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

Foreword
Groundnut production, marketing and trade are major sources of
employment, income and foreign exchange in many West African countries.
Groundnut products are of central economic importance to millions of
smallholders in this region. It generates 60% of the rural cash income and
accounts for about 70% of the rural labor force in Senegal and Gambia.
However, groundnut trade remains heavily distorted, and this has affected the
competitive position of various players in world markets.
Previous investments by CFC and ICRISAT in groundnut research and
development have concentrated on providing technology options to increase
yields and tolerance to abiotic and biotic stresses. While this has been highly
successful in developing good varieties, attention needs to be devoted to
factors of market demand. There is now clear evidence that incentives or
opportunities for market surplus production provide the necessary pull for
adoption of new varieties. This shift in paradigm for technology development
and dissemination requires the identification of partners and market linkages
beyond the common belief that markets are easily available if production is
done well. The results of this study are meant to facilitate this process.
A range of factors explains the limited competitiveness of groundnut in
the domestic, regional and international markets. These include low
production and strict rules on grades and standards, which most West African
producers often find difficult to meet. Domestic policies have also limited
trade. This study has provided background information on groundnut
production in West Africa, constraints to groundnut production, processing
and commercialization. Additionally, the study also presents some market
prospects for groundnut and groundnut products, and explores ways to
increase groundnut competitiveness in the domestic, regional and
international markets.
It is our hope and expectation that this report will be valuable in the
promotion of groundnut production and trade not only in West Africa but also
in all sub-Saharan Africa countries where the economies are still agriculturedependent.
WD Dar
Director General, ICRISAT
Amb. Ali Mchumo
Managing Director, CFC
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