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 Agricultural Value chains inclusiveness and domestic demand Frédéric Lançon UMR Artdev, CIRAD frederic.lancon@cirad.fr
Domestic markets remain the main outlet for agricultural product World level Exported share 20% of total vol traded growth (2000-2013) 5% 4% 4% [PLAGECELL] 3% [PLAGECELL] 3% [PLAGECELL] [PLAGECELL] 2% [PLAGECELL] 2% Milk 1% Cereals 1% Fruits [PLAGECELL] 0% 0% 10% 20% 30% 40% 50% 60% 70% Share of the production exported (average 2013-15) Source : FAOSTAT(2018)
Domestic food markets versus agricultural exports (West Africa) Millions USD 12000 Marché alimentaire Domestic food national market Marché agricole à Agricultural 10000 exports l'exportation 8000 6000 4000 2000 0 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.
Share of imports in total food consumption (West Africa) Kcal/head/day 3000 Production locale Domestic production 2500 2000 Importations Imports of other food autres produits products 1500 Importations Imports of animal 1000 produits animaux products 500 Importations Imports of starchy amylacés plants 0 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 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.
Domestic market shares distribution along the urban to rural gradient 100% 90% 80% Ville principale Main cities 70% 60% 50% Villes Other urban 40% secondaires centers 30% 20% Milieu rural Rural 10% 0% 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.
Food eating habits (Ougadougou, 2014) Clusters Frequencies/ origins Dishes 1. African dishes and- Daily African, Pasta Burkina To -Rice Diversified(n=77 HH 45% well- Monthly Burkina – Rice Inter-African off,) Occasionally Inter-Burkina, Purchased Burkina 2. Diversified - African dished Daily Pasta, Inter To-Rice ( n= 54, 57% SME) Monthly Burkina – Rice Inter-African Occasionally Inter-Burkina, African Purchased African - Burkina 3. Staple and Burkina dishes Daily To-Rice Burkina (n= 67) (employee, student)) Monthly Burkina Occasionally Burkina Purchased African Burkina Rice 4. Staple and diversified Daily To-Rice, (102 ménages) (informal sector, Monthly Burkina jobless,…) 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
Types of value chains linking supply to demand Rural Urban International Global Agro food ind. Plantation Importers Agro food ind Exporters Purchasing centre AGRO-FOOD-IND Supermarket Coop Consumers SFH Consumers Retailer SME Wholesaler Trader SMALL SCALE
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?
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…
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.
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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