Despite the lack of modernization of artisanal fishing , the fishing
sector remains Senegal's main economic resource and major foreign
exchange earner. The livestock and poultry sectors are relatively
underdeveloped and have potential for modernization, development and
* 1 Situation and outlook of the agricultural sector
* 2 Agricultural commodities
* 3 Production resources and inputs
* 4 Agricultural policies and institutional framework
* 4.1 Agricultural policies * 4.2 Government ministries * 4.3 Major international donors
* 5 See also * 6 References * 7 External links
SITUATION AND OUTLOOK OF THE AGRICULTURAL SECTOR
Peanuts are the engine of the rural economy and their production accounts for around 40 percent of cultivated land, taking up two million hectares . The peanut sector provides employment for as many as one million people. The industry has been suffering from the effects of the privatization of the agricultural sector and the elimination of the import ban on peanut and other edible oils . The peanut sector is still dominated by SONACOS , which has been renamed SUNEOR starting January 1, 2007, thus marking the end of the privatization process which started in 2004 when the government decided to sell its shares to Advens , a private consortium including a Lebanese -French businessman, the Belgian peanut machinery manufacturer Desmet, SODEFITEX (the cotton ginning company), and SONACOS employees.
In recent years, the reported average annual peanut production lies
around 828,000 tons (95% for oil).
Production of food crops does not meet Senegal's needs. The
production of major staple food crops covers barely 30% of consumption
needs. Only in years of favorable rainfall does the country approach
self-sufficiency in millet and sorghum , the basic staples with rice.
The livestock population includes approximately 3.1 million cattle and
8.7 million sheep and goats.
Production of unshelled peanuts varies widely because of periodic drought, and production is frequently underreported because of unauthorized sales to processors in neighboring countries. Total production was estimated at 850,000 tons in 2005. Exports of peanut products reached about CFA 15 billion ($30 million) in 2005. They account for some 60 percent of total agricultural exports, 75 percent of which is made up of peanut oil. SUNEOR's (former SONACOS) exports of peanut oil account for 45 to 50 percent of the world market trade in peanut oil.
SUNEOR produces approximately 150,000 tons of crude peanut oil per year. The European market, which is its main market, can currently absorb only 90,000 tons. The newly privatized company plans to explore and develop new markets to fully utilize its capacity. In this perspective, exports of peanuts oil to the U.S. have resumed in 2006 and were estimated at about $7 million. Other major peanut oil producers include NOVASEN and the Complex of Touba.
All these three companies produce mainly non-refined peanut oil and
non-grilled peanuts for export.
SODEFITEX, the main cotton company, forecasts production at 40,000
tons in 2006.
The government of
A rice paddy near
In 2005/06, total production of cereals (including milled rice) is estimated at 1,177,782 MT, which will cover some 60% of the consumption needs. However, given the segmentation of the rice market (see GAIN SG6002), this production will less likely affect imports . However, in years of poor rainfall and other natural disasters, the shortfall in coarse grains, especially millet, could be more difficult to cover because of low availability and trade of this grain in the region. Such constraints have been overcome with an increase in rice imports, with a shift from millet to rice consumption in households who can afford it.
The wheat sector has been controlled for years by two flourmills,
Grands Moulins de
Vegetables and fruit sold at M\'bour . Onion fields in Ndiawar, Senegal.
Senegal's total horticultural production was estimated at 584,000 MT in 2004. Exports of fruits and vegetables are growing steady although they remain low, and it is estimated that they will reach approximately 50,000 tons in 2007. Europe is still the main export market for Senegal's fresh fruits and vegetables. About 70% of the European market is dominated by four products including green beans, cherry tomato, mango and melon. With the increase in size and value of the European market, pre-packed produce such as green beans have promising prospects in the European market and with the possibility to introduce first-stage processing, these produce will likely reach other markets. Under AGOA and its related projects, Senegal's horticultural sector is making efforts to enter the U.S and North American markets.
However, in order for
The potential for the production of industrial tomato is high,
At the same time the imports of double concentrate are regularly
increasing from 2,900 tons in 2003 to 5,500 tons in 2004. Agroline,
the other major company has been operating since 2003 with a capacity
of 3,300 tons of double concentrate, representing 7% of the tomato
paste market. Agroline has been using imported or local triple
concentrate which it processes and packages into double concentrate.
