Rice Trade and Value Chain Development in West Africa: an Approach for More Coherent Policies

Total Page:16

File Type:pdf, Size:1020Kb

Rice Trade and Value Chain Development in West Africa: an Approach for More Coherent Policies Making policies work DISCUSSION PAPER No. 283 Rice trade and value chain development in West Africa: an approach for more coherent policies By Fabien Tondel, Cecilia D’Alessandro, Ibrahima Hathie and Clarisse Blancher October 2020 The development of the rice sector in West Africa represents a significant policy challenge. Following the 2008 food price crisis, West African countries succeeded in boosting rice production. Yet, with little improvement in the competitiveness of the sector, they continued to import increasing amounts of rice, exposing them to international market volatility. Trade policies have contributed to this outcome. Low import protection, compared to Asian producers, has been a major factor, as smuggling activities between countries with different tariff levels show. Tax exemptions often arbitrarily granted to rice importers have undermined the stability of domestic markets. Weak enforcement of quality and food safety norms have allowed for the importation of substandard rice, unfairly competing with West African farmers. Besides official policies, complex and interlocking interests among private and public actors drive rice trading activities. The importation and distribution of rice, which generates sizable rents, is supported by powerful economic and political actors. Nonetheless, recent developments suggest that progress in the regulation of rice markets and the development of competitive and inclusive value chains is achievable. It requires an alignment of interests, the promotion of coherent policies linking a stricter regulation of imports to the structuring of domestic markets, and incentives for private investment. Building on existing dynamics in cross-border regions, trade facilitation could further contribute to the emergence of modern value chains and food security. Scaling up promising experiments in market and trade regulation, while developing the rice sector as part of more sustainable agri-food systems, also depends on the interests of different states in better coordinating national rice policies and implementing regional trade agreements. Table of Contents Acknowledgements ....................................................................................................................................................... iv Acronyms ........................................................................................................................................................................ v 1.Introduction ................................................................................................................................................................. 1 1.1. Rice, a major sector of the West African agri-food system .................................................................... 1 1.2. A study to shed light on policy challenges surrounding rice trade......................................................... 2 1.3. Methodological approach ....................................................................................................................... 3 1.4. Structure of the report............................................................................................................................ 5 2.Aggregate rice market and trade trends ..................................................................................................................... 6 2.1. Consumption, production and trade data .............................................................................................. 6 2.2. Consumption trends ............................................................................................................................... 7 2.3. Production trends ................................................................................................................................. 10 2.4. Import dynamics ................................................................................................................................... 12 2.5. Import dependency............................................................................................................................... 13 3.Sub-regional structures and dynamics of rice trade ................................................................................................. 14 3.1. Consumption patterns .......................................................................................................................... 14 3.2. Overseas rice importation systems ...................................................................................................... 17 3.3. Intra-regional trade in locally produced rice ........................................................................................ 28 3.4. Effects of climate change on rice production and trade ...................................................................... 46 4.Analysis of policy and institutional factors ................................................................................................................ 47 4.1. Regional overview of recent rice policy developments ........................................................................ 47 4.2. Central trade basin ................................................................................................................................ 50 4.3. Eastern trade basin ............................................................................................................................... 69 5.Cross-country insights and synthesis ........................................................................................................................ 82 5.1. Low competitiveness and high import dependency as central issues ................................................. 83 5.2. Effectiveness of rice trade policy .......................................................................................................... 84 5.3. Domestic market organisation and stabilisation .................................................................................. 90 5.4. Intra-regional trade dynamics and obstacles ....................................................................................... 92 6.Towards measures to better regulate trade and promote the development of the rice sector.............................. 93 6.1. Lessons learned from recent policy developments in Senegal ............................................................ 93 6.2. A possible approach to promoting an enabling rice trading environment .......................................... 