THE WORLD BANK GROUP
The Union of the Comoros: Jumpstarting
Agricultural Transformation
Agriculture Sector Review
Report No: P164195
Comoros Agriculture Sector Review (P164195)
1
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2
Contents
Acknowledgements ......................................................................................................................... 8
Acronyms and Abbreviations ......................................................................................................... 9
1
2
Executive Summary .............................................................................................................. 10
1.1
Pillar 1: Public Actions to Boost Agricultural Transformation...................................... 15
1.2
Pillar 2: Boosting Food Production and Smallholder Access to Markets ...................... 18
1.3
Pillar 3: Export Promotion of Established and New Products ....................................... 21
Introduction ........................................................................................................................... 23
2.1
2.1.1
Geography and Demography .................................................................................. 25
2.1.2
Structural Features of the State and Economy ........................................................ 26
2.2
3
Road Network ......................................................................................................... 34
3.1.2
Inter-island Maritime and Air Transport................................................................. 35
3.1.3
Market Infrastructures ............................................................................................. 36
Investment Climate and Trade ....................................................................................... 36
3.2.1
Access to Finance ................................................................................................... 37
3.2.2
Access to Energy..................................................................................................... 39
3.2.3
Access to Land ........................................................................................................ 41
3.2.4
Trade Policies and Business Environment for Agriculture..................................... 41
Sources of Demand ............................................................................................................... 44
4.1
Size of the Food and Beverage Market .......................................................................... 44
4.2
Export Market Trends .................................................................................................... 47
4.3
Demand from Hospitality Sector.................................................................................... 49
Sources of Supply – I: Subsistence Production Systems ...................................................... 51
5.1
Typology of Production ................................................................................................. 51
5.2
Production Performance – Snapshot and Trends ........................................................... 53
5.2.1
Cereals..................................................................................................................... 55
5.2.2
Other food crops ..................................................................................................... 58
5.2.3
Fisheries .................................................................................................................. 59
5.3
6
Complementary Infrastructure ....................................................................................... 34
3.1.1
3.2
5
Sector Context ................................................................................................................ 30
Enabling Environment for Agriculture ................................................................................. 33
3.1
4
Country Context ............................................................................................................. 25
Priority Actions for Subsistence Production Systems .................................................... 61
Sources of Supply – II: Agricultural Value Chains .............................................................. 63
3
6.1
Introduction .................................................................................................................... 63
6.2
Established Value Chains ............................................................................................... 65
6.2.1
Cloves ..................................................................................................................... 65
6.2.2
Vanilla ..................................................................................................................... 67
6.2.3
Ylang-ylang............................................................................................................. 70
6.3
Growing Value Chains ................................................................................................... 72
6.3.1
Poultry ..................................................................................................................... 73
6.3.2
Dairy ....................................................................................................................... 77
6.4
High Potential Value Chains .......................................................................................... 82
6.4.1
6.5
7
8
Horticulture ............................................................................................................. 82
Priority Actions for Value Chains .................................................................................. 86
Institutional Environment for Agriculture ............................................................................ 88
7.1
Strategic Framework ...................................................................................................... 89
7.2
Institutional Structure at the National Level .................................................................. 92
7.3
Governorates .................................................................................................................. 93
7.4
Agriculture Institutions .................................................................................................. 93
7.5
Non-Governmental Organizations ................................................................................. 95
Summary of Recommended Actions and Expected Outcomes ............................................ 95
References ................................................................................................................................... 102
Annex A: Supplementary Figures ............................................................................................... 105
Annex B: Supplementary Tables ................................................................................................ 114
Endnotes ...................................................................................................................................... 124
List of Tables
Table 1-1: Public Actions to Boost Agricultural Transformation ................................................ 16
Table 1-2: Boosting Food Production and Access to Markets for Smallholders .......................... 19
Table 1-3: Export Promotion of Established Value Chains and New Products ........................... 22
Table 2-1: Top 5 Agricultural Import Commodities, 2015........................................................... 29
Table 2-2: Top 3 Agricultural Export Commodities, 2015........................................................... 29
Table 2-3: Benchmarking the Size of the Agriculture Sector, 2014 ............................................. 31
Table 4-1: Size of the Market for Food and Beverages in South-West Indian Ocean .................. 44
Table 4-2: Budget Shares, by Food Segment................................................................................ 46
Table 4-3: Market Shares of Domestic Producers, Product-level................................................. 47
Table 4-4: France & USA import prices, ylang-ylang oil, 2011-2017, US$ & €/kg .................... 49
Table 4-5: New Industrial Export Products and Potential Markets .............................................. 49
Table 4-6: Evolution of the Price Index (base=100 in 1999)........................................................ 50
4
Table 5-1: Summary of Agricultural Production Systems, 2004 .................................................. 51
Table 5-2: Cropping calendar in the Comoros .............................................................................. 53
Table 5-3: Crop Production – A Snapshot from Most Recent Data Sources................................ 54
Table 5-4: Cereal Yields in Neighboring Comparators, MT/ha (2016)........................................ 56
Table 5-5: Demand and Sources of Supply for Cereals ................................................................ 56
Table 5-6: Priority Actions for Enhancing Food Security and Incomes ....................................... 62
Table 6-1: Value Chains at a Glance ............................................................................................ 64
Table 6-2 : Number of Farms and Animals Per Island ................................................................. 77
Table 6-3: Import of Dairy Products in 2013 (Source FAOSTAT) .............................................. 78
Table 6-4 : Number of farms, animals and production per island ................................................ 81
Table 6-5: Vegetable production from 2008 to 2011 (MT) .......................................................... 82
Table 6-6: Inputs, Outputs and Gross Margins of Some Horticultural Productions (KMF/10
acres) ............................................................................................................................................. 85
Table 6-7 Priority Actions to Develop Value Chains ................................................................... 86
Table 8-1: Public Actions to Boost Agricultural Transformation ................................................ 97
Table 8-2: Boosting Food Production and Access to Markets for Smallholders .......................... 99
Table 8-3: Export Promotion of Established Value Chains and New Products ......................... 100
Table 0-1:Trends for Selected Macroeconomic and Poverty Indicators .................................... 114
Table 0-2: Screening Indicators: Export Crop Value Chains ..................................................... 115
Table 0-3: Screening Indicators: Livestock Value Chains ......................................................... 117
Table 0-4: Ylang-ylang prices in Comoros, KMF ...................................................................... 118
Table 0-5: France & USA import prices, ylang oil, 2011-2017, US$ & €/kg ............................ 118
Table 0-6: Ylang grower's production model ............................................................................. 118
Table 0-7: Ylang-ylang Oil Distiller’s Production model – wood, unimproved furnace ........... 118
Table 0-8:Ylang-ylang Collector's Production Model ................................................................ 119
Table 0-9: Ylang Collector's Production Model (Improved Technology) .................................. 120
Table 0-10: Ylang distiller's Production Model (Improved Technology) .................................. 120
Table 0-11: Production Model for a Medium-Sized Poultry Farm............................................. 121
Table 0-12: Screening Indicators: Fresh Fruit and Vegetables ................................................... 123
List of Figures
Figure 2-1: The Union of Comoros .............................................................................................. 25
Figure 2-2: Demographics – Comparing Comoros with the World ............................................. 26
Figure 2-3: Agriculture-led Economic Growth............................................................................. 27
Figure 2-4: Shares by Major Employment Sectors of the Household’s Head (in Percentage)..... 27
Figure 2-5: Correlation between Income and Food Imports in SIDS ........................................... 28
Figure 2-6: Dimensions of Natural Disaster Risk ......................................................................... 29
Figure 2-7: Benchmarking the Size of the Agriculture Sector ..................................................... 30
Figure 2-8: Benchmarking the Performance of the Agriculture Sector, 2014 .............................. 31
Figure 2-9: Agricultural Trade Trends .......................................................................................... 32
Figure 2-10: Agriculture and GDP Growth .................................................................................. 32
Figure 3-1: Network Condition of The Three Islands .................................................................. 35
Figure 3-2: Average Expenditures on International Transport as a Percentage of the Value of
Imports for Small-Island Developing States, 2004-2013 ............................................................. 36
5
Figure 3-3: Benchmarking Financial Access in Comoros ............................................................ 37
Figure 3-4: Lending in Comoros, by Industry .............................................................................. 38
Figure 3-6: Bank Branches and MFIs (Number), 2015 ................................................................ 38
Figure 3-5: Financial Sector Assets & Liabilities by Share of GDP, 2015 .................................. 39
Figure 3-7: Distance to Frontier - Getting Electricity................................................................... 40
Figure 3-8: Solar Potential in the Comoros .................................................................................. 40
Figure 3-9: Trading across Borders in Comoros and Comparators - Rank and DTF ................... 42
Figure 3-10: Trading across Borders - Time and Cost ................................................................. 43
Figure 4-1: Comoros is an Outlier to Engel’s Law ....................................................................... 45
Figure 4-2: Budget Shares, by Food Segment .............................................................................. 46
Figure 4-3: Major Markets for Vanilla Exports, 2008-2016, MT................................................. 47
Figure 4-4: Major markets for Clove Exports, 2008-2016 ........................................................... 48
Figure 5-1: Shares of Areas Harvested, by Crop Categories ........................................................ 54
Figure 5-2: Agricultural Growth Decomposition in SIDS ............................................................ 55
Figure 5-3: Benchmarking Cereal Yields
Figure 5-4:Cereal Production – Comoros ............. 56
Figure 5-5: Benchmarking Rice Yields, hg/ha ............................................................................. 57
Figure 5-6: Rice Production Trends – Comoros ........................................................................... 57
Figure 5-7: Area Harvest for Major Non-Cereal Crops ................................................................ 59
Figure 5-8: Yields for Major Non-Cereal Crops........................................................................... 59
Figure 5-9: Fish Trade Balance, by Volume (MT) ....................................................................... 60
Figure 5-10: Fish Trade Balance, by Value (‘1000 USD) ............................................................ 61
