FINAL RESEARCH REPORT ON THE "WEST AFRICA" CORRIDOR

Transcription

1 CHEIKH ANTA DIOP UNIVERSITY, DAKAR (UCAD) FACULTY OF ECONOMIC AND MANAGEMENT SCIENCES (FEMS)... RESEARCH AND TRAINING CENTRE FOR ECONOMIC AND SOCIAL DEVELOPMENT (CREFDES) RESEARCH AND DEVELOPMENT ANALYSIS LABORATORY (LARED).. FINAL RESEARCH REPORT ON THE "WEST AFRICA" CORRIDOR June

2 Table of Contents 1. Introduction General Context for Fisheries Development in West Africa Fisheries production in West Africa Access to and demand for fish products Value of fishery products exports in West Africa World Fish Centre's Fish Trade Program: An opportunity to boost intra-regional trade in fisheries products in West Africa Project Objectives...Error! Bookmark not defined.6 3. Activities to be implemented...error! Bookmark not defined Preparation of an initial reception report of the project:... Error! Bookmark not defined Mobilisation and Training of Students... Error! Bookmark not defined Preparation of the Quarterly Preliminary Report... Error! Bookmark not defined Bi-annual Monitoring Report... Error! Bookmark not defined Submission of the Final Report on the Analysis of the "West Africa" Corridor... Error! Bookmark not defined.7 4. Expected results Working Methodologies..18 CHAPTER I: MAP OF TRADE IN FISHERY PRODUCTS BETWEEN SENEGAL AND OTHER WEST AFRICAN COUNTRIES Context and rationale Analysis of the evolution of bilateral trade in fishery products in SenegalError! Bookmark not defined Exports of fish products and volume production... Error! Bookmark not defined FCFA Value of Senegal's exports and imports... Error! Bookmark not defined.1 3. Main constraints to trade of fishery products in Senegal...Error! Bookmark not defined.3 4. Calculation of export intensity index...error! Bookmark not defined Method of calculation and justification... Error! Bookmark not defined.4 5. Data Sources...Error! Bookmark not defined.5 6. Conclusion and recommendations CHAPTER II: EVALUATION OF TRADE POLICIES IN THE FISHERIES SECTOR IN SENEGAL Introduction Review of trade policies in the fisheries sector in Senegal The statutes of frank points and export-oriented enterprises Export subsidies... Error! Bookmark not defined The devaluation of the CFA franc Partnership agreements with the European Union Methodological approach...error! Bookmark not defined.0 1

3 3.1. Document Review... Error! Bookmark not defined Data Collection and Processing... Error! Bookmark not defined Analytical models... Error! Bookmark not defined.1 4. Estimates and interpretation of results...error! Bookmark not defined Impact of subsidies on the sustainable management of fisheries resources Error! Bookmark not defined Impact of fisheries subsidies and fisheries agreements... Error! Bookmark not defined Effects of EPAs on intra-regional trade... Error! Bookmark not defined.3 5. Conclusion CHAPTER III: ANALYSIS OF THE VALUE CHAIN OF FISH PRODUCTS PROCESSED IN SENEGAL AND EXPORTED TO WEST AFRICA Introduction Description of the value chain Players in the value chain Processed products Marketing of processed products Value chain analysis on the West African corridor Analysis of the commercialisation of Kethiakh Creation of value addition through price analysis and calculation of margins... Error! Bookmark not defined Constraints to be lifted in order to improve the chain V. Conclusion BIBLIOGRAPHICAL REFERENCES ANNEXES

4 List of tables Table 1: Production of fisheries sectors in West Africa, in tonnes... 7 Table 2: Value of exports of fishery products from West African countries in Table 3: Destination of exports of fishery products from West African countries Table 4: Senegal s fresh and frozen fish exports by volume Table 5: Average of exports of different categories of fishery products over the period (in thousands of dollars) Table 6: Breakdown of players in the value chain Table 7: "Kétiakh" production operational costs Table 8: Calculation of prices and margins on the local market in Senegal Table 9: Calculation of prices and margins in the Burkinabe market

5 List of diagrams Diagram 1: Map of Senegal s bilateral trade Diagram 2: Changes in exports (small-scale and industrial sectors) and production... Error! Bookmark not defined.0 Diagram 3: Bilateral exports of fishery products FOB (in FCFA) Diagram 4: Bilateral imports of fishery products CAF (in FCFA) Diagram 5: Senegal's total trade flows (in FCAF) to all the countries in the region Diagram 6: Presentation of results and interpretations Diagram 7: Changes in the annual growth rate of the volume of Senegal s fishery product exports Diagram 8: Changes in Senegal's Exchange Preference Index (EPI) on the regional market in relation to that of the European Union Diagram 9: Developments in the production of processed products from 2007 to Diagram 10: Exports of products to West African countries Diagram 11: Changes in exports of processed products in West Africa

6 Acronyms ACP: African, Caribbean and Pacific Group of States EPA: Economic Partnership Agreements ANSD: National Statistics and Demography Agency FR: Fishery Resources ECOWAS: Economic Community of West African States DPM: Marine Fisheries Directorate EPI: Exchange Preference Index WTO: World Trade Organization SP: Sea products FP: Fishery products REPAO: Network on Fishing Policies in West Africa EU: European Union EPZ: Export Processing Zone 5

7 1. Introduction More than 38 million people work in fisheries around the world, while more than one billion people depend on fish as their primary source of animal protein. Despite this economic and social significance, fishing sectors are experiencing an unprecedented crisis in the world characterized by scarcity of resources. According to FAO, nearly 70% of the world's fish stocks are now either fully exploited or overfished. At the same time, world trade in fishery products is characterized by an overall increase in demand and a tightening of supply mainly due to a decline in fish stocks, with a direct consequence of a sustained increase in the prices of fish products in international trade. International trade in fishery products is particularly important for developing countries. In fact, they account for 50% of world exports, while developed countries account for 80% of world imports (the EU is the largest importer followed by Japan and the United States). Negotiations on the liberalization of world trade under the auspices of the WTO will have implications for access to fisheries resources and markets. Approximately 10 million people work in the fisheries sector in Africa, of which 7 million are in West and Central Africa. In West Africa, exports and direct access to fisheries resources, in particular through fisheries agreements such as the EU s Fisheries Partnership Agreements (FPAs), are the two main ways of supplying international markets. In addition to these two legal ways, there is Illegal, Unregulated and Unreported (IUU) fishing, commonly known as pirate fishing, which is very common in the waters of southern countries and is difficult to quantify. Fisheries provide many benefits, including economic growth, sustainable livelihoods for a large proportion of the population, and a major source of food protein. The fisheries sector, including aquaculture, is undoubtedly one of the main components of the future development of the countries of West Africa. Yet this sector has been under threat for years due to over-exploitation of fishery resources. This has had consequences not only on the state of the stocks but also on the economy of the fisheries. Scientists agree that fishing effort is far too large and that fishing in West Africa is under threat. In this respect, sectorial policy orientations and their implementation are one of the key elements in the future of fisheries and aquaculture, although these are, of course, decisive in determining priorities in terms of access to resources and markets. In fact, in West Africa, fishery resources are an essential component of the economies of countries. The fisheries sectors represent between 10-30% of the budgetary revenues of the states of several West African countries. Between 2000 and 2010, the financial compensation of the fisheries access agreements with the EU contributed more than 30% of Guinea Bissau and Mauritania's budgetary revenues (REPAO 2010). The governments of West African countries, in most cases, justify fisheries agreements by the size of the financial compensation they receive. At the same time, however, they know that better fisheries management in these countries could result in the States obtaining greater financial benefits than financial compensation. Factors of over-exploitation of fisheries resources are: inadequate, inconsistent or unsustainable fisheries management policies; illegal, unreported and unregulated fishing and the existence of over-capacity in relation to the availability of the resource. Aquaculture, for its part, has developed considerably over the last twenty years, especially in Asia (China and India). Aquaculture products already accounted for 16 million tonnes, or 19% of the world's fish production, in For humankind to maintain its current level of consumption of fish and other aquatic products, aquaculture production will have to double over the next twenty years. Of note is that aquaculture was the world's fastest growing food production system (10% per annum) between 1984 and 1996, while world production of fisheries recorded a lower rate of 2% over the same period. 6

8 Competition for access to fisheries resources is now increasingly difficult between different forms of fisheries (foreign fishing/national fisheries, industrial/small-scale fishing, authorized fishing/illegal fishing) to satisfy increasingly demanding markets. It is clear, therefore, that West African countries, in order to face these different challenges of the fisheries sector, must put in place coherent fisheries policies that reconcile increased export earnings, fulfillment of the internal demand for fish and other fish products while ensuring sustainable management of fishery resources General Context for Fisheries Development in West Africa The countries of West Africa together cover a total area of 6.13 million km² and have a total population of million. They benefit enjoy km of coastline and an Exclusive Economic Zone (EEZ) of km 2. Fisheries sectors are an essential component of the economic and social development of the countries of West Africa. They contribute considerably to the GDP of these countries: about 7% in Guinea Bissau, 4.2% in Mali, 2.5% in Guinea and 1% in Côte d'ivoire. Fishing also contributes to State revenue through royalties and financial compensation received under the various fisheries agreements. Fish is the most accessible source of animal protein for populations in West African countries, most of which have low purchasing power. It therefore plays an important role in satisfying the nutritional needs of populations. In addition, fisheries sectors are a well-known source of employment Fisheries production in West Africa While it did not exceed tonnes in the early 1960s, fisheries production in ECOWAS countries is now estimated at more than 2 million tonnes. According to the most recent FAO data, total West African production from all sources is 2,122,137.2 tonnes in 2008, almost 3.5% of total world production. Table 1: Production of fisheries sectors in West Africa, in tonnes. Country Nigeria Senegal Ghana ,5 Sierra Leone , Mauritania , Mali Guinea Côte d'ivoire Gambia ,5 7

