Voluntary Report - public distribution
Date:
1/17/2007
GAIN Report Number:
SG7001
SG7001
Senegal
Agricultural Situation
Country Report
2007
Approved by:
Robert Hanson, Agricultural Attache
U.S. Embassy
Prepared by:
Mbalo Ndiaye, Agricultural Specialist
Report Highlights:
Agriculture remains the cornerstone of the Senegalese economy as it employs up to 75
percent of the population. Millet, rice, corn and sorghum are the primary food crops grown
in Senegal. Peanuts, sugar cane, gum arabic and cotton are the primary cash crops. A wide
variety of fruits and vegetables are grown for the local and export markets. Rice and wheat
consumption and imports are growing faster than the population growth rate - a sign of
urbanization and changing consumer habits. Milk powder, other dairy products and
consumption goods are also trending up among Senegal's major food and agricultural
imports.
Includes PSD Changes: No
Includes Trade Matrix: No
Unscheduled Report
Dakar [SG1]
[SG]
USDA Foreign Agricultural Service
GAIN Report
Global Agriculture Information Network
Template Version 2.09
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Table of Contents
Executive Summary .............................................................................................3
Situation and Outlook of the Economic Sector.......................................................3
Situation and Outlook of the Agricultural Sector ...................................................4
Situation and Outlook by Commodity Grouping .....................................................4
Peanuts............................................................................................................. 4
Cotton............................................................................................................... 5
Food grains ........................................................................................................ 5
Horticultural Products........................................................................................... 6
Sugar................................................................................................................ 7
Livestock, Dairy and Poultry .................................................................................. 7
Dairy products ................................................................................................. 7
Poultry............................................................................................................ 8
Fisheries ............................................................................................................ 9
Forest Products................................................................................................... 9
Situation and Outlook for Production Resources and Inputs ................................ 10
Agricultural Policies and Institutional Framework............................................... 10
Economic Indicators .......................................................................................... 11
Macroeconomic Indicators ................................................................................... 11
Agricultural Exports/Imports................................................................................ 12
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Executive Summary
Most of Senegal lies within the drought-prone Sahel region, with irregular rainfall and
generally poor soils. With only about 5 percent of the land irrigated, Senegal continues to
rely on rain-fed agriculture, which occupies about 75 percent of the workforce. Despite a
relatively wide variety of agricultural production, the majority of farmers produce for
subsistence needs. Production is subject to drought and threats of pests such as locusts,
birds, fruit fly and white fly. Millet, rice, corn and sorghum are the primary food crops grown
in Senegal. Senegal is a net food importer, particularly for rice, which represents almost
75 percent of cereal imports. Peanuts, sugarcane and cotton are important cash crops, and a
wide variety of fruits and vegetables are grown for local and export markets. In 2006 gum
arabic exports soared to $280 million making it by far the leading agricultural export. Green
beans, industrial tomato, cherry tomato, melon and mango are Senegalâs main vegetable
cash crops. The Casamance region, isolated from the rest of Senegal by Gambia, is an
important agriculture producing area, but without the infrastructure or transportation links to
improve its capacity.
Despite the lack of modernization of artisanal fishing, the fishing sector remains Senegalâs
main economic resource and major foreign exchange earner. The livestock and poultry
sectors are relatively underdeveloped and have potential for modernization, development
and growth. Senegal imports most of its milk and dairy products. The sector is inhibited due
to low output and limited investments. The potential production of fauna and forest products
is high and diversified and could, if well organized, benefit poor farmers in rural areas.
Although the agricultural sector was impacted by a locust invasion in 2004, it has recovered
and gross agricultural production is expected to increase by 6 percent in 2006 and 5 percent
in 2007.
Situation and Outlook of the Economic Sector
Senegalâs economy has grown consistently at rates close to 5 percent since the mid-1990s,
but due to a poor agricultural harvest in 2002, growth fell to 2.4 percent down from 5.6
percent in 2001. With good rains in 2003, growth reached 6.5 percent. In 2004, real GDP
growth stood at 6.0 percent and increased slightly at 6.2% in 2005. The steady growth
gained over the last two years will drop to 3-4% in 2006 according the IMF and the Ministry
of Planning and Sustainable Development as the result of the tremendous slow down in the
industry sector and an acute crisis in the energy sector. A significant Senegalese expatriate
community also returns important amounts of foreign exchange to Senegal in the form of
remittances, conservatively estimated at CFA 201 billion (USD 402 million) in 2004. The
Senegalese community in the United States (principally in Washington, D.C. and New York) is
the third largest contributor of remittances, after overseas Senegalese in France and Italy.
