JR Farms CEO on the outlook for agriculture commodities in 2022

The agriculture sector remains a crucial part of Africa's GDP, but concerns have risen over the slow pace of reforms that some argue are hindering the growth of agriculture commodities trading in the region. Olawale Rotimi, the CEO of JR Farms, recently sat down with CNBC Africa to discuss the outlook for agriculture commodities in 2022. Rotimi exuded optimism for the new year, highlighting the potential for growth and profitability in the agricultural sector. He pointed out key commodities that performed well in 2021 and are likely to continue their upward trajectory in 2022. One of the notable commodities that Rotimi mentioned was coffee. He explained that there has been a surge in demand for African coffee from regions like Europe, Asia, and America. This increased demand has driven up the prices of coffee significantly, providing both farmers and processors with higher returns. Rotimi emphasized the importance of investing in value addition to ensure that African agricultural products fetch competitive prices in the global market. When asked about the beneficiaries of the coffee boom, Rotimi highlighted the processors as the primary winners. He emphasized the need for African countries to focus on value addition to enhance the competitiveness of their commodities. Rotimi noted that processors in various agricultural value chains, including coffee and grains, are reaping the benefits of the high demand for African produce. Discussing the challenges facing agriculture commodities trading in Africa, Rotimi acknowledged the low rates of intra-Africa trade. He stressed that systemic issues and historical trade patterns have contributed to this low trading volume. However, Rotimi expressed optimism about the increasing collaboration among African countries, driven in part by the opportunities unveiled by the COVID-19 pandemic. He cited examples of companies sourcing grains from neighboring countries, highlighting the potential for increased trade within the continent. Rotimi also shared plans for JR Farms' expansion into the Liberian market with a $5 million investment in the rice value chain. He emphasized the importance of investing in emerging commodities and exploring new opportunities for growth. Looking ahead to 2022, Rotimi predicted continued growth in demand for grains, coffee, and tea in Africa. Despite challenges posed by climate change, he remained optimistic about the potential for these commodities to thrive in the coming year. In conclusion, Rotimi's insights shed light on the opportunities and challenges facing the agriculture commodities sector in Africa. As the continent grapples with reforms and seeks to enhance intra-Africa trade, the potential for growth and profitability in key commodities remains promising. With a focus on value addition and strategic investments, African countries can leverage their agricultural resources to meet the rising demand globally and foster sustainable economic development.