TED Case Studies
Number 646, December 2001

SENEGAL'S TRADE IN GROUNDNUTS: ECONOMIC, SOCIAL AND ENVIRONMENTAL IMPLICATIONS


Coura Badiane

 

 

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I. IDENTIFICATION

1. The Issue

Senegal is among the world's leading exporters of groundnuts. Cultivated in the Groundnut Basin region, this cash crop provides 75% of the national agricultural production and employs 50% of the population. In the 1960s, agriculture made up 25% the GDP, reflecting the importance of the primary sector in the economy (World Development Indicators, 1997). Historically, Senegal used proceeds from groundnut exports to finance food imports, especially cereals imports such as rice and wheat. In addition to its vital economic role, groundnuts are also an integral part of the Senegalese culture and ways of life, whether in terms of labor specialization, migratory cycles and culinary tastes. Mafe, a peanut butter stew, served on white rice, is among the most prized culinary delicacy of the Senegalese cuisine, among other groundnut dishes. Since the 1970s, however, falling world prices for groundnuts and its related products, poor weather conditions, domestic and international economic shocks, in addition to the emergence of substitutes,significantly reduced the earning potential of groundnut exports for Senegal. Groundnut production also led to the environmental degradation of an already fragile ecosystem (the Sahel). It also impedes the production of major food crops such as millet, sorghum, rice and maize, Decreasing groundnut proceeds coupled with rising food imports, estimated at 700,000 tons per year, led to chronic balance of payment crises for the Senegalese government (Le Soleil, 09/04/2001). Is it realistic for Senegal to remain a primary exporter of groundnuts, considering that "the world market for groundnut products is saturated" (Martin & Crawford, 1991:85)? What are the environmental, economic and human costs of such trade policies?

2. Description
The importance of groundnut exports in the economic development of Senegal can be divided into the following time periods: groundnut exports fuel economic growth (1960-1967), shift in the global demand for groundnuts (1968-1973), emergence of substitutes for oilseeds on the world market (1974-1978), collapse of the world prices for groundnuts (1979-1986), crisis of the groundnut sector in Senegal (1987 to present).

Table1: Trends in groundnut production and producer prices (1997-2000)

Source: IMF & Banque de France, EIU, April 2001 1997/1998 1998/1999 1999/2000
Groundnuts unshelled ('000 tons) 544.8 579.1 828.3
Producer prices (CFAFR Fr/kg) 150 160 145

Low levels of productivity and use of capital put Senegalese groundnut producers at a great disadvantage vis-à-vis their other competitors in the global market for groundnuts , especially the US, India and Argentina, to name a few. The following table shows the decline of Senegal's groundnut oil trade and output performance from 1961 to 1988.

Groundnut Oil Trade and production performance ( 1961-1988)
Share of the world (%)
Production
Exports
Production growth rate (%)
Yield Growth Rate (%)
1961-1965
1986-1988
1961-1965
1986-1988
Senegal
-1.14
-.2
6
4
23
14
S. America
-1.85
1.43
7
3
5
18
Asia 2.46 1.78 51 67 8 32
World 1.24 1.19 100 100 100 100
(Badiane & Kinteh, 21)

A look of returns to labor and land for groundnut crops shows disparities between the US and Senegal in terms of productivity. Senegalese groundnut farmers produce 700 to 800 kg of groundnuts for every 500 hours of labor, compared to 1, 1850 kg of soybeans per hectare for only 14 hours of labor by US producers (Bonnefond & Couty, 328). The future still looks bleak for African groundnut exporters as "peanut prices in Africa at the present time, are driven primarily by the price of vegetable oil, which is turn, is driven mostly by policy decisions in the European Community" (Kherallah, Delgado, Gabre-Medhin, Minot & Johnson, August 2000, 5.10).Exports of groundnut oil and cakes also dropped by 34% between 1995 and 1998.

3. Related Cases
Conflicts of interest between agriculture, trade and the environment are not exclusive to Senegal. The following list displays similar cases all around the world, in other African countries (Cote D' Ivoire, Mozambique, Marocco), in Asia (Thailand), in Latin America (Mexico, Costa Rica) and in the US (Florida).


Tobacco, Zimbabwe


Banana, Costa Rica

Cocoa, Cote D'Ivoire

Olive, Morocco

Rice, Thailand

Ivorywd, Cote D'Ivoire

Avocado, Mexico


Everglades and Trade

Keyword Clusters

Trade product: Food
Biogeography: Tropical
Domain: Sub Saharan Africa

4. Author and Date: Coura Badiane December 19, 2001

II. LEGAL CLUSTERS

©WWW.EMULATEME.COM/SENEGAL.HTM

Senegal is subject to the World Trade Organization's (WTO) regulations on international trade, given its
position in the global economy as an exporter of raw materials such as groundnuts, cotton, phosphates and fruits, and a net food-importing-developing country of cereals, especially wheat and rice. The Agreement on the Application of Sanitary and Phytosanitary Standards (SPS), tariff escalation, peaks and the US Tariff Rate Quotas for peanuts (TRQ) apply to groundnut exports from Senegal.

5. Discourse and Status: Agreement and in progress
Agreement on the Application of Sanitary and Phytosanitary Standards (SPS)
By definition, "the SPS sets general guidelines under which trade in agricultural products is conducted to ensure standards are based on sound science, and does not arbitrarily discriminate or restrict trade"(Wilson & Otsuki: 2001:2). The SPS was set up in January 1995 during the Uruguay Round, and aims specifically to "ensure transparency and non -discrimination in how governments can apply food safety, animal, and plant health regulations. SPS measures also address issues relating to market failures involved with imperfect information on food safety that can arise when consumers cannot pay for desired levels of safety and /or producers fail to supply improved food safety" (4). The Codex Alimentarius Commission (CODEX) regulates global food trade and establishes common international standards.

Most disputes in food trade address the following issues a) that food safety standards are supported by reliable scientific evidence, b) evidence exists to support claims of discrimination between domestic and foreign products and c) if the suggested measures tend to rather protect domestic industry under the pretext of reducing health risks. Trade measures, based on SPS, significantly impact trade flows as they affect 90% of all US agricultural exports. In the case of groundnut exports, the presence of aflatoxin B1 substance reduced groundnut exports to the European Union, the main importer of groundnuts. B1, B2, G1 and G2 are the main types of aflatoxin, B1 being the most toxic and common form. A 1997 FAO-WHO report argues that "aflatoxins should be treated as carcinogenic food contaminants, the intake of which should be reduced to levels as low as reasonably achievable", as a correlation has been established between incidence of liver cancer in humans and high level of aflatoxin. The most famous cases of deaths related to aflatoxins occurred in North West India in 1974, and in Kenya in 1982. In the first case, infected corn caused the death of 108 persons, and infected 397 persons (Otsuki, Wilson & Sewadeh, 2001:5). It is estimated that a 20 to 10 part per billion (ppb) reduction in aflatoxin contents will avoid 2 cancer deaths a year per billion people (6). Corn, groundnuts and related byproducts, cottonseed milk, and tree nuts tend to exhibit a higher level of B1 aflatoxin content.

