Agriculture in Senegal - Situation and Outlook of The Agricultural Sector

Situation and Outlook of The Agricultural Sector

Most of Senegal lies within the drought-prone Sahel region, with irregular rainfall and generally poor soils. With only about 5% of the land irrigated, Senegal continues to rely on rain-fed agriculture, which occupies about 75% of its workforce. The sector is inhibited due to low output and limited investments. Although this sector was impacted by a locust invasion in 2004, it has recovered and gross agricultural production was expected to increase by 6.1% in 2006 and 5.1% in 2007. Reforms of the agricultural sector have suppressed direct government support and engaged the privatization of state holdings. The main agricultural crops are peanuts and cotton—both being important sources of foreign exchange income—as well as millet, rice, corn, sugarcane, and livestock.

Peanuts are the engine of the rural economy and their production accounts for around 40 percent of cultivated land, taking up two million hectares. The peanut sector provides employment for as many as one million people. The industry has been suffering from the effects of the privatization of the agricultural sector and the elimination of the import ban on peanut and other edible oils. However, the peanut sector is still dominated by SONACOS, which has been renamed SUNEOR starting January 1, 2007, thus marking the end of the privatization process which started in 2004 when the government decided to sell its shares to Advens, a private consortium including a Lebanese-French businessman, the Belgian peanut machinery manufacturer Desmet, SODEFITEX (the cotton ginning company), and SONACOS employees. In recent years, the reported average annual peanut production lies around 828,000 tons (95% for oil). Cotton accounts for about 3% of total exports and the third source of export earnings for Senegal (some 28 million US dollars over the period 1995-2000). Cotton is grown in nearly every region and covers almost one third of cultivated acreage. The cotton industry is managed through the former parastatal SODEFITEX, which was privatized in November 2003 with producers holding 30% of the company's shares. Production of food crops does not meet Senegal's needs. The production of major staple food crops covers barely 30% of consumption needs. Only in years of favorable rainfall does the country approach self-sufficiency in millet and sorghum, the basic staples with rice. The livestock population includes approximately 3.1 million cattle and 8.7 million sheep and goats. Cattle are reared extensively and on a small-scale basis. Poultry production has increased and has great potential for growth. Despite a significant livestock population, Senegal remains a net importer of meat, especially sheep (live) during major holidays and religious events.