95 6.3. Economic and food security implications, preconditions for reforms and critical risk factors ............ 98 6.4. Concrete steps towards policy formulation and implementation ..................................................... 103 7.Concluding remarks ................................................................................................................................................. 105 References .................................................................................................................................................................. 108 i List of Figures Figure 1. Illustrative problem tree for the rice trading systems in West African countries ........................................ 4 Figure 2. Rice consumption in West African countries, 1980 – 2017 .......................................................................... 8 Figure 3. Per capita rice consumption in West African countries, 1980 – 2017 .......................................................... 9 Figure 4. Rice production in West African countries, 1980 – 2018 ............................................................................ 10 Figure 5. Rice net imports in West African countries, 1980 – 2017 ........................................................................... 12 Figure 6. Rice import dependency ratios of West African countries, 1982 – 2017 (three-year moving average) .... 14 Figure 7. Rice imports in (a) eight selected West African countries and in (b) the central and (c) the eastern trade basins, by origin, 2013 – 2017 ..................................................................................................................... 17 Figure 8. Rice import and transhipment flows in West Africa ................................................................................... 20 Figure 9. Average difference over a five-year period between Asian exports to West Africa and West African imports from Asia, 2013 – 2017 .................................................................................................................. 24 Figure 10. Three-month moving average rice price differentials (imported rice minus locally produced rice) at the wholesale or retail level in major West African urban centres, 2006 – 2019 ............................................. 25 Figure 11. Rice production and cross-border trade flows in the central trade basin .................................................. 30 Figure 12. Informal trade flows of locally produced rice from Burkina Faso to Mali, 2011 – 2019 ............................ 31 Figure 13. Seasonal trends in informal trade flows from Burkina Faso to Mali, 2012 – 2019 (2014 – 2018 five-year average) ....................................................................................................................................................... 32 Figure 14. Locally produced rice prices and informal trade flows in the western Burkina Faso-eastern Mali basin, 2011 – 2019 ................................................................................................................................................
Recommended publications
  • Pdf | 857.14 Kb
    West and Central Africa Regional Office Humanitarian Situation Report © © UNICEF/UN0452608/Dejongh Reporting Period: 1 January to 30 June 2021 Highlights Situation in Numbers • Several countries in West and Central Africa have entered a third wave of the COVID-19 pandemic with case numbers rising to their highest levels 57 million since the start of the outbreak. Continued disruptions to essential services children in need of remain a challenge. humanitarian assistance in • Supporting the continuation of nutrition services in the context of COVID- WCAR (2021 OCHA HNO/HRP of 8 19 remains difficult, as COVID-19 has created barriers to community- countries and 2021 UNICEF HAC for 12 based activities carried out by Community Health Workers including early countries) SAM screening and prevention activities for Infant and Young Child Feeding (IYCF). • Schools have re-opened with many countries offering catch up classes to 350,820 student over the summer. UNICEF continues to scale-up WASH in new COVID-19 cases from schools to promote good health and hygiene. January to June 2021 (two- fold increase) in WCAR • Following the declaration of an Ebola outbreak in Guinea, UNICEF stepped up preparedness activities in six neighbouring countries (Cote 1.4% case fatality rate in d'Ivoire, Liberia, Sierra Leone, Guinea-Bissau, Mali, and Senegal), where WCAR (consolidated data from approximately 40 million people under 18 years of age were at risk. On 19 WHO, MoH as of 30 June) June 2021 Guinea was officially declared Ebola-Free. • The security context has further deteriorated in the first six months of UNICEF Appeal 2021 2021.
    [Show full text]
  • SUN Countries Deep-Dives Final Report Scaling up Nutrition Movement In-Depth Country Studies
    SUN Countries deep-dives final report Scaling Up Nutrition Movement In-depth Country Studies Annex No 4 – List of interviews and group discussions per country Benin National level interviews were not carried out due to a clash with other SUN Movement Study happening during the same time. However, some information was collected through a group discussion with United Nations representatives. At subnational level information was collected in two municipalities through 10 interviews to government officers (7), and civil society representatives (3); and 3 group discussions that included 17 people participating from government (12), civil society (1). National level • Group discussion with four United Nations Representatives from UNICEF, World Food Program WFP and World Health Organization WHO. Subnational level Group discussions: • Members of the decentralised Multi-Stakeholder Platform (Cadre de Concertation Communal, CCC) of Adja Ouèrè. • Members of the decentralised Multi-Stakeholder Platform (Cadre de Concertation Communal, CCC) of Malanville. • With donor representatives from members of the decentralised Multi-Stakeholder Platform (Cadre de Concertation Communal, CCC) of Adja Ouèrè. Interviews carried out in Adja Ouèrè, Plateau Department: • Head of Planification, Nutrition Focal Point, Adja Ouere Commune. • Regional Coordinator of the Permanent Secretariat of the food and nutrition Council, SP- CAN Ouémé / Plateau. • Two Representatives of the Groupe d'action pour le bien-être familial (GABF), implementing NGOs of the Multisectoral Food, Health and Nutrition Project, PMASN Project. Civil Society Organisation. Interviews carried out in Malanville, Alibori Department: • Two representatives from devolved services from social affairs and from the local authorities. Government. • Representative of the Bach Consulting for Development BCD, implementing NGO of the Multisectoral Food, Health and Nutrition Project, PMASN Project.