The findings of health reports of the danger of aflatoxins led the European Commission set new standards to determine acceptable levels of aflatoxin in food imports in 1997. Prior to 1997, members of the European Union enforced different standards ranging from 1 ppb for Austria to 20ppb for Portugal, but " a tighter standard was applied to foodstuffs intended for direct human consumption", as it was the case for France (6). The 1997 Harmonization Standards set aflatoxin content at 4 ppb for cereals, edible nuts and dried fruits; and at 10 ppb for raw groundnuts to be processed. Groundnut exporters complained shortly after to the WTO; a representative of the Gambia criticized these new standards, on the claim they "effectively restrict entry of the Gambia's groundnuts and essentially the groundnut from producers countries in the developing countries to the European Union" (6). Bolivia, Brazil,. Peru, India, Argentina, Canada, Mexico, Uruguay and Pakistan joined the Gambia in protesting against the new EC's aflatoxin standards. EC's standards were lowered in 1998, as a result of complaints, to 15ppp for groundnuts to be processed (8ppb for B1) and 4ppb (2ppb for B1) for cereals, dried fruits and nuts for human consumption (6).

These new standards, effective since December 31, 2000 will negatively affect Africa exporters, despite the recent revisions. Experts estimate losses in export revenues to US $400 million. Moreover, if the EC was to reduce B1 aflatoxin levels by one more percentage point, groundnut exports would drop by 1.3%. A similar 10 percentage point drop would reduce groundnut exports by 13%. Total losses in export revenues for African groundnut producers will amount approximately to US$400 million, and total export volumes in cereals, groundnuts, nuts, vegetables and fruits will drop by 64%. These new standards also require 8 EU members (Belgium, Greece, Ireland, Italy, Luxembourg, the Netherlands, Spain and Sweden), to reduce aflatoxin contents in their groundnut imports by more than 50% (8). While the EC's standards are considered too severe, the SPS Agreement still applies, as it "recognizes the rights of member countries to determine the 'appropriate levels of protection' of human health" (18). In fact, the CODEX's standards for aflatoxin contents are set at 9 ppb; based on the fact that only 50 to 70 % (7.5-10.5 ppb) of total aflatoxin level of 15 ppb is caused by B1". The Codex's aflatoxin standards would be sufficient to avoid death rates by 1.4 death per billion, and increase export revenues by US$670 million for African producers (Wilson, Otsuki & Sawadeh, 7-8).

US Tariff Rate Quota (TRQ) and Non Trade Barriers for groundnuts
The US Tariff Rate Quota (TRQ) was set up by the US in compliance with the Uruguay Round ruling on agriculture. The TRQ "restricts the quantity of domestic peanuts that may be produced and marketed for human consumption in the United States" and also limits the number of imports in order to protect subsidies to domestic prices (Skully: 1999, 45). The TRQ is divided into the in-quota tariff and higher over-quota tariff. The latter tariff acts as an additional tax once importers reached their quota limits. The main points of the US WTO Peanut Tariff Rate Quota are as followed:
1.Length : April 1 and March 31 of the following year.
2.Products concerned: groundnuts in shell, shelled groundnuts, blanched groundnuts and other peanuts.
3.Volume of in-quota imports allowed range from 30,393 metric tons to 52,906 metric tons, to be filled by April 1 of each year. Over-quota tariffs rates, regarding in shell and other peanuts, are set at 131.8% and 163.8%.
4.WTO members countries decide on how to fill in their respective quotas
5."peanuts from all other WTO members and peanuts from nonmembers each face a separate set of tariffs" (Skully , 48).

Table 2: Peanut Types and Tariff Codes under the Peanut TRQ (Skully, 47).
In-quota Product Description Over-quota
1202.10.40 Peanuts not roasted or otherwise cooked, in shell 12002.10.80
1202.20.40 Peanuts not roasted or otherwise cooked, shelled 12001.10.80
2008.11.25 Blanched peanuts 2008.11.35
2008.11.45 Peanuts, others 2008.11.60


6. Forum and Scope: multinational and unilateral

7. Decision Breadth: Member countries of the World Trade Organization (WTO)

8. Legal Standing: Law
Nevertheless, the US TRQ for peanuts is likely to cause trade disputes, as it has been the case between Argentina and the US, because of the lack of agreement or consensus of how WTO members can fill their quotas. The case, that is still undergoing, is based on the contestation between the US and Argentina of "who should obtain the rents from the in-quota trade." (49). Argentina claims that the US failed to "allocate the quota rights to the Government of Argentina or to particular Argentine organizations of firms", based on their bilateral trade agreement that grants Argentina 78% of the in-quota TRQ (49). The case United States -Tariff Rate Quota for Imports of Groundnuts, complaint by Argentina (WT/DS111/1) was also filed under the Import Licensing (LIC) Principle, probably under the claim that the US failed to specify the terms of applicants. The WTO defines import licensing as "administrative procedures requiring the submission of an application or other documentation (other than those required for customs purposes) to the relevant administrative body as a prior condition for importation of goods" (WTO, Background Rules).

Implications of the Uruguay Round for Senegal
Senegal is likely to face considerable financial constraints when complying with the Uruguay Round's rules regarding its exports of groundnuts, fishery products and food imports (rice and wheat). Agriculture plays a critical role in Senegal's economy. Agriculture is the primary source of employment with 70% of the labor force, and it also contributes to food security , given the growing proportion towards subsistence agriculture. In that effect, the Government Of Senegal (GOS) submitted the following proposals to the WTO Committee on Agriculture, on March 19, 2001, (C/AG/NG/W/137, 01-1326):
1. Trade liberalization of the agricultural sector in Senegal must be gradual, "the sector should not be dealt with during the present multilateral trade negotiations following a purely trade-centered approach."
2. General System of Preferences (GSP) such as the Yaounde/Fiji Convention granting preferential access to the Africa Caribbean and Pacific (ACP) group's exports should be maintained.
3. Gradual removal of tariffs on imports, antidumping measures and export subsidies.
4. Progressive compliance with standard codes for Least Developed Countries (LDCs) exports
5. The GOS will continue to protect its agricultural sector so as to "prevent the adverse impact of the reduction of subsidies on the availability of basic foodstuffs "
6. Adoption of the "give and withdraw principle, whereby developing countries which had opted for binding their customs tariff to a tariff ceiling would be entitled to rationalize their tariff concessions appearing in their schedules of concessions annexed to the Agreement on Agriculture."
7. Support and enforcement of technical assistance and support articles of the Marrakech Decision on Measures Concerning the Possible Effects of the Reform Programme on Least-Developed and Net Food-Importing Developing Countries, in regards to national goals of food security; principally the creation of "a special agricultural investment fund for developing countries with a view to enabling them to finance in a particular basic infrastructures and hydro-agricultural works."
Senegal's best alternative probably consists in taking advantage of the provision of technical assistance and support of the Uruguay Round.

