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

The primary conclusion of this study is that resources should be devoted
to improvement of the production chain of the groundnut sector in each
producer country, with initial emphasis on production to satisfy national, subregional
and even regional demand.
While the structural details of such a program would be negotiated on a
country-by-country basis – and state intervention is in any case likely to
remain limited – common features might include the establishment of public
warehouses and/or buying points, at which production would be sorted,
graded and tested for aflatoxin contamination and other parameters of
product quality.
In assessing the current and foreseeable market opportunities for
opportunities for groundnut of West African origin, it will be crucial to build
slowly and deliberately on existing strengths (including the availability of
improved seed through the current project), with specific and focused
attention to the production chain – specifically those cultivation, harvest and
postharvest methods which prevent infection of the product by Aspergillus,
and thereby ensure product quality.
The following recommendations are made on the basis of interviews with
a wide variety of stakeholders, from the groundnut farmers of the focus
countries to European buyers and brokers in groundnut:
In terms of potential export of West African groundnut to Europe, it is
important to note that pre-shipment inspection and certification is not
universally accepted by European buyers – including certification both by
governmental inspection bodies and by private companies contracted to
importers. The great importance of reputation – of a proven track record of
responsible performance – cannot be over-estimated.
In order to initiate an export relationship to a European buyer, for instance,
it may thus be necessary for an exporting entity to first assemble a
minimum order of one container of groundnut – typically 18 MT of in-shell
or 22 MT of shelled product – and pay for the transit shipment of the
product to the port of the purchaser (probably Rotterdam). If, on analysis in
transit, the shipment is proven to be ‘clean’, the purchase price and
transport costs will happily be borne by the buyer – and an important
precedent will have been established.
First, the exporting entity must seek to identify aflatoxin-free groundnut. This
may be the produce of a given locality, cooperative or even of an individual
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