1. Analysis of price evolution, structure of transaction costs
and integration of agricultural produce markets in Mali, Lamissa DIAKITE, International Conference
of SADAOC Foundation, Bamako, 09 - 11 September 2002
Executive summary
The general objective of this research is to contribute to the
improvement of the functioning of the agricultural produce
market through analyses of the price structure, transaction
costs and market integration. These analyses are based on the
neo-institutional theory.
The methodological approach used consisted in making
a literature review followed by field surveys among 253
traders. The series of prices from 1960 - 2000 obtained from
the data bases of the National Department of Statistics and
Information Technology and the Agricultural Market Observatory
were used to test the spatial integration of 8 regional agricultural
produce markets in (Bamako, Sikasso, Ségou, Mopti, Timbuktu,
Gao, Kayes, Koulikoro). The models developed by Ravallions and
Gordon (1993) were used to conduct the market integration
analyses. For these analyses, the Bamako market was considered
as a reference market and the markets of Kayes, Koulikoro,
Sikasso, Ségou, Mopti, Timbuktu and Gao as peripheral markets.
The graphic representation and price indexes were used for the
analyses of price changes from 1992 to 2000.
The analysis of evolution of producer prices revealed that :
" The prices of grains studied increased by 62% between 1992 and 1997.
This increase was variable depending on the products. It was 71% for
millet and sorghum, 81% for corn and 49% for rice. The price increase
may be attributed not only to the liberalization of the grain market
but also to the devaluation of the CFA franc.
" During the same period, consumer prices of grains increased
by 59%, including 67% for millet, 65% for sorghum, 66% for corn
and 48% for rice.
The results of the analysis of transaction costs carried out
according to the major marketing routes of agricultural produce,
indicate that :
" Transportation costs constitute the major constraint to the
marketing of products. Hence on the western route, transaction
costs analysed between Kita, Kéniéba, Bafoulabé and Kayes show
that transportation costs account for about 78% of the structure
while bagging represents 17%,
" On the western route, transportation costs account for about
48% of the structure of transaction costs between Koro and Mopti.
The importance of this cost may be explained, on the one hand, by
the poor state of the Mopti-Koro road and, on the other hand, by
the old state of the trucks transporting the grains as well as the
high cost of consumables (fuel, lubricants),
" Concerning the southern route, between Yanfolila and Sikasso,
transportation costs alone account for 62% of the structure of
transaction costs.
" Also, at the level of the centre route between Niono and Ségou,
transportation costs account for 70% of the structure of transaction
costs of grains.
" Compared to cattle export on the Sikasso-Abidjan route,
transportation costs represent 67% of the structure of transaction
costs. The high level of transportation costs may be explained by
the scarcity of trucks (cattle trucks) especially at the time of
evacuation of cotton to the ports, the high cost of intermediate
consumables (fuel, lubricants), and unofficial taxes, which
represent 8% as against 1% for official taxes.
" The estimations on market integration based on Gordon's model
(1993), indicate that :
- For rice markets, those in the Kayes and Sikasso regions are
highly integrated into the Bamako market ; those of Mopti and
Timbuktu, on the other hand, are partially integrated.
- Concerning sorghum markets, the analyses indicate that those
of Gao and Ségou are highly integrated into that of Bamako. Also,
the millet markets of Koulikoro, Sikasso, Mopti, Timbuktu and Gao
are partially integrated into the Bamako market.
Concerning the corn market, the analysis shows a partial integration
of corn markets in the Bamako, Kayes, Koulikoro, Ségou, Mopti and
Timbuktu regions.
To ensure better performance of agricultural produce market, some
policy factors are important. They include notably, the conception
of efficient policies on transportation of goods and people, of
training and information of actors involved in food product marketing
sector. The implication for food security policies are expressed
by :
" A policy of opening up the country associated with a transport policy
with the provision of adequate transport infrastructures (roads, railways,
river transport….) and facilitating access of the actors to means of
transport (trucks, vans, boats, canoes…). The implementation of this
recommendation may be within the competence of the Direction Nationale
des Travaux Publics and the Direction Nationale des Transports in
close collaboration with the Chamber of Commerce and Industry under
the supervision of the Ministry of Economy and Finance,
" A policy on reduction of check-points on the roads coupled
with a policy on sensitization of the actors (traders for their
systematic refusal to pay non-official taxes) while encouraging
them to obtain all the relevant documents for their vehicles.