Senegalâs economy has been essentially rural with limited natural resources, and is
extremely vulnerable to climatic variations and fluctuations in the international markets of
major export commodities (fish, phosphates and peanuts). The relatively high population
growth (2.7 percent) and unemployment rates, as well as rapid urbanization could easily
compromise the countryâs long-term development goals. Senegal is also still striving to
shake off the effects of the CFA franc devaluation in 1994 and is still highly dependent on
foreign aid. Steady increases in prices of major consumer products such as rice, sugar, and
petrol, the instability in the peanut industry, the hesitant privatization process and
shortcomings in public services further exacerbate social difficulties. However, Senegalâs
relative political stability and democracy, its strategic geographical situation, its
telecommunications facilities and the quality of its human resources present an attractive
potential environment for investors. But the country needs to overcome its energy crisis,
improve the efficiency of its judicial system and provide more incentives to investors.
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Situation and Outlook of the Agricultural Sector
Most of Senegal lies within the drought-prone Sahel region, with irregular rainfall and
generally poor soils. With only about 5% of the land irrigated, Senegal continues to rely on
rain-fed agriculture, which occupies about 75% of its workforce. The sector is inhibited due
to low output and limited investments. Although this sector was impacted by a locust
invasion in 2004, it has recovered and gross agricultural production is expected to increase
by 6.1% in 2006 and 5.1% in 2007. Reforms of the agricultural sector have suppressed
direct government support and engaged the privatization of state holdings. The main
agricultural crops are peanuts and cotton both being important sources of foreign exchange
income as well as millet, rice, corn, sugarcane, and livestock.
Peanuts are the engine of the rural economy and their production accounts for around 40
percent of cultivated land, taking up two million hectares. The peanut sector provides
employment for as many as one million people. The industry has been suffering from the
effects of the privatization of the agricultural sector and the elimination of the import ban on
peanut and other edible oils. However, the peanut sector is still dominated by SONACOS,
which has been renamed SUNEOR starting January 1
s t
2007, thus marking the end of the
privatization process which started in 2004 when the government decided to sell its shares to
Advens, a private consortium including a Lebanese-French businessman, the Belgium peanut
machinery manufacturer Desmet, SODEFITEX (the cotton ginning company) and SONACOS
employees (see GAIN SG5001 and SG4002). In recent years, the reported average annual
peanut production lies around 828,000 tons (95% for oil). Cotton accounts for about 3% of
total exports and the third source of export earnings for Senegal (some 28 million US dollars
over the period 1995-2000). Cotton is grown in nearly every region and covers almost one
third of cultivated acreage. The cotton industry is managed through the former parastatal
SODEFITEX, which was privatized in November 2003 with producers holding 30% of the
company's shares. Production of food crops does not meet Senegal's needs. The production
of major staple food crops covers barely 30% of consumption needs. Only in years of
favorable rainfall does the country approach self-sufficiency in millet and sorghum, the basic
staples with rice. The livestock population includes approximately 3.1 million cattle and 8.7
million sheep and goats. Cattle are reared extensively and on a small-scale basis. Poultry
production has increased and has great potential for growth. Despite a significant livestock
population, Senegal remains a net importer of meat, especially sheep (live) during major
holidays and religious events.
Situation and Outlook by Commodity Grouping
Peanuts
Peanut production accounts for around 40 percent of cultivated land, taking up two million
hectares, and provides employment for as many as one million people. Although the peanut
sectorâs contribution to foreign exchange earnings has dropped below those of fishing and
mining, peanuts continue to play an important role in the overall economy as the main cash
crop for many rural Senegalese farmers. Peanuts are processed locally, and prices of
processed peanut oil and other peanut products are set a government controlled commission.
Production of unshelled peanuts varies widely because of periodic drought, and production is
frequently underreported because of unauthorized sales to processors in neighboring
countries. Total production was estimated at 850,000 tons in 2005. Exports of peanut
products reached about CFA 15
billion ($30 million) in 2005. They account for some 60
percent of total agricultural exports, 75 percent of which is made up of peanut oil. SUNEORâs
(former SONACOS) exports of peanut oil account for 45 to 50 percent of the world market
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trade in peanut oil. SUNEOR produces approximately 150,000 tons of crude peanut oil per
year. The European market, which is its main market, can currently absorb only 90,000
tons. The newly privatized company plans to explore and develop new markets to fully utilize
its capacity. In this perspective, exports of peanuts oil to the U.S. have resumed in 2006 and
were estima ted at about $7 million. Other major peanut oil producers include NOVASEN and
the Complex of Touba. All these three companies produce mainly non-refined peanut oil and
non-grilled peanuts for export. Peanut meal/cake is predominantly sold in the local market as
animal feed. The local industry also refines imported edible oils for domestic consumption.