III. GEOGRAPHIC CLUSTERS

9. Geographic Locations

©afrol.com

a) Domain: Sub-Saharan Africa
b) Site: West Africa
c) Impact: Senegal


Groundnuts, most commonly known as peanuts, originate from South America, more specifically from Bolivia and Argentina. They were later exported in Africa, North America and Asia during the waves of colonialism. Groundnuts require an average rainfall of 600 to 1,200 mm and daily average temperatures higher than 20 degrees Celsius (CGIAR, Arachis hypogea Linnaeus). Cultivated through out the five continents: India, China and Nigeria regroup the largest land area concentration for groundnut crops, (one million of hectares and more), followed by Senegal, Sudan, the Former Zaire, Indonesia and the United States (half a million of hectare), and Myanmar, Chad, Vietnam, Mozambique, Burkina Faso, Mali, Uganda, Argentina, Zimbabwe, Cote D'Ivoire, South Africa, Pakistan and Thailand (Shankarappa, Rhoades & Nazarea, 1989-1991 figures). Worldwide, around 22.23 millions of hectares are used to grow peanuts, spread as follow: 61.5% in Asia (India and China) , 33% in Sub Saharan Africa, 3.1% in Central and South America.

10. Sub-National Factors:


In Senegal, groundnut cultivation is concentrated in the Groundnut Basin , which is subdivided into the following regions: Northern, Central, Southern Groundnut Basin, the Senegal River Basin, Eastern region and Casamance Groundnuts use 50% of the total cultivated area in the Groundnut Basin, followed by millet and sorghum (45%), maize, cassava and cowpeas (5%).

©Afrol.com

Table 3: Regional distribution of groundnut crops in Senegal
Region Rainfall Soil types Population density Crops in addition to groundnuts
The Northern Groundnut Basin (Louga-Diourbel-Thies) 400 to 600 mm over a 30 to 45 days period. The water supply only covers 3% of cultivated agricultural areas sandy soils 15 to 25 inhabitants per km Other crops include millet.

Central Groundnut Basin (Thies-Diourbel-Kaolack-Mbour)

600 to 800 mm, over a 45-50 days period   80 to 100 inhabitants per km Important livestock population.
Millet, cassava and cowpeas

Southern Groundnut Basin (Sine and East Sine Saloum)

800 to 1,000 mm over a 55 to 70 day period Soils have a higher clay content and much more salt content in the Saloum region. 15 to 35 inhabitants per km

Millet, cassava, cowpeas, cotton, tobacco, sorghum and maize.

High incidence of trypanosomiasis limits the potential for livestock raising.

The Senegal River Valley The Senegal River supplies most of the water requirements, due to erratic rainfall Soils of the Delta Valley are rich in salt contents  

Predominance of fishing activities, Millet, maize vegetable, cowpeas and rice crops..

Eastern Region 600 to 1,500 mm. soils are unfavorable to agriculture due to their thin and ferruginous composition. Deeper soils are more fertile but their geographical dispersion and the lack of water wells impede their exploitation. Among the regions with the lowest population density, 3.6 inhabitants per km Groundnuts, sorghum, cotton and maize are grown in the Western region.
Casamance Region   Soils of the upper region are favorable for irrigated rice 12 inhabitants per km but Lower Casamance counts a slightly higher population density of 80 inhabitants per km Also known as "Senegal's granary", Casamance is the most fertile region of the country. It specializes in long grain rice, maize and groundnut crops.

 


11. Type of Habitat:

Located in the Sahel region, Senegal receives an average rainfall of 500 to 700 mm. The Sahel is "a belt stretching across Africa from Senegal to Somalia, lying between the 200 mm and 400 mm rainfall isohyets." Soils of the Sahelo-Sudanian region, have a high sand content (80%), low organic matter content (less than 1%) and have a high acid content. The presence of laterite and the tendency towards rapid mineralization limit the soils' capacity to retain water, in addition to shortages of phosphorus and nitrogen (Speirs & Olsen, 1992: 11&69).

IV. TRADE CLUSTERS

12. Type of Measure: quota
The groundnut sector in Senegal has always benefited from high levels of protection, as early as in the 1930s. French price support for groundnuts, which lasted from 930 to 1968, artificially increased the profitability of exporting groundnuts for Senegalese producers. In fact, Mr. Maurel, president of the Colonial Union, explained in 1930, that "the economic dependency of Senegalese peasants on groundnut crops calls for immediate price support from France, given the drop in output in the past harvest, if France is to maintain its proceeds from imports to Senegal" (Bonnefond& Couty, 1988: 327). This logic to subsidize the purchasing power of Senegalese citizens was also supported by Senegalese political figures of the time.

Blaise Diagne, Senegal's representative to the French West Africa's Assembly (AOF), arguing in favor of the August 6 1933 Law to subsidize Senegalese groundnut exports, declared: "by supporting the prices of agriculture, you will be increasing the purchasing power of all Senegalese, thus generating jobs in French industries and guaranteeing the purchase of all French imports" (327). Shortly afterwards, tariffs were applied to foreign imports of unshelled peanuts in French markets, as a form of subsidies to Senegalese groundnuts. In 1933, another law imposed quotas and voluntary export restrictions (VERs) on "grains, fruits, oleaginous" exports from India, Dutch colonies, Nigeria and Argentina, when they entered the French market. By the end of the 1940s, highly protected trading zones for agricultural products emerged throughout France and its colonies, fueled by the relative low productivity of African groundnut producers and declining performances of the French textiles industry. Global trade trends, in the past decades leaned towards protectionism from high-income countries, at the expense of Third World exporters of primary commodities, such as Senegal. The implementation of the European Union's Common Agricultural Policy in the 1970s flooded the world market with agricultural surpluses, driving down prices of sugar, grains, meat, dairy products, oilseeds and vegetable oil, to the detriment of Third World exporters (IMF, 1999:130). The 1999 World Economic Outlook reports that "agriculture remains highly restrictive and implementation of the Uruguay Round Agreement on Textiles has been heavily back loaded" (The World Bank 1990:78). Northern protectionism takes the form Non-Trade Barriers (NTBs), tariff escalation, Multi-Fibre Agreement (MFA) and revision of the General Systems of Preferences of the (Lome Convention).

About 33% of the developing world's exports are affected by NTBs in the form of quotas, voluntary export restraints (VERS) targeting "sugar, and animal dairy and dairy products, … processed fruits, groundnuts, tobacco and rice" (Coote & Lequesne, 120). Tariff escalations act as other protectionist disguises. The level of processing increases tariff rates, thus preventing the development of an industrial base in poorer economies (122). Escalation penalizes least developed countries' attempts to increase the price of tobacco, rubber, paper, cotton, jute and iron exports, through processing, in order to "retain high value added processing in the developed countries" (122). In fact, the World Bank reports "the removal of all industrial country tariffs on processing would increase such activities in developing countries by almost 80 percent in the case of coffee and 52 percent for cocoa."