    [Show full text]
  • GIEWS Country Brief Benin
    GIEWS Country Brief Benin Reference Date: 23-April-2020 FOOD SECURITY SNAPSHOT Planting of 2020 main season maize ongoing in south under normal moisture conditions Above-average 2019 cereal crop harvested Prices of coarse grains overall stable in March Pockets of food insecurity persist Start of 2020 cropping season in south follows timely onset of rains Following the timely onset of seasonal rains in the south, planting of yams was completed in March, while planting of the main season maize crop is ongoing and will be completed by the end of April. The harvest of yams is expected to start in July, while harvesting operations of maize will start in August. Planting of rice crops, to be harvested from August, is underway. The cumulative rainfall amounts since early March have been average to above average in most planted areas and supported the development of yams and maize crops, which are at sprouting, seedling and tillering stages. Weeding activities are normally taking place in most cropped areas. In the north, seasonal dry weather conditions are still prevailing and planting operations for millet and sorghum, to be harvested from October, are expected to begin in May-June with the onset of the rains. In April, despite the ongoing pastoral lean season, forage availability was overall satisfactory in the main grazing areas of the country. The seasonal movement of domestic livestock, returning from the south to the north, started in early March following the normal onset of the rains in the south. The animal health situation is generally good and stable, with just some localized outbreaks of seasonal diseases, including Trypanosomiasis and Contagious Bovine Peripneumonia.
    [Show full text]
  • Congressional Budget Justification 2015
    U.S. AFRICAN DEVELOPMENT FOUNDATION Pathways to Prosperity “Making Africa’s Growth Story Real in Grassroots Communities” CONGRESSIONAL BUDGET JUSTIFICATION Fiscal Year 2015 March 31, 2014 Washington, D.C. United States African Development Foundation (This page was intentionally left blank) 2 USADF 2015 CONGRESSIONAL BUDGET JUSTIFICATION United States African Development Foundation THE BOARD OF DIRECTORS AND THE PRESIDENT OF THE UNITED STATES AFRICAN DEVELOPMENT FOUNDATION WASHINGTON, DC We are pleased to present to the Congress the Administration’s FY 2015 budget justification for the United States African Development Foundation (USADF). The FY 2015 request of $24 million will provide resources to establish new grants in 15 African countries and to support an active portfolio of 350 grants to producer groups engaged in community-based enterprises. USADF is a Federally-funded, public corporation promoting economic development among marginalized populations in Sub-Saharan Africa. USADF impacts 1,500,000 people each year in underserved communities across Africa. Its innovative direct grants program (less than $250,000 per grant) supports sustainable African-originated business solutions that improve food security, generate jobs, and increase family incomes. In addition to making an economic impact in rural populations, USADF’s programs are at the forefront of creating a network of in-country technical service providers with local expertise critical to advancing Africa’s long-term development needs. USADF furthers U.S. priorities by directing small amounts of development resources to disenfranchised groups in hard to reach, sensitive regions across Africa. USADF ensures that critical U.S. development initiatives such as Ending Extreme Poverty, Feed the Future, Power Africa, and the Young African Leaders Initiative reach out to those communities often left out of Africa’s growth story.