In 2005 Senegal imported approximately 90,000 tons of crude soybean oil, primarily from
Brazil.
Cotton
Cotton is grown in nearly every region and covers almost one third of cultivated acreage.
However, production is concentrated in the South-Eastern part of the country (South of the
Kahone-Tambacounda belt, as well as in the Casamance and KĂ©dougou regions). SODEFITEX,
the main cotton company, forecasts production at 40,000 tons in 2006. Cotton accounts for
approximately 3% of total exports and the third source of export earnings for Senegal (some
$23 million in 2005). Cotton is the second largest agricultural export, accounting for around
16 percent of total agricultural exports. Most cotton lint produced in Senegal is exported, but
since the liberalization of the sector in 1984, producers have preferred selling in parallel
markets, where they benefited from better prices. SODEFITEX, which manages most of
Senegalâs cotton production, was privatized in November 2003. Producers acquired 30% of
the company's shares (they had no equity interest prior to privatization). Despite stronger
incentives, (credit to producers and guaranteed producer prices), the company is still striving
to fully use its ginning capacity.
The government of Senegal is committed to participating in the U.S. government funded
West Africa Cotton Improvement Program (WACIP) in support of activities that focus on crop
diversification and value-added processing.
Food grains
Rice, millet and sorghum are the main subsistence food crops for Senegalâs rural population.
Corn and fonio are also important cereal crops. Production of cereal food crops, such as rice,
millet, corn and sorghum - which is often grown in rotation with peanuts - does not meet
Senegal's needs. Only in years of good rainfall does the country approach self-sufficiency in
millet, corn, sorghum and fonio, the main staples in rural areas. Local production increased
significantly in the early 2000s following the governmentâs decision to encourage corn
production, and thus reduce reliance upon peanuts.
In 2005/06, total production of cereals (including milled rice) is estimated at 1,177,782 MT,
which will cover some 60% of the consumption needs. However, given the segmentation of
the rice market (see GAIN SG6002), this production will less likely affect imports. However,
in years of poor rainfall and other natural disasters, the shortfall in coarse grains, especially
millet, could be more difficult to cover because of low availability and trade of this grain in
the region. Such constraints have been overcome with an increase in rice imports, with a
shift from millet to rice consumption in households who can afford it.
Senegal is the second largest rice importer in Africa, ahead of Cote dâIvoire and behind
Nigeria. Senegalâs imports reached 1,113,000 MT in 2005, with net imports estimated at
854,000 MT. Consumersâ preference is for 100 percent broken rice originating from Asia,
mainly Thailand and India, and recently from Brazil, Uruguay and Argentina. Per capita rice
consumption continues to grow and is estimated at 70 to 75 kilograms and total annual
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consumption is estimated at 700,000 MT. Local rice production meets about 20 percent of
the countryâs needs and 30 percent of this production is used for subsistence. In 2005/06,
local production of rice paddy was estimated at 265,000 MT.
The wheat sector has been controlled for years by two flourmills,
Grands Moulins de Dakar
and Sentenac,
which buy about 90 percent of their wheat from France. (See SG7002) In
2001,
NMA
became the countryâs third flour and feed mill. The demand for wheat flour is
increasing, as the demand for bread increases along with population growth and changes in
consumption habits. Senegal has imported 326,287 MT of wheat in 2005 and more than half
of this quantity in the first half of 2006 (180,514 MT). Senegal imported U.S wheat most
recently in 2004 and again in 2006, making the U.S. the third largest supplier after France
and Argentina. U.S. wheat is used for blending because of its high protein content compared
to French soft wheat. Despite significant increases in the price of wheat in the international
markets, the government froze flour and bread pric es in November 2006, following strong
pressure from consumersâ unions. The millersâ price of flour is currently CFA 264,000 per MT
and the price of a baguette remains at CFA 150 instead of CFA 175 proposed by bakersâ
associations. ($1 = CFA 507 on January 10, 2007.)
