The contractual agreements role in developing local dairy system and mini-dairies in Senegal[Le rôle des arrangements contractuels dans le développement du système laitier local et des mini-laiteries au Sénégal]

The development of small processing enterprises has played a determinant role in stimulating adoption of innovation in the local dairy system and creating new markets. However, the stability and the viability of this system are weakened by uncertainties associated with the production and the quality of the products. The stability and the reliability of milk supply are major preoccupations in the dairy markets. These problems were studied in the case of the market of local milk in Senegal, and mainly in the Kolda region, by analysing the transactions and the contractual relations between the stakeholders of the market chain. The results show that to reduce market deficiencies and transactional uncertainties, different hybrid coordination mechanisms, based on contractual agreements are used by actors. The contractual agreements relate to the collective bargaining and determination of the prices, the agreements of milk transport with the milk collector and delivery man (collecteurs/livreurs), the bound transactions by providing credits to the producers, in particular for inputs. With the lack of public devices to regulate transaction, these contracts don't contribute only to reduce the weakness of market information, but also to mitigate the risks in relation with the frauds on quality, with strong seasonality of supply (uncertainty on delivery) and demand (low incomes of the consumers).