Figure 6-1: Clove exports from major origins, 2008-2016, MT ................................................... 66
Figure 6-2: Vanilla Exports from Major Origins to Major Markets, 1999-2015, MT.................. 68
Figure 6-3: Ylang-ylang Exports from Comoros & Mayotte, 2008-2014, MT ............................ 70
Figure 6-4: Margins across Ylang-Ylang Value Chain ................................................................ 71
Figure 6-5: Margins across Improved Ylang-ylang Value Chain ................................................. 72
Figure 6-6: Estimated Quantities of Poultry Meat by Origin (MT per year) ................................ 73
Figure 6-7 : Local Poultry Value Chain Map – Main Actors per Level ....................................... 74
Figure 6-8: Production Cost of a Locally Produced Egg – Distribution by Type of Expenditure 76
Figure 6-9: Animal Ownership, by Island .................................................................................... 78
Figure 6-10: Dairy Value Chain Segments ................................................................................... 78
Figure 6-11: Retail Price of a Litre of Liquid Milk According to its Origin (KMF).................... 81
Figure 6-12: Horticulture Value Chain Actors ............................................................................. 83
Figure 6-13: Structure of Production Costs .................................................................................. 85
Figure 6-14: Break-even Point and Average Selling Price of Horticultural Products .................. 86
Figure 7-1: Strategic Framework for Agriculture ......................................................................... 89
Figure 0-1: Benchmarking Trends in Overall CPIA Scores ....................................................... 105
Figure 0-2: Progress in Disaggregated CPIA Scores .................................................................. 105
Figure 0-3: Poverty and Consumption Trends in Comoros ........................................................ 105
Figure 0-4: A snapshot of the job market in Comoros................................................................ 106
Figure 0-5: Agricultural Trade Deficits in SWIO Countries ...................................................... 106
Figure 0-6: Overall Trade Trends ............................................................................................... 106
Figure 0-7: Benchmarking Livestock Production per Capita ..................................................... 107
Figure 0-8: Benchmarking Yields of Major Crops ..................................................................... 107
Figure 0-9: Comparison of cost to export (US$ per 20-ft container) ......................................... 107
Figure 0-10: Comparison of port tariffs (US/TEU) .................................................................... 108
6
Figure 0-11: Road Density per Land Area (km/1,000 km 2) ....................................................... 108
Figure 0-12: Road Density per Capita (km/10,000 Inhabitants)................................................. 108
Figure 0-13: Rankings on Doing Business Topics (2018) .......................................................... 109
Figure 0-14: Distance to Frontier (DTF) on Doing Business Topics (2018) .............................. 109
Figure 0-15: Madagascar vanilla prices (nominal), 1997-2017, US$/kg.................................... 109
Figure 0-16: Madagascar clove prices (nominal), 1997-2017, US$/MT .................................... 110
Figure 0-17: Seasonal Price Volatility for Fresh Fruits and Vegetables .................................... 110
Figure 0-18: Export Crop Areas in Moheli ................................................................................. 110
Figure 0-19: Export Crop Areas in Anjouan............................................................................... 111
Figure 0-20: Export Crops Areas in Grande Comore ................................................................. 111
Figure 0-21: Main Dairy Production Areas in Comoros ............................................................ 112
Figure 0-22: Main Poultry (Layer and Broilers) Production Areas ............................................ 112
Figure 0-23: Horticulture Production Areas in Comoros ........................................................... 113
CURRENCY EQUIVALENTS
December 2017
1 EUR
=
490 KMF
100 KMF =
0.204 EUR
1 USD
=
415 KMF
100 KMF =
0.240 USD
7
Acknowledgements
This report has been prepared by a team led by Ashesh Prasann (Agriculture Economist, GFA07). The
core World Bank team comprised Norman Piccioni (Senior Agriculture Economist, GFA07), Joanne
Gaskell (Senior Agriculture Economist, GFA07), and Lorenzo Bertolini (Senior Private Sector
Specialist, GFCAC). The background value-chain analyses for export commodities, livestock
products, and fruits and vegetables were conducted by Stephen Caiger (Sibelius Natural Products),
Alban Bellinguez (FAO-TCIA), and Jean-Charles Heyd (FAO-TCIA) respectively.
The team gratefully acknowledges the overall guidance of Mark Lundell (Country Director, AFCS2),
Dina Umali-Deininger (Practice Manager, GFA07), Rasit Pertev (Resident Representative, AFMKM),
and Alberta Mascaretti (Chief, Africa Service, FAO Investment Center). The team would like to thank
the peer reviewers Adesimi Freeman (Lead Private Sector Specialist, GFCAC), Eli Weiss (Senior
Agriculture Economist, GFA02), and Irina Schuman (Senior Agriculture Economist, GFA07) for their
constructive and insightful comments. Finally, we would also like to thank Antoissi Said Ali Said
(Operations Officer, AFMKM), Sitti Fatouma Ahmed (Program Assistant, AFMKM), Marie Lolo Sow
(Program Assistant, GFA07), and Bodomalala Rabarijohn (Program Assistant, GFA07) for excellent
operational support.
We would also like to thank the many stakeholders in Comoros (government authorities, private sector
representatives, civil society organizations, other development partners), who have contributed to the
preparation of this document with their inputs, knowledge and advice.
The work was made possible through a collaboration between the World Bank and the Investment
Center Division of the Food and Agriculture Organization of the United Nations (FAO/TCIA) as part
of the FAO/ World Bank Cooperative Program.
8
Acronyms and Abbreviations
ACEFER
AU
CAADP
CAPAC
CET
CFAE
CIRAD
CNH
COMESA
CRDE
DNSAE
EAC
EU
FAO
FNAC
FTA
IFAD
IITA
INRAPE
KMF
MECK
MAPEEIA
NAIP
NEPAD
NGO
OP
OPA
RGA
SADC
SCA2D
SNAC
SWOT
TFP
UNDP
USD
VAT
VC
Improvement of the competitiveness of exports and income streams
African Union
Comprehensive Program for The Development of African Agriculture
Central Purchasing of Agricultural Professionals of The Comoros
Common External Tariff
Center Administrative Formalities for Businesses
Agricultural Research for Development International Centre
National Horticulture Center
Common Market for Eastern And Southern Africa
Regional Economic Development Center
National Agricultural Strategy and Livestock Directorate
East African Community
European Union
Food And Agriculture Organization
National Federation of Comorian Farmers
Free Trade Area
International Fund for Agricultural Development
International Institute of Tropical Agriculture
National Research Institute for Agriculture, Fishing and The Environment
Comoros Franc
Mutual Savings and Credit Is Komor
Ministry of Agriculture, Fisheries, Environment, Energy, Industry and Handicrafts
National Agricultural Investment Program
New Partnership for African Development
Non-Governmental Organization
Organization of Producers
Agricultural Professional Organization
General Agricultural Census
Southern African Development Community
Accelerated Growth of Sustainable Development Strategy
National Union of Comorian Farmers
Strength, Weaknesses, Opportunities, Threats
Technical and Financial Partner
UN Development Programme
United States Dollar
Value Added Tax
Value Chain
9
1 Executive Summary
This report is the World Bank’s first Agriculture Sector Review (ASR) for the Union of the
Comoros (henceforth “Comoros”), the first analytic product in the Bank’s reengagement with the
sector after a gap of two decades. In the short-term, the findings from this ASR are intended to launch
a participatory and inclusive consultation process that feeds into an integrated sector strategy and
investment plan, which then charts the path towards agricultural transformation. In the long term, this
review aims to provide the Government of Comoros with the evidence base necessary for strategic
policymaking and smart investments critical to jumpstarting agricultural transformation and accelerate
progress towards its stated goal of becoming an emerging country by 2030.
Endowed with fertile volcanic soil, a gradient of altitudes and micro-climates, and a colonial
legacy of export crop plantations and related factories, the economy of the archipelago of Comoros has
historically been dominated by agriculture. Since 2000, Comorian agriculture has led slow economic
growth of 2.6 percent per annum. Accounting for 38 percent of jobs and 36 percent of GDP, the relative
size of the sector ranks in the 94th percentile globally and is an anomaly among Small Island
Developing States (SIDS). A narrow base of three export crops (cloves, vanilla, and ylang-ylang)
provide 90 percent of export income, with nascent attempts to diversify and revive older export
products like copra, coconut oil and coffee.
However, agricultural growth during the last two decades has been driven by an unsustainable
strategy of bringing more marginal forest land under cultivation, rather than improvements in farm
productivity or value addition. At least 72 percent of farmers are subsistence producers with weak
linkages to a rapidly growing domestic market for food and a diet shifting towards meat, vegetables
and dairy. The remaining producers form the base of three export-oriented value chains and are highly
exposed to volatility in global markets in which Comoros’s price-setting power is low and waning.
There are signs of labor exit from primary production, especially among educated youth, but the
absence of off-farm and non-farm economic opportunities has translated into a high degree of labor
force inactivity and youth unemployment.
Given finite land and freshwater resources, rapid population growth, and decreasing
competitiveness against food imports, the limits to Comorian agriculture’s growth pattern are clear. In
fact, the ability of Comorian agriculture to continue to provide growth, jobs, food security and critical
export revenues is already threatened. Food imports are surging as weak transport infrastructure and
unorganized marketing segment a small domestic market and delink producers from growing modern
retail. Export production is caught in a pattern of catch-up to price fluctuations and is unable to make
strategic investments in value-addition technologies. Nascent producer cooperatives, small and
medium agribusinesses, and young entrepreneurs face high barriers to entry, with finance, energy and
land constraints locking them out from potentially profitable and job-creating investments. The risks
of natural disasters have grown, and it is estimated they reduce the GDP by 1 percent on average every
year, exerting a disproportionately negative impact on agricultural producers.
Simultaneously, the potential for a different growth path, focused on agricultural
transformation – raising farm productivity and strengthening linkages between farms and the rest of
the economy – is also evident. Yield-improving investments in climate-smart inputs, modern
production and processing technologies, and sustainable practices can deliver large food security gains
and build resilience to environment risks. Investments that facilitate internal trade will enhance the
competitiveness of crop and livestock perishables, in which Comoros’s remoteness becomes a buffer
10
against shipped imports, bring local supply in sync with market demand, raise farm incomes and lower
the food import bill. Export promotion in the form of downstream industrial development of existing
products, facing favorable market conditions after a decade long downturn, can allow Comoros to tap
into newer markets and enable producers to capture greater value domestically. Already, this vision is
reflected in the National Industrial Strategy of Comoros (2017), in which all of the domestic and export
products identified for short-term industrial development are agriculture-derived products.
Given agriculture’s large footprint and the limited set of investment opportunities in Comoros’s
economy, it represents the clearest path to economic transformation, the long-term reallocation of labor
from low to high-productivity activity. In fact, economic transformation in Comoros does not imply
an exit from agriculture but building on it to modernize farming and strengthen efficiency enhancing
linkages between agriculture and nascent sectors like manufacturing and tourism. On one hand,
agricultural producers will be assured of a domestic market, if they are able to meet its quality and
quantity requirements. On the other hand, manufacturing in the form of agro-processing would have
guaranteed inputs in an economy with small endowments of non-agricultural raw materials. In the
tourism sector, the expected arrival of new airline carriers, foreign tourists and international hotel
chains will raise the demand for high-quality, locally sourced perishables like tropical fruits, vegetables
and fish.
Consequently, building up agro-processing and ancillary post-harvest services (storage,
distribution, transport, logistics, retailing, preparation for restaurants and hotels) has a high likelihood
of success in generating economic activity, fostering formal enterprises, and creating remunerative
jobs that draw skilled labor away from inactivity in Comoros. In Tanzania and Malawi, 40 percent of
manufacturing and services jobs are now generated by the agri-food system. Like Mauritius, Comoros
also has the ingredients to leverage its agricultural base to power economic transformation. Unlike
Mauritius, the clearest path to economic transformation runs through non-textile based agroprocessing. Coupled with climate-smart agriculture investments on farms operated like businesses, a
successful agricultural transformation process thus has the potential to deliver on the jobs, food
security, competitiveness, and natural resource management objectives identified by the Ministère de
l’Agriculture, de la Pêche, de l’Environnement, de l’Aménagement du Territoire et de l’Urbanisme
(MAPEAU).
This review casts the analytical net both wide and deep to conduct a comprehensive overview
of sector opportunities that can contribute to agricultural transformation, identify the binding
constraints that hold back such potential, and outline policy and investment options that can unlock it.
Specifically, the ASR is structured to provide the following: i) an outline of structural constraints and
the state of play for the enabling environment of agriculture, ii) an assessment of the current and
projected sources of demand, supply, and market trends for agricultural products, iii) a synthesis of
deep-dive studies of established, growing and high potential agricultural value chains, iv) a description
of the strategic framework, institutional structure and other sector actors, and v) a proposal of specific
policy options and investments that are likely to have systemic impacts on food security and
competitiveness. Some of the major findings from the ASR are:
Sector Context
11
Agriculture-led Economic Growth
5.0
4.0
3.0
2.0
1.0
0.0
-1.0
-2.0
-3.0
-4.0
-5.0
Agriculture
Industry
Tertiary
Source: INSEED and World Bank staff calculations and estimates