Horticultural Products
Senegalâs total horticultural production was estimated at 584,000 MT in 2004. Exports of
fruits and vegetables are growing steady although they remain low, and it is estimated that
they will reach approximately 50,000 tons in 2007. Europe is still the main export market for
Senegalâs fresh fruits and vegetables. About 70% of the European market is dominated by
four products including green beans, cherry tomato, mango and melon. With the increase in
size and value of the European market, pre-packed produce such as green beans have
promising prospects in the European market and with the possibility to introduce first-stage
processing, these produce will likely reach other markets. Under AGOA and its related
projects, Senegalâs horticultural sector is making efforts to enter the U.S and North American
markets.
However, in order for Senegal to benefit from these opportunities, Senegal needs to address
phytosanitary concerns, improve existing value chains (improved ocean transportation of
green beans, extension of the market of cherry tomato, increase the competitiveness of
melon and expand the seasonality of mango). The fruit and vegetable industry involves
about twenty active companies grouped in two federations (ONAPES and SEPAS). Three
companies are involved through the whole chain (production, packaging, trade) export more
than 50% of the produce alone. About ten medium-size companies export 200 to 500 tons
and the other are small enterprises usually serve as suppliers to major exporters. A
warehouse for fresh produce is built at Dakarâs airport, and other infrastructure is being built
to improve storage and transportation to Europe and thereby maintain quality and increase
value
The potential for the production of industrial tomato is high, especially along Senegal River
valley. However, the current level of production of double concentrate tomato paste does not
meet Senegalâs needs estimated at 18,000 tons. In 2003, total production of fresh tomato
was estimated at 53,000 tons, which yielded about 8,000 tons of paste representing only
about 45% of the domestic needs. SOCAS, the main processing company with the capacity
of 15,000 tons, has been importing triple concentrate to cover the deficit (5,000 tons in 2004
and 2,000 in 2005). At the same time the imports of double concentrate are regularly
increasing from 2,900 tons in 2003 to 5,500 tons in 2004. Agroline, the other major
company has been operating since 2003 with a capacity of 3,300 tons of double concentrate,
representing 7% of the tomato paste market. Agroline has been using imported or local triple
concentrate which it processes and packages into double concentrate. This company is
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considering extending its market share through the establishment of a new agro-industrial
plant in Taredji, northern Senegal which will produce triple concentrate from fresh tomatoes.
This project will start in 2007. Farm gate industrial tomato prices and incentives will have to
improve for Senegal to produce more of its paste from local tomatoes. The processors face
stiff competition from imports of final products such as tomato sauces, juice and ketchup.
The overall potential of the horticultural sector is limited by the presence of various pests
(including fruit and white flies), and therefore needs technical assistance to develop in-
country SPS capacity for meeting international standards, and infrastructure to increase the
efficiency of surveillance and compliance. Senegal needs also to work with its regional
partners to harmonize phytosanitary standards and procedures, strengthen pest surveillance
and detection capabilities, including border inspection operations, develop risk assessment
capability, and overcome other bottlenecks related to regulatory issues and the trade.
Sugar
The production of sugar in Senegal started back in September 1972, when the
Compagnie
Sucriere Senegalaise, C.S.S
produced its first sugar cubes. C.S.S. benefits from a
de facto
monopoly and subsidies from the government, which maintain its capacity to plant and
process sugar cane, then refines and commercialize the sugar produced in the forms of
cubes, powder and crystallized sugar. This year, CSSâ production is estimated at 800,000 tons
of sugar cane, from which nearly 90,500 tons of sugar is produced. With an average yield of
120 tons/hectare, CSS cultivates 7,500 hectares of commercial cane on the Senegal River
valley in northern Senegal. The company employs 3,000 permanent workers and 2,000
seasonal workers.
During the period 2002 - 2005 CSS faced serious competition from illegal imports of cheaper
sugar, mainly from Mauritania which grows cane and processes sugar in the same river valley
on the other side of the border. These imports were estimated at 30,000 to 40,000 tons.
These imports have decreased significantly in 2006 according to CSS authorities with the
support of Customs services. CSSâ ambition is to increase its production meet the national
consumption level of 150,000 tons of sugar. This will require a production of 923,000 to 1
million tons of cane. CSS is reported to have the processing capacity to reach this level of
production but it will have to increase its cultivated area by 500 hectares. Currently CSS
imports 33,000 tons of sugar to compensate the deficit. In 2006, these imports costed about
$875 thousand to the company.
Livestock, Dairy and Poultry
The
livestock population includes 3.1 million cattle and 8.7 million sheep and goats. Most
cattle breeding systems are nomadic and herders move throughout the country in the search
of pasture. There are very few cattle raising systems using feed lots. Despite a significant
livestock population, Senegal remains a net importer of meat, especially live sheep during
periods of peak consumption (major religious holidays and events). The total production of
meat was about 100,000 tons in 2003, which is equivalent to a per capita consumption of
11.5 kg below the governmentâ s objective o 14 kg.