9 Benin 37007, , ,7 Niger Cape Verde Togo Burkina Faso Liberia Guinea-Bissau 7310,5 6750,5 6750,5 Total , ,2 Source: Fishstat; FAO 2010 The importance of fisheries production in West Africa hides large disparities between countries. In fact, it can be noted that there is a group of countries that are major fish producers: Nigeria, Senegal, Ghana and Mauritania. There is another group of countries with high fishery potential but whose production is essentially extraverted, that is to say that the fishing potential, although significant, is exploited by foreign fishing vessels that do not land on ports. This group of countries includes Guinea Bissau, Sierra Leone and Liberia. In these countries, due to the lack of political and economic stability (wars, coups), Illegal, Unregulated and Unreported (IUU) fishing has developed considerably. Finally, there is another group of continental countries where fishing has developed thanks to the existence of major rivers (Niger and Senegal rivers). These are Mali, Niger and Burkina Faso. Not surprisingly, the largest fish producing countries in West Africa in 2008 were Nigeria with tonnes, followed by Senegal tonnes, Ghana tonnes, Sierra Leone tonnes and Mauritania tonnes. Nigeria, Senegal and Ghana alone accounted for tonnes, or 63% of West African fisheries production in However, in the case of Nigeria, it is important to note that aquaculture production has seen considerable growth during this decade. The volumes of fish production in West Africa, taken into account in official statistics, do not often incorporate catches of foreign fishing, which are very large and difficult to estimate. Similarly, catches of pirate fishing, which are very significant in West Africa, are never incorporated in fishery statistics. Comparatively, the production levels of the continental countries are much less significant than those of the coastal countries. As a result, the cumulative production of Mali, Burkina Faso and Niger has never reached tonnes; less than tonnes between 2006, 2007 and 2008, or less than 8% of regional production. In addition, the commercial value of the species caught in the inland fishery is lower than that of sea fish. Inland fisheries in the Sahelian countries do not therefore represent the same stakes as in the coastal countries, in either economic or food security terms Access to and demand for fish products West African States trade their fishery products amongst each other and with almost all the countries of the world. However, the EU is their main customer. In fact, the European market 8

10 absorbs the largest share of exports from West Africa. This strong absorption is facilitated by the preferential arrangements set up under the EU-ACP conventions. In 2012, the European Union imported USD 1,685,657,000 1 worth of fish products from ACP countries. This represents, in relative terms, less than 5% of the value of these imports for the same period. However, what is important to note is that the European Union prefers direct access of its fleet to the fisheries resources of the ACP countries through the development of distance fisheries as set up in fisheries agreements signed with third countries. Imports from ACP countries despite all the preferential advantages are increasingly marginal for supply to the European market. Products caught in third countries under fisheries agreements are not taken into account in accounting for EU imports. Almost all coastal states in West Africa have signed fisheries agreements between themselves and with other African, European or Asian states. Cooperation agreements between West African States generally contain the following provisions: - Granting of reciprocal fishing licenses on payment of royalties - Joint exploitation of maritime areas causing conflict - Trade in fishery products - Harmonization of fisheries and aquaculture policies - Cooperation and exchange of experience in the technical, scientific and training fields. In addition to these agreements, other fishing vessels from the European Union, taking on the nationality of certain West African states, which do not agree with their country of origin, exploit the territorial waters of these African countries. It is important to emphasize that European vessels take advantage of the loopholes in the management of access to the resources of West African States in order to benefit from the nationality of these countries while operating for the supply of the European market. Per capita consumption of fish products in the West African sub-region averaged 11.8 kg/inhabitant/year, which is well above the African average of 8.2 kg/inhabitant/year. However, some countries in the sub-region have averages below the African average. These include Mauritania (4.3 kg/inhabitant/year), Niger (2.1 kg/inhabitant/year) and Burkina Faso (1.8 kg/inhabitant/year). The countries with the highest per capita consumption in the subregion are Senegal (27 kg/inhabitant/year), Cape Verde (26 kg/inhabitant/year), Ghana and the Gambia (25 kg/inhabitant/year). These levels of fish consumption are not only linked to national productions or potentialities but to food cultivation and the financial means of the populations. The fishing potential varies greatly from one country to another. 1 Source: Bilateral trade between European Union (EU 28) and African, Caribbean and Pacific Group of States (ACP Group) Mauritania and Senegal have the most fish-bearing waters in West Africa. They are also among the four largest fish producers in the sub-region with Nigeria and Ghana. The most important and open fisheries agreements are those concluded with the European Union. These agreements allow vessels of the EU Member States to exploit the fishery resources of the territorial waters of the African States signatory to these agreements. In fact, the EU, which only succeeds in satisfying only 5% of its domestic demand with its own resources, turns 9

11 to external maritime waters, particularly those of the West African coast, which are known to be rich in fishery resources. Agreements negotiated individually by African states provide for financial compensation paid by the EU. This financial compensation is in part intended for the development of the fisheries sector: (financing of technical programs or scientific research aimed at improving the fisheries and biological knowledge of fishing areas; support for fisheries monitoring control and surveillance including the establishment of satellite surveillance systems for fishing vessels (VMS); support for organizations and institutions involved in fisheries; improvement of fisheries statistic;, scholarships, etc.). The financial compensation varies according to each country s negotiating capacity. In addition to fisheries agreements with the European Union, there are fisheries agreements and the granting of rights of access to fisheries resources to Russian and Chinese vessels under less transparent conditions, especially on coastal and offshore pelagic resources. Increasingly, West African coastal countries are licensing Russian and Asian (mainly Chinese) fishing vessels for the exploitation of pelagic and demersal resources, although information on such authorizations, including financial compensation are not communicated and made public. The opacity of these fishing authorizations (not to say fisheries agreements) contributes little to transparent and ethical governance of fisheries sectors in West Africa. Marine fisheries in West Africa have long been connected to world markets. European fleets have been exploiting the West African coast for several centuries and some have even maintained a continuous presence on the spot, from colonization to the present day. However, while the colonial era was marked by a development of the domestic market and trade with the metropolis, independence brought about a period of strong integration with international markets which transformed the sector and led to a very strong growth of production and exports. Regional history and geography, together with the evolution of the world market, have created different morphologies and distinct objectives among the countries of the region. In this sense, it would be difficult to seek a uniform approach on all West African fisheries. In this area, spatial localization, climatic or relief influences, settlement dynamics, the specificities of the colonial parenthesis and the form of integration into the international economy have led to considerable differences in both quantity and quality of available resources, as well as the forms of their exploitation. West Africa can be divided into three large blocks of countries. There is a first divide between coastal and landlocked countries. In terms of production volumes, the differences are already considerable. This is not only due to differences in the relative abundance of resources but also to the modalities of their exploitation. Coastal countries have resources that have long been consumed on the international market, which have aroused the interest of European demand - especially during colonization - and the capitalization of the sector by indigenous and foreign ship-owners. This has resulted in remarkable development and innovation which, far from engendering the small-scale crisis and its replacement by an industrial fleet, have powerfully fueled its growth, particularly in countries with a long tradition of fishing, such as Senegal or Ghana. Catch levels subsequently increased rapidly from less than to almost 2 million tonnes (including Mauritania) between 1960 and Senegal, Mauritania and Ghana alone represent nearly three-quarters of the effort, i.e. production varying between 1.3 and 1.5 million tonnes per year. Comparatively, production levels in landlocked countries are much less significant. In fact, the cumulative production of Mali, Burkina Faso and Niger does not reach tonnes. In addition, the commercial value of the species caught is lower than that of sea fish. 10

12 Inland fisheries in the Sahelian countries therefore do not represent the same stakes as in the coastal countries, neither in economic terms nor in terms food security Value of fishery products exports in West Africa Between 1960 and 2007, the share of the agricultural sector in GDP in Africa declined from 41% to 22%. However, African exports have not diversified, and agriculture (including fisheries) accounts for only 30% of the value of total exports. For the fisheries sector, with a production of more than two million tonnes per year, West Africa is both an exporter and an importer of fish products. Intra-regional trade in fisheries products is growing at an unprecedented rate in West Africa, while export earnings are very important for the trade balance of large producing coastal countries such as Senegal and Ghana. However, there are some disparities between countries that are mainly exporters (Senegal, Guinea Bissau, Gambia) and others that are forced to use imports to satisfy their domestic consumption (Nigeria, Côte d'ivoire). Imports of these products do not necessarily come from other countries in the sub-region, although there is an improvement in intra-regional trade in fishery products. The following sections analyze exports and imports in volume and value of fishery products in West Africa by country, destination and product type. Exports of fish products from West African countries remain dominated by frozen fish, followed by mollusks, fresh fish, crustaceans and other fish products. Table 1: Value of exports of fishery products from West African countries in 2011 Country Value (In thousands of US dollars) Nigeria Senegal Ghana Sierra Leone 1627 Mali 466 Guinea Côte d'ivoire 1949 Gambia 2901 Benin 1367 Mauritania Niger 581 Cape-Verde

13 Togo 684 Burkina Faso 624 Liberia 675 Guinea-Bissau Total Source: The main fishery products exported are tuna, demersal species (fish and cephalopods) and mollusks, which are mainly destined for Europe, Asia and America. Pelagic species such as mackerel, sardines and sardinella are mainly destined for the African market. The value of exports of fishery products from West Africa (ECOWAS + Mauritania) is US $880,151,000 in Senegal remains the largest exporter of ECOWAS fishery products with a value of US $ or 61.35% of the total exports. As for the nature of exports, it should always be noted that frozen fish from small-scale processors represents the largest volume and value for exports of fishery products from West Africa. However, in terms of the value of exports, fish represent only 63% of the total value of exports. This is easily explained by the fact that other categories of fishery products marketed in the international market have higher market values than fish for the same weight. These include cephalopods, crustaceans and molluscs. In West Africa, fishery products exports are mainly from sea fishing, although it is important not to lose sight of the large share of fish trade between the countries of the Hinterland of Africa, West Africa (Mali, Niger, Burkina Faso). For these countries, products come from inland fisheries and aquaculture; while for the coastal countries the products come mainly from sea fishing, with the exception of Benin, where inland fisheries produce more than sea fishing, i.e tonnes for inland fisheries (80% of total production) and tonnes for sea fishing. West African states trade their fishery products with each other and with almost all the countries of the world. However, until recently, the EU represented their main customer. In fact, the European market absorbed the largest share of exports from West Africa. This strong absorption was facilitated by the preferential arrangements set up under the EU-ACP conventions. In 2011, EU imports from West African countries (ECOWAS) amounted to 308 million Euros in 2011, a decrease of 4.75% compared to 2010 (324 million Euros). Table 2: Destination of exports of fishery products from West African countries 12

14 Country Destination Total quantity in tonnes US $ value ECOWAS Africa Europe Asia America Benin Burkina Faso 0 0 Cape Verde Côte d'ivoire Gambia Ghana Guinea Guinea Bissau ND Liberia Mali Mauritania ND Niger Nigeria Senegal Sierra Leone Togo Total Source: International Trade Centre / UNCTAD-WTO ( There are four major trends in the destination of exports from West African countries: Countries exporting all their fishery products to the ECOWAS region: this is the case for Mali and Niger. For Mali, it is mainly processed fish (497 tonnes) destined for Côte 13

