protect against future climate hazards, and very pressing immediate human rights needs for a large proportion of the population.
There's no avoiding the reality that southern Africa is in the throes of a climate emergency. By identifying trends in the frequency of weather events happening and its intensity over a period of decades, and exploring changes in related biological systems in light of this, it's plain to see that the region has already been rocked by climate change and related effects.
An increase in extreme temperature
Extreme temperature events can be defined by the maximum temperature, the deviation from the norm, or the length of time of above-threshold temperatures. A number of indices have been developed by the World Meteorological Organization to identify and quantify these extreme temperature events.
Warm events, when they meet specific criteria, are termed heatwaves. These are particularly dangerous for people, animals and plants, and are a direct cause of deaths.
In southern Africa, there has been an increase in the severity and frequency of heatwave events over recent decades. Interestingly, for a few locations, there has also been an increase in the frequency of extreme cold events. While this is not a feature of climate warming, it is induced by changes in regional climate patterns, such as the number of cold fronts which move over South Africa.
Severe drought
Drought is defined as a significant and prolonged departure from mean rainfall totals. The most severe, and best known, drought in southern Africa in recent years was the "Day Zero" crisis in Cape Town. While increasing pressure for water in the City of Cape Town played a role in this, a longer-term poleward displacement in the winter-rain-bearing westerlies which bring the cold fronts and rain to Cape Town during the winter months was a significant contributor to this drought.
Southern Africa more broadly is also sensitive to El Niño induced droughts. El Niño refers to warmer than usual conditions in the Eastern Pacific that persist for a couple of months through to years, driven by a weakening of the Trade Winds, and a resultant reduction in the upwelling of colder water to the sea surface just off South America. This was the cause of the 2015-2016 drought in South Africa's Kruger Park, which resulted in the drying up of watering holes, and the widely publicized death of hippos and later culling of other large mammals.
High intensity tropical cyclones
The southern African subcontinent is relatively well protected from tropical cyclones by the island of Madagascar. However, some tropical cyclones do form in the Mozambique Channel, and occasionally some tropical cyclones move across Madagascar. These storms can - and do, as was seen most recently with Tropical Cyclones Idai, Kenneth and Eloise - make landfall on Mozambique.
Over recent decades, tropical cyclones in the Southwest Indian Ocean have increased in intensity; the first category 5 tropical cyclone for the sub-ocean basin was recorded in 1994. Tropical Cyclone Idai, which bordered in intensity between categories 3 and 4 on landfall, provides stark evidence of the damage wrought by high intensity tropical cyclones in populated areas. There is also evidence that tropical cyclones have expanded their range polewards over recent decades, affecting a larger region of southern Africa.
Changes in the timing of phenological events
In addition to the weather, we experience from the changing climate itself, climate change also has an impact on biological systems. Phenology, which refers to the timing of annually recurrent biological events, is one of the most sensitive bio-indicators of climate change.
In South Africa, scientists have recorded advances in the timing of apple and pear flowering in the southwestern Cape, and of Jacaranda flowering in the Gauteng City Region. Warmer sea surface temperatures have also resulted in a delay in the sardine run along the KwaZulu-Natal south coast.
These shifts have an impact on agriculture and tourism, but more importantly demonstrate that climate change is having an effect on the natural environment. These shifts in timing cannot continue indefinitely. Plants and animals have thresholds beyond which the stresses of climate change will result in at least local extinction.
The picture seems hopeless, but with mitigation and adaptation strategies and policies driven through, among other processes, COP26, southern Africa can reduce the impacts of climate change on local livelihoods. It is important at this stage to invest in adaptation to reduce the impacts of climate change, and to make every effort to reduce our reliance on carbon to slow down climate change
Source: Allafrica.com
The world food price barometer surged to a new peak reaching its highest level since July 2011, the Food and Agriculture Organization of the United Nations (FAO) reported today.
The FAO Food Price Index, which tracks monthly changes in the international prices of a basket of food commodities, averaged 133.2 points in October, up 3 percent from September, rising for a third consecutive month.
The FAO Cereal Price Index in October increased by 3.2 percent from the previous month, with world wheat prices rising by 5 percent amid tightening global availabilities due to reduced harvests in major exporters, including Canada, the Russian Federation and the United States of America. International prices of all other major cereals also increased month-on-month.
The FAO Vegetable Oil Price Index went up 9.6 percent in October, hitting an all-time high. The increase was driven by firmer price quotations for palm, soy, sunflower and rapeseed oils. Palm oil prices rose for a fourth consecutive month in October, largely underpinned by persisting concerns over subdued output in Malaysia due to ongoing migrant labour shortages.
