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Thomas Allen [email protected] www.oecd.org/swac/ West African Food Markets and Transformations in Agriculture GIZ, Bonn 10 December 2015

West African Food Markets and Transformations in Agriculture

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Page 1: West African Food Markets and Transformations in Agriculture

Thomas [email protected]/swac/

West African Food Marketsand Transformations in Agriculture

GIZ, Bonn10 December 2015

Page 2: West African Food Markets and Transformations in Agriculture

A peopling region

2

Page 3: West African Food Markets and Transformations in Agriculture

Structural transformations

3Sources: e-Geopolis/Africapolis, 2013; SWAC/OECD 2015

Page 4: West African Food Markets and Transformations in Agriculture

The growing role of markets

Page 5: West African Food Markets and Transformations in Agriculture

Markets, primary source of food supply

5

Markets provide 2/3 of food supplies

Page 6: West African Food Markets and Transformations in Agriculture

Size of the regional food economy

6

• West Africa food economy: 175 billion USD in 2010– Total value traded on markets: 120 billion USD

• Urban spend 50% more than rural on food (per capita consumption)

Sources: World Bank, GCD 2014; UNSD, 2015; SWAC/OECD 2015

53%

47%

Page 7: West African Food Markets and Transformations in Agriculture

The role of prices

7

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ank,

ICP

2011

; SW

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2015

GDP per capita

ICP

Food

pric

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vel i

ndex

Page 8: West African Food Markets and Transformations in Agriculture

Transformationsin Agriculture

Page 9: West African Food Markets and Transformations in Agriculture

Meeting demand

9

Page 10: West African Food Markets and Transformations in Agriculture

Marketed surplus - maize

Page 11: West African Food Markets and Transformations in Agriculture

Greater crop yields

11

• Gains in yield have been particularly marked since 2000 and now account for 40% of production growth

Page 12: West African Food Markets and Transformations in Agriculture

12

Density and heterogeneity

Page 13: West African Food Markets and Transformations in Agriculture

Further down the value chain

Page 14: West African Food Markets and Transformations in Agriculture

Development of post-harvest segments

14

• Food GDP = 36% of GDP

• Food GDP/Agriculture GDP* = 1.6

• Indicates major structural change in the food economy: 40% is no longer agriculture

NB: *Agriculture GDP adjusted for exports

Post-harvest segments of the agro-food value chain as important to food security as agriculture

Page 15: West African Food Markets and Transformations in Agriculture

Importance of processed foods

15

• Processed foods (excluding cereals and beverages) account for 39% of food consumption in 2010

Beverages Cereals* Food (excluding Cereals & Beverages)

    Unprocessed ProcessedAll Lowest 4% 31% 29% 36%

  Low 5% 20% 32% 42%

  Middle 9% 13% 31% 48%  Higher 12% 11% 28% 49%

  All 4% 27% 30% 39%Urban Lowest 4% 24% 35% 38%

  Low 6% 18% 33% 44%

  Middle 9% 13% 31% 47%

  Higher 12% 11% 28% 49%

  All 5% 20% 33% 41%Rural Lowest 3% 37% 25% 35%

  Low 5% 25% 31% 39%

  Middle 7% 14% 29% 50%

  Higher 12% 19% 30% 38%

  All 4% 34% 26% 36%

Sources: World Bank, GCD 2014; SWAC/OECD 2015

Page 16: West African Food Markets and Transformations in Agriculture

Growth in food processing (Senegal)

16Source: UNIDO, INDSTAT 2013

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Food, bev-erages and tobacco

Manufacturing (ISIC D)

Valu

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Page 17: West African Food Markets and Transformations in Agriculture

• Markets play a crucial role in food security, both in urban and rural areas

• Market dynamics are transforming agriculture towards more intensification, in particular around urban areas

• Post-harvest segments of the agro-food value chains are fundamental to food security

What is the potential of the regional food processing and marketing sectors? What are the opportunities and constraints?

Key messages

Page 18: West African Food Markets and Transformations in Agriculture

• The regional West African food market offers opportunities for value creation and diversification

Implications

Towards market-orientated programmes

• A more and more heterogeneous agricultural landscape resulting from differentiated spatial dynamicsTowards targeted and spatially-aware

programmes

– soft and hard infrastructure, norms

Towards integrated programmes – Actor coordination, access to credit, business climate

• Development of downstream segments of food value chains to meet consumer demand for new products and services

– Agricultural extension and training

Page 19: West African Food Markets and Transformations in Agriculture

- Africapolis (2008), Urbanisation Trends in West Africa 1950-2020, AFD, coordinated by SEDET (CNRS/Université Paris Diderot). [OECD/SWAC-funded data update in 2014]

- OECD/SWAC (2013), Settlement, Market and Food Security, West African Studies, OECD Publishing, Paris.

- Soulé, B. G. and S. Gansari (2010), La dynamique des échanges régionaux des céréales en Afrique de l’Ouest, MSU, SRAI, working paper.

- Youth Employment Network (2009), Private Sector Demand for Youth Labour in Ghana and Senegal, World Bank and ILO, Geneva, Switzerland.

References