Final version of Tropical Legumes II Project Report for Phase 1 - icrisat

The European Union still remains the major importer of oil, cakes and confectionery groundnut. France
is the lead oil importer accounting for 23% of world oil imports followed by Italy 17% and the USA,
14%. As for cakes, China is major importer of groundnut cakes accounting for 35% of world imports,
followed by France 16% and Thailand, 11%. West and Central Africa are importing slightly more cakes.
Whereas in 1961-65, there were no imports, this is increased to 2.54% of world imports.
While imports from other oil seeds such as soybean oils have quadrupled (4.85% to 16.31%) in WCA,
palm oil significantly decreased from 48% to 28% of Africa’s imports. The supply of palm oil has almost
doubled while prices of these two oil seeds are about half groundnut oil price in the global market,
making it less competitive. However, since 1984, groundnut production in WCA has been increasing
by about 4.60%, annually mainly due to area expansion. Senegal and Nigeria remain among the
largest world groundnut producers. Groundnut still remains a major source of employment, income
and foreign exchange in many WCA countries. Therefore, there is a need to reassess market prospects
and highlight opportunities for the region to regain its market share.
Competitiveness of WCA groundnut in the domestic, regional and international markets has been limited
by the low productivity, aflatoxin regulations, and stricter grades and standards in addition to trade
distortions caused by two largest developing countries, India and China. Relative prices of groundnut
oils are higher in the international markets making these products less competitive compared to oil
palms, cotton oil and other oil fruits. There are market niches for confectionery groundnut. Access
to this market would require knowledge of market requirements, especially EU markets. To regain its
competitiveness, groundnut productivity and production have to increase significantly, technologies to
reduce aflatoxin contamination have to be promoted and grades and standards established.
Baseline surveys in project countries
Three baseline studies were carried out in program and non-program sites in Mali, Niger and Nigeria
where the TL II project started its activities in 2007. These regions encompassed the Sahelian and
Sudanian-savanna zones (Figure 4-1).
Figure 4-1: Selected villages for the baseline studies in Mali, Niger and Nigeria in 2007/08.
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Engaging Smallholder Farmers | Tropical Legumes II Project