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Are the EU and US still screwing up food production in Africa?


D

Dylan2010

I happened to catch an interview on RTE with one of the Irish creameries and they seemed to be pleased with themselves that they were exporting a 100m of powered milk to be shipped to Nigeria to be then rehydraded and sold to Nigerian consumers. As European farmers live off taxpayer grants it means that their production price is artificially low. On the Nigerian side these subsidised imports make it less attractive to get into dairy farming and related manufacturing? either that or Nigerian farmers are so useless that the EU is doing them a favour?
there have been many examples in the past where EU exports meant that African farmers were leaving crops in the ground, is it still going on?



Agricultural Products; Reinvent Rebuild

Most of Nigeria’s dairy imports are lower-grade milk powder. Nigeria’s dairy processors (including ice cream, chocolate milk, yogurt, and long-life milk producers) rely on combining and reconstituting milk powder imported mostly from the Netherlands and Denmark. Despite a huge market, U.S. market share for dairy products remains insignificant as freight costs from the U.S. are well above those from the European Union. The U.S. should take advantage of its more efficient dairy processing over third country suppliers to control market share for high-value dairy products such as cheese, ice cream, butter and others.
 

Telemachus

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Are you saying that Irish famers due to their engagement with CAP are morally complicit in damaging african economies?
 

Picasso Republic

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Investment in commercial farming in Africa is an issue, as long as we are content to see the subsistence farmer on his 2 acre farm there will always be a problem with large scale production.

However one has to ask the question whether Nigeria is suitable for large scale dairy production or should they focus on say grain, rice etc. what will give them the biggest bang for their buck.

Additionally, Africa is still high risk for foreign companies partnering locals, as a change in regime to a Zimbabwe model could see large assets and years of investment wiped out.

However overall the OP raised a valid point.
 
D

Dylan2010

Are you saying that Irish famers due to their engagement with CAP are morally complicit in damaging african economies?
I'm suggesting it or kicking the types at least. It is certainly provable that European farmers were complicit in the past but I'm not sure how much the EU has cleaned up its act since.


Picasso Republic said:
However one has to ask the question whether Nigeria is suitable for large scale dairy production or should they focus on say grain, rice etc. what will give them the biggest bang for their buck.
thats a possibility but I'm still curious how a high cost country and sell a low cost commodity to low income consumers on a different continent? the economics of that must be fascinating. Or what market failures are preventing Nigerian farmers from organising via coops or other mechanisms. Is there gov corruption financed by the EU or Euopean multinationals?
 

Ribeye

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Em, of course they are,

The EU and the US also drop bombs on them,

Just sayin is all!
 
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I'm suggesting it or kicking the types at least. It is certainly provable that European farmers were complicit in the past but I'm not sure how much the EU has cleaned up its act since.
Attempts at reform have been half-hearted or watered down. They have, in fairness, allowed relatively unrestricted access to EU markets for the most undeveloped countries, partially breaching 'Fortress Europe' (good in as far as it goes) but one gets the impression of a fig-leaf to cover the criticism that CAP has attracted for decades now. The main problems remain, particularly dumping and market distortion, as well as lack of access to the 'middling' poor countries.
 

Tea Party Patriot

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I happened to catch an interview on RTE with one of the Irish creameries and they seemed to be pleased with themselves that they were exporting a 100m of powered milk to be shipped to Nigeria to be then rehydraded and sold to Nigerian consumers. As European farmers live off taxpayer grants it means that their production price is artificially low. On the Nigerian side these subsidised imports make it less attractive to get into dairy farming and related manufacturing? either that or Nigerian farmers are so useless that the EU is doing them a favour?
there have been many examples in the past where EU exports meant that African farmers were leaving crops in the ground, is it still going on?



Agricultural Products; Reinvent Rebuild
If anything CAP has driven up the price of milk powder in the EU as opposed to putting downward pressure on it. Particularly due to the imposition of milk quotas which limited production.

Many dairy farmers do not have large single farm payments because they were not involved in the business of finishing beef cattle bred from their dairy cows.

You also have the reality now that the CAP is no longer linked to production, it has in fact reduced production as can be seen by the marked decrease in the Irish cattle herd.

If CAP was scrapped large amounts of land retained by beef producers purely for the purpose of drawing subsidies based on historic production rates that they no longer match would be become available for dairy. With the milk quota going in 2015 this would actually see even more pressure on African farmers.

If you don't believe me look at the New Zealand model which is the one I personally advocate for Ireland, and its entirely subsidy free.
 

GDPR

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So we are subsidising African food supplies so that they cost less for impoverished Africans than if they produced it themselves ? is that one way of looking at it ?
 

Tea Party Patriot

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So we are subsidising African food supplies so that they cost less for impoverished Africans than if they produced it themselves ? is that one way of looking at it ?
When subsidies were linked to production we were, if anything the manner in which the single farm payment is made now it is a hindrance to production.
 

Picasso Republic

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So we are subsidising African food supplies so that they cost less for impoverished Africans than if they produced it themselves ? is that one way of looking at it ?
Regardless of whether subsidised or not, due to Governments which are both corrupt, incompetent or generally both, removing EU products from their market (at affordable prices) would be a disaster for the non-farming population. Africa and African leaders need to step up to the table and even if the developed world does not treat them as equals they need to adopt that stance themselves. They need to legislate for and implement modern change within their countries and the political system needs to be transparent.