In the case of groundnuts, the United States Department of Agriculture (USDA) establishes a two-tier price support for domestic producers that limits the output sold domestically. Market quotas and the Price Support System were created by the Agricultural Adjustment Act of 1938, and was amended in 1941 (Consumer Alert, Issue Brief, 1990). The "quota peanut" is fixed at US$550 per ton, and any additional quantity produced is eligible for exports, at a lower price, and for sale to domestic agro-industries (US Customs Service, November 1996). The Commodity Credit Corporation links the groundnut price support to a maximum poundage quota, in addition to granting a "10 percent over the market allowance valid for the next year for producers who fail to fill their quotas"(US Customs Service, 1996). According to 1988 figures, groundnut exports exceeding the quota limit of 1.71 million of pounds face a tariff of 90% (Consumer Alert Brief Issue). The Harmonized Tariff Schedule of the US (HTS) includes other tariff escalation measures imposed on groundnut exports, depending on their level of processing. The Consumer Alert Group predicts a drop in the prices of groundnut imports from $.51 to $.34, and a $.1 drop in domestic prices, if the US were to remove trade barriers. Other developed nations also heavily tax groundnut exports. Shelled peanut exports face a tariff of 132% in the US, 550% in Japan and 40% in Korea. Roasted peanut exports also face a tariff of 132% in the US, 11% in the European Union, 21% in Japan and 50% in Korea (Pasco, 1999).

Groundnut exports from ACP countries, including Senegal, benefits from a general system of preferences' agreement with the former European Economic Community (EEC). The Lome Convention, originally established at the 1963 Yaounde Convention between 6 European countries (Belgium, France, Federal Republic of Germany, Italy and the Netherlands) and their former 18 former colonies of the Association of African States and Madagascar, enforced "preferential trade agreements, notably access for raw materials to Europe, as well as financial and technical assistance to be financed by the European Development Fund" (Coote & Lequesne, 51). Renewed every five years since its creation, the Lome Convention grew to implement preferential trade agreements between the European Union and the African, Caribbean and Pacific (ACP) Group of 44 countries. It allows the majority of the ACP Group's exports to enter the EEC free of tariffs, without the burden of reciprocality from the developing members, at the exception of agricultural substitutes and the enforcement of a "rule of origin criteria."

Non-ACP exporters of groundnuts face tariffs of 5 to 15% when entering the EEC market, thus giving a slight edge to Senegalese groundnuts. In other words, "products are allowed duty-free access to the Community only if one third of their value originates from an ACP country", "to prevent non ACP-member from diverting their exports to the EC" (122). The creation of the European Union in the late 1990s will end the ACP Group's trade preferential, as "ACP suppliers and domestic banana producers will lose the preferential access they have enjoyed in their traditional markets." The Lome Convention expired on February 2000 and was replaced by the Fiji Convention in May 2000. The New Convention was extended to twenty years to 71 ACP countries and includes human rights, democracy, and governance and corruption clauses. Lome IV is still active, allowing duty free access to agricultural and industrial exports from selected developing economies, while beef, sugar and bananas are subject to tariffs and quotas (123). In the meantime, the General System of Preferences will be maintained for 33 least developed economies until 2004. The WTO and the EU will then draft regional trade agreements for developing economies members (125).


13. Direct vs. Indirect Impacts:

Direct measure: tariffs and tariff escalation, SPS

14. Relation of Trade Measure to Environmental Impact
a. Directly Related to Product: Yes
b. Indirectly Related to Product: No
c. Not Related to Product: No
d. Related to Process: Yes

15. Trade Product Identification

Also referred as peanuts, groundnuts are the fruits of the Arachis Hypogaea Linnaeus (CGIAR, Encyclopedia of Agricultural Science, Vol 3, 1994, Academic Press). Groundnut products belong to four distinct categories: groundnuts in shell, shelled groundnuts, groundnut oil and groundnut cakes. Depending on the category exported, groundnut products are part of either the primary or secondary sectors (agro-industries/light manufacturing).

Typical uses of groundnut products range from:
1. food products (peanut butter, baby food, biscuits, snacks in the form of roasted, salted or shelled peanuts). In Senegal and the rest of West Africa, peanuts are roasted in shells or in shelled seeds in a pan of hot sand; "the unshelled groundnuts are shelled by hand and the skins loosened by rubbing with the hands and then removed by winnowing or blowing air" (Singh:1992, 258). These roasted peanuts are later sold in the streets and markets in paper cones.
2. cooking oil, paint, varnish, furniture polish, insecticides, nitroglycerin, soap, cosmetics, textile fibers (peanut protein), plastics, wallboards, abrasives, fuel, to cellulose (rayon and paper), hay
3. animal feed and soil fertilizer (in the form of protein cakes and oilcake meal), according to the US Customs Services, (November 1996).

16. Economic Data

Groundnut exports represented 63% of all exports, especially groundnut oil (75%) from 1985 to 1998. These exports, however, have declined in value and volume in the past twenty years. Value of peanut oil exports dropped from 28.58 cfafr billion francs in 1986 to 25.95 cfafr billion francs in 1989 (Kelly & Delgado, 1991:102). Moreover the share of groundnut exports in total exports from Senegal fell, over a two-year period, from 1990 to 1992, from 12% to 9% (Economic Intelligence Unit, 1990-1991: 18). Groundnut output continued to decline in the 1990s, despite the launching a large-scale privatization campaign and trade liberalization policies, especially with the removal of import bans (FAO, 2001:7). The 1994 devaluation of the CFA helped boost groundnut export, thanks to corresponding increases in world prices but domestic production remains below the capacity of production, estimated around 920,000 tons. Financial woes of the official groundnut marketing and processing company( SONACOS), high operating costs, low quality seeds, low use of inputs, weather vagaries and declining soil fertility are among the various factors contributing to this situation. The 2000-2001 groundnut harvest is forecast to amount to 1 million of tons, a record level since the 1970s. SONACOS has been offering higher producer prices, 145 CFA Fr/kg compared to world prices of 136 cfafr/kg, in order to stimulate output. Production has been slowly increasing since 1997, from 544.8 thousand of tons to 828.3 tons, while producer prices fluctuated.