The success of this policy depends on political will and support of
transport owners,
" A policy on establishment and/or enhancement of existing market
information systems such as the Agricultural Market Observatory in Mali
(OMA).
" A policy on training the actors in the marketing on marketing
techniques through training sessions and the development and supply
of guides on agricultural produce marketing techniques.
The implementation of all these policies will contribute to improve food
security and reduce poverty among the populations of Mali.
2. Analysis of marketing margins and equity in
agricultural produce trading in Mali,Lamissa DIAKITE Amadou SAMAKE,
International Conference Bamako, 09-11 September 2002
Executive Summary
The general objective of the study is to provide reliable data on
marketing margins of agricultural produce and integration of agricultural
markets in Mali. These data should help the authorities to formulate
efficient policies in the marketing of agricultural produce and
integration of agricultural markets.
The methodological approach adopted for carrying out the study consisted in
the analyses of primary and secondary data. A series of data on production
and prices of products on the market for a period of at least 10 years
was used. The primary data used were based on field surveys conducted by
the team of researchers in charge of the study. The data served to determine
the net margins of actors involved in the marketing of agricultural produce.
The analysis concerned the evolution of agricultural productions, the
description of marketing routes, the calculation of gross and net margins
as well as the determination of equity in trading in agricultural produce.
The analyses showed an increase in grain production. The evolution followed
a seesaw pattern during the period under study (1987/88 to 2000/2001),
registering a peak in 1994/95. Hence, the production index (1987/88) showed
an increase in production during all the campaigns : 8% in 1990/91;
56% in 1994/95; 34% in 1996/97. The analysis of the production evolution
per speculation shows that the so-called traditional grains (millet and
sorghum) represent on the average 69% of total production, corn and rice
(intensive crops) 30% and all other grains put together (fonio, wheat, etc.)
1%.
The analysis of the evolution reveals that from the 1992/93 campaign,
the share of millet and sorghum in grain production started declining for
the benefit of corn and rice : 73% compared to 25% in 1987/88 ; 65% compared
to 34% in 1992/93 and 59% compared to 41% in 1996/97. The significant progress
of corn and rice production was attributable to the intensification efforts
made in favour of these crops : improved varieties and fertilization of corn
in cotton-growing areas, development of irrigated farms, improved varieties,
transplanting and fertilization of rice in rice development boards.
The analysis of annual national producer price over the period 1989/90-2000/2001,
points to a rise in the evolution especially following the devaluation of the
CFA franc. On the other hand, the evolution of annual consumption, follows
exactly the same pattern as production prices but have been increasing faster
than producer prices. It should be observed that in some high production
regions, consumer prices are often lower than the national average prices
(Koulikoro, Sikasso, Ségou and Mopti).
The trader's gross margin is defined as the difference between producer price
and consumer price, and the net margin or net benefit, the difference between
the gross margin and transaction costs or approach costs.
The results of the analysis of grain margins indicate that :
Gross margins for grains vary according to the years, the type of grains and
the regions. These variations can be explained essentially by price instability
in relation with supply and demand. They are relatively low in major
production areas and quite high in poor landlocked regions
(Gao, Kidal, Timbuktu, etc.). Food aids seem to pay a regulatory role for
food markets. Prices of food items in the regions benefiting from these aids
do not always reflect the reality of market prices.
Concerning the net margins, the analyses show that stallholders have the
lowest margins in the marketing chain, while wholesalers and retailers make
relatively interesting profits.
The analysis of equity showed that there is no equity in the distribution of
profits from the marketing of food products. In the case of grains,
wholesalers make the most interesting profits with CFA F 11.06/Kg of grains.
Even if retailers make margins of CFA F 4 .37/Kg, the latter are still low
compared to wholesalers. In the marketing chain, the stall holder makes the
lowest profit with CFA F 0.42/Kg.