15 d'ivoire. For Niger, 93% of the fish products exported are also processed fish (429 tonnes), destined for Nigeria and Mali. Countries that export a large part of their fishery products to ECOWAS and African countries: Côte d'ivoire, Ghana, Guinea, Senegal and Sierra Leone export a significant amount of frozen fish to ECOWAS and African countries. Ghana exports 83% of fresh fish to Côte d'ivoire, about 321 tonnes; and Sierra Leone exports 111 tonnes of fresh fish to Senegal, 96% of its fresh fish exports. Senegal's exports of processed fish to ECOWAS and Africa is 2,685 tonnes, of which 1,048 tonnes are destined for the Republic of Congo; while Guinea exports 59% of processed fish to Ghana (106 tonnes) and Niger exports 429 tonnes to Nigeria and Mali, accounting for 93% of its processed fish exports. Côte d'ivoire exports 6,347 tonnes of frozen fish to African and ECOWAS countries, which account for 75% of its exports of frozen fish; against tonnes for Senegal, or 66% of its exports of frozen fish. In addition, Sierra Leone exports 67% of crustaceans to Senegal and Tunisia, or 2 tonnes of non-frozen lobsters. Countries that export little to the ECOWAS region and Africa but especially to Europe, America and Asia: which are Benin, Liberia and Nigeria, which export mainly to the EU, Europe, Asia and America; notwithstanding smaller exports in relation to the aforementioned destinations, of processed fish, fresh fish and shrimp. Cape Verde, which does not export at all to ECOWAS countries, but to other destinations: Cape Verde's exports are mainly to non-ecowas countries, notably to Europe 7,680 tonnes, (53% of total exports), Asia tonnes (24% of total exports), Africa accounting for only 15% of total exports of fishery products (2 215 tonnes); And America, 1,125 tonnes, or 8% of total exports. Analysis of exports from West African countries (ECOWAS + Mauritania) shows a clear shift in exports of fishery products from West African countries to African markets in general, and ECOWAS in particular. Unlike the situation of exports in 2005, where Europe was the main destination for exports of fishery products from West Africa, since 2008 Africa, including West Africa, began to be the primary destination for products from countries in the sub-region. West Africa, although a net exporter of fishery products, is still a major importer because of the very strong demand in some countries such as Nigeria, Ghana and Côte d'ivoire. Africa, all regions combined, accounts for 54% of the volume of exports from West Africa, i.e tonnes out of tonnes. The analysis of West African countries' exports to Asian markets shows a steady increase since In fact, the value of exports of fishery products from ECOWAS member countries rose from US$ in 2010 to US$ in 2011 and US$ in 2012, a relative increase of nearly 125% between 2010 and This strong growth in the Asian market can be explained by the interest and massive presence of Chinese and Korean industrialists in the West African coastline and the installation of processing units for coastal pelagic fish products. This interest combined with the entry barriers on the European market (high standards of hygiene and quality and export approval withdrawn from several countries and companies) and the erosion of preferential tariffs makes the Asian destination a future destination of choice for products originating in West Africa. According to the statistics of the International Trade Center UNCTAD and the WTO, of the tonnes of fishery products exported by West African countries, tonnes are destined for West Africa, i.e. member countries of ECOWAS. In other 14

16 words, 44% of exports of fishery products from West Africa are intra-regional trade. This is a remarkable new trend, indicating a revitalization of intra-regional trade in fish products. The lesson to be learnt from this new dynamic in intra-regional and African trade in fishery products is that the African market, in spite of the various obstacles impeding the development of regional trade, is beginning to position itself as a credible alternative to the European market which polarized the bulk of exports of fishery products originating in that region. Africa is the main destination for exports of fish products with 54% of products exported in volume terms; ECOWAS countries account for 44% of these exports by volume, with 69,456 tonnes. Although Europe lost its first place position as a destination for exports of fish products from West African countries, it is ranked second with 55,368 tonnes, or 35% of total exports of fishery products from West Africa World Fish Center's Fish Trade Program: An opportunity to boost intra-regional trade in fisheries products in West Africa According to the World Fish Center, in Africa, intra-regional trade in fish products, despite its enormous potential, is hampered by: (i) inadequate infrastructure (logistics, services and construction, roads) markets, and (ii) the lack of appropriate institutional policy and frameworks. The consequences of these deficiencies for stakeholders are high transport costs, unpredictable trade regimes and insufficient market information. As a matter of fact, concerned at the low level of intra-regional trade, the Heads of State and Government of the member countries of the African Union committed themselves, during the 23rd Ordinary Summit held in June 2014, in Malabo-Equatorial Guinea, "To triple, by the year 2025, Intra-African trade in agricultural products (including fish) and services. Regarding the fisheries sector, the Heads of State expressed their concern "about the importance of low value added products in fisheries and aquaculture as well as the high level of post-harvest losses, in particular in the small-scale fisheries sector and the lack of a specific financing mechanism to support SMEs". In addition, the 23rd Ordinary Session of the Summit of Heads of State and Government of the member countries of the AU approved the program, "Policy Framework and Strategic Reform of the Sector of Fisheries and Aquaculture in Africa" and pledged to "accelerate trade through the development of fish value chains, promotion of responsible and equitable trade in fish in order to significantly exploit the benefits of the fisheries that Africa has. In response to the African Union's high-level political commitment on the development of fish trade, NEPAD, AU-IBIR and WorldFish have joined forces to implement the Program for Improving Food Security and Reduction of Poverty through intra-regional trade in fish and fishery products in sub-saharan Africa or "Fish Trade". It is agreed that despite important interventions and initiatives to promote fisheries development and intra-regional trade, sub-saharan Africa still faces major challenges in stimulating trade in fish, including intra-regional trade that should serve as a catalyst for sustainable economic growth and poverty reduction The complexity of rules and regulations governing intra-regional trade, lack of business and trade skills, export of unprocessed (low value) fish, and inadequate infrastructure are hampering Africa's efforts to maximize the benefits of trade in fish. Therefore, "Fish Trade", which aims to improve food and nutrition security and reduce poverty in Sub-Saharan Africa, 15

17 will focus on strengthening the capacities of regional and pan-african organisations so they may, in turn, support their Member States in better integrating intra-regional fish trade into their agendas for development and food security policies. The program will work on four corridors in the southern, central, eastern and western regions of Africa; and shall produce the following results:. (i) Produce information on the structure, products and value of intra-regional fish trade in food security in sub-saharan Africa and make them available to stakeholders;. (ii) Development of a set of recommendations on policies, certification procedures, standards and regulations that will need to be well integrated into national and regional fisheries policy frameworks, agriculture, trade and food security Sub-Saharan Africa;. (iii) Strengthening commercial capacity among private sector associations, especially fish processing, trading and production in aquaculture by women. In order to make better use of the expansion of business opportunities through the promotion of competitive small and medium-sized enterprises; and. (iv) Facilitate the adoption and implementation of appropriate policies, certification procedures, standards and regulations by key stakeholders involved in intra-regional trade at the four selected trade corridors. It is in this context of implementation of the Fish Trade program that the World Fish Center and the Research and Development Analysis Laboratory (LARED) of the Research and Training Center for Economic and Social Development (CREFDES) of Cheikh Anta Diop University of Dakar signed a Memorandum of Understanding and an Agreement for the implementation of a research project in the "West Africa" corridor. 2. Objectives of the project This project, to be carried out within the framework of the Agreement between the World Fish Center and LARED, aims to: Develop methodologies and guidelines, including sampling sites and justification for the analysis of fish trade in the Western corridor; To mobilize and train Post-Master students and/or students who will be involved as research assistants; Prepare the best options to align the guidelines for the corridor analysis methodology in line with the academic credit requirements to be delivered by the students who will be involved in the research; Conduct an analysis of the West Corridor. 3. Activities to be implemented The activities to be carried out under this project are as follows: 3.1 Preparation of an initial reception report of the project: This reception report marks the involvement of Cheikh Anta Diop University in the Fish Trade Program. It presents general information on fisheries and fish trade in West Africa, the methodology and work plan adopted and to be implemented. It also makes it possible to 16

18 specify the objectives of the project and to present in detail the activities to be implemented as well as the methodologies used. 3.2 Student Mobilization and Training From the beginning of the academic year, UCAD, through this program, will recruit students of masters and doctoral level to work specifically on research subjects in line with the objectives of the Fish Trade program. Specifically, three masters-level students and one Ph.D. student. Research topics will focus on trade policies, value chain analysis and intraregional trade in processed fishery products between Senegal and the mainland corridor countries (Mali, Niger and Burkina Faso). The choice of students and research subjects will be finalized at the beginning of the academic year, that is to say no later than November 30, Beyond the choice of students, UCAD, through this program and with the support of World Fish Center, intends to create a Master's Degree in Fisheries Economics in order to integrate skills in economic analysis of fisheries into its training system. This Masters 1 and 2 training project will be submitted for adoption during the academic year so that the courses can start at the beginning of the academic year. Therefore, the approaches and methodologies capitalized in the framework of the Fish Trade Program can be translated into credits and training modules, for example value chain analysis. The credits and training modules, the draft decree relating to the creation of this Masters are one of the outputs (expected results) of this program. 3.3 Preparation of the Quarterly Preliminary Report The preliminary quarterly report will provide an update on the research topics chosen by the students, the methodologies used and the state of progress of their work. This report will also present analyses of policies and strategies for access to regional markets, constraints and recommendations to facilitate access to regional markets. It will also make it possible to take stock of the state of progress of the draft decree relating to the creation of Masters 1 and 2 and will present in detail the organization of training, credits and modules that will be developed. 3.4 Bi-annual Monitoring Report The bi-annual follow-up report will provide an update on the progress of the research carried out by the students on the "West Africa" corridor. Initial results of analyses of trade strategies and policies on access to national regional markets will be presented, as well as those on value chain analysis and market access for processed products. 3.5 Submission of the Final Report on the Analysis of the "West Africa" Corridor This report is a summarized analysis report of research results on the "West Africa" corridor. It will provide an opportunity to review and analyse: - the potential and constraints of intra-regional trade in fisheries products in the corridor; - market access policies and strategies for fishery products at national and regional levels; - the analysis of the value chain of processed fishery products between at least two corridor countries. 17