Table 4: Trends in groundnut output and producer prices (1997-2000)
Source: IMF & Banque de France, EIU, April 2001 1997/1998 1998/1999 1999/2000
Groundnuts unshelled ('000 tons) 544.8 579.1 828.3
Producer prices (CFA Fr/kg) 150 160 145

 

Low levels of productivity and use of capital put Senegalese groundnut producers at a great disadvantage vis-à-vis other groundnut producers such as the US, India and Argentina, to name a few. A look of returns to labor and land reflect the disparities , between the US and Senegal in terms of productivity. Senegalese groundnut farmers produce 700 to 800 kg in 500 of labor, compared to 1, 1850 kg of soybeans per hectare for only 14 hours of labor (Bonnefond & Couty, 328). The future still looks bleak for African groundnut exporters as "peanut prices in Africa at the present time, are driven primarily by the price of vegetable oil, which is turn, is driven mostly by policy decisions in the European Community" (Kherallah, Delgado, Gabre-Medhin, Minot & Johnson, August 2000, 5.10).Exports of groundnut oil and cakes dropped by 34% between 1995 and 1998.

17. Impact of Trade Restriction:

The enforcement of the European Union's standards for aflatoxin contents, under SPS agreement, will reduce groundnut exports, for African producers by 1.3 to 10%, and financial losses of US$400 million. The removal of the US Tariff Quota Rate (TQR) would reduce prices of groundnuts from $.51 to $.34.

18. Industry Sector
Depending on the category exported, groundnut products spur the growth of agro-industries. SONACOS, Senegal's groundnut refinery, counts among the largest industrial companies in the country. It controls the majority of domestic groundnut production. SONACOS also processed groundnut oil and cakes, ad supplies 70% of the domestic market for groundnut oil. (All Africa.com, 10/23/01).

19. Exporters and Importers:
A. Key importer and exporter

China is the leading exporter of groundnuts, in volumes and monetary value. For the 1987-1995 period, China earns more than US$250 million from groundnut exports. The United States, Argentina, Netherlands, Vietnam and India respectively follow as the largest groundnut exporters. The United States lead the way in terms of productivity,(2.8 tons of groundnuts per hectare) followed by Argentina, that increased its export volumes from 109,000 tons to 129,000 tons (Talawar, Rhoades & Nazarea, 2001). The Netherlands stands out as the leading importer of groundnuts for the 1987-1995 period. The European Union remains, in general, the largest market for groundnut exports. From 1982 to 1987, it absorbed 50 to 60% of the world exports of raw groundnuts, 80% of groundnut oil exports and 90% of groundnut cake exports (Badiane & Kinteh, 1994:69).

Table 5: Leading world exporter and importer of groundnuts (1987-1995)
  Quantity (Million of Tons)     Dollar Value (1,000$)    
Years 1987-1989 1990-1992 1993-1995 1987-1989 1990-1992 1993-1995
China (Exports) 248,657 359,908 380,939 18,1025 273,922 256,106
Netherlands (Imports) 115,150 165,116 224,919 84,163 146,605 189,106

The global market for groundnuts can be outlined in the following trends:

a) Increased in groundnut productivity from North, Central American and Asian producers. Average yields for groundnut in shells increased, from 1982 to 1987, by 2.9% in the United States, .83% in India, 1.87% in China, to name a few.

b) Decreasing output of peanuts in the market for oilseeds. Between 1961 and 1988, groundnut output grew at an annual average rate of 1.31% compared to 5.51 % for soybeans, 4.04% for sunflower and 1.98% for coconuts; resulting in a faster growth of non groundnut oilseeds, starting in the 1970s. The European Union becomes a major producer of oilseed, while Indonesia and Malaysia turned to palm oil. South America also turned to soybean exports. From 1982 to 1987, the production of soybean and other oilseeds, such as coconut, sunflower and palm oil, grew considerably. Soybean production exceeded groundnuts': 93 millions of tons versus 20.08 millions (Badiane & Kinteh, 10). The increase in soybean output was fueled by the expansion of cultivated areas, the "development of high yielding varieties and early flowering varieties", and the creation of the European Agricultural Guidance and Guarantee Price Expenditures, that provides export subsidies and high prices (10).

c) Demand for oilseeds shifts from raw consumption towards processing food industries. Substantial reduction in groundnut in shells and cake exports, according to Badiane and Kinteh , reflects "the expansion of processing activities and of livestock sectors" (14). Groundnut seed exports dropped by -1.45% compared to 7.92% increase for soybean seeds in 1982-1987 (Badiane & Kinteh, 14). Demand for groundnut oil and cakes remains however strong, with respective average growth rates in export volumes of -.05 and -3.94 (14). Africa's share of the world market for groundnut exports fell from 25% in the 1960s to 21% in 1982-1987, due to a reduction in areas cultivated and declining productivity (10). Country members of the African Groundnut Council (AGC) lost their share of the world market for groundnut exports in the 1960s, due to pervasive domestic policies such as an overvalued exchange rate, inflated price controls, heavy taxation and bad government marketing. Tax rates ranging to 10 to 30% applied to groundnut exports in Senegal, resulting in estimates losses in revenue of 20 to 70% (Badiane & Kinteh, 69). The Gambia, Mali, Niger, Nigeria, Senegal and Sudan exported 23% of the world's supply of groundnuts in 1961-1965 and captured 62% of the world market for groundnut oil. Senegal, by itself provided 23% of world exports in groundnuts in the same period (Badiane & Kinteh 1994). From 1961 to 1967, "aggregate exports of unshelled groundnuts dropped by 10 percent, shelled groundnuts by 15 percent, and groundnut oil by 4 percent annually" for all AGC producers (Badiane & Kinteh, 1994). "

d) By 1981, peanut products capture less than 10% of the world market share for oilseeds (De Arce, 166). AGC countries' world share dropped from 62% to 20% in 1986-1988 (Badiane & Kinteh, 3). Moreover, the discovery of a poisonous substance, aflatoxin, from the family of Aspergillus Flavus, in groundnuts negatively affected African producers, especially Senegalese ones, in the early 1980s (Bonnefond & Couty, 327). Evidence supported the presence of "high levels of aflatoxin could induce mycotoxicosis, leading to cancer" (Coote & Lequesne, 1991:100). In the meantime, Asian and South American producers increased their share of the world exports in groundnuts from less than 10 percent in 1961-1965 to 50% percent in 1986-1988(Badiane & Kinteh, 3). Key importers such as the European Union, Canada and Japan turned to Asian and South American suppliers of groundnuts, that benefited from more stable weather and superior yielding varieties (Bonnefond & Couty, 327).

Table 6: Leading world producers and exporters of groundnuts (1980 figures)

Peanuts Exports 1980
In million of tons

 

Production 1979

 

Grains Oil Cakes
India 30.2 2.6 n/a 42.5
China 15.2 11.2 n/a n/a
USA 9.4 38.4 3.7 n/a
Argentine 3.5 9.4 18.7 8.6
Brazil 2.4 3.6 24.7 10.5
Sub Saharan Africa        
Sudan 28.7 2.8 8.3 15.6
Senegal 5.7 1.5 14.6 13.3
Gambia 5.2 5.9 2 1.2
South Africa .8 5.4 5.9 n/a


V. ENVIRONMENT CLUSTERS
A. Impact of groundnut crops on Senegal's social fabric and environment: the Bambey's community longs for the good old days.