Dairy products
In Senegal, the milk industry is primarily based on the use of imported milk powder.
Senegalâs milk production is far below the domestic needs. Despite relatively high tariffs on
milk powder (26.78%), about 20,000 tons of milk powder is imported each year, primarily
from Europe. In fluid milk equivalent, imports represent twice the level of local milk
production. Imports of other dairy products are estimated at about $100 million in 2006.
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Importers of powder milk form a strong political lobby and dominate the dairy industry. Local
producers are not well organized except the few modern producers in the major cities.
Part of the import milk powder is processed and marketed through informal channels on
which little information is reported. The main products available in the market are sweet
concentrate milk, unsweetened concentrated milk, milk powder (in bulk or packaged in bottle
or small bags). A few companies produce yogurt.
The local milk production system relies on climatic conditions with higher production during
the rainy season and a slow down and even stoppage during the 7 month long dry season.
Non governmental organizations and donors assist small rural milk producers to improve the
distribution systems and increase their capacity to access urban markets. In this perspective,
PAPEL, the governmentâs main livestock and dairy development project has rehabilitated the
rural milk collection network set up by Nestlé-Senegal in 1991 in the sylvo-pastoral zone.
This project is helping develop small-scale milk processing units with simple equipment and
techniques. Most of these units are found in the Northern and Southern parts of the country,
particularly in and around Saint-Louis, Dahra, Tambacounda, Velingara and Kolda. In the
Niayes zone around Dakar, other well structured milk processing units benefit from this
support and were able to commercialize up to 300,000 liters of milk in Dakar in 2005. The
most important of these milk farms are the Wayembam farm and the farms of the Regional
Association of Women Cattle Breeders, Dirtel. Other major players in the milk market include
Nestle Senegal, SATREC, CCMB, Saprolait, and Les Mamelles Jaboot.
Poultry
The poultry industry has been increasing its overall production since the announcement in
2005 of the ban of imports of chicken meat and despite the shock created in early 2006 by
avian influenza. The sector represents 17% of the animal industryâs contribution to GDP and
employs about 10,000 people.
In 2003, there was 3.2 millions chicken producing 5,982 tons of meat. Because of massive
imports of low quality and cheap chicken parts from Europe and Brazil the sector decreased
its production by 24% from 2001 to 2003. This has prompted the creation of poultry farmers
unions who claimed the loss of 3,000 to 5,000 jobs, and the government decision to ban
imports of frozen chicken in October 2005. This ban is still underway and applies to all
countries. As the result of this ban, local production increased by 21%. However, because the
ban was only effective in January 2006, import orders prior to the ban were authorized and
in 2004, 13,700 tons of chicken meat was imported.
Local production is estimated at 7 million chickens in 2005, which represents a 33% increase
compared to 2004. Chicken meat production represents about 75% of this production, and
total industrial production of chicken meat has increased to 9,200 tons in 2005, representing
a 26% increase compared to 2004. Traditional production (home production) is difficult to
evaluate but could be estimated at 8,000 tons of meat. Preliminary government reports
suggest that these trends will continue in 2006 with significant increase in local production of
chicken meat. However, these trends also suggest that the production of eggs will decrease
significantly as the result of the competing chicken meat, and professionals fear that the
sector might not be able to meet Senegalâs needs in chicken eggs, which may prompt a
partial lift of the ban.
Most of the inputs of chicken feed are imported. In 2005, about 85,000 MT of chicken feed
were produced. Corn accounts for 60% of ingredients. Producers prefer soy and corn
products to peanut cakes because of their better quality and lower costs. Fish meal is
another available and important source of protein for the industry. In 2005 Cost of feeding
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accounted for 59% of poultry farmsâ total expenditures, which make the sector less
competitive vis-Ă -vis imported poultry products.
Senegal exports chicken meat to Guinea Bissau (194 Mt in 2005) and day-old-chickens to
The Gambia, Mauritania, Mali, Burkina Faso, and Guinea Bissau (238,250 in 2005).
