Could Storage Problems be Contributing to Price Instability of Beans?

White Beans

Beans are the most consumed pulse in Nigeria, they provide a source of affordable protein and form the basis for numerous popular dishes; akara, moi-moi, danwake, and gbegiri. Their importance extends beyond nutrition, impacting the livelihoods of farmers and vendors across the country. However, the price of beans experienced an unprecedented surge, reaching N2,798.50 per kilogram in October 2024, a staggering 254% increase compared to October 2023. This sharp rise in price threatens food security, forcing low-income families to either cut down on their bean consumption or seek less nutritious alternatives, and destabilizes local markets. This article explores whether storage problems are a significant factor contributing to this price volatility, particularly critical as 33 million Nigerians face potential food insecurity in the 2025 June - August’s lean season.

The State of Beans Production in Nigeria

Nigeria is one of the leading producers of beans (cowpea) in Africa with up to 4 million + tons produced annually. This substantial output highlights the crops’ significance to the nation’s agricultural economy and food security. Beans are grown extensively, particularly in the northern region, with planting occuring during the rainy season between June and  August, and harvesting in between September and December.

Data from the International Food Policy Research Institute indicates cowpea production has seen a stable rise from 2018 to 2021. However, the agricultural landscape is not without its fluctuations. While official data on bean production post-2021 is limited, multiple reports indicate abundant harvests in 2024 led to a notable, albeit temporary, 37% decline in bean prices in 2025. Specifically, the price of a 100kg bag declined from ₦300,000 in 2024 to ₦190,000 currently. 

This recent price decline, while offering temporary price relief, highlights the inherent volatility of the bean market. Such fluctuations, even with increased production, raise questions about the efficiency of the supply chain and post-harvest management. The fact that a bumper harvest leads to a significant drop suggests that the market may be struggling to absorb the increased supply effectively, potentially due to inadequate storage and or distribution infrastructure. This instability highlights the need to examine storage problems as a possible contributor to the broader pricing issues, beyond just the temporary relief of a good harvest.

Drivers of bean price instability according to traders 

The volatile price of beans in Nigeria is a complex issue, driven by multiple factors. While insurgency, climate change, and poor market infrastructure all play a role, the bean traders themselves offer valuable insights into the key drivers of this instability. 

Yusuf, a wholesaler at Mile12 market in Lagos (a major hub for food distribution), attributes the price fluctuations to three key reasons: seasonal availability, insecurity, and inefficient storage practices. This aligns with the broader challenges faced in the North-East, a key bean-producing region, where insecurity has displaced farmers and disrupted agri-food chains, hindering farmers’ ability to cultivate crops. 

Ahmed, another wholesaler at Daleko market, acknowledges the impact of seasonal variability, but suggests its effect is relatively minor, causing only marginal price increases. However, Suleiman, a seasoned trader, highlights a much more significant factor: inadequate storage. He recounts a scenario where insecurity reduced farming activities, but it was the absence of sufficient reserves that led to last year’s sharp price surge. In his words “We don chop all the beans for Maiduguri, if them no fit farm this year, wetin happen last year go happen again.”

Suleiman’s statement underscores the domino effect of insecurity on bean storage and consequently, price volatility. While production levels may fluctuate due to external shocks, the absence of optimal buffers  - essential safety reserves to mitigate shortages - leaves the market vulnerable to extreme price swings. This absence  of a sufficient buffer, illustrated by the depleted stocks in Maiduguri, highlights the importance  of effective storage in stabilizing bean prices, especially in the face of production disruptions.   

Beans Storage in Nigeria

A critical vulnerability in Nigeria’s bean supply chain lies in the absence of a formal, government-owned strategic reserve for bean storage. While the Food and Strategic Reserve Department (FSRD), is mandated to keep 5% of the total annual food grain production for emergency intervention and price stabilization, its current focus excludes beans. The FSRD’s 33 food reserve silos, with a combined storage capacity of 1.336 million MT and 51 warehouses stores maize, sorghum, millet, soybean, paddy rice, and garri, leaving beans vulnerable to market fluctuations.

Consequently, bean storage is almost entirely handled informally by farmers and traders. Smallholder farmers, constrained by limited resources, predominantly employ traditional storage methods such as earthen pots, jute sacks, and granaries. These methods can, under ideal conditions, preserve beans for 2 to 5 years. However, as we uncovered in our last article, they are highly susceptible to pest infestations, moisture buildup, mold growth and structural failures, leading to post-harvest losses. 

Some farmers with more financial means utilize modern hermetic storage bags, which offer superior protection against these issues. However, farmers who fit this profile are few and far between as 72% of Nigerian farmers live below the poverty line.

Building price stability into Nigeria’s food future 

Storage problems are undoubtedly contributing to bean price instability. Given the essential role beans play in Nigerian diets, particularly as an affordable protein source, it is imperative to improve storage systems to reduce post-harvest losses and stabilize prices. 

To address the critical bean storage challenges, we recommend  the following actions: 

(1) The government should prioritise investment in bean storage, research and development within the FSRD.

(2) Public-private partnerships that encourage private sector participation in bean storage should be established. The focus of these partnerships should be to introduce data collection systems and predictive algorithms to model supply patterns and manage demand adequately.

(3) Smallholder farmers should receive support to improve their access to modern storage techniques. This includes targeted educational initiatives and financial assistance to facilitate the adoption of improved storage methods.  

Strengthening storage infrastructure and policies is integral to  protecting consumers from extreme price fluctuations and ensuring that beans remain an accessible and affordable dietary staple for all Nigerians.