19 4. Expected results This project, to be implemented by UCAD on behalf of the Fish Trade Program of World Fish Center will achieve the following results: - Three Masters and one Doctoral students are recruited to be trained, followed in their research on subjects related to the objectives of the Fish Trade Program; - Trade policies and strategies are better documented, known and analysed in countries and at the regional level; - The flows, costs and margins of the fish products marketed in the corridor are known and analysed. - Masters level training courses 1 and 2 on the Economics of Fisheries are institutionalized at UCAD with the support of partners, in particular the World Fish Center. 5. Working Methodologies The working methodologies can be broken down into several stages: - The selection of students will first be on a rigorous basis. A call for candidates will be launched by the UCAD as of September A selection committee comprising University Professors and professionals from the sector will select the most able and motivated students to conduct these research programs. - The selected students will work closely with Prof Kane to define their issues, research methodologies, and work and writing plans. - Students are required, in their research methodologies, to make a complete documentary review, but above all, field research, in the production sites and in the marketing places of fish products by reviewing all the flows and circuits of marketing. They may use formal methods of surveys (questionnaires); however, given the nature of trade in fishery products, participatory methods will be preferred. - Periodic work sessions will be held between the students and their supervisor. - Restitution sessions will be organised with the participation of other students, university professors and professionals in the fisheries sector. - The draft decree for training in Masters 1 and 2, once drawn up, will be discussed with potential partners, in particular the World Fish Centre, before its finalization and submission to the Rectorate of the University and the Council of Ministers for final adoption. CHAPTER I: CARTOGRAPHY OF TRADE IN FISHERY PRODUCTS BETWEEN SENEGAL AND OTHER WEST AFRICAN COUNTRIES 1. Context and rationale. International trade in fish products is of particular importance as it allows exporting countries to benefit from income. Thus, it is an essential element for economic growth and development. 18

20 In general, regarding Senegal's fish products, the average of its exports in volume over the period 2010 to 2012 is estimated at tonnes with an average commercial value of FCFA billion 2. Senegal's exports to West African countries averaged (in thousands of dollars) over the same period, while imports amounted to (in thousands of dollars) 3. Fish products exchanged consist of fresh and processed products. In Senegal, average exports of the small-scale sector are estimated at and those of the industrial sector at tonnes over the period Trade in fisheries products from Senegal to West African countries faces transport infrastructure constraints, customs and non-tariff barriers, etc. These various constraints weigh on the intensification of trade to the countries of the sub-region. The objective of this study is to analyse the mapping of trade in fishery products between Senegal and Guinea Bissau, Guinea Conakry, Mali, Gambia and Mauritania. This analysis consists in analyzing trade in fish products from Senegal to these countries and the constraints they encounter during their trade. The following map (Diagram 1) shows Senegal's export networks to these countries. Diagram 1: Map of Senegal s bilateral trade Source: Author's construction 2 Calculation made by the author from data on general fishery results 3 Calculation of author using UNCTAD data 4 Calcul of the author from the general fishery results Trade between Senegal and the countries in question shows two groups of countries. On the one hand, is the coastal countries (Mauritania, Guinea Bissau, Guinea Conakry and the Gambia) and, on the other hand, the continental country (Mali) where fishing has developed thanks to the existence of the Senegal River. In the coastal countries, production is extraverted, that is to say that the fishing potential, although significant, is exploited by foreign fishing vessels which do not land on local fishing ports and this does not appear in trade statistics. It should also be noted that there is a Fisheries Agreement between Senegal 19

21 and Mauritania. This agreement has no financial compensation and is limited to measures of reciprocity in the authorization of access for canoes and tuna vessels. 2. Analysis of the evolution of bilateral trade in fishery products in Senegal This part shows the evolution of trade flows of fishery products in volume and value from Senegal to Mali, Mauritania, Gambia, Guinea Bissau and Guinea Conakry. 2.1 Exports of fish products and volume production In general, exports of fish products from Senegal can be broken down into two (2): exports from the small-scale sector and exports from the industrial sector. Diagram 2: Changes in exports (small-scale and industrial sectors) and production Source: Author's construction Diagram 2 shows an upward trend in exports of fishery products from the small-scale and industrial sector, but with a slight decline in 2013 in the small-scale sector. It should be recalled that the extension of fishing areas outside the Senegalese economic zone, in view of the access agreements, has a considerable impact on the landed catches of small-scale fisheries. On average, Senegal's production of landings from sea fishing increased over the whole period. However, it should be pointed out that these official statistics rarely take into account catches of foreign fishing, which are very large and difficult to estimate, as are catches of pirate fishing. Behind this important fishery production, there are strong disparities between the different countries. Domestic production also faces seasonal fluctuations. In fact, during the month of February, March, November the national production allows an often limited availability of certain products such as dried, salted fish, which is a product with high added value. Outside this period, consumer demand for several processed products is satisfied. Table 1 below specifically presents exports of fresh and frozen fish by volume from Senegal to the coastal countries concerned. In view of the table, there is a strong export of these products to Mali. Table 3: Senegal s fresh and frozen fish exports by volume 20

22 Country Gambia Mali Mauritania Guinea Bissau Guinea Conakry 20 Source: Author s compilation 2.2 Senegal's bilateral exports and imports in value terms (FCFA) In this section, exports and imports of fishery products are analysed through the following Diagrams. Diagram 3: Bilateral exports of FOB fishery products (in FCFA) Source: Author - based on ANSD data Over the period , exports of fishery products from Senegal were more oriented towards Mali. Thus, Mali is Senegal's main partner because it constitutes a large export market for its fishery products compared to all other coastal countries (Mauritania, Gambia, Guinea Bissau and Guinea Conakry). On average, exports to Mali for the whole period showed an increase. This can be explained by the high demand for fish consumption and geographical proximity. In general, the structure of exports of fish products from Senegal is as follows: fresh, live or dead fish, chilled or frozen; dried, salted and smoked fish; crustaceans, mollusks and aquatic invertebrates; prepared or preserved fish. Table 4: Average of exports of different categories of fishery products over the period (in thousands of dollars) 21

23 Country Fresh, live or dead fish, chilled or frozen Dried, salted and smoked fish Crustaceans, mollusks and aquatic invertebrates Prepared or preserved fish Guinea Bissau 64348,6656 0, ,5088 Guinea Conakry 192,071 28, , ,2844 Mali 8365, ,623 43, ,1404 Mauritania 54,5586 Source: Author's calculation based on UNCTAD data Diagram 4: Bilateral imports of fishery products CAF (in FCAF) Source: Author based on ANSD data Senegal is a coastal country but also imports fish from Mauritania, Gambia, Guinea Bissau and Guinea Conakry. In 2002; 2004 and 2005, imports from Gambia were high. Since Mali is a landlocked country, imports are virtually absent from Mali. If we consider the whole study area (Gambia, Mauritania, Guinea Bissau, Guinea Conakry and Mali) as a single block with which Senegal trade, an average value of imports and exports of ,690 and 2,374,136,851 CFA francs was recorded over the period 1996 to Diagram 5 below gives more information on Senegal's trade flows in value to this block. Diagram 5: Senegal's total trade flows (in FCAF) to all the countries in the region 22

24 ,000,000,000 8,000,000,000 7,000,000,000 6,000,000,000 5,000,000,000 4,000,000,000 3,000,000,000 2,000,000,000 1,000,000,000 - import export Source: Author's construction using ANSD data Since 2003, the Diagram shows an average increase in exports to the countries of West Africa studied. On the other hand, imports virtually stagnated between 2009 and Main constraints to trade in fishery products in Senegal Beyond the problems encountered on the international market in relation to sanitary standards and rules of origin, exchanges of fish products in West Africa face enormous difficulties of various kinds. In addition, trade in fishery products allows the exporting country to benefit from income. In fact, inefficient transport networks pose a major constraint on fish exports. Given that distance is the primary determinant in transportation, the issue of efficiency and cost remains crucial for exporters. For example, in Senegal, exports of fresh products are most often faced with insufficient capacity and high cost of airfreight (General Results of Maritime Fisheries, 2009). According to UNCTAD (2013), transaction costs are on average higher for intra-african trade than for trade with the rest of the world. The average cost of transport in Africa accounts for 7.7% of the total value of Exports, i.e. double the world average of 3.7%. In addition to the aforementioned constraints, the multiplicity of national borders, the need to cross several borders and high tariffs in importing countries constitute obstacles to the export of fishery products. During transit, carriers face bureaucratic burdens, making it impossible to conserve perishable products including fresh, frozen and deep-frozen fish (Biggs, 2012). The absence of a favorable institutional framework is a barrier to trade in fishery products. An example is exports from Senegal to Mali, which are experiencing certain difficulties due to the political instability that the country was experiencing in recent years. To this institutional problem, the insufficient application of regional trade agreements may be added, which is a brake on intra-regional trade in general. The relatively low purchasing power characterizing a large part of the African countries does not allow the consumption of products of high commercial value. Such a situation leads consumers to switch to low-value species, and the low market value of these species prevents producers from investing in them, preferring to capture valuable species for export. 23

25 It is also important to emphasize that in the countries that import fishery products several emerging markets are becoming increasingly attractive partners, raising the problem of competition. 4. Calculation of export intensity index The aim is to present the formula for calculating commercial intensity indicators before the presentation and the interpretation of the results. 4.1 Method of calculation and justification The trade intensity indicator (IIC) measures Senegal s trade intensity towards a market. Here, the market chosen is Mali because of significant exports from Senegal to this country. In the case of imports, data is almost non-existent, so the import intensity indicator will not be calculated. By analogy to Balassa (1965), the export intensity indicator measures the relative advantage of Senegal to export relative to other countries. The export intensity index (IICx) calculated by taking the relative export ratios of a country's fishery products to a market. Is: Where IIC X ij X X X ij is the exports of fishery products from country i to country or market j, exports from country i to the world, X Nj world exports to country j and NN total world exports. The world represents here all the other coastal countries which also have potentialities of fisheries production. X If IIC >1, then country i exports relatively more towards the world as a whole, that is to say the other coastal countries considered in the analysis. In other words, country i has a relatively X strong preference for export. If IIC <1 country i has a relatively low preference for j. ij Nj / X / X in NN X X in total 24

