Reference Date: 18-May-2015
FOOD SECURITY SNAPSHOT
Above-average crop production expected in 2015; However, dry spells affected crops in parts of the country
Food prices increase significantly in parts of the country
Inflation rates increased in 2015; removal of fuel subsidies in December 2014 has exerted some upward pressure on food prices
An estimated 460 000 people were affected by drought conditions
Favourable production prospects in 2015, despite impact of dry spells in parts
Harvesting of the 2015 main cereal crops commenced in March and are expected to be completed in June. Most of the country enjoyed good rains, however, the southern provinces (Cunene, part of Huila, Namibe, Cuando Cubango and Benguela), which normally contribute to about 10 percent of the national cereal output, were affected by drought. Early forecasts indicate a cereal production level of about 1.55 million tonnes, 29 percent above average but 15 percent less than the bumper 2014 crop.
Inflation rates increase in 2015
The inflation rate in April 2015 was about 8.2 percent, up from a stable annual inflation rate of 7.5 percent during the last quarter of 2014. As of April 2015, food prices in areas of Huila province increased significantly. Furthermore, food prices, particularly in deficit-producing areas, have come under some upward pressure from the cut in fuel subsidies that took effect in December 2014, with petrol and diesel prices increasing by 20 percent. This followed a previous 25 percent increase in September 2014.
Food security in southern provinces remains a concern
Food security in southern parts of the country, particularly in the southwest, remains tight. The increase in fuel costs in late 2014 has exerted an upward pressure on food prices, thus negatively impacting on food access particularly in deficit producing areas. However, the arrival of new supplies from the 2015 harvest from March has provided some welcome relief although the availability of preferred foods in some areas of Cunene was severely limited due to the drought. About 460 000 people are now estimated to have been affected by the drought that resulted in localized crop losses and livestock deaths.