Today we present the conclusions of the latest CyclOpe report, which looks at the trends of some key agricultural products for the African economy towards 2021.
Agriculture in Africa in 2020
In order to better analyse this year’s overlook, we need to know how the agricultural sector ended last year.
The recent crisis that unfolds worldwide due to COVID-19 has caused the prices of certain products to vary significantly. In 2020, agricultural products did not change as much as industrial metals or energy.
Among the agricultural products that obtained the highest results in 2020 were palm oil (+ 28%), rice (+ 16%), coffee (+ 8%) and cocoa (+ 1%).
What do we expect for 2021?
A further increase in prices for raw materials is expected, especially all agricultural products: + 26% for palm oil, 20% for coffee, + 20% for corn, + 11% for cotton, + 5% for rice and 1% in cocoa.
According to the CyclOpe report, it is obvious that commodities are trending again among investors, for whom they are once again a wealthy asset class.
Tropical wood is another product in which Africa aims to be proactive. The prices of this material and its derived products have continued to rise, thanks in particular to Vietnam, which has established itself as a major player in the trade in this type of wood. Gabon intends to become a world leader in processed tropical timber from 2023.
“In general, the supply of West Africa is high enough to constitute a layer of lead in the market whenever prices seem to rise”, analyses the report that adds that some multinationals have limited “their purchases of cocoa in origin in West Africa not to pay the high new price ”.