26 Diagram 2: Presentation of results and interpretation IIC Source: Author Considering the results over the two study periods, there was a high export intensity of fish products from Senegal (between : IIC = 4.569> 1, between : IIC = 4.382> 1) to Mali, which is a major export partner for these products. After the period ; specifically in the period , export intensity declined. Overall, a comparative advantage was revealed for Senegal to export its products to a country which constitutes a large market share compared to the other countries. Strong demand for products in this country and proximity to the market are advantages for Senegal. 5. Data Sources The data used in this study comes from a variety of sources. In fact, the cartographic analysis showing the trade flow (network) to the countries considered is done on the basis of data from WITS; the graphic analyses and the tables were based on data from UNCTAD and the ANSD. The export intensity index was calculated using WITS data. It is also important to note that the analyses were supplemented by the information provided by the general results of the marine fisheries (Ministry of Fisheries and Maritime Economy of Senegal). 6. Conclusion and Recommendations The objective of this study was to analyze the mapping of trade in fish products in Senegal between West African countries (Guinea Bissau, Guinea Conakry, Mali, Gambia and Mauritania). Trade of fish products from Senegal to these countries and the obstacles they face during their trade. The list of constraints raised above is not exhaustive, but their resolution could lead to an overall mitigation of the situation. In fact, Senegal needs to strengthen its connection with its trading partners, and more specifically with Mali, which is its main partner in the trade of fish products. Due to the poor state of infrastructure, it is vital to encourage investments in this area to stimulate trade in productive sectors. The strengthening of the institutional framework reduces physical barriers and hence transport costs. 25

27 CHAPTER II: EVALUATION OF TRADE POLICIES IN THE FISHERIES SECTOR IN SENEGAL 1. Introduction Fishing is one of the priority areas for Senegalese trade policy because it plays a considerable socio-economic role. It is the leading sector as the main provider of foreign exchange (about FCAF 200 billion of annual revenue, or 30% of total export earnings), (about 600,000 people, or 15% Total active population) and animal protein (satisfaction of 75% of the needs of the national population) 5. This economic and social performance is due in large part to the dynamics of the small-scale fisheries sub-sector, which accounted for 87.66% of national production in 2014 ( tonnes). This sub-sector developed considerably in the 1970s, marked by the decline of agriculture due to unfavorable climatic conditions and by strong public support through the adoption of economic instruments in the management of national fisheries such as tax on fishing gear, equalization of the fuel used by canoes, the granting of credits for equipment and the modernization of production tools (Kébé, 2008). However, this success is compromised by the many environmental, technological, economic, social and political challenges facing the sector. For example, in this context of increasing domestic and foreign demand, the over-exploitation which characterizes fisheries, especially of coastal demersal species with a high commercial value (Kébé, 2008), constitutes a significant threat. Between 1988 and 2003, a fall in average catches of these species, which account for the bulk of the added value of the sector and export tonnages of 32% and 26% respectively 6. These obstacles are compounded by numerous conflicts of interest, accidents at sea, theft and destruction of fishing gear, problems of hygiene on the landing docks of small-scale fishing. The implications for product quality and export approval are significant. The sector is undergoing a crisis that adversely affects the living conditions of the players and jeopardizes the supply of fish to the populations and the fishing industry. As a result, the sector's contribution to economic growth and poverty reduction may be limited 7. This calls for the need for effective policies. According to the WTO report (2003), since the mid-1990s, major reforms have been introduced in the trade sector in Senegal to improve the competitiveness of its products on the international market. After a devaluation of the CFA franc (1994), internal and external trade liberalization was applied to achieve this national objective. This liberalization excludes certain products that are of strategic interest to the economy or that could compromise the health or safety of consumers. Senegal's trade policy thus falls within the framework of the rules of the WTO and the Community regulations of WAEMU. In this context, the primary role of the State is to ensure that players are provided with an environment conducive to business development and to provide the people with the basis for accelerating poverty reduction (WTO 2003). That is why DSRP 1 ( ) placed fishing as one of the levers of the strategy's "wealth creation" axis, thus assigning it a central role in the fight against poverty. This role assigned to the sector was consolidated by the DSRP II ( ). 5 Senegal is the second largest producer of fishery products in West Africa after Nigeria 6 According to DPM data and Kebe s calculations (2008) 7 Letter of Sectorial Policy on Fisheries and Aquaculture, April

28 Despite these strategies, the situation in the sector still confirms a persistent crisis. It is manifested by a decrease in landings aggravated by a continuous extroversion. The most detrimental consequence is the reduction of the supply of fish products on the national market. Between 2009 and 2014, the statistics recorded by the DPM show that the catches and landings of the Senegalese fishery went from tonnes to tonnes, a decrease of tonnes. During the same period, total exports of fishery products increased by tonnes. This resulted in a decrease of tonnes on local consumption, from tonnes in 2009 to tonnes in In a context of continued strong population growth, this trend logically lead to a reduction in per capita consumption. It therefore deserves in-depth analysis with rigorous techniques to provide effective solutions. All the above, led to the following central question: what is the impact of Senegal's trade policies in the fisheries sector on sustainable management, food security and regional trade? The general objective of this work is to evaluate the effects of trade policies in the fisheries sector in Senegal. This general objective is divided into three specific objectives: -Evaluate the effects of subsidies on the sustainable management of fisheries resources and on food security - Analyse trade arrangements related to market access in the sub-region - Analyse the effects of Economic Partnership Agreements (EPAs) on intra-regional trade and food security. To achieve these objectives, this study is articulated around four points. A review of trade policies in the fisheries sector of Senegal constitutes section (1). Section (2) describes the methodological approach taken to answer the research question. Estimates of the models specified in the previous section and their interpretations will be in the third (3 rd ) section. Finally, in the last section are the conclusion and the recommendations. 2. Review of trade policies in the fisheries sector in Senegal Senegal is a member of the World Trade Organization (WTO), but also a member of ECOWAS, therefore its trade policies are part of the mechanisms of these institutions. The Ministry of Commerce's strategy is based on accelerating the process of integration into international trade, developing competition, improving distribution channels and improving the integration of the informal sector into the modern economy. For example, in the fisheries sector, the trade policy review highlights several export support measures. Since the mid-1970s, the status of export-oriented enterprises, granting subsidies, devaluing and signing international agreements have been used as commercial development strategies The statutes duty free points and export-oriented enterprises The first law establishing the Export Processing Zones (EPZ) of Dakar is Law signed on April 22, The objective was to promote job creation and boost exports by attracting FDI. It granted accredited businesses in the area tax, customs, financial and socio-economic advantages. These advantages include: - the prohibition of discriminatory measures in relation to unlicensed undertakings, 27

29 - a reduction in the corporate tax rate from 33% to 15%; - abolition of duties and taxes and customs stamps on imports and exports of capital goods, raw materials and semi-finished or finished goods, - exemption from taxes on income from securities issued by the company on dividends distributed, - exemption from the flat-rate contribution payable by employers, - exemption from registration and stamp duties on the constitution and amendment of the statutes. On 13 April 1991, Law on the status of duty free points extended these favors to companies outside the EPZ. It is in 1995 that the facilities were granted to all national agricultural enterprises (including those in the fisheries sector). The condition was that the company exports 80% of its production. These advantages have made it possible to increase the competitiveness of exports, especially of fishery products. They were reinforced by subsidies Export subsidies Under Law passed on 15 August 1980, exporting companies were granted a subsidy of 10% of the FOB value of their goods. This subsidy was increased to 15% in Initially limited to agricultural products, these subsidies are subsequently extended to fish products starting with tuna. A criterion of the national industrial added value incorporated into the finished product was introduced in 1981 by another law that more clearly defines the basis of the premium. The new law increased the rate to 25%. The impact of these subsidies has been positive and very significant. The turnover of the three canneries in the country rose from 13.4 billion in 1980 to 23.6 billion in , an average increase of 10% per year. This significant effect, following a breakdown of this support in 1992, was cancelled because the number returned to around 13 billion and the volume of exports of fish products (fish, crustaceans, mollusks and processed products) decreased by 29, 23%. Faced with this poor performance, a devaluation of the local currency made it possible to restore exports The devaluation of the CFA franc In 1994, a devaluation of the CFA franc occurred and positively affected the competitiveness of domestic products (including fish products). After an average decline of 12.40% per year between 1990 and 1993, the volume of total seafood exports increased by an average of 5.82% per year between 1994 and REPAO,

30 Diagram 3: Changes in the annual growth rate of the volume of Senegal s fishery product exports Source: Calculations based on data from the DPM The above diagram shows that the positive impact of the devaluation on exports could not bring them back to their level before the breakdown of subsidies ( tonnes exported in 1990). The volume increased from tonnes in 1994 to tonnes in 1999, i.e. 333 tonnes less than the 1990 volume. It is important to note that, although the effect of the devaluation was positive, the rate of export growth declined rapidly in the years that followed. For example, in 2000, it experienced a 29.21% depression Therefore, subsidies are more effective than devaluation in terms of impacts on exports from the fisheries sector. According to our interviews with some agents of the DPM and the CEP, there are still other types of subsidies. One can cite the subsidies on fuel for canoes, on equipment, refunds and bonuses. These subsidies can be factors explaining recent export trends. Changes are noted not only on volumes but also on destinations. In 2014, Senegal exported 150,909 tonnes of fishery products compared to 137,569 tonnes in 2013, an increase of 10%. The commercial value is estimated at billion CFA francs against billion in , an increase of 7.26 billion francs. The distribution of exports by continent (see Annex 1) indicates that Europe is losing its position as the primary destination. In fact, its relative share has risen from 70% in 2002 to 22% in Africa, the second placed destination in , is growing and remains the main destination with more than 54% in In addition, other countries of the sub-region such as Côte d'ivoire, Mali and Cameroon absorb a large proportion of Senegalese fishery products destined for Africa. 9 DPM Report, REPAO,

31 The United States, as a destination, is still relatively marginal (1% each year), while Asia's share has changed significantly from 8% in 2009 to 23% in Asia has become the second market for Senegal. This analysis therefore shows an improvement in market access in the subregion. It gives the impression that trade in seafood between Senegal and neighboring countries in the subregion is not negatively impacted by trade agreements with the rest of the world and particularly with the European Union. However, our concern is more about the food security of the nation and the sustainable management of fisheries resources Partnership agreements with the European Union Support policies for Senegalese exports include signing agreements with the European Community. These are the Economic Partnership Agreements (EPAs) negotiated within the framework of EU-ACP relations. The overarching objective of these EPAs is to promote the progressive and harmonious integration of ACP countries into the world economy while respecting their political choices and development priorities by also promoting sustainable development and contributing to eradication of poverty. Theoretical analyses of these agreements show that they aim to facilitate the access of ACP countries products to the European market. They are historically embodied in two fundamental conventions, that of Lome and Cotonou. The Lome Convention includes a package of agreements signed since 1974 and seeks to open up the European market for most products from ACP countries (including seafood) by removing door fees. With this convention, Europe favors the ACP countries in these trade relations through preferential treatment for their exports 11. In Senegal, a study 12 found that this Convention contributed positively to the improvement of the competitiveness of fishery products between 1982 and However, it did not present quantitative measures to confirm this positive link. The Cotonou Convention (signed in 2000) opened a series of negotiations of Economic Partnership Agreements to establish a free trade area between the EU and the ACP. In these negotiations, the EU faces a major constraint on the WTO rule. The principle of discrimination, in effect, would require that any benefit accorded to a nation be granted to others at the same level of development. In this situation, the competitiveness of ACP products may be compromised. 3. Methodological approach To achieve the objectives of this work, the approach adopted begins with a literature review and then goes on to collect and analyze statistical data. Finally, estimates and interpretations will give answers to our questions. There were also visits to a few wharves, processing sites and directions in the Dakar 13 region to better understand the difficulties of the actors and listen to them on public actions Literature Review The documents used in this work come mainly from DPM, REPAO and internet publications. DPM publishes an annual report that provides, among other things, the different statistics 11 Lome IV, art REPAO, Soumbedioum, Thiaroye, Pencum Senegal 30