    [Show full text]
  • Finance | Business | Cibn News | Health | Sports | General Become a Member R Mentoring
    The Chartered Institute of Bankers of Nigeria 13 JUNE, 2017R daily HIGHLIGHT FINANCE | BUSINESS | CIBN NEWS | HEALTH | SPORTS | GENERAL BECOME A MEMBER R MENTORING TOP STORIES CBN, firm collaborate to drive financial inclusion Naira posts marginal gain, closes at 365/dollar First Bank drives inclusion, convenience with *894# quick banking Benefits, side effects of bitter kola CIBN Events FINANCE NEWS Budget padding: EFCC begins probe Naira posts marginal gain, closes CBN, firm collaborate to drive financial of Dogara, others, to grill Jibrin at 365/dollar inclusion The naira posted a marginal gain against the United The Economic and Financial Crimes Commission has States dollar at the parallel market on Monday, The second edition of a retail banking workshop organised by invited a former Chairman, House of Representatives closing at 364/dollar. The local currency closed at Ciuci Consulting will explore strategic tools employed to drive Committee on Appropriation, Mr. Abdulmumin Jibrin, to 365/dollar on Sunday. The development brought the financial inclusion. According to a statement by the consulting clarify allegations that the Speaker, Mr. Yakubu Dogara, rate closer to the official price of 360/dollar for firm, the workshop, themed, ‘Catalysing SME funding and and three other principal officers “padded” the 2016 budget invisible transactions. Following the continued retail lending to Nigeria’s economic development’, is in line more than N40bn. The others are the Deputy Speaker, Mr. supply of the dollar to the foreign exchange market, with the CBN’s policies and processes designed to enhance Yussuff Lasun; the Chief Whip, Mr. Alhassan Ado-Doguwa; the CBN local currency has recorded major financial inclusion.
    [Show full text]
  • The New Frontier for Jihadist Groups?
    Promediation North of the countries of the Gulf of Guinea The new frontier for jihadist groups? www.kas.de North of the countries of the Gulf of Guinea The new frontier for jihadist groups? At a glance At a glance tion has led to increased competition for access to However, these efforts are still not enough. In natural resources and to rising tensions between addition to operational or material flaws in the several communities. security network, there is also a weakness in terms of political and military doctrine. Since In 2020, armed jihadist groups in Sahel faced the authorities believe that the unrest on their Burkina Faso’s southern border is also of inter- jihadist insurgencies have developed in the increased pressure in their strongholds in Mali, northern borders will eventually spill over into est to the jihadists because it is a very profitable Sahara- Sahel region, no state has yet found an Niger and Burkina. their territory. No attacks have yet been carried area for all kinds of trafficking. Both to the east adequate response to contain them. Priority is out on Beninese soil, but incursions by suspected and west, this border has been known for several given to the fight against terrorism, often to the While the Support Group for Islam and Muslims jihadists are on the increase. Côte d’Ivoire was years as an epicentre for the illicit trade in arms, detriment of dialogue with communities and the (JNIM) and the Islamic State in the Greater Sahara first attacked in the north in June 2020. Jihadists gold, drugs, ivory, or goods such as cigarettes and search for local solutions.
    [Show full text]
  • Cold Cuts 092317.Indd
    COLD CUTS COLD CUTS B y R o b e r t P a y n e C a b e e n Omnium Gatherum Los Angeles Cold Cuts Copyright© 2017 Robert Payne Cabeen ISBN-13: 978-0997971767 ISBN-10: 0997971762 All rights reserved. No part of this book may be reproduced or transmitted in any form or by any electronic or mechanical means, including photocopying, recording or by any information storage and retrieval system, without the written permission of the author and publisher omniumgatherumedia.com. This book is a work of fiction. Names, characters, places and incidents are either the products of the author’s imagination or are used fictitiously. Any resemblance to actual events or persons, living or dead, is coincidental. First Edition For Cecile Bones in a basement, a snake in a tree, a rock on the moon, a ghost in the sea, a face in a crowd, a rip in a sheet, rust on a statue, a dog in the street. Everything is somewhere, so where are you now? So Sad Man A pernicious sadness squirmed into the man’s bones and wormed its way deep into his icy marrow. The only emotional shard that remained of his shattered psyche was sorrow. The sad man strained against his bonds, more out of habit than any real hope of breaking free. He unclenched his teeth, and gasped for breath. Nylon cord, cinched tight to his cot, restrained him, but the weight of his deranged captor crouch- ing on his chest was the primary cause of his worsening asphyxia.