This company is considering extending its market share through the
establishment of a new agro-industrial plant in Taredji, northern
The overall potential of the horticultural sector is limited by the
presence of various pests (including fruit and white flies), and
therefore needs technical assistance to develop in-country SPS
capacity for meeting international standards, and infrastructure to
increase the efficiency of surveillance and compliance.
The Compagnie Sucrière Sénégalaise sugar refinery at Richard-toll.
The production of sugar in
During the period 2002–2005 CSS faced serious competition from
illegal imports of cheaper sugar, mainly from
The livestock population includes 3.1 million cattle and 8.7 million
sheep and goats . Most cattle systems using feed lots. Despite a
significant livestock population,
In Senegal, the milk industry is primarily based on the use of imported milk powder . Senegal's milk production is far below the domestic needs. Despite relatively high tariffs on milk powder (26.78%), about 20,000 tons of milk powder is imported each year, primarily from Europe. In fluid milk equivalent, imports represent twice the level of local milk production. Imports of other dairy products are estimated at about $100 million in 2006. Importers of powder milk form a strong political lobby and dominate the dairy industry. Local producers are not well organized except the few modern producers in the major cities.
Part of the import milk powder is processed and marketed through informal channels on which little information is reported. The main products available in the market are sweet concentrate milk, unsweetened concentrated milk, milk powder (in bulk or packaged in bottle or small bags). A few companies produce yogurt .
The local milk production system relies on climatic conditions with
higher production during the rainy season and a slow down and even
stoppage during the 7-month-long dry season . Non governmental
organizations and donors assist small rural milk producers to improve
the distribution systems and increase their capacity to access urban
markets. In this perspective, PAPEL, the government's main livestock
and dairy development project has rehabilitated the rural milk
collection network set up by Nestlé-
This project is helping develop small-scale milk processing units
with simple equipment and techniques. Most of these units are found in
the Northern and Southern parts of the country, particularly in and
around Saint-Louis ,
The poultry industry has been increasing its overall production since
the announcement in 2005 of the ban of imports of chicken meat and
despite the shock created in early 2006 by avian influenza . The
sector represents 17% of the animal industry's contribution to
In 2003, there were 3.2 millions chicken producing 5,982 tons of meat. Because of massive imports of low quality and cheap chicken parts from Europe and Brazil the sector decreased its production by 24% from 2001 to 2003. This has prompted the creation of poultry farmers' unions who claimed the loss of 3,000 to 5,000 jobs, and the government decision to ban imports of frozen chicken in October 2005. This ban is still underway and applies to all countries. As the result of this ban, local production increased by 21%. However, because the ban was only effective in January 2006, import orders prior to the ban were authorized and in 2004, 13,700 tons of chicken meat were imported.
Local production is estimated at 7 million chickens in 2005, which represents a 33% increase compared to 2004. Chicken meat production represents about 75% of this production, and total industrial production of chicken meat has increased to 9,200 tons in 2005, representing a 26% increase compared to 2004. Traditional production (home production) is difficult to evaluate but could be estimated at 8,000 tons of meat. Preliminary government reports suggest that these trends will continue in 2006 with significant increase in local production of chicken meat. However, these trends also suggest that the production of eggs will decrease significantly as the result of the competing chicken meat, and professionals fear that the sector might not be able to meet Senegal's needs in chicken eggs, which may prompt a partial lift of the ban.
Most of the inputs of chicken feed are imported. In 2005, about
85,000 MT of chicken feed were produced. Corn accounts for 60% of
ingredients. Producers prefer soy and corn products to peanut cakes
because of their better quality and lower costs.
Fishermen in Senegal.
The fishing sector benefits from a long coastline (approximately 448 miles) and a productive continental shelf area of approximately 9,653 square miles. Industrial fishing consists of sardine, tuna and trawler harvesting (shrimp, mullet, sole, cuttlefish, etc.). "Artisanal" catches are mainly for the local market with a large proportion purchased by local factories for processing. Senegal's fishing sector has historically been one of the country's largest sources of foreign currency.
In 2005, seafood products represented 22 percent of Senegal's total exports and generated more than $366 million in national income from an annual catch of approximately 40,000 tons, against approximately $374 million for a catch of approximately 430,000 tons in 2004. The fishing industry is also a key sector for employment. At the local level, thousands of families depend on fish as a nutritional staple. The Government estimates that the sector employs more than 200,000 people and generates significant temporary employment in the informal sector, in particular through the artisanal fishing, using lines, traps, and nets with small-scale traditional fishing canoes.
