International Journal of Applied Agricultural Sciences

| Peer-Reviewed |

Analysis of Market Liberalization and the Groundnut Sector in Senegal

Received: 12 March 2018    Accepted: 03 April 2018    Published: 09 May 2018
Views:       Downloads:

Share This Article

Abstract

In sub-Saharan Africa, agricultural reforms such as market liberalization and loan schemes greatly affect the agricultural and industrial sectors. The withdrawal of government institutions and adoption of structural adjustment programmes (SAP) have not always been a win-win situation for the different stakeholders of the agricultural sector. This paper assesses the influence of market liberalization on the groundnut sector in Senegal. Using market variables including production, marketing and trade, it analyzes the market performance of groundnuts before and after market liberalization in 2010. The coefficient of variation and the corrected coefficient of variation for producer prices were applied and the results show that the values for both coefficient of variation and corrected coefficient of variation were higher in the pre-liberalization period. There was less volatility after market liberalization and prices were much higher in the post-liberalization period. Market liberalization has generally favoured farmers whereas it has been bad for local processing industries. It is necessary for the government to provide alternative policy interventions to achieve inclusive welfare from market liberalization.

DOI 10.11648/j.ijaas.20180402.13
Published in International Journal of Applied Agricultural Sciences (Volume 4, Issue 2, March 2018)
Page(s) 43-51
Creative Commons

This is an Open Access article, distributed under the terms of the Creative Commons Attribution 4.0 International License (http://creativecommons.org/licenses/by/4.0/), which permits unrestricted use, distribution and reproduction in any medium or format, provided the original work is properly cited.

