Market Prospects for Groundnut in West Africa CFC Technical Paper No. 39

B R Ntare et al., 'Market Prospects for Groundnut in West Africa CFC Technical Paper No. 39', International Crops Research Institute for the Semi-Arid Tropics, 2012

Groundnut production, marketing and trade are major sources ofemployment, income and foreign exchange in many West African countries.Groundnut products are of central economic importance to millions ofsmallholders in this region. It generates 60% of the rural cash income andaccounts for about 70% of the rural labor force in Senegal and Gambia.However, groundnut trade remains heavily distorted, and this has affected thecompetitive position of various players in world markets.Previous investments by CFC and ICRISAT in groundnut research anddevelopment have concentrated on providing technology options to increaseyields and tolerance to abiotic and biotic stresses. While this has been highlysuccessful in developing good varieties, attention needs to be devoted tofactors of market demand. There is now clear evidence that incentives oropportunities for market surplus production provide the necessary pull foradoption of new varieties. This shift in paradigm for technology developmentand dissemination requires the identification of partners and market linkagesbeyond the common belief that markets are easily available if production isdone well. The results of this study are meant to facilitate this process.A range of factors explains the limited competitiveness of groundnut inthe domestic, regional and international markets. These include lowproduction and strict rules on grades and standards, which most West Africanproducers often find difficult to meet. Domestic policies have also limitedtrade. This study has provided background information on groundnutproduction in West Africa, constraints to groundnut production, processingand commercialization. Additionally, the study also presents some marketprospects for groundnut and groundnut products, and explores ways toincrease groundnut competitiveness in the domestic, regional andinternational markets.It is our hope and expectation that this report will be valuable in thepromotion of groundnut production and trade not only in West Africa but alsoin all sub-Saharan Africa countries where the economies are still agriculturedependent