changes in the west african agro-food value chains...msu, srai, working paper. youth employment...

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Thomas Allen [email protected] www.oecd.org/swac/ Changes in the West African agro-food value chains Rural-urban connections in Sub-Saharan Africa 25-28 January 2016 – Copenhagen, Denmark

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Page 1: Changes in the West African agro-food value chains...MSU, SRAI, working paper. Youth Employment Network (2009), Private Sector Demand for Youth Labour in Ghana and Senegal, World Bank

Thomas Allen

[email protected] www.oecd.org/swac/

Changes in the West African agro-food value chains

Rural-urban connections in Sub-Saharan Africa 25-28 January 2016 – Copenhagen, Denmark

Page 2: Changes in the West African agro-food value chains...MSU, SRAI, working paper. Youth Employment Network (2009), Private Sector Demand for Youth Labour in Ghana and Senegal, World Bank

A peopling region

2

Page 3: Changes in the West African agro-food value chains...MSU, SRAI, working paper. Youth Employment Network (2009), Private Sector Demand for Youth Labour in Ghana and Senegal, World Bank

Structural transformations

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

Page 4: Changes in the West African agro-food value chains...MSU, SRAI, working paper. Youth Employment Network (2009), Private Sector Demand for Youth Labour in Ghana and Senegal, World Bank

The growing role of markets

Page 5: Changes in the West African agro-food value chains...MSU, SRAI, working paper. Youth Employment Network (2009), Private Sector Demand for Youth Labour in Ghana and Senegal, World Bank

Markets, primary source of food supply

5

Markets provide 2/3 of food supplies

Presenter
Presentation Notes
…..Des marchés qui sont devenus la principale source d’approvisionnement en denrées alimentaires des ménages ouest-africains. L’émergence du rôle des marchés dans la sécurité alimentaire a également fait évoluer la problématique alimentaire : de la question des seules disponibilités à celle de l’accessibilité « à une nourriture suffisante, saine et nutritive (…) » Si l’on veut saisir ces transformations dont le d’une économie agricole de marché, il est crucial de comprendre ce qu’englobe le marché. Une vision du marché en tant que lieu de fixation des prix est réductrice. Elle ne prend pas en considération les interactions de nombreuses variables et acteurs, et leur complexité. Le marché devrait se comprendre comme l’ensemble des activités du processus de production au consommateur. Un élément crucial de la chaine est l’information. Au niveau macro, produire pour le marché signifie augmenter la production pour dégager un surplus commercialisable. Cet excédent peut être obtenu par augmentation des surfaces cultivées – c’est l’agriculture extensive – et/ou par l’augmentation des rendements – c’est l’agriculture intensive. Au niveau micro, les décisions des agriculteurs pour passer de l’autosuffisance à une production de surplus planifiés, stables et commercialisables sont plus complexes. Comprendre les processus d’incitations des producteurs nécessite de comprendre leurs arbitrages entre les objectifs, contraintes et risques. Le caractère progressif de la transition entre économie de subsistance et economie de marche implique qu’il existe entre les deux des systèmes de production intermédiaires. Les politiques doivent intégrer ces réalités diverses.
Page 6: Changes in the West African agro-food value chains...MSU, SRAI, working paper. Youth Employment Network (2009), Private Sector Demand for Youth Labour in Ghana and Senegal, World Bank

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: Changes in the West African agro-food value chains...MSU, SRAI, working paper. Youth Employment Network (2009), Private Sector Demand for Youth Labour in Ghana and Senegal, World Bank

Transformations in Agriculture

Page 8: Changes in the West African agro-food value chains...MSU, SRAI, working paper. Youth Employment Network (2009), Private Sector Demand for Youth Labour in Ghana and Senegal, World Bank

Meeting demand

8

Page 9: Changes in the West African agro-food value chains...MSU, SRAI, working paper. Youth Employment Network (2009), Private Sector Demand for Youth Labour in Ghana and Senegal, World Bank

Marketed surplus - maize

Page 10: Changes in the West African agro-food value chains...MSU, SRAI, working paper. Youth Employment Network (2009), Private Sector Demand for Youth Labour in Ghana and Senegal, World Bank

Greater crop yields

10

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

Page 11: Changes in the West African agro-food value chains...MSU, SRAI, working paper. Youth Employment Network (2009), Private Sector Demand for Youth Labour in Ghana and Senegal, World Bank

11

Density and heterogeneity

Page 12: Changes in the West African agro-food value chains...MSU, SRAI, working paper. Youth Employment Network (2009), Private Sector Demand for Youth Labour in Ghana and Senegal, World Bank

Further down the value chain

Page 13: Changes in the West African agro-food value chains...MSU, SRAI, working paper. Youth Employment Network (2009), Private Sector Demand for Youth Labour in Ghana and Senegal, World Bank

Development of post-harvest segments

13

• 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 14: Changes in the West African agro-food value chains...MSU, SRAI, working paper. Youth Employment Network (2009), Private Sector Demand for Youth Labour in Ghana and Senegal, World Bank

Importance of processed foods

14

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

Beverages Cereals* Food (excluding Cereals & Beverages)

Unprocessed Processed

All 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 15: Changes in the West African agro-food value chains...MSU, SRAI, working paper. Youth Employment Network (2009), Private Sector Demand for Youth Labour in Ghana and Senegal, World Bank

Growth in food processing (Senegal)

15 Source: UNIDO, INDSTAT 2013

0

400000000

800000000

1.2E+09

1.6E+09

2E+09

1970 1975 1980 1985 1990 1995 2000 2005 2010

Food,beverages andtobacco

Manufacturing(ISIC D)

Valu

e ad

ded

Page 16: Changes in the West African agro-food value chains...MSU, SRAI, working paper. Youth Employment Network (2009), Private Sector Demand for Youth Labour in Ghana and Senegal, World Bank

• 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

Presenter
Presentation Notes
 
Page 17: Changes in the West African agro-food value chains...MSU, SRAI, working paper. Youth Employment Network (2009), Private Sector Demand for Youth Labour in Ghana and Senegal, World Bank

Africapolis – 2015 update – database available at: http://stats.oecd.org/ >> [click] Demography and Population >> [click] West African Statistics

Presenter
Presentation Notes
 
Page 18: Changes in the West African agro-food value chains...MSU, SRAI, working paper. Youth Employment Network (2009), Private Sector Demand for Youth Labour in Ghana and Senegal, World Bank

References

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

OECD (2016), Urbanisation Dynamics in West Africa 1950–2010: Africapolis I – 2015 update, 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.

Presenter
Presentation Notes