What's New

After being largely eliminated by structural adjustment programs in the 1980s and 1990s, large-scale input subsidy programs are regaining popularity throughout the developing world, particularly in Africa south of the Sahara. It's estimated that African countries spend, on average, 30 percent of their agriculture budgets on these programs, which aim to increase small farmers' investments in new technologies and increase agricultural production. Despite these programs' widespread use, however, debate abounds about how efficient input subsidy programs actually are.

The Agricultural Market Information System (AMIS) has released the latest edition of its monthly Market Monitor. This month's report sees stabilized world markets as forecasts for 2012-2013 crop outlooks become more finalized. Despite this stabilization, however, attention should be paid to ongoing weather concerns, particularly drought affecting US winter wheat.

Wheat production in 2012 fell below the record seen in 2011, and ending stocks are expected to decline significantly. Wheat use, on the other hand, is expected to drop based on lower feed use in China and the EU.

In its latest Monthly Food Price Watch, FEWS NET reports that global rice production for 2012/2013 is expected to be the highest on record. Global soybean production prospects also improved with a 10 percent increase for 2012/2013; however, strong global demand is expected to keep soybean and soybean oil prices high. While global wheat prices remain high, production is only expected to decline by six percent. However, trade policies in key wheat exporting countries could exert further pressure on prices.

FEWS NET has released the latest update to its West Africa Food Security Outlook . The report sees good crop production in the region, with initial evaluations citing cereal production between 5 and 17 percent higher than 2011. The report cautions, however, that due to continuing high prices and past stock depletion, food insecurity in some parts of the region could remain at Phase 2 (Stressed) levels through October.

According to a new report released by FEWS, crisis-level food insecurity across West Africa has improved or stabilized in the past month, particularly from Mauritania to Chad and the eastern Sahel. Despite the improvement in food security, however, food aid will still be needed in the region through the fall to compensate for high prices and low household food stocks.