Copyright

Copyright © The Author(s), 2024. Published by Science Publishing Group

Keywords

Market Liberalization, Groundnut Sector, Agriculture, Livelihoods, Senegal

References
[1] Oya, C (2006). From state dirigisme to liberalization in Senegal: Four decades of agricultural policy shifts and continuities. The European Journal of Development Research 18 (2):203-234.
[2] Mukete, B., Sun, Y., Etongo, D., Sajjad, S., Ngoe, M and Tamungang, R (2018a). Cameroon must focus on SDGs in its economic development plans. Environment: Science and Policy for Sustainable Development 60 (2): 25–32.
[3] Mukete, B and Monono, S (2014). Assessing the impact of consumer behaviour on food security in south west Cameroon. Journal of Food Security 2 (3): 87-91.
[4] UN (2006). United Nations Organization. Economic liberalization and poverty reduction Chapter VI: 97-113. http://www.un.org/esa/socdev/rwss/docs/2010/chapter6.pdf. Accessed 25th January 2018.
[5] Kumar, C (2011). A discursive dominance theory of economic reform sustainability: the case of India. India Review10:126–184.
[6] Diallo, A., Yin, Z and Mukete, B (2017). Assessing the socioeconomic impacts of the informal sector in Guinea, West Africa. Open Access Library Journal 4: e3290. http://dx.doi.org/10.4236/oalib.1103290.
[7] Jayne, T and Crawford, E (2000). Agricultural input and output market reform: Issues and evidence. Economic policy reforms and agricultural input markets: experiences, lessons, and challenges. Capetown, South Africa: IFDC International Workshop.
[8] Kherallah, M., Delgado, C., Gabre-Madhin, E., Minot, N and Johnson, M (2000). The road half traveled: Agricultural market reform in Sub-Saharan Africa. http://pdf.usaid.gov/pdf_docs/Pnacr621.pdf. Accessed 7th October, 2017.
[9] Barrett, C and Mutambatsere, E (2005). Agricultural markets in developing countries. In Lawrence E. Blume and Steven N. Durlauf, editors, The New Palgrave Dictionary of Economics, 2nd Edition (London: Palgrave Macmillan). http://dyson.cornell.edu/special_programs/AFSNRM/Parima/Papers%20from%20Cbb2/Papers/CM_agriculturalmarkets.pdf. Accessed 11th September 2017.
[10] Masters, W (2007). Distortions to agricultural incentives in Senegal. Agricultural Distortions Working Paper 41. Washington, D. C.: World Bank.
[11] Ndiaye, G., Fang, S., Mukete, B and Wu, Y. (2016). Potentials of the groundnut sector towards achieving food security in Senegal. Open Access Library Journal, 3:e2991.
[12] Cissé, F., Abdoulaye, D and Cabral, F (2005). Libéralisation de la filière Arachidière et Pauvreté au Sénégal. A paper presented during the 4th PEP Research Network General Meeting June 13-17, 2005, Colombo, Sri Lanka.
[13] Sylla, F (2010). Revitalization of the groundnut sector in West Africa (Gambia, Guinea and Senegal). Global Agricultural Information Network, USDA Foreign Agricultural Service.
[14] Tankari, M (2012). Global price transmission in Senegal’s groundnut markets: can smallholders benefit from high international prices? Munich Personal RePEc Archive (MPRA Paper No. 53395).
[15] Badiane, O., Ulimwengu, J and Wouterse, F (2010). Spatial price transmission and market integration in Senegal's groundnut market. http://ebrary.ifpri.org/cdm/ref/collection/p15738coll2/id/3383. Accessed 30th April 2017.
[16] Cissé, D (2013). Chinese involvement in the Senegalese peanut trade: threat to local markets and processing industries. Centre for Chinese Studies Stellenbosch University. http://www.eldis.org/document/A69697. Accessed 12th March 2018.
[17] IFAD (2011) www.ruralpovertyportal.org/country/statistics/tags/senegal.
[18] ANSD (2016). Agence Nationale de la Statistique et de la Démographie du Senegal. www.ansd.sn.
[19] Sythud, P., Zhang, Y and Mukete, B (2015). Bamboo resources utilization: a potential source of income to support rural livelihoods. Applied Ecology and Environmental Sciences 3: 176-183.
[20] Mukete, B., Sun, Y., Ayonghe, S., Ojong, L., Itoe, C and Tamungang, R (2017a). Adaptation of women to climate variability in the southern slopes of the Rumpi hills of Cameroon. Agriculture, Forestry and Fisheries 5 (6): 272-279.
[21] Huchet-Bourdon, M (2011). Agricultural Commodity Price Volatility: An Overview. OECD Food, Agriculture and Fisheries Papers, No. 52, OECD Publishing, Paris. http://dx.doi.org/10.1787/5kg0t00nrthc-en. Accessed 11th March, 2018.
[22] Chile, L and Talukder, D (2014). The paradox of agricultural trade liberalization in Bangladesh and Tanzania. American Journal of Trade and Policy 1:23-31.
[23] Sonwa, J., Dieye, A., El Mzouri, E et al., (2016). Drivers of climate risk in African agriculture. Climate and Development DOI: 10.1080/17565529.2016.1167659.
[24] Kimengsi, J and Muluh, G (2013). A comparative assessment of the effect of climatic variations on the crops of the Cameroon Development Corporation (CDC): adaptation options. Environment and Natural Resources Research 3 (1):144-156.
[25] USGS (2012). United States Geological Survey. Famine early warning systems network-informing climate change adaptation series. A climate trend analysis of Senegal. https://pubs.usgs.gov/fs/2012/3123/FS12-3123.pdf. Accessed 11th March 2018.
[26] Molua, E and Lambi, C (2007). The economic impact of climate change on agriculture in Cameroon. Policy research working paper 4364. The World Bank Development Research Group. Sustainable Rural and Urban Development Team. http://papers.ssrn.com/sol3/papers.cfm?abstract_id=1016260#PaperDownload. Accessed 11th September, 2017.
[27] Gro Intelligence - Polishing Peanuts: The Senegalese groundnut story, 20 February 2015. https://gro-intelligence.com/insights/polishing-peanuts-the-senegalese-groundnut-story?printing=true. Accessed 30th April 2017.
[28] Maddison, D (2006). The perception of and adaptation to climate change in Africa. CEEPA. Discussion Paper No. 10. Centre for environmental economics and policy in Africa. University of Pretoria, Pretoria, South Africa.
[29] Mukete, B., Vermaat, J and Van Straalen, N (2013). Variability in microhabitats prevalence in low lying peat polder ditches of the Netherlands. Applied Ecology and Environmental Research 11 (4): 629-643.
[30] Funk, C., Michaelsen, J. and Marshall, M. (2012) Mapping Recent Decadal Climate Variations in Precipitation and Temperature across Eastern Africa and the Sahel. In: Wardlow, B., Anderson, M. and Verdin, J., Eds., Remote Sensing of Drought—Innovative Monitoring Approaches, Taylor and Francis, London, Chapter 14, 25 p.
[31] Ngoe, M., Jing, Z., Mukete, B., Tabi, G., Kimengsi, J and Aniah, D (2016). Analysis of the technical efficiency of smallholder cocoa farmers in south west Cameroon. American Journal of Rural Development 4 (6): 129-133.
[32] Ngoe, M., Zhou, L., Mukete, B and Bobyeg, P (2018). Cocoa production in Cameroon: a socioeconomic and technical efficiency perspective. International Journal of Agricultural Economics 3 (1): 1-8.
[33] LeQuotidien (2015). Commercialisation de l’arachide - Filière: Les Chinois sèment la graine de la mort, http://www.seneweb.com/news/Economie/commercialisation-de-l-rsquo-arachide-fi_n_170901.html. Accessed 11th February 2018.
[34] Commodafrica (2016). Les arachides Sénégalaises surfent vers l'Asie. http://www.commodafrica.com/25-01-2016-les-arachides-senegalaises-surfent-vers-lasie. Accessed 10th January 2018.
[35] Jeune Afrique (2013). Sénégal: l’huilier Novasen à l’arrêt, 27 Juin 2013. http://www.jeuneafrique.com/18902/economie/s-n-gal-l-huilier-novasen-l-arr-t/. Accessed 4th May, 2018.
Author Information
  • School of Economics and Management, Beijing Forestry University, Beijing, China