As for cattle, the analyses of the export sector indicate that there is no
significant difference between the different outlets except Bamako-Abidjan on
which exporters make low margins, a calculated equity of CFA F 0.74 per head.
The equities are CFA F 1.61 per head on the Sikasso-Abidjan route,
CFA F 1.10 per head on the Ségou-Abidjan route, CFA F 1.01 per head on
Mopti-Abidjan route and CFA F 1.71 per head on the Kayes-Dakar route.
The Paache indexes indicate a significant increase in grain prices.
The devaluation of the CFA franc may be one of the reasons for this price
increase. The main constraints registered at the level of the marketing
system are inadequate training /information of the actors, inadequate or
even lack of credit for marketing agricultural produce, inadequate marketing
infrastructures, namely means of transport, poor organization of the
marketing actors, etc.
In the light of these constraints, a few recommendations were formulated
with a view to improving the marketing routes for agricultural produce.
They are:
¢ the conception and implementation of a sectoral policy on opening up
the country for the promotion of transport in order to facilitate access
of the actors to the markets ;
¢ the promotion of a credit policy adapted to the reimbursement conditions
of the actors in order to facilitate their access to the marketing routes
(collectors, stallholders etc.). This policy could rely on micro-finances
with the enhancement of the Decentralized Financial System (DFS);
¢ more efficient organization of actors of the agricultural sector in order
to better support the marketing of products by searching for greater fluidity
in the circulation of these products from excess production zones to poor
zones through the organization of grain and cattle stock markets ;
¢ The development of grain and cattle stock markets at country level to
facilitate the circulation of trade information within the grain and cattle
markets and to create lasting professional relationships among the operators.
3. Composition, volume and flow of food products exchanged between
Mali and its neighbours, Lamissa DIAKITE & Amadou SAMAKE, International Conference
Bamako, 9 - 11 September 2002
Executive Summary
The overall objective of the study is to provide reliable information to
assist decision makers in formulating policies and strategies for development
of the food product trade between Mali and its neighbouring countries.
The methodology used entailed a prior literature review aimed at assessing
the current state of knowledge on the subject. This was followed with field
surveys to gather additional data on border markets.
The analyses related to the development of the flow of commodities traded,
transaction costs of cattle exports to Côte d'Ivoire and the costs of rice
imports from Dakar, Senegal.
The analysis of the production and volume of export of farm products indicates
that in 1999, Mali:
" produced approximately 813 ,600 tons of millet of which 11,800 tons were
exported, that is 1.45% of the total production,
" produced 717 860 tons of rice of which 21 536 tons were exported, that
is 0.03%.
" produced 35,000 tons of mangoes of which 1 320 tons, that is 3.8 %,
were exported,
" also exported 129 064 head of cattle that is 2%, 221 416 sheep that
is 2.3% and 102 568 goats that is. 1.6%.
During 9 years, that is from 1990/1991 to 1998/1999), Mali produced on
average 2,153,400 tons of grains of which 7 970 tons, i.e. 0.37%, were
exported. For the same period, the average growth rate of grain exports
is estimated at 15% for millet, 20 % for the sorghum, 18 % for wheat and
of 14 % for rice.
As for fruits and vegetables, for the same 1990/91 to 1998/99 period,
the average export growth rate was 2 % for mangoes, 20 % for French beans,
6 % for fresh onions and 48 % for potatoes.
Regarding cattle, the 1990/91 to 1998/99 exports growth rate was
19 % for cattle, 24 % for sheep, 29 % for goats and 82 % for poultry.
The destinations of Malian food exports are primarily neighbouring countries.
Analysis of 1999 exports indicates that:
- Côte d'Ivoire imported an average of 13% of grains from Mali.
Specifically, corn represented about 62% of grain exports. During
the same year, Burkina Faso recorded 32 % of grain exports from Mali,
Senegal, 29 % while Mauritania and Niger recorded 8 %.
- 24 % of fruit and vegetable exports were sent to Côte d'Ivoire, 14 %
to Burkina Faso and Senegal and 48 % were sent to European countries,
particularly France, Italy and Switzerland.