    [Show full text]
  • Corruption Reporter
    Omoluwa moved N1.5bn of DSO fund Buhari to open EFCC’S anti- into fixed deposit account – banker Page 11 corruption summit Page 5 ...ensuring public accountability CR CorruptionVOL. 1 NO. 18 REPORTER Monday, June 10th, 2019 www.corruptionreporter.com @corruptionrep [email protected] Court adjourns FG’s $406.7m debt recovery suit against Shell until June 19 Page 13 EXCLUSIVE Lawan, Gbaja Coasting To Victory, As National Assembly Members Elect Find Cash Offers And Promises Of Juicy Committees Impossible To Refuse PAGE 4 OPINION Page 7 Buhari finally accepts Onoghen’s As Saraki goes into retirement, wants five new Supreme political purgatory Court judges appointed Page 17 ...ensuring public accountability CR Monday, June 10th, 2019 Corruption 2 REPORTER ...ensuring public accountability CR Corruption Monday, June 10th, 2019 3 REPORTER EDITORIAL DAAR group shutdown by NBC: the role of the media remains CorruptionCR to report news regardless of REPORTER whose ox is gored EDITORIAL TEAM PUBLISHER n 6th June of acceptability of its the livelihoods of such Idris Abiodun Usman 2019, the policies and programmes, a number of people nation received while the people are at a time when the the shocking able to air their views job numbers do not Onews of the “indefinite to the government. The make or good reading CHAIRMAN EDITORIAL BOARD shutdown” of the media has often found is tantamount to the Majeed Dahiru Daar Communications itself on collision course government of the day PLC owned AIT/Ray with the authorities, in shooting itself in the Power FM stations, carrying out its function foot. The government over what the of letting the governed must caution its EDITOR National Broadcasting know what is happening agents and agencies to Mohammed Basah Commission (NBC) in the government, while avoid presenting the termed, broadcasting some governments have impression that Nigerian that “is patently partisan preferred to keep the law enforcement is a and one sided and people in darkness.
    [Show full text]
  • How Senate, House of Reps Passed 2016 Budget - Premium Times Nigeria
    How Senate, House of Reps passed 2016 budget - Premium Times Nigeria http://www.premiumtimesng.com/news/top-news/200742-senate-house... Opinion About Us Contact Us Careers AdvertRates PlayGames The sm arttrading app Startnow w itha free £10K D em o! Yourcapitalisatrisk. Thursday, May 19, 2016 Abuja 23 Home News #PanamaPapers Investigations Business Arts/Life Sports Oil/Gas Reports AGAHRIN Parliament Watch Letters How Senate, House of Reps passed 2016 budget March 24, 2016 Hassan Adebayo Search Our Stories The Nigerian Senate SHARING RELATED NEWS The two chambers of Nigeria’s National Assembly, the Senate and the House Finally, Senate, House of Representatives, on Wednesday passed the 2016 budget after the adoption of Reps receive 2016 of the conference report of their respective appropriations committees. Email budget report The National Assembly approved N6.06 trillion, a reduction on the 6.08 Print trillion proposed by President Muhammadu Buhari. National Assembly More fails to pass 2016 But the committees on appropriations of the Senate and the House chaired budget as promised by Danjuma Goje and Abdulmumin Jibrin, delivered damning remarks on the harmonized budget report presented to their separate chambers. Senate, House pledge 2016 budget passage in In the adopted report, the National Assembly observed the late presentation 2 weeks of the budget, saying it “was seen to be fraught with some inconsistencies from the MDAs; given subsequent reference by them to different versions of Saraki warns senators against taking bribes the budget”. for 2016 budget “This is strange and goes against proper budgetary procedures and processes; with attendant implications,” the report said.