32 on commercial volumes and values of catches, exports, consumption and fishing gear. REPAO work used largely refers to trade policy. This review made it possible to revisit the history of trade policies applied in Senegal in the fisheries sector. The various types of subsidies granted since 1960, trade arrangements adopted in the West African region and fisheries agreements signed between Senegal and other countries were analysed. In addition, field visits will complement the literature review Data Collection and Processing The data used was collected from institutions such as REPAO, DPM and ANSD. There is a timeseries database covering the following variables: subsidies, national consumption per capita, total landings, exports to the regional market, exports to Europe, total exports, number of foreign ships (particularly European). The data was analysed using two econometric models estimated using the Eviews software. The latter contains all the functions necessary for our analysis. The analysis is complemented by an index calculation to measure the change in the intensity of trade between Senegal and the sub-region Analytical models Using simple linear models, we will successively estimate the effect of subsidies on the sustainable management of fisheries resources on the one hand and the effects of these subsidies and EPAs on food security on the other. For the analysis of the effects of EPAs on intra-regional trade, an index will be calculated and interpreted. a- Modelling effects on sustainable management In the theory of sustainable management of the FR, we have the bioeconomic 14 model which establishes that in a regime of open access, fishing leans towards a situation of equilibrium 15 where the annuity rate 16 is zero. The fishing effort (FE) will increase until the costs are equal to the turnover. However, according to this model, there is a level of FE that corresponds to the level of full biological exploitation (maximum sustainable yield) beyond which fishing enters a situation of overcapacity. This standard model would of course be appropriate for this analysis; however, to overcome the problem of access to the data it requires, we can use a simple linear model. In the latter, the variable to be explained will be the volume of landing. In fact, the sustainable management of the FR is reflected on the fishing capacity of the players who in turn can be captured by the volume of the landings. In order to analyse the effect of fisheries subsidies on sustainable management, it is important to be able to evaluate them, which is not easy. In fact, there are four categories of fisheries subsidies: direct financial transfers, indirect financial services and transfers, regulations and absence of interventions. Therefore, to avoid long analyses, we will use the total sum of resources injected into the sector by the different projects per year. 14 The standard model 15 Free access balance 16 Fishery annuity is equal to the difference between the turnover generated by the fishery and the total costs The model is as follows: 31

33 Debt= f(subt), Using the log-log form, we will get: Deb = Landing of sea fishing per year. Sub = Grant awarded per year. b- Modelling effects on food security A home or a community, a region or a nation enjoys food security (FS) when every individual has at all times the material and economic possibility of obtaining (buying or producing) and deconstructing sufficient, healthy and nutritious food to meet their needs, in keeping with their tastes and allowing them to lead an active lifestyle 17. The overall objective of a food security assessment is to measure the degree of food insecurity and understand why. The previous definition highlights three key aspects: availability, accessibility and use of food. In Senegal, fishing is one of the fundamental sectors for feeding the population. Per capita consumption (C) of FP represents the contribution of fishing to Senegalese food security. Thus, we will analyse its response to FP support policies and EPAs, to assess impacts on FS. In this analysis we will use the following simple linear model which explains the variable C by subsidies (Sub) and the number of foreign ships (NE): Ct = f(subt, NE) The log-log form makes it possible to estimate the elasticities of C with respect to the exogenous variables Sub and NE. Equation (2) is therefore specified as follows: Log(Ct)= a0 + a1log(subt)+ a2net + µt (2) c- Modeling the effects of EPAs on intra-regional trade With export data by destination, we will define and calculate an exchange preference index (EPI). The interpretation of its change between 2000 and 2014 will make it possible to assess the effects of the partnership agreements on Senegal's exports of fishery products to the intraregional market. In fact, in its agreements, on the commercial level, there is the facilitation of access to the European market by means of a reduction in customs duties. Since this decline is not a continuous variable over time, statistical calculations and graphical representations will be able to detect their effects better than econometric modeling. That is why we will use the ratio of the volume of exports to the regional market to that of exports to the European Union. Let us call this ratio Exchange Preference Index (EPI), with: EPI X X ij ie *100 X ij = exports of fishery products from country i (Senegal) to country or market j (regional market), 17 International Federation of Red Cross and Red Crescent Societies, 2004 Xie = exports from country i to the whole European Union (EU), 32

34 If EPI 100, Senegal has a relatively stronger preference for the regional market. If EPI 100, Senegal has a relatively stronger preference for the European market. So an increase in the EPI will be interpreted as a relatively stronger orientation of Senegalese exports to the regional market than to the EU. Therefore, if the EPAs have negatively impacted intra-regional trade, there will be a decrease in EPI. 4. Estimates and interpretation of results Three results were obtained. They have made it possible to measure not only the sensitivity of the fishery resources and FS to the subsidies granted but the impact of the fisheries agreements on both the FS and intra-regional trade Impact of subsidies on the sustainable management of fisheries resources The Ordinary Least Square procedure was used with the Eviews software. The estimation of equation (1) gives the following: LDEB = *LSUB + Ɛt Without doubt, the fact that the series is very short (2000 to 2009) is a limit to the significance of the model, but the result confirms the numerous theoretical and empirical studies according to which subsidies lead to the depletion of fishery resources. In fact, a 10% increase in subsidies will lead to a 5.85% drop in landings Impact of fisheries subsidies and fisheries agreements Using the same software and the same estimation method, we obtained the elasticity of per capita consumption relative to subsidies (-0.023) and semi elasticity in relation to the number of European vessels (0.0006). This gives: Log (Ct)= *log(Subt) *NEt + µt (2) The same limit as above is to be noted due to a small number of observations owing to constraints on access to subsidy statistics. However, we are finding that subsidies have a negative impact on consumption of fish products per capita in Senegal. An increase in the value of subsidies by 10% will lead to a decrease of 0.23% in the volume of consumption per capita. On the other hand, the number of foreign ships is associated with a positive but practically zero co-efficient (0.0006). This is inconsistent with the assumption that foreign fishing, especially in the context of EPAs, degrades resources and thus leads to food insecurity Effects of EPAs on intra-regional trade The Economic Partnership Agreements (EPAs) between the ACP countries and the EU date back to the 1970s with the Lome Convention. Nevertheless, due to time constraints and the availability of certain data, let us start from the Cotonou Convention. The Diagram below shows the progressive orientation of Senegal's trade towards its neighbors to the detriment of Europe as a destination. Diagram 4: Changes in Senegal's Preferential Trading Index (EPI) on the regional market compared to that of the European Union 33

35 Source: Author's calculation Between 1999 and 2014, the EPI increased from to , an average increase of 12.6% per year. This means that relative to the regional market, the share of the EU in Senegal's FP exports has decreased. In fact, the relative share of the regional market increased from 26% to 54%, while that of Europe dropped drastically from 63% to 22%. However, it should be noted that there was little resistance from Europe between 2000 and 2008 and especially between 2000 and 2002 (Annex 2). Overall, it can be assumed that Senegal's preference for intra-regional trade has not been negatively affected by the EPAs since Conclusion Fisheries resources play a key role in food security in Senegal. However, they are under threat by a situation of over-exploitation encouraged by a high level of subsidies. In fact, the latter, by reducing operating costs, increases fishing efforts while the rate of reproduction of resources is relatively low to play its role of compensator. On the other hand, subsidies encourage players in the export sector, which has negative consequences on food security because domestic supply does not keep up with population growth. In addition to these two negative effects, this work shows that the expected effects of economic partnership agreements has not been achieved. In spite of their objective to promote the European market, these agreements from 2000 to 2014 were accompanied by an improvement in the relative share of the regional market in Senegal's total exports. This can be explained by the different commercial arrangements adopted in recent years. CHAPTER III: ANALYSIS OF THE VALUE CHAIN OF FISH PRODUCTS PROCESSED IN SENEGAL AND EXPORTED TO WEST AFRICA 1. Introduction 34

36 The processing of fishery products is an important segment of the sector, through the added value it creates, the jobs it generates, its contribution to the food supply of the population of the interior and its weight in exports. It is small-scale and industrial. It is a traditionally important activity in West Africa. This sector is a source of employment and income for women in fishing communities. Women are widely represented. They are involved in the collection, small-scale processing and trade of fishery products. The marketing of processed products is mainly done through often informal channels that are dynamic and flexible to meet regional demand, but are confronted with a number of difficulties (inadequate means of transport, border problems, customs taxes, lack of information, etc.). The products of small-scale processing are exported to the countries of the West African sub-region. In a context characterized by post-harvest losses resulting from a sharp deficit in infrastructure products to enhance landings, small-scale processing of fish products is a strategic channel in African economies. It contributes significantly to the struggle against the impoverishment of communities, in particular small-scale communities. For example, an analysis of the value chain (VC) of fishery products provides a clear picture of the economic and social impact of the fisheries sub-sector. The general objective of this study will be to provide a better understanding of the characteristics and inefficiencies of specific value chains. It will help the government and the private sector to identify the measures required to minimize barriers and improve the environment for private investment, thereby enhancing the competitiveness and growth potential of the private sector in Senegal. Specifically, we will describe the value chain of the fisheries sector and then present the market segments and the analysis of the various costs and profit margins. 2. Description of the value chain In principle, any organization seeks to gain a competitive advantage through its mission to create value. Developed by Michael Porter, the value chain is a strategic analysis tool to identify within an organization the various activities that generate margins for the company and create value for the customer. According to Porter, the value chain relies on the sequence, the succession of activities step by step, to the final product or service. Each step adds value and therefore contributes to the competitive advantage of the company. In the small-scale fisheries sector, we intend to apply this value chain approach to carry out a study of the value chain analysis of fish products processed in Senegal and traded in West Africa. To do this, we will focus on outputs, gross margins, prices and their fluctuations, and costs at the level of the different market segments from processing to the final consumer. In this first section, we carry out the macroeconomic analysis of the value chain first by identifying and describing the main players in the chain on the corridor, then doing a comparative study of the products intended for commercialization in West Africa and finally describing the distribution chain. We note that the destination for the products is Senegal- Burkina Faso. 2.1 The players in the value chain In the literature, several players are involved in the processing and marketing of fishery products. These economic agents have relatively specialized functions. Fishmongers, processors, market commissioners, retailers and other intermediaries can be distinguished. Fishmongers 35

