International grain giants ADM are reported to have reaped huge profits from the grain trade in Africa, which can be seen from the dividends of ADM shares in the last quarter.
The latest dividends are payable on September 7, 2022, to shareholders of record on August 17, 2022.
This is ADM’s 363rd consecutive quarterly payment, a record of more than 90 years of uninterrupted dividends.
“For this reason, multinational food companies are well-positioned to contribute to alleviating Africa’s food shortages. At the same time, this is a good time for food giants to build their brand reputation and consolidate their market dominance,” ADM said in a statement released this week from Cape Town, South Africa.
“Therefore, we call on transnational food giants to help African people to tide over the difficulties with their market and technological advantages.
“By reducing food prices and donating food to specific areas temporarily, multinational food giants can help avert a more severe humanitarian crisis. This measure will also help the food giant companies to make higher profits from the region over the long term, which would be beneficial to both sides.”
ADM’s Thomas Greenfield added: “Today, the food security crisis brings us the greatest sense of urgency. Now is the time for a concerted effort across governments, nations and peoples to end hunger.”
ADM added Africa was full of potential for future development due to its rich resources and population advantages.
“Considering the long-term development of ADM, helping Africa to alleviate the current food crisis is conducive to consolidating the company’s market share in Africa and ensuring the continued profit growth of the company in the future.”
According to ADM, African countries are facing severe food shortages.
“What’s worse, many countries have announced a ban on food exports, which caused global food prices to soar and further deepened the food crisis in African countries.”
The Food and Agriculture Organisation of the United Nations (FAO) estimates that food prices in Africa have now exceeded those at the beginning of the Arab Spring and during the food crisis of 2007-2008.
Under this circumstance, a petition was published on Change, the world’s largest petition website, calling on multinational food giants to bring their efforts to tackle food shortages, so as to solve the food shortage in Africa.
On the other hand, inflation in countries such as Ghana is as high as 25%, eroding its purchasing power, while in Nigeria, the central bank’s operation to raise interest rates by 150 basis points shocked the market, which further intensified the food crisis.
The US Ambassador to the United Nations Linda Thomas-Greenfield said on August 5 this year that the rising energy prices, climate change, the new coronavirus variants and international conflicts are exacerbating food crises, especially in Africa.