Enabling Markets, Trade and Policies for Enhancing Sorghum Uptake

Abstract

A number of dynamic changes are taking place in the sorghum economies globally in the last two to three decades both in developed and developing regions where the crop is grown. In Asia, its use as a staple food crop is declining with a shift in consumption towards rice and wheat. Rising per capita incomes, urbanization, change in tastes and preferences are driving this change. However, at the same time, its demand in alternative uses like poultry feed and potable alcohol manufacture is growing. In recent years driven by the greater awareness of the health benefits of sorghum, there is also a growing demand for processed sorghum products particularly in India for ready to use and eat food products mainly in urban areas (from a low base). To sustain the change in the sorghum economies (plate to plough), there is a need to reorient the marketing system by linking farmers to the end users through innovative institutional arrangements. Policies should ensure sorghum competitiveness on farm and directly or indirectly promote its use in food processing and alternative non-food uses.In developed countries and in Latin American countries, sorghum is mainly used as feed but its use is fluctuating and variable depending on its price competitiveness and policies related to trade in feed crops. In the last one to two decades with governments mandating use of renewable fuels for blending with gasoline, sorghum along with maize are being used for ethanol production that has implications for the livestock sector. Policies related to ethanol production will have implication for sorghum production and trade.

Leveraging the Potential of Sorghum as a Healthy Food and Resilient Crop in the South African Food System

“…There is also a fundamental need to learn from what is happening within other country contexts, like India, where there is also a drive to support increased production and consumption of these more resilient and nutritious grains. (Pingali et al, 2021), set out a variety of policies in sorghum producing countries that could be considered in the South African context. For example, the Nigerian government's attempt to set a guaranteed minimum price failed due to lack of funding and logistic constraints, but mechanisms like SAFEX or guarantees from large processing companies like Tiger Brands could overcome such constraints.…”

“…Internationally, the sorghum trade has been declining since the 1980s, with the top five exporting countries (USA, Australia, Ukraine and France) selling primarily to meet demand for livestock feed (Pingali et al, 2021). Sorghum has to compete with maize as a preferred grain for feed and is only really competitive when its price is below that of maize (Pingali et al, 2021). This is a problem sorghum faces in South Africa too, but as a food crop rather than as feed.…”

“…Internationally, sorghum like other coarse cereals other than maize, has been neglected with support policies favoring the production and consumption rice, wheat and maize (Pingali et al, 2021). Similar to the VAT exemption that encourages maize consumption in South Africa, favorable procurement prices and subsidies to rice and wheat in Asia have led to a decrease in the consumption of sorghum.…”

“…Without a concerted effort to reinvigorate these resilient grains through innovation and policy support, these declining trends will continue. Unlike in many other developing countries and especially in Africa where it is usually grown for domestic consumption and stored in small quantities, with only small surpluses make its way to the markets (Pingali et al, 2021), there is commercial production of sorghum in South Africa meaning that that there is potential for the domestic market to overcome the traditional challenge of low and variable volumes, high transaction costs and long distances to larger markets. However, affordability is a critical component of developing a thriving sorghum market in South Africa.…”

“…biscuits (see Figure 5). Similar interventions are underway in countries like India where the research councils and institutes are working on processing sorghum into a variety of products, and marketing them through Heritage Fresh retail outlets and Choupal Fresh (ITC) and other unorganized retail stores in Hyderabad (Pingali et al, 2021). Sharing across these developing country contexts could prove extremely fruitful as lessons are learnt-like the failure of cassava bread to take off in Nigeria despite decades of innovation and government support-and challenges are overcome.…”