- 78 % of cattle exports were sent to Côte d'Ivoire, 10 % to
Burkina Faso and 7 % to Senegal.
The analysis of the volume of food imports shows that:
- rice ranked first among grain imports in 1999 with 59%, followed by
wheat with 37%;
- as for fruit and vegetables, plantain imports accounted for 41%
of the total.
However, annual growth rates of grain imports fell from 1990 to 1999
with an average growth rate of -5%. Recorded rates were:-3% for rice,
-1% for wheat flour and -6% for wheat grain. The average growth rate of
fruit and vegetable imports between 1990 and 1999 is 11% with 18% for
plantain, 24% for banana and -5% for pineapple.
The study shows that the ports of Abidjan and Dakar are the principal supply
ports for Malian imports. The analyses indicate that the port of Abidjan
remains the principal supply source for Mali with 71% of the traffic as
against 28% for Dakar, with the other ports making up the remaining 1%.
Analysis of the transaction costs of cattle exports to Côte d'Ivoire, shows
that transport accounts for approximately 61% of the total transaction costs.
The significance of these costs can be explained primarily by the
insufficient long-haul trucks due to the competition between cotton
and cattle transportation to Abidjan. Labour expenses account for
approximately 26% and taxes 7%. Average profits generated by cattle
exporters are thus estimated to be CFAF 28 000 /head of cattle.
The price of rice imported through the port of Dakar, is estimated at
CFAF 376 /kg with a margin of 7% and 11% for taxes. This totals CFAF
249/kg net of taxes allowing for a 7%profit margin. The maximum retail
price of local rice of comparable quality in Bamako is CFAF 260 with a
profit margin ranging from 6 to 10%.
The main constraints related to the development of trade between Mali and
its neighbouring countries are insufficient marketing infrastructures,
inadequate organization of actors, financing difficulties, the large number
of road blocks, etc.
In order to promote more trade in foodstuffs both within and outside
Mali and the professionalization of operators, the study makes the
following recommendations:
¢ better organization of operators, using appropriate and sustainable
methods, to ensure their self-promotion and thereby reduce their dependence
on projects.
¢ build the capacity of operators through adequate and more functional
training, and a better information flow on markets in general, and on
regional and international markets in particular.
¢ put in place a system of financing adapted to national and
regional trade. Promoting decentralized financial system (DFS)
or micro-finance could play a role in this regard;
¢ create a favourable environment to promote investments in the marketing
of infrastructures. In terms of investment policy, the Government
should provide incentives to promote investments in marketing
infrastructures.
4. Economic, socio-demographic and institutional determinants
of adoption and intensity of use of yoke farming in the
Centre-North of Burkina Faso, OUEDRAOGO S. Robert, International Conference
Bamako, 9-11 September 2002
Summary
Food crisis in the Sahelian countries are generally caused by grain
deficits as a result of weak agricultural performance due to climatic
vagaries and difficult access to agricultural inputs and equipment.
Access to equipment is at the centre of this study, which analyses
the importance of economic, socio-demographic and institutional factors
in the adoption and intensive use of yoke farming. The study uses a
sample of 428 producers in the Centre-North of Burkina Faso.
The results obtained showed that apart from regional specificities, the
main factors influencing the adoption and intensive use of yoke farming
are economic and institutional factors. Income is only important because
of the weight of its non-agricultural component. The animal stock and
material wealth of the producer are other determining economic factors.
At the institutional level, access to the decentralized financial system
and existence of trade opportunities for agricultural productions are
major determinants. Socio-demographic characteristics have no importance
except the number of agricultural assets.
The influence of the significant factors is, however, low
(elasticity of 0.024 to 0.231). The significant improvement of the practice
of yoke farming therefore requires simultaneous actions on several factors.
The development of non-agricultural income-generating activities, that of
markets for agricultural productions, the creation of village mutual
credit unions, the promotion of markets for hiring ploughs. As well as
the institution of self-managed village development structures could
contribute significantly to the improvement of yoke farming and food
security in the area on the study.
