and domestic demand Frdric Lanon UMR Artdev, CIRAD - - PowerPoint PPT Presentation

and domestic demand
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and domestic demand Frdric Lanon UMR Artdev, CIRAD - - PowerPoint PPT Presentation

FERDI-AFD workshop Agricultural value chain development and smallholder competitiveness Chanes de valeur agricoles et comptitivit de lagriculture familiale Thursday November 15, 2018, at AFD Headquarters in Paris Agricultural Value


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Agricultural Value chains inclusiveness and domestic demand

Frédéric Lançon UMR Artdev, CIRAD frederic.lancon@cirad.fr

FERDI-AFD workshop Agricultural value chain development and smallholder competitiveness Chaînes de valeur agricoles et compétitivité de l’agriculture familiale

Thursday November 15, 2018, at AFD Headquarters in Paris

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SLIDE 2

Domestic markets remain the main outlet for agricultural product

Cereals [PLAGECELL] Fruits [PLAGECELL] Milk [PLAGECELL] [PLAGECELL] [PLAGECELL] [PLAGECELL] 0% 1% 1% 2% 2% 3% 3% 4% 4% 5%

0% 10% 20% 30% 40% 50% 60% 70%

Exported share growth (2000-2013) Share of the production exported (average 2013-15)

World level

20% of total vol traded Source : FAOSTAT(2018)

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SLIDE 3

Domestic food markets versus agricultural exports (West Africa)

2000 4000 6000 8000 10000 12000

Marché alimentaire national Marché agricole à l'exportation

Domestic food market Agricultural exports

Millions USD

Bricas, N., Tchamda, C., & Mouton, F. (2016). L'Afrique à la conquête de son marché alimentaire intérieur. Enseignements de dix ans d'enquêtes auprès des ménages d'Afrique de l'Ouest, du Cameroun et du Tchad.

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SLIDE 4

Share of imports in total food consumption (West Africa)

500 1000 1500 2000 2500 3000

1961 1963 1965 1967 1969 1971 1973 1975 1977 1979 1981 1983 1985 1987 1989 1991 1993 1995 1997 1999 2001 2003 2005 2007 2009 2011

Production locale Importations autres produits Importations produits animaux Importations amylacés

Domestic production Imports of other food products Imports of animal products Imports of starchy plants

Bricas, N., Tchamda, C., & Mouton, F. (2016). L'Afrique à la conquête de son marché alimentaire intérieur. Enseignements de dix ans d'enquêtes auprès des ménages d'Afrique de l'Ouest, du Cameroun et du Tchad.

Kcal/head/day

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SLIDE 5

Domestic market shares distribution along the urban to rural gradient

0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100%

Ville principale Villes secondaires Milieu rural

Bricas, N., Tchamda, C., & Mouton, F. (2016). L'Afrique à la conquête de son marché alimentaire intérieur. Enseignements de dix ans d'enquêtes auprès des ménages d'Afrique de l'Ouest, du Cameroun et du Tchad.

Main cities Other urban centers Rural

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SLIDE 6

Food eating habits

(Ougadougou, 2014)

Clusters Frequencies/ origins Dishes

  • 1. African dishes and-

Diversified(n=77 HH 45% well-

  • ff,)

Daily African, Pasta Burkina To -Rice Monthly Burkina – Rice Inter-African Occasionally Inter-Burkina, Purchased Burkina

  • 2. Diversified - African dished

(n= 54, 57% SME)

Daily Pasta, Inter To-Rice Monthly Burkina –Rice Inter-African Occasionally Inter-Burkina, African Purchased African - Burkina

  • 3. Staple and Burkina dishes

(n= 67) (employee, student)) Daily To-Rice Burkina Monthly Burkina Occasionally Burkina Purchased African Burkina Rice

  • 4. Staple and diversified

(102 ménages) (informal sector, jobless,…) Daily To-Rice, Monthly Burkina Occasionally Inter- African-Burkina Purchased Burkina

Source: Chyens M, Lançon F., Konkobo, C. Y. WP 6, Bilan thématique programmé Production et sécurité alimentaire en Afrique de l’Ouest, CIRAD, 2015

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SLIDE 7

Types of value chains linking supply to demand

Urban International Rural

Trader Wholesaler SME Retailer Importers Global Agro food ind. Plantation

Consumers

Purchasing centre Supermarket Agro food ind SFH

Coop

Consumers

Exporters

SMALL SCALE AGRO-FOOD-IND

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SLIDE 8

ISSUE

To what extent and under which conditions

“small scale” agro value chains (SSVC) can further contribute to the Small Farm Household inclusion into the food market?

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Limited interest in SSVC

Consensus among decision makers about the low

performances of SSVC

  • Low performance in quality management, packing, sorting,

storing (high losses)

  • Higher marketing and cost (?)
  • Weak competitiveness against imported agricultural product

Following 2008 price crisis, focus on FDI in agro-food

industries development to reduce import dependency

  • But 10 years after the development and impact of agro-

food-ind VC for domestic markets is still limited…

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Acknowledging the contribution of SSVC to rural development

Market a broad range of agricultural product  diet diversification and income opportunities for SFH Retailing systems respond to consumers purchasing

practices and constraints

mitigation of “food desert” Labor intensive practices generate jobs for unskilled workers in both rural and urban

areas

Synergies with Agro-food ind VC: marketing of second

grades on the domestic markets, retailing.

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Promoting SSVC upgrade on the policy agenda

Drawing lessons from the past

  • Challenging task combining technical and organizational

changes with capacity building

  • Successful programs in WA: PASAL in Guinea, Fonio, Rice

parboiling technology, ESOP.

Priority areas

  • Strengthening the participation of SSVC actors (traders,

processors) in the policy dialogue through capacity building

  • Supporting investment in adapted technologies for quality

improvement and energy saving

  • Developing mechanisms to alleviate financial constraints for

both investment and revolving capital.

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SLIDE 12