Market Opportunities for African Agriculture - International Food ...

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operating costs, not only with the Netherlands but also with Kenya, Zambia, and Zimbabwe (Table 11). But, the major problems SSA countries are facing in this regard are poor infrastructure, lack of cold chain transport and storage facilities, limited air freight capacity, and high transport costs. Table 11—Comparison of capital and operating costs of floriculture between Uganda and other competing countries Capital costs (US$ per sq. m.) Operating costs (US$ per sq. m.) Uganda 27.68 22.68-28.12 Kenya 29.56 39.93 Zambia 29.64 30.50 Zimbabwe 36.64 30.50 The Netherlands 108.50 50.70 Source: Dijkstra (2001) The Kenyan cut flower experience offers several lessons for emerging market policy makers and investors, as well as other international stakeholders. First and most importantly, the cut flower industry is quite dynamic and cannot be led by public initiatives and government interventions. The primary roles of government should be facilitative. Second, the development of a competitive and sustainable cut flower industry requires collective actions in a number of areas by the main industry stakeholders, such as floricultural and supply chain training, developing environmental standards, packaging material standardization, cold chain facility investment, market information collection and dissemination, and floricultural research and advisory services. Third, there is a need for further clarification and harmonization of environmental standards and regulations and effective communication of guidelines to growers and exporters. A joint publicprivate initiative for technical support to help comply with such guidelines and regulations may be necessary. 28
SUMMARY Currently, the agricultural export sector in SSA is small relative to both world agricultural exports and the regional total incomes, and agricultural exports of many SSA countries are concentrated on just a few commodities. These “traditional exports” (cocoa, coffee, cotton, tea, and tobacco) account for about one-half of SSA total agricultural exports (about $6.5 billion/year), but have suffered from declining terms of trade and substantial price instability. Moreover, low productivity and problems with maintaining quality have led to declining market shares of SSA countries, and future demand prospects do not appear promising. Demand constraints for non-traditional exports do not appear to be as severe, and these products may offer the most promising opportunities for growth. However, to a large extent, non-traditional exports consist of numerous products that are targeted to niche markets. Even if the success achieved by a few countries in increasing nontraditional exports can be replicated for other commodities and by other countries, the magnitude of these export earnings may remain small relative to total trade and incomes. The next chapter explores another major potential source of demand for agriculture: domestic demand for major food staples and livestock products. Using IFPRI’s IMPACT model of agricultural supply and demand, we examine the magnitude of supply-demand balances for these products under alternative scenarios of agricultural productivity and income growth. Comparisons of the potential impacts of agricultural productivity growth in traditional export, non-traditional export, and food staples and livestock products, along with an analysis of non-farm linkages, using a more aggregated, but economy-wide, CGE model are presented in Chapter 5. 29
Page 1 and 2: DSGD DISCUSSION PAPER NO. 1 MARKET
Page 3: ACKNOWLEDGEMENTS We wish to thank t
Page 6 and 7: LIST OF TABLES Table 1: Some basic
Page 8 and 9: LIST OF FIGURES Figure 1: Monthly a
Page 10 and 11: imports 25 percent of its food grai
Page 13 and 14: MARKET OPPORTUNITIES FOR AFRICAN AG
Page 15 and 16: Table 1—Some basic facts about Su
Page 17 and 18: We begin with a review of broad tre
Page 19 and 20: Table 2—World and Sub-Saharan cou
Page 21 and 22: Table 3—Composition of exports fr
Page 23 and 24: This is mainly because of a signifi
Page 25 and 26: Staples Non-traditional Traditional
Page 27 and 28: impact on export earnings and incom
Page 29 and 30: ooms of the 1970s, but the trends f
Page 31 and 32: produced by smallholders, resulting
Page 33 and 34: Table 7—Export of fish and fisher
Page 35 and 36: Table 8—Summary of food safety re
Page 37 and 38: flowers and foliage to the EU. The
Page 39: The emergence and growth of the Ken
Page 43 and 44: Table 12—Sub-Saharan African majo
Page 45 and 46: Besides the demand-side constraint,
Page 47 and 48: percent. However, because rapid gro
Page 49 and 50: pace, by 4.15 percent per year thro
Page 51 and 52: equivalent to 9 to 11 percent of ma
Page 53 and 54: esult in increased imports of lives
Page 55 and 56: this study is to evaluate African c
Page 57 and 58: In this scenario, where non-traditi
Page 59 and 60: more employment opportunities for u
Page 61 and 62: of SSA (4 percent). No additional p
Page 63 and 64: d. Combining high growth livestock
Page 65 and 66: output (Table 20). Because the chan
Page 67 and 68: This increase in TFP in the transpo
Page 69 and 70: scenarios, we find that some countr
Page 71 and 72: Per capita annual growth of cereal
Page 73 and 74: Figure 3—Impact of TFP growth on
Page 75 and 76: too long to make a significant cont
Page 77 and 78: particularly important, and better
Page 79 and 80: Franco, M., and R. Godoy. 1993. “
Page 87 and 88: Appendix I Table 7—Baseline Proje
Page 89 and 90: Appendix I Table 9—Projected annu
Page 91 and 92:
Appendix I Table 11—Projected ann
Page 93 and 94:
Appendix I Table 13—Agricultural
Page 95 and 96:
Page 97 and 98:
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Appendix II Table 1—Agricultural
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and in 1998 Mozambique contributed
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from 56.5 percent in 1981-83 to 40.
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Uganda has distinct competitive adv
Page 107 and 108:
Victoria and their Natural Carrying
Page 109 and 110:
Macroeconomic Policies In 1991, tax
Page 111 and 112:
Appendix II Table 4—Agricultural
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inappropriate seeds and fertilizers
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i.e. upgrading equipments and labor
Page 117 and 118:
9. Ghana 10. Guinea 11. Guinea-Biss
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21. Sugar 22. Processed food produc
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