USAID Office of Food for Peace Burkina Faso Bellmon ... - CiteSeerX

BEST ANALYSIS – BURKINA FASO
Prepared by Fintrac Inc.
2
U.S. commercial rice exports to West Africa have been relatively low. Total exports of U.S. rice
to Senegal, Côte d’Ivoire and Togo amounted to 27,600 MT in 2005 and 27,200 MT in 2006,
followed by a sharp decrease to 4,500 MT in 2007, and a substantial rebound to 57,600 MT in
2008. Côte d’Ivoire is traditionally the largest importer of U.S. rice in the region; in January
2008, 15,000 MT of U.S. rice was sold to Côte d’Ivoire. The customs duty and taxes for milled
rice and paddy rice are 12.5 percent and 7 percent, respectively, for Côte d’Ivoire. Traders
import for the local market, as well as re-export for other countries in the region. The port of
Abidjan is a transit port for commercial imports to Burkina Faso and Mali.
5.1.3 Monetization Past Performance
During the current FY2004-2009 Title II DAP, monetized U.S. parboiled rice sales attracted a
pool of approximately 30 different participants with an average of ten or more bidders per sale,
making it a competitive process. Both CRS and Africare collectively monetize with CRS as the
lead agency on Title II monetization. Monetization sales were conducted in Ouagadougou. For
more information about the small lot sales of Title II parboiled rice in Burkina Faso, please see
Annex 9.
In agriculture-based countries such as Burkina Faso, small and medium-sized traders and
layers of intermediaries are common in the marketing of food staples and other agricultural
commodities. Small and medium traders and intermediaries are mainly self-funded because of
limited access to credit but maximize the return on their working capital by rapidly turning over
small quantities, with little storage costs or needs. They will purchase commodities both
domestic and imported if the size of the lot is small and manageable. Future monetization of
parboiled rice should continue to remain competitive if this type of sales mechanism remains in
place and attracts participation by small and medium traders.
5.1.4 Impact Analysis Summary/Import Parity Price (IPP)
Based on commercial import volumes for year 2001-2008, Table 7 outlines the potential
proceeds an awardee might anticipate from monetizing rice at three possible volumes.
Given the global food price shocks of 2007/2008, rice prices and sales performance were not
normal. In November 2008, small lot sales were introduced in the Title II Program, with more
competition and good sales performance, which resulted in an average 94 percent of the
estimated import parity price (IPP) during the period from July 2008 to July 2009. Nonetheless,
it is apparent that the parboiled rice monetization prices achieved from 2006 to July 2009 reflect
a relatively fair market value (just over 85 percent of estimated IPP). See Annex 9.
2 Foreign Agricultural Service/Bulk, Intermediate, and Consumer Oriented (FAS/BICO) report data.
17