Market Prospects for Groundnut in West Africa COMMON FUND ...

2.0 West African groundnut markets
2.1 Recent trends in production and consumption
Since early 1970s, groundnut consumption patterns have shifted. While total
consumption in eastern and southern Africa has declined, groundnut
utilization in West Africa has increased significantly due to a shift toward
edible applications. Since the late 1980s, groundnut in West Africa has
become primarily a food crop rather than an oilseed, as indicated in the table
below. Between 1972 and 2000, the proportion of West African groundnuts
consumed as food grew by an astonishing 209% (Table 1).
Table 1. West African utilization of groundnut by five-year average, 1972-2000.
1972-75 1976-80 1981-85 1986-90 1991-95 1996-2000
Groundnut
consumed (MT) 2,520,000 2,498,000 2,498,000 2,722,000 3,050,000 4,215,000
Proportion as food 29.9% 36.0% 43.3% 44.5% 51.0% 55.3%
Proportion crushed 61.3% 53.4% 43.2% 45.1% 37.3% 32.5%
Seed, feed and waste 8.9% 10.7% 13.5% 10.5% 11.7% 12.2%
Source: Revoredo and Fletcher 2002.
Trade patterns have also shifted significantly during the same period.
From 1972-75, the four project countries had a significant profile on the
international market, together holding 14.5% of world exports (Nigeria had
7.3%, Senegal 4.6%, Mali 2.1% and Niger 1.6% of total world exports). By the
1996-2000 period, only Senegal remained on the international market, with a
mere 0.6% of world exports during that period (Revoredo and Fletcher 2002),
90% of which was destined for the European Union.
The decline of African groundnut exports is related to the trend toward
production of edible groundnut, which was poorly timed in respect to
increasing aflatoxin restrictions as well as increasing industrial substitution by
other oils, particularly cottonseed and soya.
2.2 Market characteristics of the study area
As the Senegal market operates according to its own structures and
procedures, with an overall net demand given its industrial base, and that of
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