The FAO Dairy Price Index rose by 2.6 points from September, influenced by generally firmer global import demand for butter, skim milk powder and whole milk powder amid buyers’ efforts to secure supplies to build stocks. By contrast, cheese prices remained largely stable, as supplies from major producing countries were adequate to meet global import demand.
The FAO Meat Price Index slipped 0.7 percent from its revised value in September, marking the third monthly decline. International quotations for pig and bovine meats fell amid reduced purchases from China of the former and a sharp decline in quotations for supplies from Brazil of the latter. By contrast, poultry and ovine meat prices rose, boosted by high global demand and low production expansion prospects.
The FAO Sugar Price Index dropped by 1.8 percent from September, marking the first decline after six consecutive monthly increases. The decline was mainly the result of limited global import demand and prospects of large exportable supplies from India and Thailand as well as a weakening of the Brazilian Real against the US dollar.
Source: FAO
04 /09 / 2021 - Rwanda: New Hub to Connect Rwandan Women Entrepreneurs to Markets
The International Trade Centre (ITC) and the Private Sector Federation (PSF) Chamber of Women Entrepreneurs, in collaboration with the Rwandan Ministry of Trade and Industry (MINICOM) on Thursday, September 2 launched a SheTrades Hub in Rwanda.
SheTrade is a global initiative under ITC that aims at connecting women entrepreneurs to markets, the hub's aim is to bolster the competitiveness and market access of Rwandan women-led businesses.
The new hub will join a network of more than ten SheTrades Hubs across Africa, Asia and Latin America.
Pamela Coke-Hamilton, Executive Director of ITC said that through the SheTrades Hub, women-owned businesses and corporations in Rwanda will benefit from a wide range of opportunities to expand their business and advance women's economic empowerment.
"This will be done through networking with other businesses, learning about the export market through e-learning courses and webinars and participating in in-person workshops, trade fairs and other business events," she added.
Jeanne-Françoise Mubiligi, Chairperson of Rwanda Chamber of Women said that Hub will support Rwandan women entrepreneurs to improve their competitiveness, connect them to new markets and internationalize their businesses and maximize profitability.
"Launching this hub will help very many women whose small and medium businesses have been hit by the Covid-19 pandemic, and they will have an opportunity to continue their business operations, this launch could not have come at a better time," she added.
Sharon Akanyana, a member of SheTrade and business owner of a Kigali-based food processing company said that through the hub she was able to receive training on different business aspects, like marketing and how to digitalise her business and also get easy access to financial help, and many other opportunities.
"In addition, this hub will help support and reach out to younger generations of women entrepreneurs and help them grow and get more investment opportunities," she added.
Joy Murekatete, who owns a hospitality business that took a hit from the pandemic due to the closure and annulation of events, said that through the hub, her and many women owning similar businesses will be able to learn, access the financial help they need and be able to get their businesses up and running smoothly.
Beata Habyarimana, the Minister of Trade and Industry who officiated the launch said that the Government of Rwanda is committed to promoting women in all areas including entrepreneurship and the hub will give access to finance and information, and give them a platform for their businesses.
"Through these kinds of hubs, we can leverage businesses owned by women, and we will be able to align them and help them with the economic recovery they need," she added.
Habyarimana urged all the stakeholders and partners to advance and support women's economic empowerment because they greatly contribute to the country's economic development.
Source: The New Times
Despite the country registering a bumper maize harvest during last agricultural season there are fears that there could be a scarcity of the commodity in the near future and the parliamentary committee on agriculture has advised government to consider issuing a maize export ban.
Among others, the Committee cited the heightening rise of fertilizer prices as a factor that would affect the amount of maize produce in the next growing season.
"The country may have lower yields if rising fertilizer prices are not contained... and allowing people to export maize will expose the country to food shortage and rising prices," Sameer Suleman, parliamentary agriculture committee chairperson, said.
A recent Malawi Vulnerability Assessment Committee (MVAC) report shows that the number of people requiring relief food in the country stands at 1.5 million, about 43 percent lower than 2.6 million projected last year but it could worsen based on the prevailing indicators.
According to Suleman, the ban would be in the best interest of all Malawians and that it would be reasonable to suspend exportation of maize now until the country was sure of a surplus.
Grain Traders and Processors Association Chairperson, Grace Mijiga Mhango, advised government to purchase more produce through Agricultural Development and Marketing Corporation (ADMARC) and National Food Reserve Agency (NRFA) before exporting.
"Government should not rely on maize in the hands of private sector players as some can informally export or hoard it at will," Mijiga-Mhango warned.