37 The supply of fresh fish to local markets represents 33% of the catches, and is provided by fishmongers. They constitute the first professional category whose functions are the most diverse: buying fresh fish on beaches, packaging and transporting to markets, distribution and wholesale. They also play an important role in the financing of canoe fishing. Female Processors They are the main players of the sector. In 2003, about 7,000 processors were surveyed at 77 functional processing sites visited. This figure is well below the number of female processors; it does not take into account the operators of processing centers that have not been surveyed. It unfortunately excludes the many women who intervene in the process of small-scale processing because they simply do not own tools of production. In other words, they are excluded by the definition of the concept of processors as the authors of the study think. The survey results showed that women represent 85% of the players, compared with only 15% for men. This shows that the small-scale processing activity of fishery products is essentially female. The few men who work there are generally employed by women. Foreigners represent 3.7% and specialize in products not consumed by Senegalese. This shows the marked national character of the small-scale processing activity of fishery products (Dème et al., 2003). Through their activities, they contribute to socio-economic and environmental development. Small-scale processing (smoking, braising, salt drying) involves 36% of catches. Processed products are generally sold locally to customers who come from local markets, from within and in neighborhood markets. Some processors sell their products to West African countries such as Mali, Burkina Faso and Togo etc. Wholesale merchants They market large quantities of goods and have substantial financial resources which give them the capacity to cope with transport costs if they do not have their own vehicle and bear the costs of storage. They sell their products to semi-wholesalers in the main and secondary markets, which in turn supply the retailers of local markets. Wholesalers export directly to the market in the sub-region. It is important to note that wholesalers, as soon as they enter the market, entrust their goods to intermediaries who, after negotiation with the wholesaler, assume responsibility for disposing of the product for a commission. Market commissioners These are all intermediaries who ensure the final distribution to the consumers and source from the fishmongers or their representatives on the markets. They are responsible for receiving shipments and selling them to retailers. They are by far the most important category. Market Retailers This is the last link in the chain. They convey the processed product directly to the final consumer. They have a low financial capacity and generally do not have means of transport. Only the most prominent ones own vehicles or hire from other traders. Others use "buses or bush taxis" public transport. They buy from processors or at the level of semi-wholesalers or wholesalers and sell directly to the consumer on stalls. Figure 1: Players involved in production and distribution 36

38 Source: REPAO (2010) 2.2 Processed products Small-scale processing provides a range of products. Each product responds to a given technology that depends on several factors: the species concerned, quality, size. The most important products are: "Kethiakh" (braised, salted and dried fish), Guedj (fermented and dried fish), "Metorah" (smoked and dried fish), Salted-fish (salted, fermented and Tambadiang "(salted and dried whole fish)," Yeet "," Touffa "(fermented and dried cymbium), loincloth (dried arcas) and fins (dried in the sun without prior treatment). Small-scale processing uses traditional techniques of drying, salting and smoking. Small scale processors products account for about 30% of the catches landed by small-scale fisheries, to which the scraps of industrial fishing are added, as well as unsold fish from the markets. Production was estimated at almost tonnes in 2014, and is half the weight of the raw material used, (REPAO, 2016). Diagram 5: Changes in the production of processed products from 2007 to 2014 Source: DPM A succinct analysis of the results of the diagram above shows that products such as ketiakh, tambadjan, methorah, yokhos and salted-dried remain the main products derived from small- 37

39 scale processing over the period 2007 to By far, it can be noted that ketiakh is the most significant product, surpassing amounts of tonnes in 2007 to tonnes in 2014, an increase of 27.69% with an annual growth of 3.46%. On the demand side, it is a highly consumed product by national and foreign populations and its market value of very accessible at even low-income level. Because of their exceptional flavors, these products are highly valued by many of the populations in West and Central Africa, where they are a significant part of food protein requirements (Fellows, 1997). They are also an important source of foreign exchange for coastal populations in Senegal (Gret et al., 1993). According to a study carried out by Niang (2006), the sale of Senegalese fish products is facilitated by the existence of a multitude of landing sites where most of the small-scale processing units are located. A variety of players intervene in the sector with a major role played by women, the main operators of small-scale processing. Small-scale processing is simplified by the existence of several species used as raw material. 2.3 Marketing of processed products The distribution and marketing of small-scale products in Senegal is based on two markets: a local market and an international market. At the local level, the national context for the consumption of processed products is favorable. In fact, with the scarcity of fishery resources, fresh produce becomes less accessible to middleincome consumers because of high prices. They turn to processed products. It should be noted, however, that the scarcity of the resource gives rise to an increase in the price of the raw material and thus to the price of the processed products. Between 2007 and 2014, the quantities marketed decreased considerably from 317,240 tonnes to 243,269 tonnes in This decrease is related to the growing share of fish exports, particularly to the countries of the sub-region. The creation of the central fish markets in Dakar and Kaolack, which plays an important role in the collection and distribution of fish, has fostered the development of fish trading. However, in some areas, particularly in the southern part of the country, fish trade remains poorly developed due to problems of isolation and lack of infrastructure (ice-making plants, storage rooms, roads and production workstations, etc.). On the other hand, international exports increased in value over the period under review. The development of exports of processed products by destinations shows that the European Union's market shares continuously eroded over the period 2008 to 2013 in favor of the African and Asian markets. Prior to 2007, Europe was the main destination for fish exports. The decline in the European market is due to the declining share of fish in national exports due to the over-exploitation of coastal demersal resources. The other explanatory factor is the increasing demand for pelagic fish (sardinella and hake) in the African and Asian markets. From 2007, Africa became the premier destination for exported products. Between 2007 and 2014, tonnes were exported to West African countries, accounting for more than 50% of total exports. For example, in 2011, the respective share of Africa and EU exports in volume terms was 51% and 32%. However, in terms of value, the EU's share of exports remains superior. The geographical reorientation of exports is also explained by the growing scarcity of groups of species usually exported to the European market (groupers, sea bream, shrimp, cephalopods...), which has resulted in a deferral of exports to species hitherto intended to the national market (sardinella, sompats, horse mackerels, belts,...), (DPM, 2013). This shows that the sub-region is still the main destination for wholesale traders. Meanwhile, Burkina Faso leads with 66% of exports compared with 12% for Mali and Gambia respectively. 38

40 Diagram 6: Exports of products to West African countries Source: DPM (2007 à 2014) 3. Value chain analysis on the West African corridor The methodology used to conduct this study is based on price analysis and calculation of margins along the value chain from processing to consumption. To do this we will choose a pilot site in Senegal called "Pencum Senegal". The site gets its name from Pencum Senegal a former Senegalese radio interactive program, hosted by El Hadj MadaSeck, which took place at the time on the very premises (MBengue, 2000). Pencum Senegal has been retained as a pilot site for processing fish products this in study. This choice is motivated by the importance it plays in the processing sector (in terms of players, production and trade), the strong organization of women and the leadership of its leaders. This small-scale processing site for fish products is one of the most significant processing sites in Dakar. In 2015, around Pencum Senegal, nearly 219 people were active in processing. Pencum Senegal is one of the most significant fish processing sites in Dakar. There are 117 processing workshops run by women employing a total of 56 women and 46 men. Table 5: Breakdown of players in the value chain Active people Workshop chief Employees Other Total Women Men Total Source: According to REPAO survey (2016) 3.1 Analysis of the commercialization of kethiakh The small-scale production of kethiakh has grown considerably due to the increased production of round and flat sardinella, which are the most widely used and preferred species for this product (Durand, 1981). With the development of fishing instrument technology, production of kethiakh has become more important in the country. However, it remains a 39

41 subsidiary activity in Pencum Senegal. Women do this sporadically, when they lack fish to do the guedj. A Senegalese specialty, ketiakh is used as condiment, in association with legumes (beans), as a main source of protein. Marketing of ketiakh both inside and outside the country is done by the women of Pencum Senegal. The economic conditions for the distribution of processed products are favorable. The women do not go to the customers, it is the latter that come to buy the products on the spot, which weakens the capacities of the women who process fish. According to the Fisheries Department of Pikine in Thiaroye, the finished product is broken down to the local market within the country and for the external market with countries such as Mali, Burkina Faso, Togo, Guinea and Ivory Coast. Based on the statistical data and the analysis period, we see that the product exported is kethiakh (see Diagram 4) to Burkina Faso (see Diagram 3). Therefore, our analysis of the value chain for the West African Corridor focuses on the ketiakh and between Senegal and Burkina Faso. Diagram 7: Changes in exports of processed products in West Africa Source: DPM 3.2 Creation of value addition through price analysis and calculation of margins It begins with a breakdown of the different loads related to the processing activity of a dried braised sardinella (ketiakh) at the Pencum Senegal site. The price of fresh products depends on several factors, namely the species, quality of fish, season, etc. In this exercise, an average price was used. The development of an operating account for this type of product gives us an idea about the operating costs. Operating costs Processing of fishery products requires certain operating costs. These costs are generally fixed and include the purchase of the fresh produce, wages for the labor and purchasing the salt, purchasing the wax, storage, food and trimming. The loads may vary depending on several factors. Among other things, there is first of all the nature of the product to be obtained: the charges differ depending on whether one processes fish to have guedj, kethiakh or yeet. The species and size of the fish also come into play: processing large fish (cutting, chipping) requires more work and is paid more. Table 6: Production and Operational costs for "Kethiakh" 40

