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

official market. The oil mills were still owned by the parastatals – as they
remain today, if only just – and the purchasing agents continued to buy
farmers’ production at the official price (1997) of fCFA 150 per kg.
Prices and official marketing channels for the three types of groundnuts
vary, with a heavy predominance of lower-value oilseed, as noted above. Some
farmers invest further in production of higher-value ARB, and some are
contracted to multiply N1 seed to produce improved N2 seed, with the
necessary inputs of fertilizer and fungicide.
In the survey, over 77% of officially marketed production was oilseed,
20% ARB, and less than 3% was seed. Of the 169 households that sold
groundnut, 86% sold oilseed (average 2.3 MT per household); 35% sold ARB
(average 1.5 MT per household) and 4% sold seed (average 1.5 MT).
Product pricing shows a distinct – though not strong – differentiation by
product type, with little variation within these price categories. While 97% of
the 302 producers who sold oilseed obtained the official price of fCFA150 per
kg, three sellers obtained less than the official price, with prices of 102, 109
and 110 fCFA per kg respectively.
Remuneration from ARB was not found to be as commensurate with the
investment required as might be expected; nearly half of those who sold ARB
received only the official market price of 150 fCFA per kg, and nearly a
quarter more again received only 151; only 12% received 20% received more
than 155, and only 6% received more than 160 fCFA per kg for their produce.
The prices reflected minimal returns on the extra investment of ARB
production, even in terms of seed alone.
The economics of ARB production in Senegal, and interventions by
CIRAD, have been studied in depth by Louis Boakye-Yiadom, 2003, in An
Economic Surplus Evaluation of Aflatoxin-Reducing Research: A Case Study of
Senegal’s Confectionery Groundnut Sector.
Table 4. Official groundnut sales prices in 2002.
Mean SD n
Arachide huilerie 149.7 4.4 75
Arachide de bouche 151.7 4.6 302
Arachide semence 157.5 4.5 12
Source: Gray 2002.
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