Developments in the agricultural sector during the fourth quarter of 1989.

Abstract

During the fourth quarter, farming activities nationwide were restricted mainly to harvesting of late season crops and land preparation for the 1989/90 planting season. Available information showed that by November, many northern states including Bauchi, Borno, Kaduna, Kwara and Niger experienced severe harmattan. The weather was however favorable to wheat growing activities including irrigation. Artisanal fishing in coastal waters, inland rivers and lakes was at its peak, following partly the low water tides which made fishing activities relatively safe and partly the marked improvement in fish input supply. Preliminary forecast of agricultural output as at the end of the quarter (cumulative), indicated a significant improvement over the corresponding quarter of 1988. The rise in output reflected increased output of crops, fishery and forestry products, while the output of livestock stagnated due to the deterioration in feed supply situation. The paper describes three different markets and the role of banks in the developments of the agricultural sector. The depression which characterized the domestic and world commodity markets for some time now continued unabated during the quarter. The retail market prices of selected staple food trended downward in most part of the country. Crises in the domestic market for agricultural export commodities, which began in the second and third quarters of 1989, worsened in the fourth quarter. The lull in the commodity markets became more pronounced at the end of the fourth quarter of 1989.