The decline of the groundnut trade on the environment, economy and social fabric has been quite important. The following excerpt relates the damages and hardship experienced by groundnut producers, in the Bambey department of Senegal.

" In the department of Bambey, some 100 km from Dakar, there is not much to catch the eye. The landscape runs on endlessly, broken by nothing more than a few stunted trees buried under the dust. Sandstorms ravage the area, from January to May. The soil has lost its protective cover and lies exposed to the relentless forces of wind and sun. Here and there, between the scattered villages, a few flocks struggle for survival, nibbling at the last dried remnants of grass left from the previous winter. And yet, "this valley used to grow peanuts that were the pride of the Baol-Baol and Sérère tribesmen", the chairman of the rural community of Lambaye likes to recall. He still cannot come to terms with the drop in peanut yields, or the damage that this crop has done to the soil. Today, many of the villages of Senegal are losing their people: the men are deserting them for Touba, Dakar, or lands abroad. Only the women and children are left behind

Except for a few aging buildings left over from the colonial era that house the administrative services, the slightly more urbanized town of Bambey has not much to distinguish it. Because it is classified in the registry as an urban commune, Bambey gets very little in the way of development projects, in comparison with the department as a whole. Not that there is any lack of good ideas or initiatives. Here is what Aida Diagne, of the Senegal Federation of Women's Organizations, has to say: "We want to take up market gardening to improve our incomes, but there just isn't enough land - the town wants to build housing on it! What's more, those lands belong to the department, and we have no rights to use them". She sighs as she points to the piles of garbage inundating the town, and says matter-of-factly, "Bambey could be rid of all this trash if the women and young people were running things." Like everyone else, the chairman of the rural community of Ngoye, Modou Guèye, is fully aware of the environmental degradation, the scarcity of water, and the sewage problems afflicting the area. Many people speak fondly of the "good old days" back in the 1960s, when water bodies were a common feature of Bambey and its surroundings: people happily drank from them, and washed their clothes in them."

Khodia Ndiaye is a journalist based in Dakar. Resource Person:Boubacar Niane, Ministry for the Environment and the Protection of Nature, BP. 4049 - Dakar, Senegal. IDRC Home Page, updated January 1998( http://www.idrc.ca/books/reports/1996/07-01e.html), 10/14/2001.


B. Environmental problem type
"The vast majority of the peoples of the Sahel and Sahelo-Sudan depends on agriculture for their livelihoods, but due to soil degradation and desertification, the ability of these people to support themselves is becoming increasingly precarious" (Golan, 1993:91). Deforestation, overgrazing, soil erosion, desertification, over-fishing, loss of floristic biodiversity and poaching of wildlife, in addition to rapid population growth, constitute Senegal's major environmental challenges, caused in part by the "rapid expansion of and continued dependence on peanut cultivation" (Golan, 93). These signs of environmental degradation are even more visible in the Groundnut Basin area. An environmental assessment (1980-1990) by the USGS of Senegal's major peanut producing areas points out the following signs of environmental degradation:
1. Central Peanut Basin: removal of vegetation cover creates wind erosion and soil degradation.
2. Central and Sine Saloum: advanced deforestation,(trees such as ditah, mbul, wolo, alom, etit dima are disappearing), intensive livestock raising and use of animal traction reduce vegetation cover. Moreover, in the 1960s, the state encouraged farmers to cut down trees as a way to expand areas for groundnut crops, creating a vicious pattern of deforestation, wind erosion and soil degradation.
3. Southern Saloum: 8 out of the 12 species of trees remain, loss of tree parkland and floristic diversity, wind and water erosion, shortening of the fallow periods.

Deforestation has a tremendous impact on the rural economy, especially for Senegalese peanut farmers as it negatively affect the "hydrological, climatological and global geochemical cycles." It also considerably increases carbon dioxide emissions. Inadequate use of the land and gradual removal of the tree cover tend to increase poverty, malnutrition, poor health, food insecurity and create large movements of population, as a result of reduction in incomes (World Bank: 1999, 7). Several factors account for such rapid environmental degradation:

Season Months Crop tasks
Nor February-April Gleaning, field manuring and clearing
Thioron May-June Shelling for seed, clearing
Navet July-October Shelling, sowing, weeding and lifting
Lolly November-January Stacking, threshing, transport and winnowing

Adapted from Copans et al., 1972; and 1981 surveys.

Senegalese agriculture is well representative of the continent's agricultural model: low input (labor intensive, little use of fertilizers, herbicides or soil conservation technology), small-holder and subsistence-oriented. Most Senegalese peanut farmers rely on animal traction, using horses and donkeys. Sine Saloum farmers are credited with the launching of such animal power, starting in the 1850s. They use simple manual tools such as plows and ilers, "an arrow shaped metal piece attached to a long stick" (Bonnefond & Couty, 96).

The "ring culture system" divides fields around villages between champs de case (nearby areas are manured for maize and millet) and champs de brousse (more distant fields reserved exclusively for peanuts), based on a system of crop rotation between millet, sorghum and peanuts (Ker, 1995; Speirs & Olsen, 1992:16). The practice of fallow or permanent cropping, that last three years, has been gradually replaced, since the mid 1970s, by crop rotation, thought to "minimize the incidence of infestation" (Jammeh & Ronade, 1989:5). Groundnut and millet/sorghum intercropping also represent insurance against crop failures caused by pests, diseases or weather. It increases returns to land especially for small-scale agriculture, better nutrition to households due to the variety of food crops and reduces soil erosion (Schilling & Misari, 103).

Use of fertilizers declined during the 1980s as structural adjustment policies removed government subsidies on inputs and credit. Senegalese farmers had no longer access to subsidized credit to purchase seeds, fertilizers, equipment and draft animals. They previously relied heavily on the government to supply seeds, which it has done from 1960 to 1986/1987, such that they "made few, if any, cash expenditures for peanut seeds" (Kelly & Delgado, 103.)

In 1987-1989, 67 to 70% of Senegalese peanut producers relied on personal reserves for seeds, compared to only 20 to 25% who actually purchased them. The remaining 5-10% relied on rural credit to purchase seeds, underlying the dependence of Senegalese producers on previous harvests to ensure future ones. Simultaneously, trade liberalization policies increased input prices, while peanut prices kept on falling, with a drop in real terms of 21% in 1981/1982 and 1987/1988. Average price of fertilizers increased by 51% between 1979 and 1989. Consumption of fertilizers dropped between 1980 and 1989, from 69.8 to 29.1 thousands of metric tons (108). Most fertilizers used for groundnut crops include phosphorus, calcium and sulfur, to make up for the low organic content matter in soils.

