Title: The peanut marketing campaign in Senegal: a promising harvest, but persistent challenges
Introduction :
The peanut marketing campaign in Senegal began this year under good auspices after two years marked by catastrophic harvests linked to lack of rain. Farmers are delighted with the good weather conditions which favored an abundant harvest. However, despite this positive outlook, producers in the sector face a major challenge: the floor price of peanuts, considered insufficient by them. In this article, we will explore the issues faced by peanut producers in Senegal during the marketing campaign.
A favorable context:
After two difficult seasons marked by a lack of rain, Senegalese farmers are relieved to see harvests recover this year thanks to favorable rainfall. This increase in groundnut production offers encouraging prospects for the country’s rural economy, which is largely based on this crop. However, despite this notable improvement, farmers continue to face persistent challenges that limit their ability to profit from their harvests.
The floor price challenge:
The main challenge facing peanut producers is the floor price set by the state. This minimum price, below which it is forbidden to sell to oil producers, is considered too low by farmers. While the floor price was 275 CFA francs last year (or around 0.41 euros per kg), it was slightly increased to 280 CFA francs this year (or around 0.42 euros per kg). However, production costs are estimated at 315/320 CFA francs (or approximately 0.49 euros per kg), which means that farmers risk selling their production at a loss. The peanut producers’ federation is therefore calling for an adjustment of the floor price based on real production costs.
The temptation of the parallel market:
Due to the gap between the floor price set by the State and actual production costs, many peanut producers are tempted to bypass the formal market and sell their production on the parallel market. This market, dominated by Chinese and Turkish exporters, offers prices higher than those set by the State and neglects Senegalese oil mills. This situation raises concerns about the sustainability of the sector and its ability to support the country’s rural economy.
The importance of reviewing the collection margin:
In addition, Senegalese farmers face another challenge: the collection margin, which represents the amount reimbursed by oil producers to compensate for fixed costs incurred by producers.. This margin, equivalent to 27.7% of the selling price, has not changed for more than ten years, despite the increase in costs of transport, packaging and loading of the harvest. This stagnation in the collection margin limits the ability of farmers to make sufficient profits to cover their expenses.
Conclusion :
The peanut marketing campaign in Senegal starts this year with a promising harvest, but challenges persist for producers. The question of the groundnut floor price and the collection margin remains at the heart of the concerns of farmers, who seek to obtain fairer conditions for their work. It is essential to find sustainable solutions to support Senegalese farmers and ensure the prosperity of the country’s rural economy.