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TitleAgricultural Value Chains to Integrate and Transform Agriculture in West Africa
LanguageEnglish
File Size2.0 MB
Total Pages79
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Page 1

gio l in g ationRe na te r :
g icultu al v cha s integra ea r r alue in to t

f agric lture Weand trans orm u in st Africa

tRegional integra ion :
ult l v h s int g a eagric ura alue c ain to e r t

g ic ltu Weand transform a r u re in st Africa

Page 2

Distr.: LIMITED
ECA-WA/ADHOC/2012/02

Original: FRENCH
English Version

Regional Integration : agricultural
value chains to integrate and transform

agriculture in West Africa

UNITED NATIONS
ECONOMIC COMMISSION FOR AFRICA

SUB-REGIONAL OFFICE FOR WEST AFRICA
ECA/SRO-WA

NATIONS UNIES
COMMISSION ECONOMIQUE POUR L’AFRIQUE

BUREAU SOUS-REGIONAL POUR L’AFRIQUE DE L’OUEST
CEA/BSR-AO

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agricultural value chains to integrate and transform agriculture in West Africa

their network of warehouses and receives in return fees deducted from
the sale. They use part of these fees to build storage facilities on farms
and to provide their members with other services such as the management
of their savings and credit for growing cashew nuts and they even make
investments in common assets such as irrigation systems.

The regional cooperative unions: they help the Company to acquire
materials wholesale, such as jute sacks and natural fibre ropes, loans
and transfers to the main offices of the Company, the identification
and registration of authorised cashew nut transporters from the fields
to the warehouses and also help with the marketing system of products
from the warehouses. The regional cooperative unions also prepare the
sales catalogue for each lot in the warehouse, following the information
provided each week to the union by the farmer to the warehouse.

The groups of farmers and individuals: according to law, a group of
farmers and individuals who do not welcome the actions of the Company
in their region, can create a cooperative or a private company, which
makes it possible to obtain the right to sell their raw cashew nuts on the
export market. Some of these groups of farmers even venture into the
processing of cashew nuts locally, in spite of the challenges of this type
of processing.

The warehouses: by law, the cashew nuts must systematically be
stored in licensed warehouses where they are stored by separate lots
for each cooperative. The warehouses supply a receipt on reception of
the merchandise. Afterwards, the lots are sold by auction to buyers.
The buyer pays the price to a bank which divides up the payment for
the different cooperative owners of the lots purchased. This system,
in spite of being slow, is designed to eliminate or minimise the
number of intermediaries and to guarantee the traceability of products
marketed.

the work of the
transformers at the first level is limited to the processing of the cashew
nuts up to the level of the de-shelling before peeling. This type of
processing can be outsourced to certain operators while 2nd level

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agricultural value chains to integrate and transform agriculture in West Africa

processing, requires more rigorous application of hygienic standards.
The transformations at the second level begin with the peeling of
the cashew nuts and end with sorting and packing. In general, the
transformers can be classed into small, medium and large businesses.
The small transformers produce for local markets, while the large-scale
transformers produce for local, regional and international markets.

The exporters: the large-scale exporters and transformers aim at the
markets of Europe, India, the Middle East and the United States.

The local traders: cashew nuts are available throughout the country
in sales outlets, warehouses, road stands, stores, groceries, and
supermarkets. Street sellers even offer cashew nuts on the roadside,
or at the traffic lights. They often work independently, but sometimes
for middlemen. Some shell, peel and roast cashew nuts in makeshift
shelters and they sell them illegally.

There are two distinct marketing channels: the domestic market and
the export market. About 40% of raw cashew nuts are transformed
in the country, whereas 60% are exported, mainly to India for more
complex processing, which generates considerable added value and
employment there. All the raw cashew nuts go through the warehouse
system independent of whether they will be processed locally or
exported, except for those that are processed fraudulently for the local
market in makeshift shelters.

b). The suppliers of services

Suppliers of services include the Cashew nut Board of Tanzania, the
District Agricultural and Livestock Offic es, the government services
of research and extension, national financial institutions and NGOs.
The activities of service suppliers in the value chain are described
below.

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agricultural value chains to integrate and transform agriculture in West Africa

for Presentation at the 15th GTAP Conference, Geneva, June,

UA (2010). Déclaration d’Abuja sur le développement de 34.

UEMOA (2008) Séminaire du conseil des ministres sur « la 35.

au sein de l’UEMOA et plan d’action pour l’augmentation de la
production agricole. Document de travail.
UNIDO (2011). Industrial Value Chain Diagnostics: An Integrated 36.
Tool. United Nations Industrial Development Organization
(UNIDO). Vienna, Austria.
UNIDO (2011). Industrial Value Chain Diagnostics: An Integrated 37.
Tool. United Nations Industrial Development Organization
(UNIDO). Vienna, Austria.
World Bank, AFI (2002) Rice Value Chain Study: Cambodia. 38.
A Report Prepared for the World Bank by Agrifood Consulting
International, 244p.

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agricultural value chains to integrate and transform agriculture in West Africa

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