Page 50 - AA 2024

Yemen

In yemen.. Improved Security situation But still

economic crisis continues

Sorghum is grown across the country. In away from northern Black Sea: one third of wheat
Central, Northern and Southern highlands, grain was imported from Australia and over 20
it was planted in mid April, for harvest from percent from the United States of America, both
September. In areas with no distinct rainy season traditional suppliers to the country, while almost
along the Red and Arabian sea coasts, the first 15 percent of wheat grain imports were supplied
planting of sorghum took place in February and from India and 10 percent from France. The
March, and the second will follow in August and shipments under the Black Sea Grain Initiative
September. In Central and Southern highlands, (BSGI) from Ukrainian Black Sea ports amounted
areas with distinct rainy seasons, wheat will be to about 304 000 tonnes, slightly over 10 percent.
planted in June. More than 17 million people food insecure
According to meteorological observations, Despite some improvements in security, the
seasonally dry weather conditions prevailed economic crisis and localized conflicts continue,
between January and mid March 2023 across fuelled by persistent political instability,
the country. Abundant rainfall in late March insufficient external revenues and elevated
caused localized flooding in Central highlands global commodity prices weighting on the
and Southern uplands, while torrential rains in import bill. Despite the relatively high global
the second decade of April across most of the crude oil prices, oil exports from ports in the
western parts of the country triggered broader hectares in 2010 2014, to slightly less than 500 areas controlled by the GoY did not resume after
flooding that affected both rural and urban 000 hectares on average between 2017 and 2021. repeated attacks on the crude oil infrastructure
areas, including Sana’a, and resulted in loss Part of the decline in planted area is attributable in late 2022, with seriously curtailing GoY’s
of lives and material damages. The country’s to physical access to the fields, including due to export revenues.
infrastructure remains insufficient to prevent displacement mining. After November 2019, when USD 1 was
annual flooding events.
On average, total domestic cereal production traded for YER 575 across the country, the
The truce agreed under the auspices of covers less than 20 percent of the total utilization exchange rates between southern and northern
the United Nations in April 2022 expired (food, feed and other uses). The country is governorates started diverging significantly.
in October 2022, but the warring parties largely dependent on commercial imports In March 2023, USD 1 was traded for YER 1
have largely remained in an informal state and food assistance to satisfy its domestic 244 in the south (GoY), depreciating 3 percent
of ceasefire since then. Although the overall consumption requirements for wheat, the main compared to March 2022. In the north, controlled
security situation is reckoned to have partially staple in urban areas. The import requirement by SBA, the average exchange rate remained
improved, localized conflict in warring fronts for cereals to guarantee a sufficient calorie stable at YER 545/USD 1, appreciating by 10
and the protracted economic crisis, prevented in take in the 2023 marketing year (January/ percent year on year.
any significant economic recovery across the December) is forecast at a near average level of Diverging exchange rates have an impact
country. Generally, prices of fuel , mostly diesel, 4.6 million tonnes, including 3.5 million tonnes of on food prices: the cost of the Minimum Food
an important input to agricultural production, wheat (including flour in grain equivalent), 700 Basket (MFB) in March 2023 averaged YER 115
especially for irrigation, have been relatively 000 tonnes of maize and 410 000 tonnes of rice. 327 in GoY areas and YER 54 956 in SBA areas.
stable or declining in the areas under Sana’a Converted to United States dollars using the
based authorities (SBA), reflecting stable The country traditionally relied on imports local exchange rates, the cost of the MFB in the
exchange rates and improved availability of of wheat grain from the Russian Federation and GoY amounts to USD 110 and in SBA about 105
imported fuel, resulting in declines by almost Ukraine. Since 2017, the share of wheat grain USD.
60 percent year on year in some markets away sourced from the Russian Federation gradually
from the conflict front line. On the contrary, declined from 45 percent to 20 percent in 2021, In the latest countrywide Integrated Food
in the areas under control of the Government while the share of wheat grain sourced from Security Phase Classification (IPC) analysis,
of Yemen (GoY), fuel prices remain high and Ukraine increased from 5 percent in 2017 to 27 more than 17 million people (54 percent of the
volatile, reflecting exchange rates variations and percent in 2021. population) were estimated to be in crisis or
different exchange rates in each area (discussed In 2022, the start of the war in Ukraine, worse (IPC Phase 3 [Crisis] and above) levels
later in the brief). a major grain and oilseed exporter, raised of acute food insecurity, including 6.1 million
The country is prone to periodic desert locust concerns about the availability of certain food people in IPC Phase 4 (Emergency) between
October and December 2022. It represents a
outbreaks. As of May 2023, low numbers of commodities, including wheat, on the global slight improvement compared to the period
solitarious adults were detected in the country. markets and the capacity of food importing January March 2022, when 17.4 million people
Latest forecast point to below average to average countries to secure sufficient supplies and were estimated in IPC Phase 3 (Crisis) and above.
amounts of rainfall from June to September. urgently diversify their sourcing origins. In 2023, a partial IPC analysis in GoY controlled
An average level of precipitation might be According to the United Nations Verification areas, where approximately 25 percent of the
conducive to small scale breeding to occur. and Inspection Mechanism for Yemen (UNVIM), population in acute food insecurity resides,
Slightly above average cereal harvest in 2022 2.98 million tonnes of wheat grain , were shows that the situation remains dire.
Total cereal production in 2022 was estimated imported in 2022, about the same amount as in During the second half of 2022, humanitarian
at 415 000 tonnes, about 5 percent below the the previous years. About 75 percent of imported food assistance has scaled up following the
previous year’s harvest and almost 25 percent wheat entered via the ports of Al Hodeidah and improved access facilitated by the truce,
below the five year average. From 2010 2014, the As Salif (both under control of SBA), while the contributing to a relief from catastrophic
five year average cereal production exceeded rest entered via ports of Aden and Mukalla (both conditions that were previously projected for
850 000 tonnes. The average area planted with under control of GoY). 161 000 people between June and November
cereals decreased from the average of 830 000 In 2022, import origins have been diversified, 2022.
48 Arab Agriculture 2024