Africa cannot compete with the developed world unless it steps into the 21st century. I abhor the international hypermarkets which have invaded every town in the western world, the local ABC market simply cannot compete with them and this is the point, no matter what you do with the medieval small family holding model in most of Africa, it will never be able to feed the urban population, nor compete with the developed world. The system evolved to feed a family or village ( as we used to have in Europe), had a little surplus to trade, but that was it. Nigerian farmers cannot feed a 150m urban population regardless of being competitive or not.
 

seabhcan

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Regardless of whether subsidised or not, due to Governments which are both corrupt, incompetent or generally both, removing EU products from their market (at affordable prices) would be a disaster for the non-farming population. Africa and African leaders need to step up to the table and even if the developed world does not treat them as equals they need to adopt that stance themselves. They need to legislate for and implement modern change within their countries and the political system needs to be transparent.

Africa cannot compete with the developed world unless it steps into the 21st century. I abhor the international hypermarkets which have invaded every town in the western world, the local ABC market simply cannot compete with them and this is the point, no matter what you do with the medieval small family holding model in most of Africa, it will never be able to feed the urban population, nor compete with the developed world. The system evolved to feed a family or village ( as we used to have in Europe), had a little surplus to trade, but that was it. Nigerian farmers cannot feed a 150m urban population regardless of being competitive or not.
The problem of hunger in some African countries is almost entirely due to price fluctuations. Some years the harvest is good and prices drop. The poor eat, but the farmers suffer and reduce investment for the next year. Then the prices get higher due to a drop in production. The poor starve. Add in dumping from Europe and the prices become completely unpredictable. Farmers cannot plan ahead, and can't invest.

The solution is the same as the eu, Japan and us discovered half a century ago. Price controls. Some form of cap for Africa. Nothing else will every solve hunger in Africa and no country has ever developed without price controls on food.
 
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Cap isnt evil. Africa just needs its own version.
You can not be serious? You think that such a counter-bloc would be helpful for African farmers and producrs in any way? Or could compete woth the European bloc? Or that the Europeans could not easily afford the tarriffs imposed and still dump at a massive profit? Or that the African market would make up for the shortfall?
 

Dan_Murphy

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The problem of hunger in some African countries is almost entirely due to price fluctuations. Some years the harvest is good and prices drop. The poor eat, but the farmers suffer and reduce investment for the next year. Then the prices get higher due to a drop in production. The poor starve. Add in dumping from Europe and the prices become completely unpredictable. Farmers cannot plan ahead, and can't invest.

The solution is the same as the eu, Japan and us discovered half a century ago. Price controls. Some form of cap for Africa. Nothing else will every solve hunger in Africa and no country has ever developed without price controls on food.
Isn't this something that futures markets were made for, price stability?
 

Volatire

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The problem of hunger in some African countries is almost entirely due to price fluctuations. Some years the harvest is good and prices drop. The poor eat, but the farmers suffer and reduce investment for the next year. Then the prices get higher due to a drop in production. The poor starve. Add in dumping from Europe and the prices become completely unpredictable. Farmers cannot plan ahead, and can't invest.

The solution is the same as the eu, Japan and us discovered half a century ago. Price controls. Some form of cap for Africa. Nothing else will every solve hunger in Africa and no country has ever developed without price controls on food.

Spoofer.
 

deiseguy

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I have to go and apply a bit more pressure to the poor African farmers (do the evening milking) but I'll be back then and we'll have a bit of a ding dong. Anyone unsure what they've posted will stand up to scrutiny might want to make the nessecary corrections. As usual there's a lot of sacred cows being herded around this thread few of which have any substance. Tarriffs? Cheap product? and in this particular case subsidisation of dairy farmers?
 

florin

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Nigeria's heat and lack of water, lack of machinery, lack of suitable dairy stock, etc. would count against it. Plus their cattle are more used for ploughing than eating/milking.

Isn't this something that futures markets were made for, price stability?
I thought that they were for wild speculation?
 

irish_bob

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Are you saying that Irish famers due to their engagement with CAP are morally complicit in damaging african economies?

they are , CAP shelters north american and european farmers at the expense of developing world farmers
 

deiseguy

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Nigeria's heat and lack of water, lack of machinery, lack of suitable dairy stock, etc. would count against it. Plus their cattle are more used for ploughing than eating/milking.



I thought that they were for wild speculation?
Actually I'm rowing back a long way there's a big problem there somewhere. It's almost certainly over simplifying it to blame E.U. ag policy but there's no inherent reason in terms of climate or availability of land that Nigeria shouldn't be a successful food producer.

Agricultural land (sq. km) in Nigeria

Compare very well with us

Arable land (% of land area) in Ireland

TBH from those stats they would appear to have a lot going for them Brazil and Argentina seem to have coped with the competition and unfair trading. In fact to add to the difficulties caused by E.U. or U.S. tariffs their own governments are messing with them.

Argentine government authorizes the export of 6 million tons of 2012/13 wheat — MercoPress
 
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