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)

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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

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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

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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

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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

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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

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Irrigated areas in sahelian countries

0

20

40

60

80

100

120

140

160

Mill

iers

d'h

ecta

res

Burkina FasoChadMaliMauritaniaNigerSenegal

Source: Faostat

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Irrigation development

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Volta basin GLOWAVolta

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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

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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

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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)

.

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Thank you