September 27, 2012

Yemen's 2012 wheat imports may rise on poor rains

Due to poor rainfall and social unrest which affect agricultural activity, Yemen's wheat imports this year are expected to rise.

According to the United Nations' food organisation, wheat imports are seen rising around 13% compared with the year earlier to 2.7 million tonnes.

Yemen is almost totally dependent on imports to satisfy domestic demand for wheat, which is the country's main staple, the Rome-based Food and Agriculture Organisation (FAO) said Tuesday (Sep 25), with the population highly vulnerable to international commodity price rises.

The security situation in Yemen remains volatile, the FAO said, with the local currency's continued depreciation against the US dollar making imports more expensive, while record-low levels of foreign exchange reserves are hampering the country's capacity to import.

Wholesale prices of wheat and wheat flour began to rise in Yemen's main urban trading centres following recent increases on international markets, according to the U.N.'s World Food Programme. The country's wheat prices rose 3.5% between June and July, before soaring 8.5% in August, it said.

The FAO said below-average rainfall in parts of the country, coupled with social unrest and insecurity, are expected to hinder agricultural activities, with cereal production expected to fall 8% on-year to 750,000 tonnes.

Harvesting of 2012 corn, sorghum and millet crops are about to start, it added, with satellite observations indicating the year's rainfall totals were below average in Aden, San'a, Lahj, Taiz, Hodeida, Shabwah, Hadramat, Al Muharah, Al Jawf, Marib, and Ad Dali governorates.