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Spatial price transmission and market integration in Senegal's groundnut market

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  • Badiane, Ousmane
  • Ulimwengu, John M.
  • Wouterse, Fleur Stephanie

Abstract

Senegalese agriculture is unusually specialized in just three products: groundnuts, rice, and millet. Groundnuts have remained Senegal's premier export crop, rice remains the principle importable food, and millet is the principal food crop (Masters 2007). Senegal has been considered one of the most highly controlled markets in West Africa (Masters 2007). Historically, the Senegalese government has maintained a monopoly both on the purchase of groundnuts and on processing them into oil. At the beginning of the season, the government would set one producer price for groundnuts throughout the country. Accepting this pan-territorial price, farmers were required to sell their groundnuts to official agencies. Since the cost of transporting the groundnuts from the collection points near the villages to the mill was borne by the government or its parastatal groundnut agency (la Société Nationale de Commercialisation des Oléagineux du Sénégal [SONACOS]), every farmer received the same price, regardless of how far the farm was from the groundnut mill (Gray 2002).

Suggested Citation

  • Badiane, Ousmane & Ulimwengu, John M. & Wouterse, Fleur Stephanie, 2010. "Spatial price transmission and market integration in Senegal's groundnut market," IFPRI discussion papers 1014, International Food Policy Research Institute (IFPRI).
    • Handle: RePEc:fpr:ifprid:1014
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    References listed on IDEAS

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    6. Masters, William A., 2007. "Distortions to Agricultural Incentives in Senegal," Agricultural Distortions Working Paper Series 48517, World Bank.
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    Cited by:

    1. Ankamah-Yeboah, Isaac, 2012. "Spatial Price Transmission in the Regional Maize Markets in Ghana," MPRA Paper 49720, University Library of Munich, Germany.
    2. Tankari, Mahamadou Roufahi, 2012. "Global price transmission in Senegal’s groundnut markets: can smallholders benefit from high international prices?," MPRA Paper 53395, University Library of Munich, Germany.
    3. Séne, Ligane Massamba, 2014. "Heterogeneous responses to heterogeneous food price shocks in Senegal: insights from a CGE," MPRA Paper 58835, University Library of Munich, Germany.
    4. Ijambo, Bertha Deshimona, 2017. "An econometric analysis of spatial market integration and price formation in the Namibian sheep industry," Research Theses 334744, Collaborative Masters Program in Agricultural and Applied Economics.

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