Fisheries
The fishing sector benefits from a long coat line (approximately 448 miles) and a productive
continental shelf area of approximately 9,653 square miles. Industrial fishing consists of
sardine, tuna and trawler harvesting (shrimp, mullet, sole, cuttlefish, etc). âArtisanalâ
catches are mainly for the local market with a large proportion purchased by local factories
for processing. Senegalâs fishing sector has historically been one of the countryâs largest
sources of foreign currency. In 2005, seafood products represented 22 percent of Senegalâs
total exports and generated more than $366 million in national income from an annual catch
of approximately 400,000 tons, against approximately $374
million for a catch of
approximately 430,000 tons in 2004. The fishing industry is also a key sector for
employment. At the local level, thousands of families depend on fish as a nutritional staple.
The Government estimates that the sector employs more than 200,000 people and generates
significant temporary employme nt in the informal sector, in particular through the artisanal
fishing, using lines, traps, and nets with small-scale traditional fishing canoes.
The European Union is the largest market for Senegalâs seafood exports. Senegal signed
seventeen agreements with EU allowing EU fishing craft access to Senegalese water while
setting export quotas and limits, and requiring that part of the catch, especially tuna, is
supplied to local processing industries. The 2002-2006 Senegal/EU agreement, which
provided for an annual compensation of $15 million to the Government of Senegal, expired in
June 2006. Negotiations to renew it are currently suspended following strong denunciation
of previous agreements by Senegalese fishermenâs associations for alleged overexploitation
of high-value fish, declining incomes, and limiting the availability of high value fish in the
local markets. The Government of Senegal and local environmental organizations have also
expressed concerns about the possible permanent ecological damage caused by the more
sophisticated and efficient EU fleets.
Several large Senegalese fish processing companies have ceased operations because of
Senegalâs small and unproductive fishing fleet, high costs of production, over-exploitation
and scarcity of high value fish, and lack of investment resources. This crisis is reported to be
one of the main causes of clandestine emigration from Senegalâs major fishing communities
to Europe over the last two years with the death of hundreds of young people, mostly
fishermen.
Forest Products
In Senegal, the contribution of forest and other natural resources to the economy is not
visible although it is real and important. The potential production of fauna and forest
products is high and diversified but this sector is not fully accounted for in the
macroeconomic indicators. Officially, the sector represents less than 1% of GDP. However the
production of forest resources, mainly charcoal and wildlife, is estimated at $50 million
yearly. Data collected in 2006 by UICN from producers, brokers and consumers of wild plant
and animal products indicate that most of non-wood plants, wild animals, and continental
fish are commercialized and only a small proportion is used for consumption. The economic
importance of forest products varies by region but they account for up to 50% of the
revenues of poor rural households. The value of these products, which usually are not
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included in the national statistics, is estimated at least $19 to $35 million. Gum arabic
exports, which are not included in the about figures, soared to over $280 million in 2006.
Situation and Outlook for Production Resources and Inputs
The construction of the Diama and Manantali dams in 1986 created an additional
240,000 hectares of land which can be irrigated on the Senegalese side of the Senegal River
in northern Senegal. This gave the country the potential to diversify its crop base and
increase food production. However, operation of the upstream dam has also reduced annual
floods along the floodplain, where an ancient and productive form of recessional irrigation
has been practiced for hundreds of years. Recessional irrigation is still practiced along these
flood plains for an estimated 50,000 hectares.
The best agricultural land along the Senegal River is in the alluvial valley between Bakel and
Dagana, and this area is the most densely populated part of the valley. As the floods retreat
each year, a variety of crops (including millet, sorghum, rice, and vegetables) are sown, and
they grow and mature quickly. These areas also provide pasture for livestock
. But because
rainfall has been lower in Guinea in 2006, the water table of the Senegal River and its
effluents is at a critical level and comparable to a dry year. This situation will limit recession
and dry season productions.
In addition, pests such as insects and locusts have been reported on peanuts, cowpeas, and
sorghum. In northern Senegal, rice production will likely be seriously affected this year by
the extensive invasion of grain eating birds - the
Quelea quelea
.
During this growing season the Government has subsidized the agricultural sector at a level
of about $40 million. This investment included the purchase of 40,000 tons of peanut seeds,
payments to peanut producers of up to $10 million, the purchase of seeds of special crops
such as sesame, cassava, corn, and
hisbiscus sabdarifa
(bissap), and for the subsidy of
fertilizers. The government has also contributed $10 million for the purchase of farming
equipment.