The European Union is the largest market for Senegal's seafood
Several large Senegalese fish processing companies have ceased operations because of Senegal's small and unproductive fishing fleet, high costs of production, over-exploitation and scarcity of high value fish, and lack of investment resources. This crisis is reported to be one of the main causes of clandestine emigration from Senegal's major fishing communities to Europe over the last two years with the death of hundreds of young people, mostly fishermen.
In Senegal, the contribution of forest and other natural resources to the economy is not visible although it is real and important. The potential production of fauna and forest products is high and diversified but this sector is not fully accounted for in the macroeconomic indicators. Officially, the sector represents less than 1% of GDP. However the production of forest resources, mainly charcoal and wildlife, is estimated at $50 million yearly.
Data collected in 2006 by UICN from producers, brokers and consumers of wild plant and animal products indicate that most of non-wood plants, wild animals, and continental fish are commercialized and only a small proportion is used for consumption. The economic importance of forest products varies by region but they account for up to 50% of the revenues of poor rural households. The value of these products, which usually are not included in the national statistics, is estimated at least $19 to $35 million. Gum arabic exports, which are not included in the about figures, soared to over $280 million in 2006.
PRODUCTION RESOURCES AND INPUTS
The construction of the Diama and Manantali Dams in 1986 created an
additional 240,000 hectares of land which can be irrigated on the
Senegalese side of the
The best agricultural land along the
In addition, pests such as insects and locusts have been reported on peanuts, cowpeas, and sorghum. In northern Senegal, rice production will likely be seriously affected this year by the extensive invasion of grain eating birds - the red-billed quelea (Quelea quelea).
During this growing season the Government has subsidized the agricultural sector at a level of about $40 million. This investment included the purchase of 40,000 tons of peanut seeds, payments to peanut producers of up to $10 million, the purchase of seeds of special crops such as sesame, cassava, corn, and hisbiscus sabdarifa (bissap), and for the subsidy of fertilizers. The government has also contributed $10 million for the purchase of farming equipment.
AGRICULTURAL POLICIES AND INSTITUTIONAL FRAMEWORK
Senegal's agricultural policies are historically characterized by the following key features: The government agricultural support system is mainly based on cash crops that have reliable markets. Agricultural research has significantly contributed in maintaining productivity despite irregular rainfall and poor soils. Liberalization of the market of agricultural produce in early 1990 has improved the efficiency of the cereal market.
The impact of the liberalization has been limited because peanuts still dominate the market; integrated extension, input distribution, credit, and marketing support systems contribute in boosting productivity, especially cash crops and government promoted new crops; yet, support to farmers is costly and inefficient, particularly because the government responds more to political pressure than to economically motivated schemes; literacy programs are not devoted due attention in rural areas, and this limits the efficiency of extension and farm-level adoption of technologies, and therefore farmers capacity to respond to market dynamics.
In response to increasing rural migration and clandestine emigration, the government has recently launched a new plan, called REVA ("Return to Agriculture"). The objective of this program is to develop agricultural infrastructure (construction of rural roads, rehabilitation of wells, and connection to electricity) and provide training and production tools and equipment to young and women farmers, especially former clandestine emigrants. The pilot phase of the program started in August 2006 and will end in December 2008, and during this period the government plans to implement 550 production sites. This plan is gaining increasing support from donors.
The institutional framework of the agricultural sector is organized through two main ministries. The Ministry of Agriculture, biofuels and Food Security which includes the Directorate of Agriculture responsible for the implementation of food grains and agro- industrial development policies and for overseeing the field based extension services; the Directorate of Horticulture which coordinates government support to the horticultural sector; the Directorate of Agricultural Census; and the Directorate of Plant Protection responsible for government pest control programs, including regulations, management of standards, and various field interventions. The second ministry involved in the agricultural sector is the Ministry of Animal Husbandry with several services coordinating government support to the livestock, dairy and poultry sub-sectors.
These services are completed by research and training institutions.
ISRA (Senegalese Agricultural Research Institute) is the leading
agricultural research institution and works on various issues related
to crop and animal production, SPS and veterinary issues, fishing and
forest products and rural socio-economy. Other major research
institutions are ITA (Food Technology Institute), CDH (horticultural
research) and WARDA (The Africa
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