5. Productivity and determinants of technical efficiency of corn producers in Togo,
Georges A. ABBEY, ADOU RAHIM ALIMI Assimiou,
AYEBOUA Abakan, LABARE Kodjo, DOKODJO Kodjo, TOMYEBA Komi,
HOMEVOR Etsri, DJEGUEMA F. Komi, International Conference
Bamako, 9-11 September 2002
Summary
One important aspect of development of research in agricultural economy is
technological progress in agricultural production. If this concern has been
the subject of many publications and research reports in the northern
hemisphere, productions by a number of researchers in the southern hemisphere
have remained too descriptive in Africa, especially in the central space of
West Africa. Hence, it is necessary to develop further an analytical
approach to study technical progress in agricultural production. It is
necessary to look for common characteristics of the progress made today,
conduct investigations on the challenges and problems confronting
agricultural producers, to analyse them and formulate recommendations
for appropriate policies, programmes and strategies. African researchers
should therefore analyse the productivity of technologies used in order
to apprehend the interactions between the various inputs and levels
of production obtained by farmers.
Hence, a model of production function has been developed for corn farming in
three areas of the country. The transcendental production model (Translog)
was retained in the study to depict the reality of the field and grasp the
interactions between the various inputs. A questionnaire aimed at measuring
the extent of farm management practices was administered among farmers of
189 farms during the 2000-2001 farming season. The farms were distributed
as follows : 85 in the South-East Coastal Region, 64 in the East of Kara
Region and 40 in the Western part of the Savannah Region.
The collection of data helped to define a number of physical and qualitative
variables for explaining the production levels observed. An economic value
as attached to the technologies for sustainable management of resources
(shifting cultivation or type of association, agro-forestry, coverage plant,
etc.). The response of product supply to changes in quantities of inputs
used varies in accordance with the environment in which corn producers
operate. Five characteristics were retained to represent the various
environments; the quality of maintenance of the plot, the state of land
degradation, the capacity of drainage and retention of nutrients, and the
history of crop associations/rotations practised on the plot. It follows
that these types of environment and states have a negative or positive
influence on productivity of the various inputs used.
The analysis also reveals that a vast majority of farmers operate below their
optimum capacity. The differences in production, determined from the corn
production frontier, define the level of technical efficiency of the producers
concerned. These differences are partly explained by the gender effect,
land availability, participation in extra-agricultural activities to the
level of 5%. The same applies to recommendations for improving productivity,
which are statistically significant, but whose components intervene in
productivity in various ways ; if seedbed dosage seems to have about
10% negative influence on output, seeding in line helps to improve
productivity, though statistically insignificant.
Keywords: Production function - Corn production - Regression analyses -
Production frontier - Elasticity of Production- Sustainability -
Productivity and Technical inefficiency effects.
6. Impact of street foods on food security in Burkina Faso, Dr. BARRO Nicolas and Pr. Alfred S. TRAORE
International Conference Bamako, 9 - 11 Septembre 2002
Summary
Street foods, as defined by FAO 1988, were identified and classified in
Burkina Faso. Some socio-economic characteristics of sellers and consumers
of these foods were established. These foods play a very important role in
the food situation of city dwellers by enabling them to meet their daily
food requirements. The informal food sector also solves the crucial problem
of unemployment and poverty in our cities.
However, street foods are generally characterized by lack of hygiene and
quality in their preparation. The surveys carried out on major high
consumption foods showed that throughout the cooking process up to their
sale, they are exposed to contamination by pathogenic germs.
Studies on the health status of consumers showed that they are frequently
victims of digestive disorders, predominantly diarrhoea. The survey made
on consumers and in health services on medical problems relating to their
general food consumption habits showed that 85.24% are aware of the health
consequences of street foods.
Furthermore, it also showed that 60% of the consumers had already suffered
from diarrhoea or digestive disorders as evidenced by the description of
the symptoms and results of stools analysis. In spite of this, only 22.06%
of them reported to the health services. The diseases were caused by
vegetables, dairy products, meat products and local drinks. We called them
risky foods.
Key words street foods, socio-economic importance, Hygiene, consumers,
digestive disorders, Burkina Faso.
