The 1998 production of cereals is expected to be below normal as a consequence of erratic rainfall with prolonged dry spells in March/April. These caused widespread crop failures in the northeastern part of the country, particularly the Caprivi and Kavango regions where many subsistence farmers could not even plant any staple foodcrops this year. The national food supply situation is expected to be tight during the 1998/99 marketing year. Although large carry over stocks from last year’s bumper harvest will help cushion the impact of the anticipated food shortage, large quantities of cereals will have to be imported in the coming months, primarily through commercial channels. The Government has recently approved a national drought strategy, which includes the setting up of a permanent national drought fund in order to find ways to ensure household food security, particularly for vulnerable groups.