Reference Date: 18-January-2023

Paddy output in 2022 estimated at above‑average level

Harvesting of the 2022 second season paddy crop was completed in December and the 2022 paddy production is estimated at a slightly above‑average level of 1.1 million tonnes. Excellent yields of the first season crop more than offset a contraction of area sown with the second season crop, caused by below‑average rainfall amounts at planting time. Above‑average yields are mainly due to widespread use of fertilizers and increased agricultural investments by farmers. Prices of fertilizers have been fixed since September 2021 through the government’s subisidy programme that amounted to DOP  5 150 million (equivalent to about USD 92 million) in 2022. Similarily, the government has fixed prices of gasoline and diesel since March 2022. According to the Bank of Agriculture, loans granted to the rice production industry increased by 40 percent year‑on‑year in the first nine monts of 2022.

To boost rice production in 2023, the government will continue subsidizing fertilizers and certified paddy seeds, with a total budget of DOP 1 600 million (equivalent to USD 28 million).

The 2022 maize output is estimated at an above‑average level of 60 000 tonnes due to an increased use of improved seed varieties and provision of technical assistance by governmental institutions. The decision of the main national beer factory to purchase domestically produced maize has also instigated an increase in plantings.

Cereal import requirements in 2022/23 marketing year forecast at slightly above‑average levels

Cereal import requirements in the 2022/23 marketing year (July/June) are forecast at 2.1 million tonnes, slightly above the five‑year average. The anticipated requirements are due to the strong demand of wheat for human consumption, reflecting the increasing population and of yellow maize to be processed by the domestic feed industry.

Prices of maize and beans higher year‑on‑year in December 2022

Despite some declines between July and November 2022, retail prices of yellow maize in December were 30 percent higher than one year before. The high level of prices reflects the upsurge in the first quarter of 2022, which followed sharp increases in international prices. The elevated costs of feed (maize) kept prices of chicken higher year‑on‑year in December 2022. Prices of black beans have been stable in the second half of 2022 and were 6 percent up from a year earlier in December owing to high costs of production and transportation. Rice prices were steady throughout 2022 as markets were adequately supplied by the bumper production obtained in 2021 and 2022. Prices of most food commodities were generally high in 2022, with the annual food inflation rate at 9.8 percent in November 2022.

About 1.55 million people estimated to face acute food insecurity between October 2022 and February 2023

According to the Integrated Food Security Phase Classification (IPC) analysis, carried out for the first time in the country, the number of people facing acute food insecurity is estimated at 1.55 million between October 2022 and February 2023. This corresponds to 15 percent of the analyzed population of 10.6 million people. The food insecurity situation is mainly attributed to the high level of food prices, which has diminished the purchasing power of the most vulnerable households and constrained their access to food. Other key drivers of food insecurity include persistent effects of the COVID-19 pandemic on those who rely on informal economic activities and the impact of Category 1 Hurricane Fiona, which hit the eastern region in mid‑September 2022. The hurricane damaged nearly 9 000 houses and resulted in 43 540 displaced people , severely affecting their livelihoods. In order to help recovery in agricultural production, the Bank of Agriculture disbursed direct subsidies of DOP 1 000 (USD 18) per affected land (0.06 hectares) and provided interest‑free loans to small and medium‑sized producers, with a total budget of about DOP  5 500 million (USD 100 million). Regarding cereal production, the impact was not significant as crops are not grown in the affected eastern areas.

Disclaimer: The designations employed and the presentation of material in this information product do not imply the expression of any opinion whatsoever on the part of FAO concerning the legal status of any country, territory, city or area or of its authorities, or concerning the delimitation of its frontiers or boundaries.

This brief was prepared using the following data/tools:
FAO/GIEWS Country Cereal Balance Sheet (CCBS)
https://www.fao.org/giews/data-tools/en/
FAO/GIEWS Food Price Monitoring and Analysis (FPMA) Tool
https://fpma.fao.org/
FAO/GIEWS Earth Observations for Crop Monitoring
https://www.fao.org/giews/earthobservation/
Integrated Food Security Phase Classification (IPC)
https://www.ipcinfo.org/