Agricultural Policies and Institutional Framework
Senegalâs agricultural policies are historically characterized by the following key features: the
government agricultural support system is mainly based on cash crops that have reliable
markets; agricultural research has significantly contributed in maintaining productivity
despite irregular rainfall and poor soils; liberalization of the market of agricultural produce in
early 1990 has improved the efficiency of the cereal market; however, the impact of the
liberalization has been limited because peanuts still dominate the market; integrated
extension, input distribution, credit, and marketing support systems contribute in boosting
productivity, especially cash crops and government promoted new crops; yet, support to
farmers is costly and inefficient, particularly because the government responds more to
political pressure than to economically motivated schemes; literacy programs are not
devoted due attention in rural areas, and this limits the efficiency of extension and farm-level
adoption of technologies, and therefore farmers capacity to respond to market dynamics.
In response to increasing rural migration and clandestine emigration, the government has
recently launched a new plan, called REVA (âReturn to Agricultureâ). The objective of this
program is to develop agricultural infrastructure (construction of rural roads, rehabilitation
of wells, and connection to electricity) and provide training and production tools and
equipment to young and women farmers, especially former clandestine emigrants. The pilot
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phase of the program started in August 2006 and will end in December 2008, and during
this period the government plans to implement 550 production sites. This plan is gaining
increasing support from donors.
The institutional framework of the agricultural sector is organized through two main
ministries. The Ministry of Agriculture, Biofuels and Food Security which includes the
Directorate of Agriculture responsible for the implementation of food grains and agro-
industrial development policies and for overseeing the field based extension services; the
Directorate of Horticulture which coordinates government support to the horticultural sector;
the Directorate of Agricultural Census; and the Directorate of Plant Protection responsible for
government pest control programs, including regulations, management of standards, and
various field interventions. The second ministry involved in the agricultural sector is the
Ministry of Animal Husbandry with several services coordinating government support to the
livestock, dairy and poultry sub-sectors.
These services are completed by research and training institutions. ISRA (Senegalese
Agricultural Research Institute) is the leading agricultural research institution and works on
various issues related to crop and animal production, SPS and veterinary issues, fishing and
forest products and rural socio-economy. Other major research institutions are ITA (Food
Technology Institute), CDH (horticultural research) and WARDA (The Africa Rice Center).
Senegal has also agricultural and veterinary colleges which provide most of human resources
used in the sector. The main schools are ENSA (the Agricultural College), EISMV (The Inter-
states Veterinary College), and CDH (The Horticultural Development Training Center).
Major donors involved in the agricultural sector in Senegal include FAO, USAID, USDA, the
World Bank, the African Development Bank, the West African Development Bank, the French
government, Peace Corps and several other local and international NGOs.
Economic Indicators
Macroeconomic Indicators
GDP:
$20.44 billion (2005 est.); agriculture accounts for 16.1%
Real growth rate:
5.2% (2005 est.)
P
er capita GDP:
$1,700 (2005 est.)
Agriculture - products:
peanuts, millet, corn, sorghum, rice, cotton, tomatoes,
green vegetables; cattle, poultry, pigs and fish
Exports:
$1.526 billion f.o.b. (2005 est.)
Exports â agricultural commodities:
fish, peanuts and products, cotton
Exports - partners:
India 14.4%, Mali 13.1%, France 9.8%, Italy 7.3%, Spain
6.6%, Guinea-Bissau 5.6%, Gambia, The 4.8% (2004)
Imports:
$2.405 billion f.o.b. (2005 est.)
Imports - partners:
