Omnia sees Africa growing farm enter help amid meals safety fears

Omnia sees Africa growing farm enter help amid meals safety fears

A Malawian subsistence farmer carries a bag of fertilizer close to the capital Lilongwe, Malawi February 1, 2016. REUTERS/Mike Hutchings/File Photograph

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June 20 (Reuters) – Fertilizer producer Omnia Holdings (OMNJ.J) says African governments are growing help for smallholder farmers amid fears that enter prices, pushed larger after Russia’s invasion of Ukraine, may minimize crop manufacturing and worsen meals insecurity.

Omnia provides fertilizer to each industrial and smallholder farmers in a number of sub-Saharan African international locations, together with South Africa, Zimbabwe, Zambia, Mozambique, Kenya and Tanzania.

The battle between Russia and Ukraine, main fertilizer exporters, has accelerated worth will increase first triggered by COVID-19-induced provide chain disruptions. Based on Omnia, costs of fertilizer enter supplies have gone up by between 200% and 400% since January 2021.

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Help companies have warned that rising enter costs may power Africa’s smallholder farmers to cut back plantings of staple grains comparable to maize, worsening a meals disaster in a area the place hundreds of thousands have already been plunged into excessive poverty by COVID-19, armed conflicts and local weather shocks. learn extra

Omnia Holdings chief govt officer Seelan Gobalsamy informed Reuters in an interview that fears of fertilizer shortages because of the battle had been driving demand forward of the planting season.

“We see governments, international locations internationally worrying about meals safety. Everyone desires safety of provide of fertilizer and that drives up costs, it additionally raises considerations about meals safety within the coming interval,” Gobalsamy stated.

“What we’re seeing is much more help from governments for the smaller farmers, to help these farmers as a result of they’ve two roles – a subsistence function and a industrial function,” he added, referring to African governments.

On Monday, Omnia reported 21.437 billion rand ($1.34 billion) revenues within the full yr to March 31, a 30% improve in comparison with the identical interval final yr, pushed by larger commodity costs and gross sales. Headline earnings per share – the principle revenue measure in South Africa – had been 86% up at 6.72 rand in comparison with final yr.

($1 = 16.0023 rand)

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Reporting by Nelson Banya, Enhancing by William Maclean

Our Requirements: The Thomson Reuters Belief Rules.

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