Identifier | Created | Classification | Origin |
---|---|---|---|
08DAKAR471 | 2008-04-24 14:03:00 | UNCLASSIFIED | Embassy Dakar |
VZCZCXRO7020 RR RUEHMA RUEHPA DE RUEHDK #0471 1151403 ZNR UUUUU ZZH R 241403Z APR 08 FM AMEMBASSY DAKAR TO RUEHC/SECSTATE WASHDC 0367 INFO RUEATRS/DEPT OF TREASURY WASHDC RUCPDOC/USDOC WASHDC RUEHRC/USDA WASHDC RUEHLMC/MCC WASHDC RUEHZK/ECOWAS COLLECTIVE |
UNCLAS DAKAR 000471 |
1. SUMMARY: Guinea-Bissau is a net importer of basic foodstuffs, most significantly rice. Rising world market prices and reduced local production due to poor rainfall are impacting availability and price. So far, there have not been demonstrations or unrest to protest the rising cost of living. The World Food Program has an office in Bissau and is making contingency plans to prevent famine. END SUMMARY. RECENT CHANGES IN FOOD PRICES -------------------------- 2. People on the street are concerned about a potential food crisis starting in July. Rice imports are lower than last year and are expected to drop even more due to rising prices. For example, in 2007, the price for rice was USD 400 per metric ton and today it is USD 700 per metric ton. Due to the escalating prices, some importers have decided not to import rice anymore. Prices seem to be changing almost daily for the basic foods at the market and in restaurants. OTHER COMMODITY PRICES -------------------------- 3. Most commodities are imported, so escalating gas and diesel prices have a direct effect on the price of staples such as rice. Also impacting transportation was the recent fuel shortage in Guinea-Bissau. Because there is no oil refinery or petroleum storage facility, all fuel is imported from Senegal. Due to reduced supply in Senegal, exports were briefly halted last month, causing severe shortages and further driving up prices in Guinea-Bissau. SHORTAGES/INDICATIONS OF HUNGER -------------------------- 4. The production of rice and other cereals was affected by late and inadequate rains. According to a joint mission in October by the Food and Agriculture Organization of the United Nations and the Permanent Inter-State Committee for Drought Control in the Sahel, the 2007/8 cereal crop yields were 9 per cent below the 2006/7 yields. The Committee concluded there would be a substantial cereal deficit and that the country would have to import over 85,000 tons of cereal, the equivalent of one-third of overall cereal consumption. US PROGRAMS -------------------------- 5. The USG has no budgetary support for food aid in Guinea-Bissau. A Department of Agriculture Food for Progress program provided school lunches and anti-malaria aid through monetization of foodstuffs, but the program is set to conclude this year. No follow-on funding has been made available. SMITH |