AVRDC The World Vegetable Center SECOND WEST AND CENTRAL AFRICA AGRICULTURAL SCIENCE WEEK *************** AN INTEGRATED VALUE CHAIN OF ONION AND SHALLOT IN WEST AFRICA: STRENGTHS AND WEAKNESSES Albert Rouamba Sanjeet Kumar Paul Gniffke Peter Hanson Presented by: Dov Pasternak Cotonou, 24 May 2010

Contents

AVRDC The World Vegetable Center

  

1. Onion in the world, Africa and West Africa 2. Onion and shallot value chain



chain

 

3. Analyze of the components of onion and shallot value 4. Interactions and links between the actors of the value chain 5. Strengths and weaknesses 6. Recommendations

AVRDC The World Vegetable Center

Statistics of onion production

Region/country Production (t) West Africa 1.200.000 Nigeria Niger 621.000 373.000 Burkina Faso Senegal *Mali na 145.000 38.000

Source: FAOSTAT, 2008;

available Areas (ha) Yield (t/ha) 65.585 42.000 10.500 na 18,3 14,8 35,5 na 5.200 1.800 27,9 21,1 *= only shallot; na= not

AVRDC The World Vegetable Center

Characteristics of onion and shallot chain

   

Low degree of organization Limited cooperation,

 

High transactional costs, Unfair markets, Significant post harvest loss, Un-trained actors,



Insufficient use of research results



facilities,



Absence of use of improved storage Poor road networks



Insufficient transport facilities leading to loss of the product value

AVRDC The World Vegetable Center Analyze of the components of onion and shallot value chain Components of onion and shallot value chain and flow of goods and services

Research

AVRDC The World Vegetable Center Generator of technologies

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

 Development of good cultural practices Headquarter of ISRA  Development of best storage structures and bulb management  Training

Bulb production to High value

AVRDC The World Vegetable Center

Input supply

AVRDC The World Vegetable Center Seeds Fertlizers Crop protection products Tool/equipment suppliers Bags Good seeds Bad seeds

Productions

AVRDC The World Vegetable Center Period: October to April Zones: Arid and semi-arid zones in preference Total production: 1.2 million of tons Yield (t/ha): 18 tons for onion Biggest producers: Nigeria and Niger

AVRDC The World Vegetable Center

Storage and processing

Onion is perishable but could be saved up to 6-8 months with a loss rate of 20% IF Good seeds are used Good cultural practices used Good technical harvest and post harvest techniques used Bulb store in good storage structures and correctly manage 80% of bulbs could be saved

AVRDC The World Vegetable Center Development of storage structures of onion considerably reduce the looses after harvest in West Africa Traditional shed can store 2-7 tons Improved shed about 5 to 10 tons, type ISRA-Senegal

Improved house for bulbs storage

AVRDC The World Vegetable Center Development of storage structures of onion considerably reduce the looses after harvest in West Africa (Ctd) 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

AVRDC The World Vegetable Center Processing allows to reduce also the looses after onion harvest Bulbs are sliced and dried Bulbs crushed, dried and ground

AVRDC The World Vegetable Center

Export, import and transporation

Onion is a factor of regional integration Producing countries Consumer countries Import from: EU+Egypt

Legend: Shallot: Onion:

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

70% AVRDC The World Vegetable Center

Relationship between the actors



Absence or weak dialogue



Interest group: loans, inputs



Limited profits and cohesion fragile.



Lack of professionalism 30% of the added value is generated by the product PRODUCTION 30% MARKET 70% 70% of the added value is generated by the market Distribution of the added value between the market and production.

AVRDC The World Vegetable Center

Strengths

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

AVRDC The World Vegetable Center

Weaknesses

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

70% AVRDC The World Vegetable Center Today

Recommendations

Tomorrow 30% of the added value is generated by the product PRODUCTION 30% MARKET 70% 70% of the added value is generated by the product PRODUCTION 70% 30% of the added value is generated by the market MARKET 30% 70% of the added value is generated by the market The trend should be reversed like this Distribution of the added value between the market and production.

AVRDC The World Vegetable Center

Recommendations

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.

AVRDC The World Vegetable Center