    [Show full text]
  • Anopheles Gambiae in Three Communes of Northern Benin, West Africa Casimir Dossou Kpanou1,2*, Hermann W
    Kpanou et al. Malar J (2021) 20:328 https://doi.org/10.1186/s12936-021-03856-2 Malaria Journal RESEARCH Open Access Characterization of resistance profle (intensity and mechanisms) of Anopheles gambiae in three communes of northern Benin, West Africa Casimir Dossou Kpanou1,2*, Hermann W. Sagbohan1,2, Fortuné Dagnon3,6, Germain G. Padonou1,2, Razaki Ossè1,4, Albert Sourou Salako1,2, Aboubakar Sidick1, Wilfried Sewadé1, André Sominahouin1,2, Patrick Condo3, Saadani Hassani Ahmed3, Daniel Impoinvil5 and Martin Akogbéto1,2 Abstract Background: The selection and the spread of insecticide resistance in malaria vectors to the main classes of insec- ticides used in vector control tools are a major and ongoing challenge to malaria vector control programmes. This study aimed to determine the intensity of vector resistance to insecticides in three regions of Benin with diferent agro-ecological characteristics. Methods: Larvae of Anopheles gambiae sensu lato (s.l.) were collected from September to November 2017 in difer- ent larval sites in three northern Benin communes: Parakou, Kandi and Malanville. Two to fve-day-old, non-blood-fed, female mosquitoes were exposed to papers impregnated with deltamethrin, permethrin and bendiocarb at dosages of 1 the diagnostic dose, 5 and 10 to determine the intensity of resistance in these vectors. Molecular frequen- cies ×of the kdr L1014F and ace-1R× G119S× insecticide resistance mutations and levels of detoxifcation enzymes were determined for mosquitoes sampled at each study site. Results: Resistance to pyrethroids (permethrin and deltamethrin) was recorded in all three communes with mortal- ity rates below 60% using the diagnostic dose (1x). The results obtained after exposure of An.
    [Show full text]
  • REDERC (Benin).Pdf
    Empowered lives. Resilient nations. THE COMMUNITY NATURE RESERVE DEVELOPMENT NETWORK (REDERC) Benin Equator Initiative Case Studies Local sustainable development solutions for people, nature, and resilient communities UNDP EQUATOR INITIATIVE CASE STUDY SERIES Local and indigenous communities across the world are advancing innovative sustainable development solutions that work for people and for nature. Few publications or case studies tell the full story of how such initiatives evolve, the breadth of their impacts, or how they change over time. Fewer still have undertaken to tell these stories with community practitioners themselves guiding the narrative. To mark its 10-year anniversary, the Equator Initiative aims to fill this gap. The following case study is one in a growing series that details the work of Equator Prize winners – vetted and peer-reviewed best practices in community-based environmental conservation and sustainable livelihoods. These cases are intended to inspire the policy dialogue needed to take local success to scale, to improve the global knowledge base on local environment and development solutions, and to serve as models for replication. Case studies are best viewed and understood with reference to ‘The Power of Local Action: Lessons from 10 Years of the Equator Prize’, a compendium of lessons learned and policy guidance that draws from the case material. Click on the map to visit the Equator Initiative’s searchable case study database. Editors Editor-in-Chief: Joseph Corcoran Managing Editor: Oliver Hughes Contributing
    [Show full text]
  • (Ofada) Rice in South-West Nigeria
    HOUSEHOLDS’ CONSUMPTION AND QUALITY PERCEPTIONS OF LOCAL (OFADA) RICE IN SOUTH-WEST NIGERIA By: Ayodeji ’Seun Ogunleke Submitted in fulfilment of the academic requirements of the degree Doctor of Philosophy in Agricultural Economics School of Agricultural Earth and Environmental Sciences College of Agriculture, Engineering and Science University of KwaZulu-Natal Pietermaritzburg Supervisor: Prof. Lloyd J.S. Baiyegunhi March, 2020 DECLARATION 1: PLAGIARISM I, Ayodeji ’Seun OGUNLEKE, declare that: 1. The research reported in this thesis is my original research work; 2. This thesis has never been submitted for any degree or examination at any other university or institution of higher learning; 3. This thesis does not contain other authors’ data, pictures, tables, graphs or other information, unless specifically acknowledged as being sourced from those authors. Where other written sources were quoted: a. Their words have been rephrased and duly referenced; b. General information attributed to them were duly referenced; and 4. This thesis does not contain text, graphics or tables copied from the Internet without having been specifically acknowledged and the source details mentioned in the reference section. Signed: Date: 06 /11/2019 Ayodeji ’Seun Ogunleke (Student) Signed: Date: 07 /11/2019 Prof. Lloyd J.S. Baiyegunhi (Supervisor) i DECLARATION 2: PUBLICATIONS The following publications form part of the research presented in this study. Publication 1 – Chapter three of this thesis. Ogunleke A.O. and Baiyegunhi L.J.S. (2019). Effect of Households’ Dietary Knowledge on Local (Ofada) Rice Consumption in South-West Nigeria. Journal of Ethnic Foods 6(24):1-11. Publication 2 – Chapter four of this thesis. Ayodeji Oluwaseun Ogunleke and Lloyd J.S.
    [Show full text]