At the heart of the Senegalese economy, peanuts occupy a prominent place. The third largest African peanut producer, the country recently took a radical decision by suspending exports of its seeds. This measure aims to promote local processing of Senegalese peanuts, provoking diverse reactions within the sector.
The central question that arises is that of the choice between exporting and protecting the local market. For several years, peanuts have been one of Senegal’s main export products, providing income for millions of farmers and many households. However, these massive exports have sometimes led to tensions within the sector, with local processors sometimes finding it difficult to obtain the raw material essential to their activity. In particular following an agreement concluded between China and Senegal in 2014.
It is in this context that the Senegalese authorities have taken the decision to suspend peanut exports, a first in the country. In return, a higher purchase price was set, reflecting the desire to favor local processors. This measure seems to be well received by small producers and local oil producers, who thus benefit from a higher and more secure price for their harvests.
The main peanut processing company in Senegal, Sonacos, has also reacted positively to this decision by restarting processing units that had been at a standstill for several years. With its various factories, Sonacos has set itself ambitious objectives in terms of peanut processing and job creation.
However, on the part of large producers, this decision raises concerns, particularly because of the price difference between local purchases and the higher prices offered by exporters in the past. Some of them are threatening not to sell their harvests to local factories.
Another question remains: what will happen to the surplus peanuts once local factories have reached their maximum processing capacity? Faced with these questions and the reactions of the sector, the Senegalese Minister of Agriculture has relaxed the initial measures by allowing the export of surplus peanuts once local needs have been met.
This decision to suspend peanut exports to Senegal raises significant economic and social issues for the country. It highlights the need to find a balance between promoting local processing and preserving the interests of the various stakeholders in the peanut sector.