The fast-growing population of Comoros is young, rural, and out of work. Creating high quality
and remunerative rural jobs (farm and off-farm) are critical to ensuring a demographic dividend.

The agriculture sector has an outsized footprint, ranking in the 94th percentile globally. In fact,
agriculture is the second-largest sector, the largest employer, and provides for 90 percent of export
income, an outlier among SIDS.

Since 2000, agriculture has led slow economic growth but agricultural transformation has
stagnated. Nearly all growth in the 2001 – 2013 period was driven by input expansion, rather than
improvements in yield or TFP. Historical linkages between agriculture and industry (eg. coconuts and
soap making) are now weakened and new linkages have not been developed.

Large current account deficits are chronic, with food imports being a major contributor. Even
among import reliant SIDS, Comoros is an outlier, importing nearly 70 percent of its food requirement
by volume. By value, food imports comprised 44 percent of merchandise imports and 29 percent of
GDP in 2015.
Enabling Environment for Agriculture
Rankings on Doing Business Topics (2018)
12

Weak complementary infrastructure segments the internal market. Poor rural connectivity
weakens linkages between coastal markets and highland production basins. An informal maritime
transport system and lack of market infrastructure segments an already small internal market into three
markets.

Land, credit and energy constraints are more binding for agriculture than other sectors. Land
access for commercial agriculture is hindered by insecurity generated by three competing tenure
systems. Agricultural lending is limited by collateral requirements and low appraisal capacity among
MFIs. Insufficient and unreliable electricity hampers small-scale processing.

Applied input tariffs are higher than published rates, raising the costs of agricultural inputs and
introducing production uncertainty. The time and cost of obtaining tariff exemptions leads to
importers paying higher tariffs, passing on costs to producers and delays in input supply. This lowers
the use of improved seeds, fertilizers, equipment, and animal feeds, consequently lowering yields and
competitiveness of marketed production.
Sources of Demand
25
by Segment
25
19
Percent
10 15 20
Diet transformation is already underway,
with spending on crop and livestock
perishables now surpassing cereals. The
segmentation of Comoros’s food and beverage
market now resembles the middle-class diet in
developing countries, with growing domestic
demand for perishables and processed foods.
Food Expenditure Shares
17
16
5.3
5

The Comorian food and beverage market is
$570 million, almost as large as the
economy. Relative to SIDS of comparable size
and income, consumption and food
expenditure are high in Comoros.
4
3.5
3.2
3.1
1.6
.18
0

Cereal
Meat
Fruit
Condiments
Oil
Coffee
Vegetables
Fish
Dairy
Sugar
Beverage
Source: 1-2-3 Survey (2014)

Local food production is inadequate and out
of sync with market demand. Despite signs of portfolio transition from rice and coconuts to tubers
and pulses, food production has been unable to align itself with the demand changes accompanying
the diet transformation.
Sources of Supply
13
Cassava and maize have displaced
coconuts and rice as the main food crops.
In national data sources, cassava output is
now the highest among all crops, replacing
coconuts. Rice, the main staple, is now
barely produced in the country and maize
is the main cereal.
Crop Yields
Yields, 1000 kg/ha

20
15
10
5

Introducing
high-yielding
yellow
0
cassava can produce long-lasting food
Comoros
Fiji
Mauritius
Samoa
security gains.
Given widespread
cultivation and consumption of cassava
Bananas
Coconuts
Maize
Rice, paddy
and its forecasted climate suitability,
technology transfer of biofortified yellow
cassava has high potential for rapid delivery of food security and nutrition gains.

Cash crop production employs 18 – 28 percent of producers and is expanding in response to
surging prices. Strategic investments in quality control, downstream products, and downstream
development are required to mitigate against an impending downturn.

Smallholder growers of cloves and ylang-ylang are receiving the majority shares of export prices
(78 and 62 percent respectively) in currently favorable market conditions. Vanilla growers receive
much smaller shares of export prices, as their bargaining power is reduced by an exporter oligopoly
and a government determined price structure.

Egg and dairy value chains are growing and are already competitive. While eggs are now the most
competitive food value chain in Comoros, dairy is developing from a small base in Anjouan and is
competitive with a segment of the milk market.

At present, 99 percent of consumed chicken meat is imported, driven by a 50 – 100 percent price
differential. Like several African countries, frozen chicken wings – a residual from European demand
for lighter chicken meat – are imported at low prices, and local producers are unable to compete.

Developing a market segment for domestic chicken meat requires public investments in nutrition
awareness, feed production and a robust veterinary system. Shifting consumer preferences towards
light meat through a sustained nutrition campaign is required to change current demand patterns.
Stimulating supply requires the development of local feed production, with linkages to maize producers
and fisheries. Lastly, provision of veterinary care and inexpensive vaccination is critical for mitigating
against disease risks.

Domestic fisheries remain artisanal, leading to low catches and rising fish exports. Full-time and
subsistence fishers largely use wooden canoes, basic fishing gear and rudimentary methods, leading
to annual catches below sustainable levels, even as growing demand is met through fish imports.

Vegetables and fruits are seasonally competitive in geographically segmented markets, but greater
domestic competitiveness is constrained by erratic input supply, poor inter-island connectivity, and
weak linkages with a growing retail sector.
Institutional Environment
14

At present, the sector lacks a validated strategy that outlines the path toward achieving the
government’s commitment to agricultural transformation. Comoros has launched the process of
implementation of CAADP but does not have an updated and validated National Agriculture Strategy.
Consequently, it does not have a National Agricultural Investment Program (NAIP), has not signed the
compact, and its progress towards CAADP goals could not be evaluated for the Africa Agricultural
Transformation Scorecard (AATS, February 2018).

The institutional structure governing agriculture is decentralized and complex, but service
delivery is poor due to the absence of sustainable revenue-generating models. Public investment
in agriculture has been low for several years, with almost all agricultural support initiatives relying on
donor-funded projects. Due to the absence of revenue generating models, agricultural extension and
veterinary technicians are underpaid and seek work in donor-funded projects or offer their services
privately.
The main forward-looking messages that have emerged from this review are grouped under three
pillars around which an integrated sector strategy and investment plan can be designed: i) public actions
to boost agricultural transformation, ii) boosting food production and smallholder access to markets,
and iii) export promotion of established and new products. The key priorities and recommendations
from these pillars are summarized in the sections and tables below:
1.1 Pillar 1: Public Actions to Boost Agricultural Transformation

Strategic public investments supporting crop and livestock perishables will bring sector in sync
with market demand, raise farm incomes and lower the food import bill. Comoros’ remoteness
and long shipping times are a buffer for locally produced perishables – eggs, milk, vegetables and fruit
– high-value products that are already competitive seasonally and in segmented markets. Strategic
investments in extension and animal health services can accelerate adoption of modern inputs, and
build resilience to pests and animal diseases, the latter having already caused debilitating effects to the
local cattle population in 2009.

Structuring the regulatory simplification agenda around the Enabling Business of Agriculture
(EBA) indicators to accelerate agricultural investments. The establishment of simplified, low-cost
regulatory systems for seeds, fertilizers, machinery, finance, markets, transport, information and
communication technology (ICT), and water can have a catalyzing effect on the investments and
performance of key players across agricultural value chains. The collaboration between ANPI and IFC
to improve Doing Business indicatorsi can be built upon, with Enabling the Business of Agriculture
(EBA) indicators providing an analogous tool for policy action and quantitatively monitoring
regulatory changes over time, and allowing cross-country comparisons.

Rationalize list of high priority food imports. At present, a list of high priority food imports benefit
from lower tariffs because of their high domestic consumption and the disproportionate effect of their
prices on consumers. This approach weakens the competitiveness of domestic producers over time and
exposes consumers to greater risk of international price shocks. The inclusion of rice – now barely
produced in Comoros – on this list is reasonable, given little adverse impacts on domestic producers.
However, the inclusion of eggs – extremely competitive with imports – is not. A smart targeting
approach, based on an assessment of existing production capacity, domestic competitiveness, and
potential pass-through effects of higher tariffs needs to be adopted urgently.
15

Strengthening the agriculture advisory and extension system. Equipping the recently established
agriculture advisory and extension system (CRDEs) with the human, physical and financial resources
to rapidly disseminate inputs and technical assistance related to climate-smart agriculture is critical for
the delivery of key services and successful implementation of public investment projects in the sector.

Support to land administration services to promote greater tenure security. Transitioning to a
market-based land regime is unlikely in the short-term, given the complexity of three overlapping land
tenure systems (customary, Islamic and colonial) and competitive jurisdictional authorities
(community leaders, Islamic judges and the land administration). However, greater land tenure security
can be achieved if land administration services are strengthened to undertake participatory titling in
production basins. This process would consist of consensual demarcation, multi-stakeholder land
recognition committees that facilitate a small-scale cadaster census, and land use planning.

Establishment of an agricultural data unit. The establishment of an agricultural data collection,
monitoring and planning unit is critical for making strategic and targeted investments in the sector. The
first and last agricultural census in Comoros was conducted in 2004. There are no recent survey based
estimates of output, harvested area, yields, number and type of farms, agribusinesses etc., a knowledge
gap reflected in large discrepancies across macro estimates of production. Granular, geo-referenced
data capturing island-level heterogeneity is unavailable. It is thus difficult to plan, monitor and evaluate
investment projects at present. As a first step, a well-designed and validated Agricultural Census is
urgently required to update public understanding of the sector.
Table 1-1: Public Actions to Boost Agricultural Transformation
Role of Public
Sector
Timeframe
Short
Medium
Long
Direct
Beneficiaries
Policy
maker
Financer
Convener
Market
maker
PUBLIC ACTIONS TO BOOST AGRICULTURAL TRANSFORMATION
PRIORITIES AND MEASURES
PRIORITY 1: Improving access to climate-smart technologies,
innovations, management practices (TIMPs), and advisory
services
(i) Join regional agricultural research and technology