  • School of Economics and Management, Beijing Forestry University, Beijing, China

  • School of Forestry, Beijing Forestry University, Beijing, China

Cite This Article
  • APA Style

    Georges Ndiaye, Shaoyong Fang, Beckline Mukete. (2018). Analysis of Market Liberalization and the Groundnut Sector in Senegal. International Journal of Applied Agricultural Sciences, 4(2), 43-51. https://doi.org/10.11648/j.ijaas.20180402.13

    Copy | Download

    ACS Style

    Georges Ndiaye; Shaoyong Fang; Beckline Mukete. Analysis of Market Liberalization and the Groundnut Sector in Senegal. Int. J. Appl. Agric. Sci. 2018, 4(2), 43-51. doi: 10.11648/j.ijaas.20180402.13

    Copy | Download

    AMA Style

    Georges Ndiaye, Shaoyong Fang, Beckline Mukete. Analysis of Market Liberalization and the Groundnut Sector in Senegal. Int J Appl Agric Sci. 2018;4(2):43-51. doi: 10.11648/j.ijaas.20180402.13

    Copy | Download

  • @article{10.11648/j.ijaas.20180402.13,
      author = {Georges Ndiaye and Shaoyong Fang and Beckline Mukete},
      title = {Analysis of Market Liberalization and the Groundnut Sector in Senegal},
      journal = {International Journal of Applied Agricultural Sciences},
      volume = {4},
      number = {2},
      pages = {43-51},
      doi = {10.11648/j.ijaas.20180402.13},
      url = {https://doi.org/10.11648/j.ijaas.20180402.13},
      eprint = {https://download.sciencepg.com/pdf/10.11648.j.ijaas.20180402.13},
      abstract = {In sub-Saharan Africa, agricultural reforms such as market liberalization and loan schemes greatly affect the agricultural and industrial sectors. The withdrawal of government institutions and adoption of structural adjustment programmes (SAP) have not always been a win-win situation for the different stakeholders of the agricultural sector. This paper assesses the influence of market liberalization on the groundnut sector in Senegal. Using market variables including production, marketing and trade, it analyzes the market performance of groundnuts before and after market liberalization in 2010. The coefficient of variation and the corrected coefficient of variation for producer prices were applied and the results show that the values for both coefficient of variation and corrected coefficient of variation were higher in the pre-liberalization period. There was less volatility after market liberalization and prices were much higher in the post-liberalization period. Market liberalization has generally favoured farmers whereas it has been bad for local processing industries. It is necessary for the government to provide alternative policy interventions to achieve inclusive welfare from market liberalization.},
     year = {2018}
    }
    

    Copy | Download

  • TY  - JOUR
    T1  - Analysis of Market Liberalization and the Groundnut Sector in Senegal
    AU  - Georges Ndiaye
    AU  - Shaoyong Fang
    AU  - Beckline Mukete
    Y1  - 2018/05/09
    PY  - 2018
    N1  - https://doi.org/10.11648/j.ijaas.20180402.13
    DO  - 10.11648/j.ijaas.20180402.13
    T2  - International Journal of Applied Agricultural Sciences
    JF  - International Journal of Applied Agricultural Sciences
    JO  - International Journal of Applied Agricultural Sciences
    SP  - 43
    EP  - 51
    PB  - Science Publishing Group
    SN  - 2469-7885
    UR  - https://doi.org/10.11648/j.ijaas.20180402.13
    AB  - In sub-Saharan Africa, agricultural reforms such as market liberalization and loan schemes greatly affect the agricultural and industrial sectors. The withdrawal of government institutions and adoption of structural adjustment programmes (SAP) have not always been a win-win situation for the different stakeholders of the agricultural sector. This paper assesses the influence of market liberalization on the groundnut sector in Senegal. Using market variables including production, marketing and trade, it analyzes the market performance of groundnuts before and after market liberalization in 2010. The coefficient of variation and the corrected coefficient of variation for producer prices were applied and the results show that the values for both coefficient of variation and corrected coefficient of variation were higher in the pre-liberalization period. There was less volatility after market liberalization and prices were much higher in the post-liberalization period. Market liberalization has generally favoured farmers whereas it has been bad for local processing industries. It is necessary for the government to provide alternative policy interventions to achieve inclusive welfare from market liberalization.
    VL  - 4
    IS  - 2
    ER  - 

    Copy | Download

  • Sections