It is also important to note that groundnut research confirmed that the sole use of mineral fertilizers in soils of the Sudan-Sahelian Zone is insufficient to reduce soil acidification (Schilling & Misari: 1992, 97). In 1985-1986, only farmers who marketed their harvest through official channels were supplied with peanut seeds, in an effort to end smuggling to neighboring countries. As a result, an approximate 36% of farmers in the Groundnut Basin were denied access to peanut seeds.

Table 10: Fertilizer consumption in groundnut producing areas in Senegal (1980-1989)

Years 1980-1981 1981-1982 1982-1983 1983-1984 1984-1985 1985-1986 1987-1988 1988-1989 1990-1991
Fertilizer consumption (thousands of metric tons) 69.8 38.1 18.1 21.4 39 41 23.1 22.4 29.1
Ministere du Developpement Rural, 1986, USAID Mission

High seed prices also account for the decline in groundnut output, with prices ranging from 90 cfafr/kg for unshelled and 200 cfafr/kg for shelled groundnuts (103). Most farmers in the Groundnut Basin used mechanical weeding for weed control, while the most widely known herbicide, Gesaten, is only used by a few farmers who can afford to purchase it (Schilling & Misari, 104). Pest and crops diseases also further reduce the performance of groundnut crops, such as insects, myriapods, worms, fungi, viruses and weed, damaging as much as 50% of harvests.

The most common groundnut diseases are Rosette, Early and Late Spot and Rust. Rosette is the most prevalent in Senegal but the introduction of resistant seeds considerably reduced damages. In the case of the Early and Late Spot Diseases, measures of prevention such as groundnut/cereal crop rotation system, early sowing, the use of mineral fertilizers and refraining from using harvest groundnut residues have proven most effective. (104) The presence of aflatoxins also severely reduced the volume of groundnut exports from Senegal to the European Union in the 1970s and 1980s. Aflatoxins tend to cause hepatic lesions in animals and increases the occurrence of liver cancer in humans. Senegal's efforts to eliminate aflatoxin content in its groundnut exports have been very successful. Refining groundnuts during the extraction of oil removes most of the harmful substance but it remains present in seeds, seeds by products and cake for animal feed. Senegalese oil mills ensure the total elimination of aflatoxin in these latter products by corrective control or in other words, " removing the seed coat with hydrogen peroxide enables early segregation of contaminated seeds and makes sorting easier; detoxifying cake with ammonia makes it possible to obtain a safe, nitrogen enriched product" (107).

Difficult access and low use of inputs considerably impacted already low levels of productivity, returns of labor to land and incomes, in addition to low-mechanization of groundnut crops. Speirs and Olsen explained that "while the general level of mechanization during the 1970s was quite high and farmers rarely sowed, wedded, or harvested by hand, a process of de-mechanization is now underway in which farmers share fewer tools or do the work by hand" (16). On the other hand, cultivated areas for groundnuts and other crops increased by 15% between 1961-1963 and 1982-1984, while output per laborer considerably dropped.

Table 11: Cultivated area and output cultivated per laborer (1971 index=100)

  Cultivated area per laborer Output per laborer
191-1963 1,016 1,429
1982-1984 802 113.8

22. Name, type and diversity of species
Environmental degradation resulted in the loss of several trees such as Celtis Integrifolia (mbul), Termininalia macroptera (wolo), Diospyros mispiliformis (alom),Detarium senegalensis (ditah), Lopcocarphus Laxiflorus, Acacia Albida, Adansonia Digitaba (baobab), Guvera Senegalinsis (nguer), Combritum Glutinosem (rat)……(http//edcsnw3.cr.usgs.gov/ip/senegal2.pastoral.htm).
Other signs of environmental degradation include loss of biodiversity, and poaching of wildlife.

23. Resource Impact and Effect
Unsustainable agricultural techniques in Senegal resulted in "a vicious circle of depleted soil fertility, long-term decline in crop yields, a reduction in the earning power of farming communities" (Chemonics, 2000:12).

24.Urgency and Lifetime
Failure to take rapid action against unsustainable methods of agriculture could result in food shortages and insecurity, disintegration of rural ways of life, unemployment, in addition to the breakdown of ecosystems; "the likely consequences are overall impoverishment, increasing inequality, and risks of social disturbances" (Bonnefond & Couty, 43). The majority of Senegalese lives off agriculture. Unsustainable agriculture is a direct threat to their ways of life and culture as decades of neglect and destructive domestic policies showed that "Senegal's traditional agriculture is reaching its breaking point." (Chemonics, 13).

25.Substitutes
1) Substitutes to groundnut oil include: palm oil, soybean, coconut and sunflower oilseeds.


2) Alternative agriculture: migration and crop diversification

Migration and crop diversification are often suggested as possible solutions to the decline of the agricultural sector in Senegal. A 1987 study in 2 villages in the Groundnut Basin, carried out by Elise Golan, examines the validity of such suggestions. Two villages selected, Keur Marie and Keur Magaye, are located respectively located West and East of Kaolack, in the Groundnut Basin. Keur Marie is more densely populated than Keur Magaye with a total of 22 compounds, compared to 22. The study lasted five months, January to May 1987.

Findings of the study report that populations of Keur Marie and Keur Magaye already adopted migration and crop diversification as coping mechanisms for years. Residents of Keur Marie received 31% of their income from remittances of migrant workers, compared to 30% for Keur Magaye's residents. One Keur Magaye resident, who worked as bookkeeper in Kaolack, sent as much as 1,800,000 CFA francs to his village. Extra-agricultural activities also complement groundnut farmers' incomes, "in Keur Marie, 818,000 CFA of compound income (or 10%) was gained through service or commerce activities while in Keur Magaye, this number was 817,725 CFA (5% of total income)" (Golan, 98).

Nevertheless, migration a priori has no effect on environmental preservation due to the rapid replacement on the field of migrant workers, or by the reduction in peanut production; "the increase in compound income due to increased migration is exactly cancelled by the decrease in compound income due to reduced peanut production" (Golan, 104). Migration tends to result in lower labor productivity and a shift to monocropping, which further erodes soils.

Moreover, increased trends towards rural exodus increased the number of households headed by single females, whose workload is substantially lengthened. The newly appointed heads of households must maintain the level of production of subsistence crops such as millet and sorghum, as the expense of cash crops (peanuts). Golan explains " non -migrant could simultaneously lose direct access to cash income via the reduction in peanut cultivation"(104). Women are also more likely to suffer from reduced income, due to their restricted access to inputs and land in general.

Internal migration within Senegal, from the rural areas to the cities, started in the 1950s as a temporary and concentrated phenomenon. Nevertheless, with increasingly economic and social situation and the incidence of severe droughts over the past thirty years; internal migration trends have taken on a more long-term aspect.
Three types of migration occur in Senegal:
1)Nomadic herders: the Fulani pastoralists travel within the Ferlo region
·2)Farmers move to the cities, during the dry season that lasts 7 to 9 months, where they work as wage labor and sent remittances to families left in villages. This increasing movements of population resulted in the spur of shantytowns within Dakar, the capital and other major cities. This type of migration would also apply to the Golan case study, cited before. 1986 figures estimate that as much as 33% of the labor force from the Upper Senegal region migrated to large cities.
·3)Fishermen from Dakar, Saint-Louis and Mbour along the Coast.