France 24.8%, Nigeria 11.9%, Thailand 6.1% (2004), Germany,
Spain, Cote dâIvoire and United States
GAIN Report - SG7001
Page 12 of 15
UNCLASSIFIED
USDA Foreign Agricultural Service
Agricultural Exports/Imports
Exports and Imports Statistics (Source:
Agence Nationale des Statistiques et de la
Demographie
â ANSD- June 2006)
Exports in Thousand U.S. Dollar - $1 = Cfa500
Products
2001
2002
2003
2004
2005
Living animals
142
42
78
1,314
774
Fresh fish
170,614
125,206
92,868
171,390
164,120
Other seafood
141,674
192,624
182,830
125,460
129,492
Fresh vegetables
5,534
8,088
5,858
11,620
13,492
Wheat flour
16
92
40
320
2,152
Non roasted
peanuts
1,908
1,882
64
152
408
Arabic gum
3,050
3,090
2,464
2,666
280,099
Non refined
peanuts oil
99,612
83,908
46,010
27,400
31,354
Refined peanuts oil
-
26
112
-
-
Peanut cake
23,920
20,342
8,440
4,314
1,160
Sweet products
3,986
2,910
2,586
2,506
2,682
Salt
20,148
14,390
13,866
13,078
10,022
Fertilizers
29,580
52,420
57,844
72,906
37,194
Leather and skins
11,898
8,292
5,838
5,162
6,370
Bulk cotton
12,668
20,052
36,022
30,602
22,458
Cotton fabric
2,008
1,600
3,432
2,422
1,804
Dry fish and
derivatives
5,290
4,412
4,744
5,034
5,490
Canned fish
43,396
40,436
46,186
24,746
31,384
Total
575,444
579,812
509,282
501,092
740,455
GAIN Report - SG7001
Page 13 of 15
UNCLASSIFIED
USDA Foreign Agricultural Service
Exports in tons
Products
2001
2002
2003
2004
2,005
Living animals
10
11
11
118
55
Fresh fish
87,587
70,063
63,397
77,123
74,003
Other seafood
35,705
42,553
53,157
30,370
32,050
Fresh vegetables
4,082
7,943
5,923
12,194
15,514
Wheat flour
36
238
96
791
5,468
Non roasted
peanuts
3,011
5,699
108
236
606
Arabic gum
1,069
1,067
927
1,114
1,186
Non refined
peanuts oil
116,017
106,927
43,928
21,858
29,707
Refined peanuts oil
-
50
132
-
-
Peanut cake
133,927
108,760
35,718
14,387
7,154
Sweet products
32,428
24,318
26,833
30,041
22,453
Salt
301,016
258,143
152,326
142,657
185,337
Fertilizers
141,204
188,239
219,397
233,089
121,238
Leather and skins
5,111
4,561
3,625
3,877
4,111
Bulk cotton
7,988
14,874
24,472
18,780
16,767
Cotton fabric
220
174
578
397
266
Dry fish and
derivatives
4,142
5,322
2,923
5,568
3,069
Canned fish
12,591
11,680
13,472
7,626
9,590
Total
886,144
852,624
649,026
602,230
530,579
GAIN Report - SG7001
Page 14 of 15
UNCLASSIFIED
USDA Foreign Agricultural Service
Imports in thousand U.S.Dollar - $1= Cfa 500
Products
2001
2002
2003
2004
2005
Dairy products
56,854
50,000
62,774
75,088
87,034
Fruits and
vegetables
41,364
42,956
41,892
48,860
48,674
Coffee
280
282
574
606
556
Tea
Wheat
62,688
64,650
61,320
82,932
71,866
Corn
10,340
16,604
16,908
13,214
17,520
Rice
208,540
240,280
236,166
243,610
265,814
Animal and
vegetable oils and
fats
79,680
69,684
117,314
117,500
116,596
Meat and fish
canned products
994
1,544
1,060
1,552
1,768
Raw and refined
sugar
31,236
18,604
18,300
8,636
30,632
Other sweet
products
7,358
8,346
9,648
8,810
11,218
Canned fruits and
vegetables
8,006
10,518
11,558
13,552
14,302
Wine
5,118
6,544
6,508
5,390
5,166
Other drinks
5,142
5,630
6,922
7,858
12,542
Fertilizer
7,806
21,060
16,332
30,146
15,524
Wood and wood
products
41,614
46,082
42,670
56,942
54,822
Food machinery
and equipment
8,148
10,518
13,768
9,792
11,882
Total
575,168
613,302
663,714
724,488
765,916
GAIN Report - SG7001
Page 15 of 15
UNCLASSIFIED
USDA Foreign Agricultural Service
Imports in tons
Products
2001
2002
2003
2004
2005
Dairy products
21,222
22,979
31,178
35,180
37,632
Fruits and
vegetables
116,505
127,504
127,415
168,085
217,820
Coffee
107
115
218
303
133
Tea
6,113
4,944
6,286
5,376
5,819
Wheat
253,451
264,641
271,146
313,777
326,287
Corn
54,203
92,620
85,755
60,335
96,677
Rice
681,958
793,695
824,178
748,638
856,369
Animal and
vegetable oils
and fats
126,315
95,190
166,609
164,133
176,846
Meat and fish
canned products
409
687
381
566
642
Raw and refined
sugar
55,840
39,956
43,928
21,542
57,630
Other sweet
products
6,964
8,064
9,815
8,992
10,630
Canned fruits
and vegetables
8,640
10,669
12,147
17,081
17,439
Wine
7,532
9,858
9,369
7,928
7,447
Other drinks
11,151
10,097
11,053
13,652
19,997
Fertilizer
49,701
122,838
111,801
140,269
54,175
Wood and wood
products
83,122
87,766
84,287
102,005
95,965
Food machinery
and equipment
759
873
2,262
863
971
Total
1,483,992
1,692,496
1,797,828
1,808,725
1,982,479