42 Processing of one tonne of sardinella "Kethiakh" Categories Product Purchase Water Salt Trimming Peeling Display Storage Food Amount in FCFA Total production costs Source: REPAO (2016) The costs associated with the processing activity and the operating costs vary according to the processed products and according to the period. The income that women derive from processing is very unstable and low. Selling prices also vary for the same reasons as during the operating phase. On average, the cost of processing one tonne of fresh ketiakh fish can be estimated. In 2014, women processors of Pencum marketed about 804 tonnes of processed products on the local and sub-regional market. This production consists of 91% dried fermented products, 6% dried salted products and 3% dried braised products. Thus, the share of each type of product represents its weighting in the calculation of average operating costs. In addition, according to the women, one tonne of processed product is obtained with 1.6 to 2 tonnes of fresh products, i.e. a co-efficient of 0.6. According to the REPAO (2016) surveys at the Pencum Senegal site, the processing of one tonne of sardinella produces about 600 kg of Ketiakh. This means that the unit cost of production of ketiakh on the site is f. On the same site, processors sell the kg of ketiakh to the big traders between 200f and 700f according to the periods and other unforeseen factors. For the purposes of our study, we consider an average price of 450f per kg. With respect to the export price, we shall consider the international price, which is included in the general reports on exports of processed products. It is 1250 f per kg. In addition, we will assume that export-related costs are the same as those borne by traders for all other countries in the sub-region. So referring to the Senegal-Mali axis, we are carrying out the same loads for the Senegal-Burkina axis. We specify that all the values calculated in the table are reduced in proportion to the weight of 600kg of ketiakh exported. To better analyse the change of prices and margins along the value chain, we will draw up a table of the distribution of value addition on the Senegal-Burkina Faso axis. This allows us to determine for each market the level of prices and corresponding margins. Table 7: Calculation of prices and margins on the local market in Senegal Elements Production sold, in kg 41

43 Quantities in kgs Unit Price Value in FCFA Production costs ,83f f Turnover f f Gross margin on site ,17f f Table 8: Calculation of prices and margins in the Burkinabe market Production sold, in kg Elements Quantities in kg Unit Price Value in FCFA Buying price f f Shipping costs f f Tariff barrier Flat rate f Personnel support Flat rate f Cost in Burkina Faso ,67f f Turnover on the Burkinabe market Gross margin on the Burkinabe market f f ,33f f From an analysis of margins, it can be noted that the economic benefits associated with the value chain for the ketiakh product remain very marginal. They are of the order of 37.6% of the turnover at the national level and of 14.67% on the international level. This decline is largely explained by the additional costs that exports generate and, on the other hand, prices on the Burkina Faso market are not sufficiently remunerative. Prices, unlike margins, rose naturally due to the factors that go into the calculation of costs. They increased from 450 f in the local market to 1250 f on the Burkinabe market, an increase of %. However, the same time, unit costs rose from f to f, an increase of %, which ultimately reduces the gross margin in both markets. Overall, an analysis of the value chain on the Senegal-Burkina Faso axis makes it clear that the sector of small-scale processing is far from flourishing for the players of the chain, particularly women who are processors. The explanatory factors are multiple and controversial according to the literature on analysis of the constraints of the value chain. However, it can still be believed that lifting some of these constraints could significantly improve the economic spinoffs of this activity. 3.3 Constraints to be lifted to improve the chain The small-scale processing sector is still facing serious problems which considerably limit the economic and social benefits associated with the activity. It is generally accepted in the literature that the valuation of the fisheries sector cannot focus solely on the increase of catches but on a better valuation of the promotion of small-scale processing. It is a major priority issue in light of the increasing requirements of compliance with health standards in 42

44 traditional export markets. Problems vary from one site to another, but studies in this area have focused more on some recurring points. For example: level of development Small-scale processing sites for fish products often have certain shortcomings, which include: - the lack of hygiene and sanitation of the sites, equipment (hurdles, bins, ponds), working tools, personnel; - insufficient equipment was reported by an average of 46.7% of processors interviewed in the four sites surveyed; - the lack of development of the sites in accordance with the principles of the Codex Alimentarus in this matter, namely the forward movement, the non-inter-breeding of the circulation currents, the separation of the soiled areas from the unsoiled areas is noted in Mbour and Kayar; - lack of running water and electricity characterizes certain sites; - lack of accompanying infrastructure: Infirmary, day-care center, shelters, meeting room, warehouses, shops etc. especially for large sites. supplies Processors' access to raw materials and inputs in quality and quantity is difficult. This major constraint is due to the scarcity of resources, competition as women become victims of fishmongers and industrialists on the products that were previously exclusively for small-scale processing, poor organization of female players, ignorance of all sources of supply and finally insufficient financial capacity. women processors Processors deplore a lack of political, professional and organizational capacity. On a political level, they are faced with a lack of capacity in negotiation, communication and lobbying. Even if they are aware of their difficulties, they find it difficult to problematize them, to read their environment and to understand the mechanisms on which the political decisions affecting them are based. On the professional side, there is a lack of mastery of good practices in small-scale processing of fishery products. The rules of financial management and simplified accounting are not controlled. Women have difficulty calculating their cost price and establishing their operating accounts in order to draw all the expenses and take the necessary measures. The management of savings and credit is often a problem even if women are considered creditworthy and good payers. They are generally confused about, current and savings accounts, deposit and personal contribution, linear and decreasing depreciation. At organizational level, management rules are not well known. Officials are unaware of their functions, members are not regularly renewed, meetings are rarely held, internal democracy is difficult to function, guarantee instead of strengthening solidarity, is a source of disagreement. Processing facilities are poorly managed. Infrastructure and facilities are not regularly maintained. Their renewal is not as secure because of the absence of a sinking fund. In terms of stocks, inventory accounting is not well kept, due to a lack of organization and lack of traceability. Finally, access to the business of fish processing is free and unregulated. 43

45 At the regulatory level There are, as yet no regulations specifically for small-scale processing of fishery products, production authorization, standard pattern of development, hygiene and sanitation standards, marketing authorization etc. Small-scale processing was long regarded as a marginal activity and the processed products were mainly intended for local consumption. Now that the external market requires quality, the sector must be regulated. V. Conclusion The analysis of the value chain shows that the small-scale processing sector is completely dependent on small-scale landings and commercialization. Moreover, the major constraints (related to supply, processing and marketing) of the small-scale processing industry for fish products in Senegal are inter-related. In fact, in order to solve a problem facing a link in the chain, one must act on the whole value chain. For example, difficulties in the marketing of processed products are due, among other things, to the lack of hygiene and quality of the finished products, which in turn is linked in part to the supply problem. Consequently, in order to revitalize fish processing products in Senegal, a major programme to improve the value chain of processed products in Senegal must be developed, with three main areas of intervention: the supply system; the processing system and the capacity building of the players; the marketing channel for finished products at local, sub-regional, continental and international levels. BIBLIOGRAPHIC REFERENCES ANSD (Ed. 2008, 2009), Situation Economique et Sociale du Sénégal PECHE MARITIME, 44

46 Bailleux, R. and Failler, P. (2009): «Vers une meilleure compréhension des enjeux du commerce des produits de la mer en Afrique de l Ouest», PRCM, 27 p. UNCTAD (2013): «Rapport sur le Commerce et le Développement», Genève. Déme. M ;Thiam.D ; Thiao. D and Barry. M.D (2003): «Recensement des femmes transformatrices de la pêche small-scalee sénégalaise, CRODT/ISRA, Thiaroye-Dakar DHEPS, ENDA-Graf/Collège coopératif de Paris USE, rapport d étude sur Pencum Sénégal. Direction des Pêches Maritimes(2099): «Résultats Généraux des Pêches Maritimes», Rapport Direction des Pêches Maritimes(2000): «Résultats Généraux des Pêches Maritimes», Rapport Direction des Pêches Maritimes(2001): «Résultats Généraux des Pêches Maritimes», Rapport Direction des Pêches Maritimes(2002): «Résultats Généraux des Pêches Maritimes», Rapport Direction des Pêches Maritimes(2003): «Résultats Généraux des Pêches Maritimes», Rapport Direction des Pêches Maritimes(2004): «Résultats Généraux des Pêches Maritimes», Rapport Direction des Pêches Maritimes(2005): «Résultats Généraux des Pêches Maritimes», Rapport Direction des Pêches Maritimes(2006): «Résultats Généraux des Pêches Maritimes», Rapport Direction des Pêches Maritimes(2007): «Résultats Généraux des Pêches Maritimes», Rapport Direction des Pêches Maritimes(2008): «Résultats Généraux des Pêches Maritimes», Rapport Direction des Pêches Maritimes(2009): «Résultats Généraux des Pêches Maritimes», Rapport Direction des Pêches Maritimes(2010): «Résultats Généraux des Pêches Maritimes», Rapport Direction des Pêches Maritimes(2011): «Résultats Généraux des Pêches Maritimes», Rapport Direction des Pêches Maritimes(2012): «Résultats Généraux des Pêches Maritimes», Rapport Direction des Pêches Maritimes(2013): «Résultats Généraux des Pêches Maritimes», Rapport Direction des Pêches Maritimes(2014): «Résultats Généraux des Pêches Maritimes», Rapport Durand. M.H (1981): «Aspect socio-économiques de la processing small-scalee du poisson de mer au Sénégal, Archive du CRODT, n 103, BP 2241, Dakar FAO-TCP-SEN-3501 (2015): «Résumé analytique du bilan de la mise en œuvre de la LPS et Actualisation du Diagnostic» Lena WESTLUND (2004) Guide pour l identification, l évaluation et la notification des subventions dans le secteur des pêches Ministère de la Pêche et des Affaires Maritimes(2013): «Conseil Interministériel sur la Pêche», Document introductif. 45

47 NDIAYE, P. G. (2010): «CartoDiagramie des Échanges de Produits halieutiques en Afrique de l'ouest», INFOSA / NEPAD Niang.P.N (2006): «Etude de la filière sénégalaise de processing small-scalee des produits halieutique: Analyse de la chaine de valeur» Papa Gora NDIAYE (2005), La pêche au Sénégal face à la libéralisation du commerce mondial Papa Gora NDIAYE (2014), La cohérence des politiques dans les secteurs halieutiques en Afrique de l Ouest Documents du REPAO exploités Libéralisation du commerce et gestion durable des ressources halieutiques en Afrique de l Ouest: étude de cas du Sénégal Libéralisation du commerce et gestion durable des ressources halieutiques en Afrique de l Ouest: étude de cas de la Mauritanie Libéralisation du commerce et gestion durable des ressources halieutiques en Afrique de l Ouest: étude de cas de la Gambie Libéralisation du commerce et gestion durable des ressources halieutiques en Afrique de l Ouest: étude de cas de la Guinée Libéralisation du commerce et gestion durable des ressources halieutiques en Afrique de l Ouest: étude de cas du Cap Vert Libéralisation du commerce et gestion durable des ressources halieutiques en Afrique de l Ouest: étude de cas de la Guinée Bissau Analyse des pratiques et des politiques de pêche et changements climatiques à Joal- Fadiouth Cartographie de la chaine de valeur des produits transformés halieutiques transformés au Sénégal, Rapport provisoire 46

48 ANNEXES Annexe 1: Distribution of Senegal s fishery products exports Source: DPM,

49 Annexe 2 48

50 Annexe 3: Changes in the share of exports destined for the regional market and the European market Source: Own calculations 49