Migration usually creates labor shortages on the fields, which are filled with the hiring of navetanes, "wolof term for seasonal labourers who work in the groundnut and millet fields during the rainy season for payment in cash or kind" (Sow: 1999:26). Nevertheless, these navetanes only provide short-term relief, as the labor shortages lead to a shift to monocropping, with the subsequent negative consequences for resources management.

3) Biotechnology
Biotechnology research offers another alternative to declining groundnut yields and environmental degradation. Current research suggests that there is a huge potential for improving groundnut yields, using technologies for genetic analysis and gene transfers. The application of molecular marker technologies obtained promising results, according to experts; "two of the most advanced of these technologies, restriction fragment length polymorphism (RFL) and randomly polymorphic DNA (RAPD), have been successfully applied to both the cultivated groundnut and its wild relatives" (Weissinger: 1992, 317).

4)Towards a more sustainable use and management of natural resources: International Environment Treaties
Senegal adopted the following agreements to combat the economic and human impact of environmental degradation:
Convention of the African Migratory Locust Organization, May 2, 5 1962. aims to "exercise continuous surveillance and preventive control of the African Migratory Locust in the outbreak area already recognized on the River Niger."

African Convention on the Conservation of Nature and Natural Resources, June 16, 1969, in which "the contracting States shall undertake to adapt the measures to ensure conservation, utilization and development of soil, water, flora and faunal resources in accordance with scientific principles and with due regard to the best interests of the people."

International Convention to Combat Desertification in Countries experiencing serious drought and/or desertification, particularly in Africa, September 1994 that shows the members' commitment to combat desertification, land degradation and droughts.

VI. OTHER FACTORS
25. Culture
The peanut trade plays a vital role in the social fabric of Senegal. In fact, before the arrival of the French, chief villages sheltered marabouts, or Muslim clerics in exchange for spiritual protection and guidance. Gradually, the marabouts grew very powerful and started settling in their own villages, especially during the 17th century with the introduction of the peanut trade. The marabouts' religious and political influence drew a huge following of peasants and other rural inhabitants into these new founded villages, especially among the Wolof. The French later used the growing political and religious influence of the marabouts to establish secure trading zones throughout Senegal and defeat the last bastions of resistance.

Villages are founded either by a one person, whose descendants constitute the majority of today's population. Village life is characterized, in general by harmonious coexistence, with strong values of social cohesion, solidarity and teamwork. The strong social capital of these villages is translated into various collective actions such as money collection to install common water pumps, tree planting and food sharing during the dry season, among others. Speirs & Olsen note that "the homogeneity and the social cohesion in these villages do not indicate an egalitarian structure or a social system free of conflicts, but they denote a well-established and accepted structure of power, and a set of social rules" (30).

Group of settlers, driven by poverty and in search of a better life, also join these villages in such large numbers that they tend to outnumber the original inhabitants. This has been the case in the Groundnut Basin. Speirs & Olsen studied the migration trends in six villages in the Koungheul district: Tibot Escale (900 inhabitants), Taif (700 inhabitants), Gainth Pathe (1,000 inhabitants), Ngouye Dierry (1,500 inhabitants), Fasse Thiekene (700 inhabitants) and Kambidia Soce. The Koungheul's district has an average population density of 25 inhabitants per kilometer.

Senegal's ethnic composition is as follow:

Ethnic Group % of population in Senegal
Wolof 44
Fulani 17.5
Serer 14.8
Toucouleur 9
Diola 9
Mandingue 6.5
Other africans 4.5
Whites (French & Lebanese) 1

The Wolofs make up 90% of Koungheul's population. They came from the North of Senegal, in the 19th century, especially after the 1930s when groundnut trade began to flourish in the Groundnut Basin. The Peul Habobe and the Mandingue are the original settlers, who respectively occupied the Northern region as pastoralists and the Southern region. The Peul Habobe and Mandingue violently opposed the migration of the Wolofs in the 1930s . In the 1970s, severe droughts throughout the Sahel brought in the region a new group of settlers , the Fulani, who mixed with the Wolofs. Their offspring called the Toucouleurs settled in the North and represent now about 20% of the population. The Peul Fouta later arrived as migrants in the 1960s and took over the charcoal markets, thus largely contributing to large-scale deforestation. Other ethnic groups later migrated to Koungheul as a result of worsening economic conditions. Peanut production dropped by 21% between 1981-1982 and 1987-1988, while producer prices fell by 20 cfafr between 1986-1978 and 1988-1989 (14). The Maures settled in as pastoralists, along with the Bambara from neighboring Mali and Sereres from Northern Senegal. These new groups of migrants clashed over land and peanut trade as land became more and more scarce as population density grew; Speirs & Olsen explain that "the continuous inflow of migrants has resulted in increasing problems of land scarcity. The relative harmonious relations between the different ethnic groups in the past are gradually giving way to conflicts, particularly as disputes over land rights become more frequents. New arrivals have great difficulties in obtaining land" (15).

26. Trans-Boundary Issues: No

27. Rights: No

28. Relevant Literature : Email your feedback and comments to author

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  5. BCEAO, La commercialization de l'arachide au Senegal 1979-1980, No.300:1-22 Dec 1981.
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  48. Otsuki Tsunehiro, John S. Wilson and Mirvat Sewadeh, DECRG. Saving Two in a billion: A Case Study to quantify the trade effect of European food safety on African exports. Washington DC: The World Bank, 2001.
  49. Skully, David, "US Tariff-Rate Quotas for Peanuts" from Oil Crops Situations and Outlook, Economic Research Service /USDA, October 1999.
  50. WTO Committee on Agriculture Special Session, "agricultural trade negotiations in the WTO- Preliminary positions of Senegal" 19 March 2001.(http://www.wto.org/english/tratop_e/agric_e/ngw137_e.doc). 10/30/2001.
  51. Wilson John & Tsunehiro Otsuki. Global Trade and Food Safety: Winners and Losers in a Fragmented System. Washington DC: The World Bank, 2001.
  52. WTO, "Import Licensing , LIC" from WTO-Trade Policy Courses (13.1)
  53. World Bank, The World Bank and the Global Environment, A Progress Report. Washington DC: The World Bank, May 2000.
  54. "Senegal Orientation," African Consultants International, www./clark.edu/~nicole/Senegal/home.htm, 11/19/01
  55. "Wolof of Senegal," wwwz.ozland.net.au/users/jackson/wolof.htm, 11-19/01.
  56. AllAfrica.com (www.allafrica.com)
  57. Maps of Senegal are courtesy of Afrol (www.afrol.com)



1/2001