Yemen faces economic shifts as informal markets rise and agricultural cooperatives expand

Yemen is experiencing a significant shift in consumption patterns as citizens increasingly rely on informal sidewalk markets to cope with severe economic decline and eroding incomes. The Yemen Consumer Protection Society has reported a rise in low-quality, counterfeit, and expired food and consumer goods in these markets. With poverty rates exceeding 80%, many consumers prioritize low prices over product safety and quality.

In response to these economic challenges, there is a growing movement toward food sovereignty through agricultural cooperatives. Data indicates the establishment of 198 multi-purpose agricultural cooperatives and the creation of 15 branches of the Agricultural Cooperative Union. This movement has mobilized community capital, with over 215,000 members contributing to a community capital exceeding 2.233 trillion riyals.

These cooperative efforts have led to significant land reclamation and production increases. In Tihama, approximately 100,000 hectares have been reclaimed, while in Al Jawf, wheat cultivation has expanded to 18,000 hectares, producing over one million bags of wheat. Additionally, milk production capacity in Tihama is projected to rise significantly, moving from 16,470 liters daily in June 2023 toward a target of 157,000 liters by the end of 2025.