1. Brief description of the project

1. International Workshop on Trade-liberalisation in the Rice Sector SENEGAL20 September 2005- Geneva Institute of Environmental Sciences (UCAD) and Senegalese Agricultural Research Institute (ISRA) Par Prof Abdoulaye SENE Dr Amadou Abdoulaye FALL

2. 1. Brief description of the project • Integrated assessment to • determine direct and indirect effects of trade liberalization and • assess economic, environmental and social impacts • Institutions directly involved • Ministries of trade, environment and agriculture • Research institutions : ISRA, ADRAO • University UCAD: ISE project leader • National steering committee composed of different agencies • Key stakeholders involved and their roles - Producers organizations - Consumers organizations - Traders (local and importer) and - NGOs,….

3. 2. Other relevant background information • Rice represents 34 % national cereals consumed ; 54 % of cereals consumed in urban areas and 24 % of rural areas ; • Rice accounts 25 % rural households food budget and 18 % of urban household • However: local paddy production is 200 000 tones maximum • rice imports per year: 600 000 tones for about 100 milliards CFA francs (second world larger broken rice importer) • Phase of trade liberalization : several reforms leading to more transparency and openness in the framework of WAEMU • Poverty issues: 54% of the population live below poverty line

4. 3. METHODS • Methods used for stakeholder participation - screening and preliminary assessment - participatory rural appraisal - four-day stakeholder workshop - stakeholder individual interviews • Methods used to analyze economic, social and environmental impacts and their inter-linkages - combination of EIA and Policy Analysis Matrix - mix of qualitative and quantitative approaches

5. 4. Main impacts identified by IA4.1. Social and cultural impacts • Positive impact on structuring farmer organizations • Professional improvement and more responsibilities in decision making and mostly on market issues • Positive impacts on rice importers and local traders • Competition rules the market reform But • disorganization of local rice market • lack of visibility (labeling and other marketing promotion) for consumers, service suppliers and others actors • social differentiation between winners and losers

6. 4. Main impacts identified by IA4.2.Economic impacts • Negative impacts of reforms on production - Increase vulnerability of paddy rice - Distortion on collection and payment process of VAT - Unfair commercial practices • Positive impacts of reforms on production -Transfer of responsibilities - Introduction of new and soft technologies - Diversification of supply sources and high quality rice - Better use of by-products - Renewed interest in diversification to other crops

7. MARKET IMPACTS • Increase in producer paddy price variation (60-70 ; 80-90 ; 100-125 CFA franc/kg); • High Capacity Building for CIRIZ members on price negotiation • Increase producer nominal price, butstagnant (or even in decrease) real price; • Efficient Input distribution by private sector (increase in volumes and financial assets); • Intensive research and quality rice promotion : rice separator, improved marketing process (bag, label..) and introduction of perfumed basmati rice, etc.);

8. SERVICES IMPACT • Service Providers: Increase in nominal prices (58% for labour ; 24 % offset ; 66 % scheme repair) ; but equipment renewal problems • Producer: Improved labor productivity with motorized mechanization (increased yield 3 t to 5.5 t/ha); but increase in production costs • Community: local employment generation • Sector : Improved paddy milling yield from 55 % to 66 % • Over milling capacity (150 000 t/an) ; • Decrease in paddy milling cost (18,9 to 14,5 F/kg) ; • Rice separator in milling industries (quality orientation) • High research technologies introduced (ASI and ISA in process) ;

9. IMPACT ON RICE COMPETITIVENESS

10. COMPETITIVENESS IMPACT ON LOCAL RICE • Local rice fairly competitive; • High difference with respect to production zones ; local rice competitive except in Anambe zone • Improved CIR after liberalization (CIR 1,93 in 1993 to 1,07 in 2000) • High progress in rice sector (Average yield 5,5t/ha but with a potential yield of 10t/ha • Quality promotion and orientation • Lot of efforts required in the basin of Anambé in terms of productivity improvement

11. 4.Main impacts identified by IA4.3. Environmental and health impacts • Changes in use and property rights on water and land management • Limited risk of bioaccumulation of pesticides in food chain with regards to rice growing system • Reforestation in irrigated areas for intensive rice production system • Increased health risks (malaria, bilharzias, etc) But • Less use of pesticides and inorganic fertilizers

12. 5. Linkages and synergies identified • High linkages identified between producers and service providers (milling industries, offset and post harvest services, etc.) • Producers and policy makers in WTO negotiations process (high farmers union implication) • Market Regulation Agency (ARM) facilitates rice information flows between stakeholders, and contributes to local rice distribution

13. 6. Integrated impact of trade-liberalization on the rice sector • Development of rice production aims to target food security, alleviate poverty and achieve rural development objectives • Local rice production is facing difficulties due to institutional problems and disorganized distribution channels • Positive competitiveness for local production in regional integration

14. 7. Main lessons learned from project • Managing interdisciplinary team & learning process • Involving various stakeholders on participatory basis– capacity building • Putting information together and exchanges • Innovative process claimed by all the different stakeholders But • Long lasting process

15. 8. Main recommendations resulting from project • Institutional arrangements and measures are implemented but still need harmonization for different initiatives or set dynamic dialogue structure for critical stakeholders • Leadership and involvement of the Inter Professional Union of Rice Producers should be reinforced • Linkage between institutions and policy national dialogue should be improved

16. 9. Main activities taken to implement recommendations • Communication in different fora : ex. the celebration of « Journées du riz » • Analytical framework at the Sub Committee Trade-Environment of National Committee for International Trade Negotiations being implemented by Joint Integrated Technical Assistance Program • National workshop on project results

17. 10. Main achievements of project • Large stakeholder participation and linkage; • Better analysis and information flow; • Better communication (inter-ministries, inter-institutions, between stakeholder groups, ..)

18. 11. Main achievements of project • Relevant rice issues known and accepted by main stakeholders • High implication of policy decision makers in the IA process (Agriculture, Finance, Environment and Trade Ministries) • Frequent exchange and information flow within teamwork, participative data generation and analysis • Capacity building through exchanged experience and high linkage between directly involved actors

19. 12. Challenges faced in follow-up • Conflicting interest between some stakeholders (ex. importers and farmers) • Lack of communication and linkage • Policy distortion and financial shortage

20. 13. What is needed to move ahead? • Clear Policy vision and fully state support (light is coming up– Presidential workshop on rice issues) • Strong communication channels among stakeholders and reinforcement of linkages • Creation of Steering committee to take leading role, stimulate stakeholders participation and monitoring activities • UNEP, government or other organizations support to financing, capacity building and information flow

21. THANK YOU