transfer partnerships to develop, transfer, and
disseminate TIMPs that enhance productivity,
climate resilience, and nutritive value by:
harmonizing policies, laws, and regulations to
accelerate transfer of off-the-shelf technologies
establishing national center of specialization to
accelerate development in target crop or livestock
product(s)
enabling private sector involvement in technology
development (seed multiplication, animal
breeding)
fostering producer-retailer dialogue that enables
farmer organizations to adapt to market demand
Crop and
livestock
producers
Policy maker
Financer
Convener
Convener
Medium
Medium
Long
Short
Export crop
producers
Private seed
and animal
breeders
Retailers
16
(ii) Improved access to crop and livestock extension
services by:
 equipping public advisory and extension services
(CRDE) physical and financial resources
 promoting technical assistance through productive
alliances between cooperatives and anchor
investors
 enabling development of privately managed dairy
and poultry hubs to disseminate livestock inputs,
animal vaccines and veterinary services
Crop and
livestock
producers
Financer
Policy maker
Convener
Medium
Short
Medium
Policy maker
Market maker
Market maker
Medium
Short
Medium
Financer
Financer
Convener
Policy maker
Short
Medium
Medium
Medium
Financer
Financer
Convener
Short
Medium
Short
Export crop
producers
Extension
agents
Veterinary
technicians
PRIORITY 2: Enable private investments in agriculture by: i)
improving the investment climate for agriculture, ii)
strengthening land administration services to promote land
tenure security, and iii) building capacity to collect, monitor
and disseminate real-time market information.
(i)
Improving investment climate and matching the supply
and demand for investment capital
 structure the regulatory simplification agenda
around the Enabling Business of Agriculture (EBA)
indicators
 facilitate supply of agricultural credit by providing
MFIs training on appraisal of agribusiness business
plans
 accelerate the development of an incubation
ecosystem with linkages between universities and
private sector representatives for preparation of
viable business plans, early-stage mentoring, and
linkages to MFIs
(ii) Strengthening land administration services to promote
land tenure security by:
 equipping land administration office with
geospatial tools and technical assistance
 conducting a participatory titling program in
production basins
 forming multi-stakeholder land recognition
committees to facilitate demarcation and smallscale cadaster census
 developing land-use framework for areas where
both food and export crops are cultivated
(iii) Build capacity to collect, monitor and disseminate realtime agriculture data by establishing an agriculture
data unit to:
 conduct an agricultural census to fill knowledge
gaps, better policy making and enable private
investments
 utilize remote sensing tools to monitor and respond
to weather, yields, prices, pests and diseases in real
time
 organize the development of mobile applications to
disseminate real-time weather and market
information
Producer
organizations
Agribusiness
startups and
SMEs
Microfinance
institutions
Private sector
representatives
Universities
Food
producers
Export crop
producers
Producer
organizations
Small and
medium
agribusiness
Food
producers
Export crop
producers
Producer
organizations
Small and
medium
agribusiness
PRIORITY 3: Reorient role in determination of import tariffs
and distribution of food, to enhance domestic
competitiveness and free up public resources for investments
17
(i)
Implement a smart targeting approach by:
 assessing pass-through effects of tariffs on
consumer prices and welfare against existing
competitiveness and supply capacity of domestic
production
 enabling annual reassessment of list by developing
criteria-based determination and monitoring of
agricultural production and import trends
Crop and
livestock
producers
Policy maker
Policy maker
Short
Short
Consumers
(ii) Reorient ONICOR to the role of a market coordinator
and facilitator
Food
Policy maker
Medium
 importing and distribution of rice should be
importers
Market maker
Medium
handled by established private enterprises in the
rice import business
Public sector
 activities should be restricted to setting and
applying standards for imported rice, market
Consumers
monitoring, collection of duties and sales taxes, and
maintaining a modest emergency stock
Key: (1) Direct beneficiaries are identified based on the expected first-order effects. (2) The role of public sector lists the primary
role of the public sector, and it is not restrictive. (3) Timeframe is classified as Short-term for actions that are implementable in 0
– 2 years, Medium-term for 3 – 5 years, and Long-term for more than 5 years.
1.2 Pillar 2: Boosting Food Production and Smallholder Access to Markets

Enforcement of import exemptions on agricultural inputs. Cumbersome tariff exemptions and
a cash-strapped importer association introduce uncertainty in input supply through delays, thus
reducing smallholder use of modern inputs. Public and private input importers report tariffs of up
to 9 percent instead of the exempt rate of 1 percent, raising costs when producers can afford input
purchases. Enforcement of import exemptions needs to be coupled with a revamp of the business
model used by importers, to ensure greater input access and competitiveness.

Joining regional agricultural research and technology transfer partnerships. The transfer of
off-the-shelf resilient and biofortified varieties, planting material, seeds and breeds from Regional
Centers of Excellence (RCoE) supported by the World Bank would enhance productivity,
adaptation and food security without requiring Comoros to make duplicative financial and human
resource investments in research and development. It would have the added benefit of harmonizing
Comoros’ certification policies and regulations, phytosanitary requirements and import control
protocol with neighboring countries, thus integrating domestic value chains into a regional market.

No-regret investments in improved, climate-smart varieties of maize, cassava and pulses are
critical to ensure food security and resilience to environment shocks. While production data
are tentative, they suggest that subsistence-oriented production has shifted towards maize, cassava
and pulses over the last decade. To ensure food security, it is critical that reorientation towards
market-oriented perishables is coupled with the transfer of climate-smart inputs, production and
processing technologies, and sustainable practices to support smallholder producers.

A broad-reaching product organization and development strategy is necessary to ensure allyear supply of fresh fruits and vegetables. The market for fresh fruit and vegetables is growing,
but any one product market is too small to justify investment. For vegetable value chains, the
priority is to integrate from production to commercialization by upgrading associations, which are
already dynamic, to professional organizations. For fruit value chains, initial interventions should
focus on the introduction and multiplication of fruit and seedlings adapted to the local eco-climate
context in nurseries, and then building linkages from nurseries to horticulture value chains.
18

Public investments in nutrition awareness, feed production and animal health can lead
market development and partially substitute imports for domestic poultry meat. Consumer
preferences for dark meat drive the demand for cheap, imported frozen chicken wings in Comoros.
A public nutrition awareness campaign could shift demand towards more expensive light meat,
against which indigenous broiler meat is likely to be more competitive. Simultaneously, the
development of local feed production, with backward linkages to domestic maize production
systems and fisheries, can substantially lower the cost and uncertainty associated with imported
feed, thus stimulating supply. Lastly, supporting the provision of veterinary care and inexpensive
vaccination is critical to prevent shocks that can rapidly deplete a small broiler population.

Upgrade dilapidated feeder roads serving production basins. Dilapidated feeder roads erode
the competitiveness of agricultural value chains over overseas suppliers, segment markets, and
exacerbate post-harvest losses. The most common mode of crop transport from the field to rural
collection centers is being carried by laborers on their heads. This mode of transport is slow,
inefficient and costly. Improving the existing rural pathways to even allow the use of nonmotorized transport vehicles would be a significant step towards linking farmers to markets.
Unorganized maritime transport, and low storage capacity raise transaction costs and segment the
internal market. Aggregation, cold storage and logistics can increase value-chain competitiveness
across islands, raise farm incomes, and lower the food import bill.

Organization and regulation of maritime transport services are critical for enhancing
competitiveness of perishables and export crops. Maritime transport of perishables like milk,
eggs, fruits and vegetables across islands is informal, unpredictable and negligible in volume terms.
Introduction of measures to organize and regulate public transport services to improve frequencies,
rationalize fares to make them consistent with socio-economic reality, and introduce a contracting
system that will establish competition for the market on high-frequency routes are critical to
enhancing the competitiveness for local produce and building economies of scale for export crops.

Private investments in on-farm warehouses and public investments in cold storage can
improve food security by reducing price volatility and enhancing market access. Demanddriven access to finance for on-farm storage and warehousing infrastructure can help smoothen
seasonality in farmgate and consumer prices, especially when managed by producer associations
with well-identified business needs. Complementary port infrastructure, especially cold storage,
can reduce food loss in surplus producing islands (Anjouan and Moheli) and reduce price volatility
in Grande Comore by lengthening the supply chain and enabling greater coordination between road
and inter-island transport operators.
Table 1-2: Boosting Food Production and Access to Markets for Smallholders
Role of Public
Sector
Timeframe
Short
Medium
Long
Direct
Beneficiaries
Policy
maker
Financer
Convener
Market
maker
BOOSTING FOOD
PRODUCTION AND
PRIORITIES AND MEASURES
PRIORITY 1:
Enforcement of import exemptions on
agricultural inputs to reduce input costs and erratic input supply
19
Increasing input supply to smallholders by:
 introducing a one-stop shop at ports to reduce time
and cost of compliance with procedures required for
importers to obtain exemptions for agricultural
inputs
 facilitate access to finance for input importer
association and farmer federations, conditioned on
preparation of viable business models
 coordinate distribution of time-sensitive inputs at the
start of planting season
Crop and
livestock
producers
Policy maker
Market maker
Convener
Short
Medium
Short
Financer
Policy maker
Short
Medium
Policy maker
Policy maker
Financer
Short
Short
Medium
Market maker
Financer
Financer
Policy maker
Medium
Medium
Medium
Medium
Producer
organizations
Private
importers
PRIORITY 2: Strategic public investments in climate-smart
agriculture (CSA) that boost yields and build smallholder
resilience to environmental shocks
Target CSA dissemination to crop and livestock producers by:
 piloting improved, biofortified, and resilient
varieties of cassava, maize, and pulses in
production basins
 providing market incentives to adopt and scale-up
tested CSA technologies, innovations, management
practices (TIMPs) for crop and livestock
production systems
Crop and
livestock
producers
Consumers
PRIORITY 3: Facilitate internal food trade to raise market
participation and food access
(i) Linking highland production basins with coastal urban
markets by:
 enable access to non-motorized (bicycles, carts) and
motorized transport (motorcycles, tuk-tuks) through
temporary and targeted import tariff waivers
 coordinate organized collection from remote areas
and marketing through national-level farmer
organizations
 upgrade and maintain dilapidated rural roads
through locally managed public works programs
Crop and
livestock
producers
Producer
organizations
Traders and
logistics
SMEs
Consumers
ii) Investing in market access infrastructure to enhance
marketability of perishables and reduce price volatility:
 enabling private investments in on-farm warehouses
and chilling dairy plant (Anjouan) by assisting
cooperatives with preparing viable business
proposals
 investing in cold storage at ports to facilitate
maritime transport of perishables (fish, dairy,
vegetables and fruits) and reduce food loss in
surplus markets
 operationalizing existing liquid nitrogen facility in
Moheli to facilitate vaccine storage and artificial
insemination for livestock
 facilitating competition between mobile operators to
incentivize wider coverage and increase low-cost
access to market information
Crop
producers
and
cooperatives
Dairy
cooperatives
Fish
cooperatives
Food
consumers
20
iii) Breaking down barriers to inter-island movement of
agricultural goods to reduce transit costs, accelerate volume of
internal food traded, and increase competitiveness by:
 investing in port capacity and infrastructure in
Grande Comore and Moheli to reduce congestion
and tariffs
 organization, regulation and rationalization of fares
for maritime transit
 introduction of a contracting system to establish
market competition on high-frequency routes
Crop
producers
and
cooperatives
Financer
Policy maker
Policy maker
Long
Short
Medium
Dairy
cooperatives
Fish
cooperatives
Food
consumers
Key: (1) Direct beneficiaries are identified based on the expected first-order effects. (2) The role of public sector lists the primary
role of the public sector, and it is not restrictive. (3) Timeframe is classified as Short-term for actions that are implementable in 0
– 2 years, Medium-term for 3 – 5 years, and Long-term for more than 5 years.
1.3 Pillar 3: Export Promotion of Established and New Products

New, promising cooperatives in export crops (cloves, ylang-ylang and vanilla) on all three
islands are ripe for the Productive Alliances (PA) approach. Cooperatives formed after the
introduction of the 2014 Cooperatives Law have nascent experiences with aggregating production
to secure higher prices, modernization of curing and distillation technologies, and moving up the
value chain to sell processed product directly to exporters and international buyers. The PA model,
successfully deployed by the World Bank in several Latin American countries, can enable
cooperatives to overcome market barriers and gain stability through consistent, higher prices while
buyers receive a consistent, reliable supply of goods meeting their quality standards.

Investment in vanilla curing facilities would increase the returns to production and can
expand the number of producers. Priced by quality at export, good processing facilities and
equipment can raise the margins of vanilla curers and smallholder returns in two ways: i) by
minimizing the conversion ratio of green to cured beans, and ii) secure higher prices through better
quality grades. To enable the establishment of curing facilities by commercial grower-curing
cooperatives requires access to finance and technical assistance, both of which could be structured
in a PA with major international buyers that are looking to diversify their procurement across
several origins to hedge against the price volatility that is characteristic of the vanilla market.

Incentives nudging quality differentiation in cloves are required to access higher priced niche
markets. Since all cloves are mixed into the general supply of minimum quality at the export stage,
the current value chain structure does not reward quality improvements. To access higher priced
niche markets, established exporters need to identify buyers, and require technical and financial
assistance in developing post-harvest traceability systems. Large-scale grower groupings (100+
MT) can then directly supply to exporters without going through collectors, negotiate individual
pricing, and prepare batches of qualities that could be marketed separately by exporters for a price
premium.

