Bloomberg: Wheat price spike turns Africa to cheaper alternatives

World wheat prices are so high that African consumers are starting to abandon wheat from their diet, according to Bloomberg.

Food producers in Kenya, Egypt, the Democratic Republic of the Congo, Nigeria and Cameroon say they are mixing cheaper alternatives into their breads, pastries and pasta. Local rice, cassava flour and sorghum are replacing wheat, which has risen by about 40% this year as Russia’s invasion has squeezed exports from Ukraine, one of the world’s largest shippers.

These domestic crops are less exposed to trade disruptions and global inflation, thus offering some protection against food prices that remain near record levels.

Kenya imports about 44% of its grain from the Black Sea region, and the spike in prices helped boost inflation to 6.5% in April. Unga Group, the Nairobi-based Exe and Jogoo corn flour company, is seeing a shift in sales to the Amana range of rice and legumes.

“There is an increase in the price of corn and wheat that is leading consumers to other alternatives,” said CEO Joseph Choge. “Sales of legumes and rice are increasing, while sales of wheat are declining.”

The price of corn at the farm gate has doubled and millers are struggling to get enough supplies, he said.

Global wheat supplies could shrink even further as India looks to cut exports after severe heatwaves destroyed crops, according to Bloomberg News. The government has said it sees no reason for such checks.

Previously, the country reduced its production estimate for this season, but said there was enough supply to meet domestic demand.

“We could see some pressure to increase consumption of domestically produced whole grains,” said Shirley Mustafa, an economist at the Food and Agriculture Organization of the United Nations.

The FAO downgraded its outlook for world wheat production in 2022, saying the forecast for Ukraine remains below average. The war is likely to reduce the harvest by at least a fifth.

Egypt is the largest buyer of wheat, with more than 80% of imports coming from Ukraine and Russia. Government markets are 13% lower than last year.

Faced with this kind of pressure, pasta company Egyptian Swiss Group is experimenting with new recipes using rice, corn and lentil flour.

“Price is the name of the game,” said Ahmed El-Sebaie, general manager.

Nestle Nigeria Plc, a producer of Golden Morn cereals, is importing more locally grown crops, according to the company’s annual report for 2021. These include sorghum and soy.

In the Congo, the government has approved a program to support the production of cassava flour for bread and pastries. The flour is made from cassava, a starchy root.

That could help Congo reduce its dependence on imported wheat, which costs about $ 87 million a year, Industry Minister Julien Paluku said on Twitter.

“If most of these products were made on the ground, we would suffer less from the Ukrainian crisis,” said Andre Wameso, the president’s deputy chief of staff for economic affairs.

Cameroon imports about 1 million tonnes of wheat a year, ranking it among the top 10 buyers in sub-Saharan Africa, according to the US Department of Agriculture. The decline in domestic production has pushed it to suspend exports of wheat flour, rice and cereals to neighboring countries.

The move came after the government raised bread prices by 20% in March. In response, some food companies are turning to potatoes.

“Demand for Irish potatoes from bread makers has skyrocketed,” said Sylvanus Nsaichia Kiyung, a farmer in the northwestern city of Santa. “I plan to get more arable land and plant more potatoes to meet demand. All seven tonnes of potatoes I produced this year have been cleared.”