Consumer Goods

Rising prices of milk, coffee, eggs, etc. push up food prices in Nigeria

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Although the latest report of the National Bureau of Statistics (NBS) shows that the food index that has received much attention has risen as high as 21.03% year-on-year, but the country’s food prices continue to rise, causing consumers to worry. July 2021.

According to reports from the country’s most important statistical agency, the main reasons for the increase in food prices are the prices of milk, cheese and eggs, coffee, tea and cocoa, vegetables, bread and grains, soft drinks and meat.

Food inflation has been a major stumbling block to the Nigerian economy and has been exacerbated by events such as the first land border closure in 2019, the 2020 COVID-19 pandemic lockdown, and the aftermath of the #EndSARS protest. The most strategic city in the country. The escalating incidents of bandit kidnapping in the northern central zone have also led to countless farmers being killed, maimed or kidnapped in the conflicts between farming and animal husbandry, leading to a sharp drop in agricultural productivity and rising food prices.

Taking a cursory look at the historic days of the National Bureau of Statistics, the food composite index has soared by 34.5% since the land border was closed in October 2019, which is also an increase of 29.2% from the first covid-19 pandemic that broke out in February 2020.

The recently announced July inflation statistics show that one of the commodities whose prices have risen sharply includes carbonated beverages such as Pepsi, Coke, and Bigi, which are currently sold at N150 instead of N100 in most parts of the country. Earlier this year, prices rose by 50%.

What the Nairametrics data shows

Data from Nairametrics Research shows that food prices have indeed risen sharply, especially in the past year. For example, the average selling price of a 400g can of Loya milk was N1,000 in July 2020, and it has now soared to an average of N1,500. This means that the price has risen by 50%.

Members of the Nairametrics research team visited some supermarkets and found that a 50-gram bottle of “Nescafe Classic Coffee” sold 40% of the price of N700 compared with the N500 recorded a year ago. This is consistent with the forecast reported by Nairametrics earlier in July 2021 that as global commodity prices rise, coffee prices in Nigeria may rise.

The report attributed the expected increase in coffee prices in Nigeria to the increase in coffee prices in the international market due to the drought in Brazil, which caused the coffee market to experience a supply shortage for the first time in four years.

Similarly, as of July 2020, the average selling price of a box of eggs was N970, and now the average selling price is N1,600, an increase of 64.9% year-on-year. The reason for the increase in the price of eggs is that the price of chicken feed has generally risen, which is the result of the sharp increase in the prices of corn and soybeans, the main raw materials for chicken feed production.

Similarly, as the prices of flour and vegetable oil soared, so did the price of bread. It is worth noting that the price of a bag of 50 kilograms of flour soared from an average of N11,000 to N15,000 in one year, while the current average selling price of 25 kilograms of gallons of vegetables is N25,000, and the record is N13,500 in the same period in 2020. .

Bottom line

Although inflation data showed signs of easing, food prices continued to rise sharply, most of which did not return to their original prices. The fact remains that structural issues, insecurity and difficult macroeconomic space affect food prices, which are eroding the purchasing power of ordinary Nigerians.

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