Water and wood-saving upgrades ylang-ylang distillation units will enhance commercial and
environmental sustainability. Access to water is increasingly a binding constraint for distillation
during the dry season, restricting oil production. Wood overuse has led to severe environmental
21
degradation, and improved furnaces have proven difficult to maintain. Since wood will remain the
dominant fuel source for the medium term, policies linking woodlot plantations to distillation use
must be developed. Access to finance is required for investments in stainless steel stills, which will
improve yield, oil quality, and thus margins, relative to galvanized steel still, many of which are
still in use despite age and repair requirement. Coupled with installation of improved furnaces,
closed water circulation systems, and construction of large storage areas for fresh flowers, there is
great scope to move ylang-ylang exports closer to the production possibilities frontier.
Table 1-3: Export Promotion of Established Value Chains and New Products
Role of Public
Sector
Timeframe
Short
Medium
Long
Direct
Beneficiaries
Policy
maker
Financer
Convener
Market
maker
PRIORITIES AND MEASURES
EXPORT PROMOTION OF ESTABLISHED AND NEW PRODUCTS
PRIORITY 1: Raising smallholder returns in established value
chains by: i) supporting plantation renewal and expansion, ii)
enabling processing yield and quality improvement, iii)
promoting productive alliances between cooperatives and
buyers
(i) Supporting plantation renewal and expansion by:
 consolidation of bulking plots for supply of high
quality planting material to replace aging vanilla
vines
 providing technical assistance for management of
ylang-ylang plantations
 establish well-managed central nurseries for cloves
and ylang-ylang trees
Export crop
producers
and
cooperatives
Convener
Financer
Financer
Short
Short
Short
Convener
Policy maker
Policy maker
Convener
Short
Short
Short
Short
Market maker
Market maker
Convener
Convener
Short
Short
Short
Medium
Exporters
(ii) Enabling processing yield and quality improvements by:
 enabling upgrades and investments in vanilla curing
facilities by grower-curer cooperatives
 incentivizing distillery upgrades to water and woodsaving structures and technologies for sustainable
ylang-ylang production
 standardizing low-cost field tests to reduce
fraudulent manipulation of ylang-ylang oil quality
 promote investment in drying and storage facilities
to minimize on-farm losses for cloves
Export crop
producers
and
cooperatives
(iii) Promoting productive alliances between cooperatives and
buyers by:
 facilitating formation of producer cooperatives
through decentralized extension
 supporting development of niche qualities through
certification (eg. Fair Trade, Organic) to attract new
buyers and capture price premiums
 convening and structuring dialogue with
international anchor investors to assess mutual needs
and identify scope for collaboration
 ensure long-term support and mentoring of
cooperatives through input financing and technical
assistance focused on management and operational
capacity
Export crop
producers
and
cooperatives
Curers,
dryers and
distillers
Exporters
Curers,
dryers and
distillers
Exporters
Anchor
investors
22
(iv) Improve regulatory environment by:
 ensuring greater representation of smallholders in
bodies representing each value chain
 monitoring non-competitive behavior in
concentrated value-chain segments
 removing government involvement in price-setting
in vanilla value chain
 mitigate effects of price volatility on smallholders
through targeted income support
Export crop
producers
and
cooperatives
Convener
Policy maker
Policy maker
Financer
Medium
Medium
Short
Medium
Curers,
dryers and
distillers
Exporters
PRIORITY 2: Downstream diversification and development of
new products by assessing and enhancing commercial viability
of new products
Assessing and enhancing commercial viability of new products
by:
Export crop
Financer
Short
 conducting technical and financial assessments of
producers
Convener
Medium
commercial viability of derivatives of existing
and
Financer
Short
products (clove oil, vanilla powder, vanilla extract,
cooperatives
Market maker
Medium
aromatic soap etc.) and new products (ground
spices, other essential oils)
Agribusiness
 establishment of technical university courses aimed
startups and
at development of derivatives
SMEs
 multiplication of planting material for crops will
small production bases (coffee, pepper etc.)
 support establishment of small-scale spice grinding
and artisanal extraction facilities
Key: (1) Direct beneficiaries are identified based on the expected first-order effects. (2) The role of public sector lists the primary
role of the public sector, and it is not restrictive. (3) Timeframe is classified as Short-term for actions that are implementable in 0
– 2 years, Medium-term for 3 – 5 years, and Long-term for more than 5 years.
In summary, this review points to a programmatic approach spanning agricultural policy reforms,
strengthening of institutional capacity and enabling environment investments in infrastructure and
business climate improvements. By implementing strategic evidence-based policies and investments,
the country can build on its agricultural base and link it to agribusinesses and industrial production,
thus generating modern, professional jobs that absorb its young and rapidly expanding workforce. In
fact, accelerating structural transformation in Comoros is an urgent, attainable goal with broad
implications for the country’s ambitious objective of achieving “emergence” by 2030.
2 Introduction
This report is the World Bank’s first Agriculture Sector Review (ASR) for the Union of the
Comoros (henceforth “Comoros”), the first analytic product in the Bank’s reengagement with the
sector after a gap of two decades. This review is a stocktaking exercise that aims to provide the
Government of Comoros with the evidence base necessary for strategic policymaking and smart
investments critical to jumpstarting agricultural transformation in the country. In the short-term, the
findings from this ASR are intended to launch an evidence-based, participatory, and inclusive
consultation process that feeds into an updated sector strategy and investment plan that charts the path
towards agricultural transformation.
This ASR follows the African Center for Economic Transformation (2017) and refer to
agricultural transformation as the process of i) boosting farm productivity through modernization, and
ii) strengthening of linkages between farms, manufacturing and other sectors of the economy through
23
agro-processing, other agriculture-based manufacturing, finance, logistics, and other upstream and
downstream services.ii We argue that the process of agricultural transformation produces gains in food
security and competitiveness, which we take to be the twin objectives for the agriculture sector in
Comoros. Through the ASR, we report direct and indirect indicators for food security and
competitiveness, in order to establish a sector baseline, against which progress can be monitored. We
conclude with a summary of recommendations and their expected impacts on food security and
competitiveness. While jobs and natural resource management are other objectives flagged by the
Government of Comoros, the unavailability of data on jobs and natural resource use at the sub-sector
level does not allow us to report them as consistently.
In line with World Food Program (WFP), we take food security to mean the consistent
availability and adequate access to sufficient, safe, nutritious food to maintain a healthy and active
life.iii Since Comoros is unranked in IFPRI’s Global Hunger Index and the Economist Intelligence
Unit’s Food Security Index due to paucity of data, we are unable to make international comparisons
and this report restricts its analysis to known pathways from agricultural production to food security.
Lastly, we refer to agricultural competitiveness as the ability to face competition successfully, to sell
products that meet demand requirements and, simultaneously, ensure profits over time, or the aptitude
to gain market shares.iv Our approach to assessing competitiveness is driven by data availability at the
national and sector levels, and through primary data collection for agricultural value chains. Farm
productivity, generally considered an important indicator of agricultural competitiveness, is evaluated
against comparator countries in Chapter 5. In Chapter 4, we refer to international and domestic market
shares to benchmark the international competitiveness of export products and domestic
competitiveness of livestock and horticultural products. In Chapter 6, we supplement these metrics
with firm-level indicators like the profitability of representative poultry and horticulture production
units.
This review casts the analytical net both wide and deep to conduct a comprehensive overview
of sector opportunities that can contribute to agricultural transformation, identify the binding
constraints that hold back such potential, and outline policy and investment options that can unlock it.
In the rest of this chapter, the study presents an overview of the structural features of the Comorian
state and economy, highlighting the geophysical underpinnings of the agriculture sector and the
specific nature of the demographic boom being experienced by the country.
Chapter 3 delineates state of the enabling environment for agriculture, focusing on complementary
infrastructure, trade policy and investment climate bottlenecks that require urgent policy action for the
sector to thrive.
Chapter 4 assesses on the demand side of agriculture and estimates the size of the domestic food and
beverage market, also outlining market trends for export crops and the potential markets for new semiindustrial products derived from agriculture.
In Chapter 5, we evaluate the changing production profile of Comoros, and the supply-side features of
the main subsistence crops and artisanal fisheries.
Chapter 6 presents a synthesis of deep-dive background studies of six established, growing and high
potential agricultural value chains, zooming in to map the structure, margins and geography associated
with each of them.
24
Chapter 7 undertakes an assessment of the institutional environment, with a selected review of the
recent national strategies pertaining to agriculture and industry, institutional structure governing
agriculture and a discussion of other prominent sector actors.
Lastly, this review concludes with proposed policy actions and investments customized to agricultural
value chains interventions that are likely to have systemic impacts on food security and
competitiveness. The recommendations are grouped under three pillars around which an integrated
sector strategy and investment plan can be designed: i) public actions to boost agricultural
transformation, ii) boosting food production and access to markets for smallholders, and iii) export
promotion of established value chains and new products. Under each pillar, specific actions, expected
beneficiaries, role of the public sector, and the implementation timeframe are identified to enable clear
prioritization by the government.
2.1 Country Context
Key features





