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

it is less valued given its lower protein content and trace amounts of the toxic
polyphenol gossypol, to which chickens in particular are sensitive.
Though soya contains higher protein content than groundnut, its use as a
foodstuff in West Africa is not well-established. Though it may find
acceptance on urban markets, soya oil does not satisfy the local market’s taste
preferences, which favors groundnut oil. Sesame remains more of a food crop
than an oilseed crop, with fewer product and market applications than
groundnut.
Given the subsistence status of most West African farmers, groundnut
offers more versatility as a well-established food crop (unlike cottonseed and
soya) with a diversity of market applications (unlike sesame).
The strong ‘traditional’ role of groundnut both in the kitchens and the
markets of West Africa is likely to preserve the considerable market share for
groundnut as an oilseed and meal in addition to the growing market share of
edible groundnut.
Edible groundnut
While the West African oilseed and meal groundnut sub-sector is beset by
competition, as an edible product groundnut has no direct competition – it is a
very specific commodity in confectionery and other applications, has high
protein content, and is prevalent in West African diets.
However, despite its great potential, the edible groundnut markets are
constrained by quality concerns with regards to infection by Aspergillus. This
entails increased risk as well as postharvest labor inputs by the producer, both
of which are difficult to quantify.
Aflatoxin not only represents a barrier to export, but considerable
concern to public health, as groundnut provides a greater share of dietary
protein than does meat. In managing supply-chain quality issues related to
aflatoxin, the challenge will be to persuade producers to invest in improved
postharvest processing methods, improved seed and other inputs, despite the
fragile economic position of most groundnut farmers.
In general, farmers in each of the four countries studied are highly riskaverse,
serving subsistence needs more than market demands. That the vast
majority of sales in each county takes place immediately after the harvest
(when prices are lowest) partly reflects payment of credit arrangements and
other accumulated debts, including those accrued through purchase of food
crops to supplement those grown by the household. Transaction costs are high,
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