But trade minister, Sosten Gwengwe, said the food balance sheet informs that Malawi has achieved excess maize.
"People need to understand that if there are pockets of hunger in the country it means we will not be importing but we will use maize which is locally found," Gwengwe said.
Maize is a staple food for Malawi and the highest contributor to inflation's Consumer Price Index.
In the 2020-21 National Budget, the government allocated K12 billion to NFRA and ADMARC for maize purchases.
This year, maize production has been estimated at 4,581,524 metric tonnes (mt)-- compared to 3 785,712mt in the 2019-20 agriculture season.
Source: Nyasatimes.
China on Wednesday received the first consignment of dried chili pepper from Rwanda, making it the first African country to debut the product on the Chinese market.
The move follows a deal secured by Diego Twahirwa, a young Rwandan entrepreneur in agribusiness and China's GK International, located in Hunan Province.
Under the agreement, Rwanda will export 50,000 tonnes of dried chili, every year, for a period of five years.
"The imported 200 kg of dried chilies will be sold to dealers and then given to customers and food processing plants as samples," said Yu Jian, chairman of GK International in Hunan.
According to Twahirwa, the consignment delivered on Wednesday was a sample with a bigger one expected to be seen off on Monday, August 9.
This, experts say, is a good market opportunity for Rwanda in terms of expanding its steadily growing chili exports.
China has the world's largest number of dried chili pepper consumers, exporting 119,900 tonnes of dried chili peppers in the first half of 2021.
Across the Asian country, Hunan is a big consumer and processor of chili peppers across the country.
However, the pepper plantation in Hunan cannot meet the local demand from the dried chili pepper processing industry, according to reports.
Before imports from Rwanda, only seven countries were allowed to export dried chili peppers to China.
Last month, the General Administration of Customs gave the green light to dried chili pepper imports from Rwanda, making it the first African country to gain access to the lucrative market.
This is not the first time Rwanda exports dried chili to an international market.
The country has previously exported to India, a market exporter say has not been highly favorable due to small cost of the product, which made it a risky business.
"This new market will double the cost, with unlimited capacity, making it a sustainable market," said Twahirwa, adding, "It also gives a reliable market to local farmers for their chilli."
Based on this, Twahirwa asserts that Rwandans will have an opportunity to get a foothold in a lucrative market.
Source: The New Times
Rome — Cereals, vegetable oils and dairy drive FAO Food Price Index lower for second month in a row. Global food commodity prices fell in July for the second consecutive month, according to a benchmark United Nations report released today.
The FAO Food Price Index averaged 123.0 points in July 2021, 1.2 percent lower than the previous month although still 31.0 percent higher than its level in the same period of 2020. The index tracks changes in the international prices of the most globally traded food commodities. The July drop reflected declines in the quotations for most cereals and vegetable oils as well as dairy products.
The FAO Cereal Price Index was 3.0 percent lower in July than in June, pushed down by a 6.0 percent month-on-month drop in international maize prices associated with better-than-earlier projected yields in Argentina and improved production prospects in the United States of America, even as crop conditions in Brazil remained a concern. Prices of other coarse grains such as barley and sorghum also dropped significantly, reflecting weaker import demand. However, wheat quotations edged 1.8 percent higher in July - reaching their highest level since mid-2014 - in part due to concerns over dry weather and crop conditions in North America. At the same time, international rice prices hit two-year lows, impacted by currency movements and a slow pace of sales caused by high freight costs and logistical hurdles.
The FAO Dairy Price Index declined 2.8 percent from June, impacted by slower market activity in the Northern hemisphere due to ongoing summer holidays, with skim milk powder registering the largest drop, followed by butter, whole milk powder and cheese.
The FAO Vegetable Oil Price Index reached a five-month low, declining 1.4 percent from June, as lower prices for soy, rape and sunflower seed oils more than offset rising palm oil values. A lower biodiesel blending mandate in Argentina pressured soyoil prices lower, while those for rape and sunflower oils were influenced by prospective record supplies for the 2021/22 season.
In contrast, the FAO Sugar Price Index increased by 1.7 percent in July, its fourth monthly increase. The rise was mostly related to firmer crude oil prices as well as uncertainties over the impact of recent frosts on yields in Brazil, the worlds largest sugar exporter, while good production prospects in India prevented a larger jump.
The FAO Meat Price Index rose marginally from June, with quotations for poultry meat rising the most due to increased imports by East Asia and limited production expansions in some regions. Bovine meat prices also strengthened, buoyed by high imports from China and lower supplies from major producing regions. Meanwhile, pig meat prices fell, following a decline in imports by China.
Source: Allafrica.com