2.1.1
Remote archipelago with a small population
Fragility has delayed economic development
Population is young, predominantly rural, poor and out of work
Low-income country but household expenditures are high
Structural dependence on food imports and remittances
Geography and Demography
1.
Comoros is located in the
Indian Ocean, near the Northern tip
of Madagascar. It is an archipelago
composed of four islands - Anjouan,
Moheli and Grande Comore, where the
capital Moroni is located, and the
island of Mayotte (under French
administration). Covering a territory
of about 2,200 km with a coastline of
340 kmv, Comoros is densely
populated with an average of nearly
360 people per km2. The population of
795,000 (excluding Mayotte) is
distributed across three islands – 52
percent in Grande Comore, 42 percent
in Anjouan, and 6 percent in Mohéli –
with Anjouan being the most densely
populated.
Figure 2-1: Comoros Archipelago
2.
The productive capacity of the Comoros islands is a direct function of their age. The
elements have had the most time to erode the rocks and render the land relatively flat in Moheli and
25
then Anjouan, covering them with a thick layer of fertile soil and enabling an abundance of fresh water
through permanent rivers, which in turn has led to high productive capacities on both
islands.vi However, given its relatively small size and dense forest cover, the population in Moheli is
much lower than Anjouan, which contributes the largest share of agricultural production in the Union.
On the other hand, the youngest island of Grand Comore is still being reshaped by an active volcano,
Mount Karthala. Due to its young age, the island has a shallow layer of soil and rainfall has little chance
of seeping into the groundwater and there are no permanent rivers.vii
3.
The fast-growing population of Comoros is young, rural, poor, and out of work. Creating
high quality rural jobs are critical to ensuring a demographic dividend. The median Comorian is
just 19.8 years old and the population is experiencing a youth bulge. Largely rural, the country’s also
exhibits one of the fastest rates of rural population growth globally (Fig. 2.2). viii. Even more unusually
for a low-income countryix with high povertyx, only 45 percent of the population is employed, one of
the highest rates in SSA.xi While high labor force inactivity is expected given that 42.2 percent of the
working age population is in school,xii a significant disincentive to work is also linked to remittances
received by families of emigrants – close to 40 percent of Comorian households received foreign
remittances in 2014, with amounts representing 22 percent of recipients’ revenues. xiii To ensure that
Comoros reaps a demographic dividend in a context of shrinking emigration opportunities, structural
transformation and the creation of high quality rural jobs will be essential for attracting and absorbing
new entrants into the workforce.
Figure 2-2: Demographics – Comparing Comoros with the World
Comoros's WDI outcomes and percentile comparison to
the World
SSA average
Low income average
Percent
90%
80
70
Comoros (2014-2016)
Percentile in World (RHS) Percentile
100%
87%
78%
60
75%
50
40
50%
30
17%
20
10
0
2.1.2
2.3
2.2
Population growth (annual %) Rural population growth (annual
%)
71.7
46.0
Rural population (% of total
population)
Employment to population ratio,
15+, total (%) (modeled ILO
estimate)
25%
0%
Structural Features of the State and Economy
4.
Agriculture has traditionally led the economy, which has shown weak signs of economic
transformation. The classic path to economic transformation—a declining agricultural share (of
production and employment) and a rising manufacturing share – has eluded Comoros. Agriculture has
26
led slow economic growth and its share of production has only recently slipped below trade and
services, declining to an estimated 39 percent in 2016. While employment indicators show a
diversification of the household head’s activities over the 2004 – 2014 period, it is not clear if this
reflects labor exit from agriculture, intra-household labor reallocation and feminization of farm labor,
or simply more off-farm work by men during the slack season. Further, the returns to diversification
are low. Available evidence suggests that consumption gains during the 2004 – 2014 period are largely
explained by asset ownership, and to a much smaller extent to returns to employment. xiv
Figure 2-3: Agriculture-led Economic Growth
5.0
4.0
3.0
2.0
1.0
0.0
-1.0
-2.0
-3.0
-4.0
-5.0
Agriculture
Industry
Tertiary
Source: INSEED and World Bank staff calculations and estimates
Figure 2-4: Shares by Major Employment Sectors of the Household’s Head (in Percentage)
100
80
60
40
20
15
6
15
19
12
13
22
63
56
54
45
2004
2014
2004
2014
27
8
15
12
15
0
Poor
Agriculture
Total population
Industry
Trade
Service
Source: EIM 2004 and EESIC 2014.
5.
Comoros is a low-income country, but poverty is relatively low and private consumption
is strong, underpinned by private remittance flows. Economic growth has averaged 2.6 percent
since 2000 in Comoros, but GDP/capita has grown much slower due to the population boom (Annex
A, Table 1). Despite slow growth in living standards, private consumption has remained strong,
underpinned by private remittance flows from the diaspora, which in turn is supported by
improvements in the French economy (Annex A, Fig. 3). In fact, Comorian revenues are highly
correlated with remittances flows, and the economy is narrowly bound to international prices shocks.
Based on the international threshold of US $ 1.9 per day, poverty is 19.1 percent, well below the SubSaharan Africa average of 42.7 per cent.xv It is evident that strategies aimed at reducing aid dependency
27
vis-à-vis migration revenues and increasing resilience to international price fluctuations need to be
prioritized for significant poverty reduction and shared prosperity. The enhancement of the agriculture
productivity and the promotion of productive employment through diversification and enhanced
competitiveness are key priority actions.xvi
6.
Like other small island developing states (SIDS), Comoros faces challenges linked to
geographic isolation, limited resources and a small domestic market. International and internal
connectivity (air and maritime) is weakxvii and transport costs are high, fragmenting Comoros’s already
small internal market and limiting inter-island sales opportunities. Further, high transport costs also
raise the cost of intermediate inputs and imports, making it difficult to export to regional and
international markets. In combination with low economic diversification, these characteristics
contribute to large and persistent trade deficitsxviii, a narrow export base, and structural dependence on
food imports and remittancesxix. However, unlike other SIDS, tourism, fishing and marine trade sectors
remain nascent and underdeveloped in Comoros.
7.
Large trade deficits are chronic in the Comorian economy, with imports of processed
foods being a major contributor. Even among import reliant SIDS, it is an outlier.xx Comoros
currently imports nearly 70 percent of its food requirement by volumexxi, and an uptick in food imports
represented large shares of imports (44 percent) and GDP (29 percent) in 2015 (Table 2.2). Diet staples
– rice, chicken and beef – frequently top commodity import tables, and traders often dump cheap
imports to restrict competition. The current dynamic places a growing burden on foreign exchange
reserves, exposes consumers to food insecurity due to price shocks like 2008, and discourages private
investment in production.
Food imports share of Merchandise Imports
Figure 2-5: Correlation between Income and Food Imports in SIDS
Food Imports & GDP/capita in Small Island
States
40
KIR
35
STP CPV
COM
30
25
SLBVUT
TUV
20
15
VCT
DMA
LCA
JAM
FJI
GRD
MDV
PLW
SYC KNA
BRB
ATG
BHS
TTO
10
5
0
0
5000
10000GDP/capita15000
20000
25000
In recent years, prepared vegetables and fruit juice imports have also surged, reflecting the dominance
of imported non-perishable and processed products in local retail. Growing urban demand coupled
with the absence of domestic food processing imply that this upward trend is likely to continue. xxii On
the other side of the ledger, exports, consisting of only cloves, vanilla and ylang-ylang, have been
28
relatively stagnant over the last two decades. Structurally, the pegging the Comorian franc to the euro
is a feature which helps keep inflation low, but has also made exports less competitive.
Table 2-1: Top 5 Agricultural Import Commodities, 2015
Commodity
Prepared Vegetables
Rice
Fruit Juice
Chicken Meat
Bovine meat
Agricultural Imports
Value, million US$
86.9
13.2
12.4
10.6
6.4
162
Share of Imports, %
24
3.6
3.4
2.9
1.9
44.3
Origin
Tanzania
Pakistan
Tanzania
Argentina
India
Share of Exports, %
57
17
16
90
Destination
India
France
Germany
Table 2-2: Top 3 Agricultural Export Commodities, 2015
Commodity
Cloves
Ylang-Ylang
Vanilla
Agricultural Imports
Value, million US$
22.2
6.6
6.3
35.1
Source: MIT Observatory of Economic Complexity
8.
Comoros is highly susceptible to natural disasters, suffering on average, direct losses of
$5.7 million – nearly 1 percent of GDP - annually.xxiii Natural disasters like tropical cyclones, floods,
fires and volcanic eruptionsxxiv have a disproportionately negative impact on the economy given its
relatively small size, and high dependence on agriculture for export revenues. By some metrics, the
country is one of the most vulnerable and susceptible to natural disasters, with rising sea levels
threatening erosion, agricultural failures and displacement of up to 10 percent of the coastal
populationxxv. Since natural disasters are also likely to become more frequent and intense with climate
change, the absence of risk mitigation tools like early warning systems are conspicuous by their
absence in Comoros.
Figure 2-6: Dimensions of Natural Disaster Risk
Comoros's outcomes and percentile comparison to the World
Comoros
Percentile in World (RHS)
Unit based on
indicator
87%
100
80
75%
35%
40
0
82%
Percentile
100%
82%
61%
60
20
94%
50%
25%
7.3
11.0
66.4
58.7
84.5
56.2
Natural Disaster Natural Disaster Natural Disaster Natural Disaster Natural Disaster Natural Disaster
Risk (2016)
(Exposure)
(Vulnerability)
(Susceptibility)
(Coping
(Adaptive
(2016)
(2016)
(2016)
capacities)
capacities)
(2016)
(2016)
0%
Source: UN University Database
29
2.2 Sector Context
Key Features






