The World Vegetable Center AVRDC AN INTEGRATED VALUE CHAIN OF ONION AND SHALLOT IN WEST AFRICA: STRENGTHS AND WEAKNESSES Albert Rouamba Sanjeet Kumar Paul.

The World Vegetable CenterAVRDC

AN INTEGRATED VALUE CHAIN OF ONION AND SHALLOT AN INTEGRATED VALUE CHAIN OF ONION AND SHALLOT IN WEST AFRICA: STRENGTHS AND WEAKNESSESIN WEST AFRICA: STRENGTHS AND WEAKNESSES

Albert RouambaSanjeet Kumar

Paul GniffkePeter Hanson

SECOND WEST AND CENTRAL AFRICA AGRICULTURAL SCIENCE WEEK***************

Cotonou, 24 May 2010

Presented by: Dov Pasternak

The World Vegetable CenterAVRDC

ContentsContents

1. Onion in the world, Africa and West Africa 2. Onion and shallot value chain 3. Analyze of the components of onion and shallot value chain4. Interactions and links between the actors of the value chain5. Strengths and weaknesses 6. Recommendations

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Statistics of onion productionStatistics of onion production

Region/country Production (t)

Areas (ha) Yield (t/ha)

West Africa 1.200.000 65.585 18,3 Nigeria 621.000 42.000 14,8 Niger 373.000 10.500 35,5 Burkina Faso na na na Senegal 145.000 5.200 27,9 *Mali 38.000 1.800 21,1 Source: FAOSTAT, 2008; *= only shallot; na= not available

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Characteristics of onion and shallot Characteristics of onion and shallot chainchain

Low degree of organization Limited cooperation, High transactional costs, Unfair markets, Significant post harvest loss, Un-trained actors, Insufficient use of research results Absence of use of improved storage facilities, Poor road networks Insufficient transport facilities leading to loss of the product value

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Analyze of the components of onion and shallot value chainAnalyze of the components of onion and shallot value chain

Components of onion and shallot value chain and flow of goods and services

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ResearchResearchGenerator of technologies

Performing varieties : Foundation seeds, certified seeds (Violet de Galmi, V28, FBO1, V13, AC980….

Development of good cultural practices

Development of best storage structures and bulb management

Training

Bulb production to High value

Headquarter of ISRA

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Input supplyInput supply

SeedsFertlizersCrop protection productsTool/equipment suppliersBags

Good seeds

Bad seeds

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ProductionsProductionsPeriod: October to April Zones: Arid and semi-arid zones in preferenceTotal production: 1.2 million of tonsYield (t/ha): 18 tons for onionBiggest producers: Nigeria and Niger

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Storage and Storage and processingprocessingOnion is perishable but could be saved up to 6-8 months with a loss rate of 20%

IF Good seeds are usedGood cultural practices usedGood technical harvest and post harvest techniques usedBulb store in good storage structures and correctly manage

80% of bulbs could be saved

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Development of storage structures of onion considerably Development of storage structures of onion considerably reduce the looses after harvest in West Africareduce the looses after harvest in West Africa

Traditional shed can store 2-7 tons Improved shed about 5 to 10 tons, type ISRA-Senegal

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Development of storage structures of onion considerably Development of storage structures of onion considerably reduce the looses after harvest in West Africa (Ctd)reduce the looses after harvest in West Africa (Ctd)

Improved house for bulbs storage

Improved house for bulbs storage at 50-100 tones

Industrial type for bulb storage at 500 tones

Performances of these structures are conditioned by the quality of produced bulbs

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Processing allows to reduce also the looses after onion harvestProcessing allows to reduce also the looses after onion harvest

Bulbs are sliced and dried

Bulbs crushed, dried and ground

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Export, import and transporationExport, import and transporation

Onion is a factor of regional integration

Producing countries

Consumer countries

Legend: Shallot: Onion:

Marketing intra-regional channels of onion and shallot in West Africa

Import from: EU+Egypt

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Relationship between the actorsRelationship between the actors

30% of the added value is generated by the product

70% of the added value is generated by the market

70%

MARKET

70%PRODUCTION

30%

Distribution of the added value between the market and production.

Absence or weak dialogue Interest group: loans, inputsLimited profits and cohesion fragile. Lack of professionalism

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StrengthsStrengths

The intra-regional trade of onion and shallot constitutes a powerful tool for economic integration

Onion is the most important source of incomes for most farmers, notably the smallholders, and improves the livelihoods of the poorest, women and young.

The onion and shallot processing is exclusively for women who are more affected by unemployment

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WeaknessesWeaknesses

The informal nature of relationship among the actors, inadequate capacity of organizations, limited access to formal credit and poor investment on productivity and profit enhancement

The poor social and physical infrastructures (like roads) in the region exacerbate the risks associated with marketing and increased costs of transportation to the destination.

The lack of organization market and forces the producers to sell their products to the traders at a low and unpaid cost

The ignorance or the insufficient use of agricultural research results constitutes serious barriers to the value chain of onion and shallot promotion

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RecommendationsRecommendations

30% of the added value is generated by the product

70% of the added value is generated by the market

70%

MARKET

70%

PRODUCTION

30%

Distribution of the added value between the market and production.

70% of the added value is generated by the product

MARKET

30%

PRODUCTION

70%

30% of the added value is generated by the market

Today Tomorrow

The trend should be reversed like this

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RecommendationsRecommendations

The recommendations aim to lead the producers to acquire a force capable of reversing the trend. For that, farmers have to:

- Produce their own quality seed and comply with good agricultural practices to submit onions and shallots unbeatable.

- Generalize the use of technical performances of storage and processing of onions and shallots in order to make available in markets processed products or not according to demand while keeping prices at remunerative levels.

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