Rice market in the Volta basin: The case between
Burkina Faso and Ghana
Bruno Barbier CIRAD (Glowa Volta project)Laurent Compaoré (EIER) Kadidia Loncili (EIER)
04/22/23 Rice Policy - Warda Workshop Nov 2005 2
Uncertain world rice marketPressure on rice prices Increasing demand for rice in Asia and Africa Increasing demand for feed in Asia Some large asian countries are ready to give up self sufficiency Two small countries produce most of the surplus India not interested in rice export All want to diversify Land and water are becoming scarce Expensive energy requires new hydroelectric dam Research in irrigation and rice production stagnant or decreasedBut US likely to increase its share of production EU likely to increase wheat exports to Africa
04/22/23 Rice Policy - Warda Workshop Nov 2005 3
Rice demand in Burkina Faso
Typical of a landlocked country Rice still secondary in the national consumption
Mostly urban consumption
Population still attached to local cereals
Shifting from sorghum and millet to rice and maize (marginaly to wheat)
The CFA devaluation of 1994 (From Savadogo) Consummers reduced total food consumption
Rice share only decreased among the poor
Shares remainded similar
Perspective Can local rice producers respond to incentives
Wheat will become a competitor
National demand likely to rise fast regardless of relative prices
04/22/23 Rice Policy - Warda Workshop Nov 2005 4
Grain consumption in urban areas in Burkina Faso in 1997
0
5
10
15
20
25
1 2 3 4 5 6
Rice
Maize
Sorghum
Millet
Source: Savadogo and Kazianga 1999
Kgs/month
Average
04/22/23 Rice Policy - Warda Workshop Nov 2005 5
Rice production in perspective in Burkina Faso A small production with limited potential
Rice production is very small in regard to national grain production Marginal environment for rainfed production
Perspectives Increasing national demand Increasing transport costs for imported rice Regional integration Good response from lowland production after the 1994 devaluation Iimited potential from irrigaton and rainfed, better for lowland Competition from cotton and maize
04/22/23 Rice Policy - Warda Workshop Nov 2005 6
Rice production and imports in Burkina Faso
0
50000
100000
150000
200000
250000
300000
350000
1965
1968
1971
1974
1977
1980
1983
1986
1989
1992
1995
1998
2001
years
Padd
y eq
uiva
lent
in to
ns
ProductionImports
04/22/23 Rice Policy - Warda Workshop Nov 2005 7
Irrigated areas in sahelian countries
0
20
40
60
80
100
120
140
160
Mill
iers
d'h
ecta
res
Burkina FasoChadMaliMauritaniaNigerSenegal
Source: Faostat
04/22/23 Rice Policy - Warda Workshop Nov 2005 8
Irrigation development
04/22/23 Rice Policy - Warda Workshop Nov 2005 9
Volta basin GLOWAVolta
04/22/23 Rice Policy - Warda Workshop Nov 2005 10
04/22/23 Rice Policy - Warda Workshop Nov 2005 11
04/22/23 Rice Policy - Warda Workshop Nov 2005 12
Rice irrigation ?
The critics Irrigation area is very small Expansion of irrigation very expensive (more than $15000/ha) Sector still desorganised Water will be used for consumption and hydropower
The pro arguments Climate variability and change High risk premium of rainfed production Increasing gap between production and consumption High yield potential
04/22/23 Rice Policy - Warda Workshop Nov 2005 13
Policy options
Taxes Import taxes: increase the TEC Adjusted taxes Careful about the EPA (EU)
Subsidies Already large subsidies for irrigated schemes Need of support on research, extension and training
Migrations Towards less populated and more humid regions Infrastructure and services in less populated regions Promote mechanisation and herbicides in less populated
regions
04/22/23 Rice Policy - Warda Workshop Nov 2005 14
Current CIRAD participation in projects on related policies
Food security and regional integration (Cirad funding) CGEs for Sénégal, Mali, Burkina and Ghana
Glowa Volta project (German funding) Sector economic models in Burkina and Ghana Linked to a volta basin an hydrologic framework
Seamless (Eu funding) Sector model for Mali including « office du Niger »
Lowland project (consortium bas-fonds)
.
04/22/23 Rice Policy - Warda Workshop Nov 2005 15
Thank you
Top Related