Comoros is a global outlier in terms of relative size of agriculture sector
Moderate growth has been driven by extensification, while yields remain poor
Three cash crops generate more than 90 percent of export income
Highly exposed to international price shocks and natural disasters
Weak inter-island transport links between farmers and markets
Virtual absence of agro-processing due to enabling environment constraints
9.
Agriculture is the second-largest sector, the largest employer, and provides for 90 percent
of export income. Endowed with fertile volcanic soil, a gradient of altitudes and micro-climates, and
a moderate growing period, the economy of Comoros has traditionally been dominated by
agriculture. Growing at 2 percent in 2015, the sector has often led economic growth in Comoros, but
has recently been overtaken by the trade and services sectorxxvi. Accounting for 38% of jobs and 36%
of GDP, the relative size of Comorian agriculture ranked in the 94th percentile over the 2014 – 16
period, an anomaly among Small Island Developing States (SIDS). xxvii A narrow base of three export
crops (cloves, vanilla, and ylang-ylang) provide 90% of export income, with nascent attempts to
diversify and revive older export products like copra, coconut oil and coffee. In fact, agriculture in
Comoros dwarfs comparator countries on every metric of size except the output of the livestock subsector (Table 1). Mauritius and Fiji produce nearly 80 and 32 times more poultry meat despite having
1/3rd and 1/33rd the agricultural population, a differential that is an artefact of the miniscule poultry
value chain in Comoros and not significantly lower yield.xxviii
Figure 2-7: Benchmarking the Size of the Agriculture Sector
70.0
60.0
Comoros's Agriculture, value added (% of
GDP) comparison to the World: 2014-2016
50.0
35.9
40.0
30.0
20.0
All Countries
10.0
Singapore
Trinidad and Tobago
Belgium
Sweden
Denmark
Taiwan Prov.of China
Cyprus
South Africa
Czech Republic
Latvia
Palau
Jordan
Hungary
Bulgaria
Lesotho
Zambia
Uruguay
Belarus
China
Ecuador
Egypt, Arab Rep.
Algeria
Zimbabwe
Belize
Senegal
Nicaragua
Timor-Leste
Mauritania
Albania
Mozambique
Lao PDR
Tanzania
Liberia
Burundi
Sierra Leone
0.0
Source: World Development Indicators
30
Table 2-3: Benchmarking the Size of the Agriculture Sector, 2014
Share of GDP (value-added), %
Share of Employment, %
Population in Agriculture, 1000
Rural share of population, %
Share of Land, %
Land under cereal production, 1000 ha
Poultry meat output, 1000 MT
Comoros
35.9
38
288.6
71.6
71.5
26.9
0.6
Mauritius
3.5
7.5
94.4
60.4
42.4
3
47.6
Fiji
11.3
1
8.9
45.9
23.3
0.4
19.2
Samoa
5.4
10.4
80.9
12.4
0.5
Source: World Development Indicators, FAOSTAT. Note: Population in agriculture is calculated using the WDI indicator
for share of employment.
10.
Although sectoral growth is moderate, it is characterized by extensification, erratic input
supply, and a lagged response to international prices. Farm productivity is low and stagnant, and
Comoros ranks 41st out of 54 African countries in terms of agribusiness competitiveness.xxix Growth is
driven by land extensification, and consequently one of the fastest rates of deforestation in Africa,
especially in Anjouan.xxx The market share of local poultry and bovine meat is miniscule (less than
1%), due to disorganized supply of imported feeds and breeds coupled with weak veterinary and
surveillance services. Fruit and vegetable supply is competitive only during the rainy season, due to
lack of access to varieties with multiple annual production cycles. Cloves has become the largest source
of declining export revenue, with vanilla and ylang-ylang unable to respond quickly to ongoing price
spikes after a decade of low prices, which have led to a dynamic of reduced planting area and lower
quality differentiation.xxxi
Figure 2-8: Benchmarking the Performance of the Agriculture Sector, 2014
Growth rate (value-added), %
Value-added per worker (constant
2010$)
Cereal yield, 1000 kg/ha
Vegetables yield, 1000 kg/ha
Fresh Fruit yield, 1000 kg/ha
Comoros
2
982
Mauritius
-0.3
9,653
Fiji
-0.3
2,800
Samoa
6.4
4,255
1.4
6.6
4.8
3.8
9.3
8.9
2.4
11.5
5.5
1.2
4.9
Source: World Development Indicators, FAOSTAT
31
Figure 2-10: Agriculture and GDP Growth
12
10
Figure 2-9: Agricultural Trade Trends
120
100
8
80
6
60
4
40
0
20
-2
-4
2000
2001
2002
2003
2004
2005
2006
2007
2008
2009
2010
2011
2012
2013
2014
2
Agriculture, annual growth
GDP, annual growth
0
1997 1999 2001 2003 2005 2007 2009 2011 2013
Food Imports as % of Merchandise Imports
Food Exports as % of Merchandise Exports
Source: WB staff calculations using WDI, ReSAKSS Database Source: World Development Indicators (WDI).
Note: Agricultural imports and exports are classified as food imports and exports in WDI.
11.
Subsistence agriculture continues to dominate, and is linked to failures in the land and
credit markets. Subsistence agriculture using poor inputs on small plots dominates on the
archipelago. Commercial agriculture is limited to three export crops, with 80 percent of agricultural
production intended for self-consumptionxxxii. Aggregate land availability – more than 2.2 ha of
agricultural land per producerxxxiii – coexists with three overlapping land tenure systems that impose
costly barriers to land market activity, even as agricultural financing remains contingent on land titles,
gold or large cash guarantees. Producer associations have been unable to link smallholders to the credit
market and consolidate high quality output consistently, leading to high transaction costs, weak
forward and backward linkages with buyers and input suppliers, and little or no value addition.
12.
Missing transport linkages and value-chain gaps are binding supply constraints to
greater domestic competitiveness of perishables. On one hand, highland production basins in
Anjouan and Grande Comore are hampered by poor feeder roads and the absence of aggregators
equipped with transport services, segmenting surplus production areas from growing urban markets.
On the other hand, erratic air and maritime connectivity and missing cold storage facilities at ports and
collection points, make it difficult for food produced on one island to be competitive in a different
island. In particular, these missing linkages impact the supply chain for locally competitive perishable
produce like milk, fruit, vegetables and fish, resulting in low prices and food loss at the farm gate, even
as consumer choice is restricted to imported substitutes at modern retail stores, which pay a premium
for reliable food supplies.
13.
Established private sector players are reluctant to enter food processing, mainly due to a
weak enabling environment. Despite the opportunity to capture a larger share of the growing segment
of processed food, the established Comorian private sector with access to capital – traders of imported
food and exported cash crops, small manufacturers – displays little appetite for investing in domestic
food processing and beverage production. In addition to the weak contract enforcement environment
faced by any business – Comoros is ranked 180th on this dimension of Doing Business indicatorsxxxiv
– interviewed private sector players cited three constraints specific to food processing: i) inconsistent
aggregation and supply of throughputs (quantity, quality and timing), ii) unpredictable customs duties
associated with inter-island maritime and air transport, and iv) high transaction costs associated with
direct sourcing from poorly connected production basins. However, in contrast with the established
32
private sector, young startups being currently incubated by industry associations have a high share of
agribusiness plans that could be supported.
14.
Agricultural exports have been stagnant for a decade, but vanilla and ylang-ylang prices
are currently booming, increasing the risk of quality deterioration. In contrast to food crops, the
production systems for cloves, ylang-ylang and vanilla are characterized by contract farming, welldeveloped value chain linkages, and established relationships between exporters and
international buyers. However, a combination of worsening quality, low international prices, and
reduced output have led to a slowdown in exports over the last decade, which now account for less
than one-fourth of just food imports, compounding the growing trade deficit. While cloves are now the
Comoros’ biggest export, current government strategy is focused on vanilla, the prices of which are
experiencing a 13-year high. However, there remains a high risk of a crash given widespread
speculation and premature harvest of green beans in Madagascar, the global price-setter. Similarly,
prices for ylang-ylang flowers are 3x their 2015 prices and have incentivized a manipulation of the
quality of the essential oil distilled from them, consequently raising the likelihood of a collapse in
future prices. The absence of domestic standards, and reliable and inexpensive field testing has
contributed to the lack of quality control in both products.
15.
Slow climate changes have disrupted local production systems and natural disasters pose
a major threat to the sector. Climate change has contributed to the rainy season becoming shorter
and more unpredictable in recent years.xxxv Disturbances in the hydrological cycle have also led to the
drying up of rivers and water sources in Grand Comore, and a lowering of the water table. Given that
agriculture accounted for 47 percent of freshwater withdrawals when data was last reported xxxvi, water
shortage has become the binding agro-ecological constraint on the island. Simultaneously, accelerated
soil erosion due to deforestation has increased runoff and led to flooding, reducing soil fertility and
agricultural yields in Anjouan as well.xxxvii
3 Enabling Environment for Agriculture
Main Messages






