Regional Markets

3 Cases
The GIPA of Taiba Niassene is an initiative
of women smallholders, who grouped
together to improve their production process
and access to local markets. They established
processing units, funded by the Swiss
Development Cooperation (SDC), which
are directly organised and controlled by the
women’s groups. Income is generated by
selling value-added products, such as oil,
flour, soap, butter and paste.
The main actors in the groundnut value
chain are producers, processors, wholesalers,
retailers and consumers. Groundnuts,
groundnut oil, butter, paste, flour, soap and
What the women say
According to Faty Penda Niasse, a member of
GIPA in Taiba Niassene, the association can
process 100 kg of groundnuts, which yield up
to 42 litres of oil. The processing machine can
produce around 80 litres per hour (1,000 litres
every 12 hours or 2,000 litres per day) if there
are no power cuts). Soap is another important
value-added product; a 0.5 kg bar of soap sells
for CFA franc 150 (USD 0.30). Groundnut cake is
sold as livestock feed, while the shells are used
as biomass for cooking. According to Ramata
Niasse, by working in production units, each
member secures an average monthly income
of CFA franc 60,000 (USD 120).
livestock feed cake are sold in local, regional and national markets as well as in community
shops and trade fairs. Despite large market demand, however, engaging in marketing
carries potentially serious risks. The GIPA of Taiba Niassene (numbering 149
women) has signed a contract with a private wholesaler in Dakar to produce 72,000
litres of groundnut oil in six months. This is a great success, as fixing such contracts
with a retailer would be much more difficult as a retailer has to deal with varying consumer
demands. The contract enables the group to plan ahead and provides security for
product placement (though at potentially lower prices than those offered by retailers).
The producers work in teams of 15, each team focusing on a certain aspect of the value
chain: seed cultivation and production, harvesting, decortication and quality selection
for processing, and final marketing (i.e. distribution to weekly markets, promotions in
trade fairs or direct sale to businesses).
Other stakeholders in the groundnut value chain
In addition to women producers and processors, there are several key stakeholders
in the value chain. After decades of extensive intervention in groundnut markets,
the Senegalese government initiated a reform programme in 1985, to increase private
sector participation and raise the efficiency in the procurement system. The main
rationale behind the state’s intervention in the groundnut sector is to safeguard the
viability of state-owned processing mills. Consequently, the government has partially
liberalised groundnut markets, still keeping administration of uniform pan-territorial
and pan-season prices during the administratively determined official marketing season
(Badiane 1998). The government also provides subsidies for the marketing of
certified seeds.
83