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MIS & REGULATION OF AGRICULTURAL
             MARKETS IN SENEGAL:
The ‘‘Agence de Régulation des Marchés’’
                                   case


                              Idrissa WADE
EVOLUTION GOVERNMENT INTERVENTION IN AGRICULTURE

    Before 1995: Monopoly
        State monopoly on rice distribution and importation

    In 1995: Regulation through information
      Liberalization but
      Creation of MIS :“Cellule de Gestion et de Surveillance des
       Marchés du Riz’’

    In 2002: Regulation through policy discussion
     between policy makers and commodity associations
      ARM created for this instance
      Support of new products: onion, potato, banana, rice, millet




                                                                      2
PRESENTATION OF ARM
   Autonomous administrative structure under the
    technical supervision of the Ministry of Trade
   Objectives:
       monitoring markets prices evolution, particularly
        through an alert and information system that enable
        decision makers to have information on the status of
        markets, and
       facilitate a discussion involving actors of agricultural
        commodity supply chains.



                                                                   3
REGULATION SYSTEM
   Inter-professional body includes representatives
    of :
        Producers
        Manufacturers

        Financial institutions, input suppliers, agricultural service

         providers
        Traders

        Consumers,

        Public institutions and development agencies


   MIS covers up the entire country with:
          174 permanent markets and
          182 weekly markets
                                                                         4
ONION CASE
   Onion first rank of the CUMAR
       In 2009:
           Sup. 5100 ha and a prod. 82.300 T [DH, 2007]
       principal consumed vegetable:
         20% of the vegetable total expenditure
         6 kg/per capita/year in 1990 to 14 kg/per capita/year in 2007




                                                                          5
6
7
8
9
RELEASE ELEMENT :
        COMPETITION OF IMPORTED ONION

   1999: Overproduction
       February : under 50 FCFA ( >100 FCFA year before)
       Creation a committee with assistance SAED
        (development agency)
   Measures
       price min 100 FCFA
       Fixing of quotas
       Control trucks
 beginning of May: raise prices 80-100 FCFA
 At the end of May: lower prices

                                                            10
CADRE NATIONAL DE CONCERTATION
                        ET DE SUIVI

 OIP:
cadre regroupant des groupes d’acteurs d’une filière
   ayant établis des concertations, des contrats ou
                   des coordinations
 Activité essentielle : Elaborer des accords



   Point clé du respect des accords (Ménard, 2003)
       Enforceability: capacité d'implémenter ex -ante des
        règles et des procédures de mise en œuvre réalisables
       Enforcement: dispositifs nécessaires pour rendre
        ces règles opérationnelles ex –post
                                                                11
       Contrôle: Information
   Producers:
       APOV, AUMN, ANDH, UJAK, APPN, ONAPES
   Traders:
       UNACOIS et UNACOIS/DEF
 Consumers
 Public institutions and development agencies
       DCI, DCE, DPV, Douane, DH, SAED



                                                 12
CADRE NATIONAL DE CONCERTATION
                           ET DE SUIVI

 prior to the signature of the agreement many
  activities, such as value chain diagnosis,
  consultation roundtables, and strategy and action
  plan definition, among others, are carried out
 Agreements :
       Restriction period
       Price charter
   Execution of agreements
       Stop of delivery
          prior approvals and inspection statements by the DPV
          Importation statement by the DCI

                                                                  13
Year                 2003                  2007
 Production (tonnes   70 000                120 000
 Price (F CFA/kg)     75-100                125-175




•necessary government intervention to ensure the effectiveness
of agreements

•possibility of the emergence of collective strategies for a
concerted regulation of agricultural markets in connection with
the government.
                                                                  14

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Wade CIRAD 2010

  • 1. MIS & REGULATION OF AGRICULTURAL MARKETS IN SENEGAL: The ‘‘Agence de Régulation des Marchés’’ case Idrissa WADE
  • 2. EVOLUTION GOVERNMENT INTERVENTION IN AGRICULTURE  Before 1995: Monopoly  State monopoly on rice distribution and importation  In 1995: Regulation through information  Liberalization but  Creation of MIS :“Cellule de Gestion et de Surveillance des Marchés du Riz’’  In 2002: Regulation through policy discussion between policy makers and commodity associations  ARM created for this instance  Support of new products: onion, potato, banana, rice, millet 2
  • 3. PRESENTATION OF ARM  Autonomous administrative structure under the technical supervision of the Ministry of Trade  Objectives:  monitoring markets prices evolution, particularly through an alert and information system that enable decision makers to have information on the status of markets, and  facilitate a discussion involving actors of agricultural commodity supply chains. 3
  • 4. REGULATION SYSTEM  Inter-professional body includes representatives of :  Producers  Manufacturers  Financial institutions, input suppliers, agricultural service providers  Traders  Consumers,  Public institutions and development agencies  MIS covers up the entire country with:  174 permanent markets and  182 weekly markets 4
  • 5. ONION CASE  Onion first rank of the CUMAR  In 2009:  Sup. 5100 ha and a prod. 82.300 T [DH, 2007]  principal consumed vegetable:  20% of the vegetable total expenditure  6 kg/per capita/year in 1990 to 14 kg/per capita/year in 2007 5
  • 6. 6
  • 7. 7
  • 8. 8
  • 9. 9
  • 10. RELEASE ELEMENT : COMPETITION OF IMPORTED ONION  1999: Overproduction  February : under 50 FCFA ( >100 FCFA year before)  Creation a committee with assistance SAED (development agency)  Measures  price min 100 FCFA  Fixing of quotas  Control trucks  beginning of May: raise prices 80-100 FCFA  At the end of May: lower prices 10
  • 11. CADRE NATIONAL DE CONCERTATION ET DE SUIVI  OIP: cadre regroupant des groupes d’acteurs d’une filière ayant établis des concertations, des contrats ou des coordinations  Activité essentielle : Elaborer des accords  Point clé du respect des accords (Ménard, 2003)  Enforceability: capacité d'implémenter ex -ante des règles et des procédures de mise en œuvre réalisables  Enforcement: dispositifs nécessaires pour rendre ces règles opérationnelles ex –post 11  Contrôle: Information
  • 12. Producers:  APOV, AUMN, ANDH, UJAK, APPN, ONAPES  Traders:  UNACOIS et UNACOIS/DEF  Consumers  Public institutions and development agencies  DCI, DCE, DPV, Douane, DH, SAED 12
  • 13. CADRE NATIONAL DE CONCERTATION ET DE SUIVI  prior to the signature of the agreement many activities, such as value chain diagnosis, consultation roundtables, and strategy and action plan definition, among others, are carried out  Agreements :  Restriction period  Price charter  Execution of agreements  Stop of delivery  prior approvals and inspection statements by the DPV  Importation statement by the DCI 13
  • 14. Year 2003 2007 Production (tonnes 70 000 120 000 Price (F CFA/kg) 75-100 125-175 •necessary government intervention to ensure the effectiveness of agreements •possibility of the emergence of collective strategies for a concerted regulation of agricultural markets in connection with the government. 14