Poor rural connectivity weakens linkages between coastal urban markets and production
basins in rugged highlands.
An unpredictable, informal maritime system limits inter-island mobility of perishables
and effectively segments an already small internal market.
Access to credit for producer organizations is limited by collateral requirements, high
interest rates, perceptions about high risks associated with agriculture lending, and low
appraisal capacity among MFIs, even as traditional banks remain severely constrained.
Access to energy for agri-processing is hindered by insufficient and unreliable electricity;
untapped solar potential near production areas has the potential to transform the sector.
Access to land for large-scale commercial agriculture is low due to high transaction costs
and insecurity associated with market activity
Tariff exemptions are not applied consistently, raising the costs of agricultural inputs and
exports, and introducing production uncertainty.
33
3.1 Complementary Infrastructure
The paucity of complementary infrastructure constrains farm and rural non-farm market
linkages and create gaps in agricultural value chains in Comoros. The poor state of rural roads, ports
and communications infrastructure segments urban consumer demand from rural producers. Grid
electrification or mini solar-grid solutions can kickstart small-scale food processing and value addition,
but at present, biomass remains the primary source of energy in highland production basins. On-farm
storage and warehousing infrastructure can help smoothen seasonality in producer prices and food
consumption, but are currently limited to sporadic donor-financed projects. Port infrastructure, in
particular cold storage, can reduce food loss and price volatility by lengthening the supply chain spatiotemporally. Infrastructure investments in all of these cases can help enhance food security,
competitiveness and generate jobs for youth, in both farm and non-farm activities.
3.1.1
Road Network
16.
Comoros has an extensive road network that is rapidly deteriorating, reinforcing the
geographical isolation of highland production basins. Road transport is the main mode for
movement of goods (intra-islands) and passengers in the country. xxxviii Given the small size of the
archipelago (about 1,861 km2), the density of paved roads (412 km per thousand km2) is impressive
compared to a sub-Saharan Africa average of 31 (Annex A Fig. 7.1, 7.2). However, lack of
maintenance during the past 15 years has resulted in extensive sections of the paved road network
being seriously dilapidated, with an additional 240 km of roads and dirt tracks being nearly impassable.
Estimates indicate that more than half of the road network is currently in poor or very poor condition
due to the absence of qualified personnel and financial resources for maintenance. xxxix
17.
Poor rural connectivity especially limits agriculture because of the challenge posed by the
rugged terrain and the location of food production basins in highlands. The fragmented provision
of services prevents capture of economies of scale and drives up intra-island transport costs, which are
quite high compared to other Small Island Developing States (SIDS), and result in sharp price
differentials between production and consumption centers.xl This erodes the competitive advantage of
agricultural value chains over overseas suppliers, segments markets across islands, and exacerbates
post-harvest losses. The most common mode of transport of crops from the field to the collection center
is rudimentary, loads being carried by laborers on their heads over several kilometers.xli This mode of
transport is slow, inefficient and costly. Improving the existing rural pathways to even allow the use
of non-motorized transport vehicles would be a significant step towards linking farmers to markets.
34
Figure 3-1: Network Condition of The Three Islands
70%
60%
50%
40%
30%
20%
10%
0%
Gde Comore
Anjouan
Good
Fair
Poor
Mohéli
Very Poor
Source: PADDST 2014
3.1.2
Inter-island Maritime and Air Transport
18.
Low port capacities and high tariffs leads to high trade costs which hinder domestic and
export competitiveness of agriculture. As in most SIDS, Comoros depends heavily on maritime
transport, through which the bulk of international and inter-island trade takes place. Despite having a
high-traffic port in Anjouan and a smaller port in Moroni,xlii their low capacities result in high port
tariffsxliii – five times higher than in Mauritius and three time higher than in Mombasa (Annex A, Fig.
9). In fact, Comoros spends significantly more than the SIDS and global averages on international
transport costs as a share of imports (2004–2013 average) (Fig. 3.2). On one hand, additional import
costs are passed on to importers and agricultural producers, limiting access to and use of yieldenhancing improved seeds, fertilizers and mechanized equipment. On the other hand, exporters also
pay higher than they would to export a standard container from neighboring SIDS (Annex A, Fig. 10),
reducing export competitiveness.
19.
The unpredictable informal inter-island maritime system limits the mobility of
perishables and effectively segments an already small internal economy. Despite the islands being
separated by short distances, almost all inter-island passenger traffic is by air because of the lack of
scheduled sea passenger transport. Similarly, sea transport of perishables like milk, eggs, fruits and
vegetables across islands is informal and negligible in terms of volume. The introduction of measures
to organize and regulate public transport services in order to improve frequencies, rationalize fares to
make them consistent with socio-economic reality, and introduce a contracting system that will
establish competition for the market on high-frequency routes are critical to building economies of
scale and enhancing the competitiveness for local produce.
35
Figure 3-2: Average Expenditures on International Transport as a Percentage of the Value of Imports
for Small-Island Developing States, 2004-2013
Source: UNCTAD estimates, Review of Maritime Transport 2014, chapter 6.
20.
Air transport between the three islands is particularly expensive and discourages interisland movement of passengers and goods. Small airplanes play an important part in connecting
islands but the passenger air fare is about four to five times higher than the sea rate. Air fares on the
domestic network are particularly expensive because of: (a) the lack of air transport capacity; (b) the
difficulty of controlling the abnormal sales practices of certain companies; and (c) the impossibility of
purchasing tickets on the domestic network from abroad as sales are not available on the most widely
used electronic distribution networks.
3.1.3
Market Infrastructures
21.
Nascent vanilla cooperatives and older producer associations are constrained by the
inability to access market access infrastructure. Demand-driven on-farm storage and warehousing
infrastructure can help smoothen seasonality in producer prices and food consumption, especially when
managed by producer associations with well-identified business needs. In field interviews with vanilla
cooperatives supported by ITC and UNDP, it was evident that on-farm warehousing coupled with
management oriented technical assistance would enable the groups to aggregate, store, cure and
potentially sell cured vanilla without being subject to the bargaining power of the three existing
exporters, which dominate a highly consolidated value chain segment. Similarly, port infrastructure,
especially cold storage, can reduce food loss in surplus producing islands (Anjouan and Moheli) and
reduce price volatility in Grande Comore by lengthening the supply chain and enabling greater
coordination between road and inter-island transport operators.
3.2 Investment Climate and Trade
Investment climate affects the pace of enterprise and job creation worldwide. Global evidence shows
that 9 out of 10 jobs are created by the private sector,xliv in stark contrast to the dominance of public
36
sector in formal employment in Comoros.xlv Evidence also shows that the investment climate impacts
private enterprises and associated job creation.xlvi The formal private sector in Comoros faces many
challenges to doing business, with contract enforcement and payment of taxes being especially difficult
(Annex A, Fig. 10, 11). However, the specific binding constraints faced by the large share of informal
agricultural enterprises are: i) access to finance for producer associations and emerging agribusinesses,
ii) predictable and low-cost access to energy, and iii) establishing a predictable and business-friendly
investment climate and trade policy, which are the three main components critical for a policy
framework that supports agricultural development and creates food system jobs.
3.2.1
Access to Finance
22.
Limited geographical coverage and legacy lending issues limit the traditional banking
sector’s lending for productive uses, in particular commercial agriculture. The institutional
landscape for financing agribusiness investments is underdeveloped and Comoros ranks 122 nd globally
in terms of ‘Getting Credit’ on the Doing Business indicators.xlvii The financial sector – comprising 4
commercial banks, 3 microfinance networks and 3 financial intermediariesxlviii – has low geographic
penetration in terms of brick-and-mortar commercial bank branches (3.1 per 100,000 adults) and
ATMs (5 per 100,000 adults),xlix reflected in low financial access (Fig. 3.3). Mobile money is nonexistent, increasing reliance on cash and negating the possibility of digital credit. In addition, the sector
is undergoing rehabilitation, with the privatization of the Development Bank of Comoros and the postal
bank (SNPSF), and expansion of the savings and microfinance networks. In the context, lending for
productive uses, particularly agriculture, has been low (Fig. 3.4). Non-performing loans comprised
20.5 percent of all lending in 2015 and continue to act as a drag on the sector.l Historically the largest
lender in the country, the Bank for Industry and Commerce (BIC), is restrained in its support to
agribusiness due to unresolved debts stemming from the collapse of vanilla exports in early 2000’s. li
Figure 3-3: Benchmarking Financial Access in Comoros
SSA average
Comoros: Period 1 (2014-2016)
400
300
200
100
0
116
Bank accounts per
1,000 adults
10
34
Borrowers from
Borrowers from all
commercial banks per
microfinance
1000 adults, Number institutions (MFIs) per
1000 adults, Number
21
Remittance inflows to
GDP (%)
Source: IMF Financial Access Survey and Global Financial
Development
37
Figure 3-4: Lending in Comoros, by Industry
Source: Central Bank of Comoros and IMF Staff Calculations
23.
Microfinance
institutions Figure 3-5: Bank Branches and MFIs (Number), 2015
supported by AFD are now playing
a leading role in urban lending,lii but
agricultural lending is constrained
by low capacity to appraise sector
investments.
Together, three
microfinance institutions – U-MECK,
Sanduk and USM – account for 67 of
the 123 banking outlets in Comoros.liii
The largest, U-MECK, grew to more
than 40,000 members and $25 million
in deposits in 2016,liv gradually
displacing market share from larger
commercial banks, and providing
microcredit to urban artisans and small Source: International Monetary Fund (December 2016)
commerce. In Anjouan, Sanduk plays
a similar role, with deposits of $22 million and a $17 million gross loan portfolio in 2016. lv However,
agricultural financing provided by the institutions is largely short-term, with interest rates ranging from
9 – 12 percent, a requirement of 20 percent cash as guarantee, or collateral in the form of gold or land,lvi
due to weak coverage of the credit registry.lvii These requirements are stringent for investments by
young entrepreneurs or producer associations, which often lack access to collateral, and are unable to
provide guarantees. In interviews with the team, the management of both institutions strongly indicated
that technical assistance to modify product offerings, undertake due diligence and appraise agricultural
investment proposals is a key supply constraint in terms of credit for agriculture.
38
Figure 3-6: Financial Sector Assets & Liabilities by Share of GDP, 2015
Source: International Monetary Fund (December 2016)
24.
Despite an emerging incubation ecosystem, there remains high unmet demand for
services for agribusiness startups, which comprise the large majority of new enterprises. At
present, the Union of Chamber of Commerce, Industry, and Agriculture (UCCIA), designed to assist
SMEs with business development is the interface between the private sector and the government.lviii
The UCCIA, with support from the US$3 Million Kuwait-Financed SME financing scheme (AMIE)
for agribusiness and fisheries, and U-MECK, launched an ambitious program which supported 32 of
167 MSME startups with seed capital and mentoring services in 2014.lix Following its success, AfDB
helped UCCIA launch an incubator Innov’Lab in 2017, which selected and is supporting 15 of nearly
100 young entrepreneurs annually by providing office space, legal services, and business plan
development and connections to the microcredit institutions. The incubator has identified target sectors
and 10 of the current 15 projects are from the agri-food and livestock sectors.lx
3.2.2
Access to Energy
25.
Insufficient and unreliable electricity are one of the most severe constraints to the
development of agricultural value chains and rural services. Estimates suggest that biomass (wood,
charcoal) accounts for 70 percent of energy use, while the remainder is generated using imported diesel
fuel.lxi Underinvestment in the production capacity of public operators has led to a prolonged period of
shortages – 1 ktoe per annum – since 2010.lxii In 2018, Comoros was ranked 135th globally on the
‘Getting Electricity’ indicator in Doing Business.lxiii In particular, the time taken to obtain an electricity
connection – 120 days – remains higher than the SSA average and the cost associated with it – 2,050.5
percent of per capita income – is a high deterrent for SMEs and potential entrants in the agro-processing
space. Even at this cost, the reliability of supply by the public network is scored zero by this subindicator, reflecting the frequency of power outages and the absence of monitoring and restoration
mechanisms. Consequently, most companies own their own generators and negotiate pricing
conditions for fuel supply, a burdensome business cost that has contributed to the shutdown of previous
donor-financed attempts at small-scale processing of vegetables and fruits.lxiv
39
Figure 3-7: Distance to Frontier - Getting Electricity
26.
Changing the energy mix to tap into solar potential could dramatically change the
viability of small-scale agricultural processing. In 2016, the Comorian government affirmed its
support for a heavy-fuel plant financed with a concessional loan from the EXIM Bank of India, which
is expected to provide a firm supply foundation in the medium term. The government also continues
to work with the World Bank and the African Development Bank to strengthen the capacity of the
national utility MAMWE and to diversify to solar, wind, and geothermal energy.lxv In particular, the
proximity of high solar potential geographies to production basins on all three islands (Fig. 3.8) could
be transformational if mini solar grids are established to power small-scale processing like grinding,
crushing, juicing, milling and chilling close to producers. In Haiti, a USAID supported company has
successfully deployed mini solar grids for milling and processing of maize and breadfruit, agricultural
products common to Comoros, at the scale of a community of 30,000. lxvi Innovative off-grids solutions
like milk coolers piloted in a remote Kenyan community can also be adapted to Comorian highlands.lxvii
Figure 3-8: Solar Potential in the Comoros
40
3.2.3
Access to Land
27.
As arable land has grown scarce, the co-existence of three overlapping land tenure
systems – customary, Islamic and colonial – has become a source of dispute and conflict. In the
customary system, land is largely communal at the village, clan or family level, and belongs to the
tiller; i.e. land use rights are conditional on cultivation and can be claimed by another community
member if idle or abandoned.lxviii On non-communal land, private property can be established by a
father for his daughter – manyahouli land – via purchase or land (forest, bush) clearing.lxix Islamic law
also allows for both community (usoyezi) and privately owned land (milk), with the principle for
acquisition of exclusive but not absolute ownership being vivification of abandoned land, i.e. being
put to productive use.lxx Lastly, the colonial system recognizes community tenure, privately owned
titled properties and state-owned public land.lxxi In recent years, land conflicts and disputes have
amplified within communities and in courts, with population growth, plot fragmentation, and continued
dependence on agriculture and fishinglxxii triggering a competitive occupation of ‘idling’ agricultural
land (often already owned), the competition between official administration agents (notaries, judge)
and kadis (Muslim judges) in issuing land succession acts and rendering land – related judgements.
28.
Land governance is particularly weak in rural areas, characterized by non-existent
titling, poor land administration services and an unclear land policy. The post – independence
revolution of 1975 – 1978 overturned the situation of strongly enforced colonial legislation over state
owned land.lxxiii With an estimated 1,700 land titles issued and 5,000 applications pending in Grande
Comore, the Service des Domaines (land registration system) effectively controls only cities suburbs
but is scarcely present in rural areas.lxxiv The paucity of rural land titles is coupled with an absence of
land use planning and management policy (definition of land statuses, institutional arrangement, land
taxation, land valuation), and poorly-resourced land administration services which are unable to
conduct domain and topographical surveys. lxxv Rated below the SSA average in terms of quality of
land administration,lxxvi the Service des Domaines has no clear vision of its estate, and state domain
lands are almost customarily occupied.lxxvii
29.
Investments in large-scale commercial agriculture will remain low if the high transaction
costs and insecurity associated with land transactions remain unaddressed. The land sale market
is constrained by: i) the high market price of land, especially in Anjouan where most agricultural
production takes place, ii) the transaction costs associated with purchase of land held at the community
and family levels, which requires community consent, and iii) high administrative costs associated with
land titling for individuals outside the community. The average price of land - $250 - $600/m 2 is 4 to
10 times higher than in Madagascar. Land titling also requires the payment of a flat fee, a 3%
conservation fee on the declared land value, and topographical demarcation fees. Cumulatively,
purchasing and securing a land with a surface area of 100 meter2 is an extremely time and cost-intensive
transaction that is unaffordable for most agribusinesses, especially in the context of a weak credit
market and poor administrative capacity.lxxviii. Other land market activity comprises of verbal contracts
for sharecropping and leasing between farmers from the same village, community, or family and the
land remains inalienable to outsiders. The transaction, built on mutual trust, is neither registered in the
Commune nor in the land administration service, exposing it to future disputes that are ambiguously
arbitrated.
3.2.4
Trade Policies and Business Environment for Agriculture
30.
In principle, the trade regime in Comoros has been liberalized, with the rationalization
of tariffs and the elimination of all non-tariff barriers, except for rice. lxxix Given Comoros’s
41
membership of the Common Market for Eastern and Southern Africa (COMESA) Free Trade Area,
the COMESA Common External Tariff (CET) determines most of the tariff and trade policy.lxxx
Comoros’s weighted average MFN tariff for 2013 was 6.7 percent, lower than the corresponding SSA
(8.4 percent) and global (7.6 percent) averages.lxxxi While vegetables and tubers face a 35 – 40 per cent
ad valorem duty, strategically important products like poultry meat and eggs attract a lower total duty
of 19 percent, contributing to lower domestic competitiveness.lxxxii Other priority products like fish and
basic rice imports face a customs duty of 150 KMF and 50 KMF per kg respectively. lxxxiii Basic rice is
imported solely by the State-trading enterprise (SOE) ONICOR, which is mandated with maintaining
security of supply and price stability. The low ad valorem duty on rice (equivalent of 33 percent) is
intended to maintain the local consumer price. Comoros is also expected to complete its WTO
accession process in 2018 and in preparation, has elaborated a comprehensive action plan to ensure the
consistency of national laws with phytosanitary, animal health and food safety regulations. As a LDC,
has full duty free and quota-free access to the EU for all exports except arms and armaments.
31.
In practice, tariff exemptions are not applied consistently, raising the costs of agricultural
inputs and exports, and introducing production uncertainty. In principle, imported agricultural
inputs have been tariff exempt since 2012 and are entitled to a 1 percent ad valorem rate. In practice,
the burdensome process of obtaining exemptions leads to input importers paying tariffs between 3 – 9
percent and supplying inputs after the planting season,lxxxiv lowering smallholders’ use of improved
seeds, fertilizers, and mechanized equipment, consequently lowering yields and competitiveness of
marketed products like sweet potatoes and vegetables. lxxxv The average time and costs associated with
border compliance are higher than neighboring ports in the region (Fig. 3.10), and perhaps more
importantly, are inconsistently applied. Official export tariffs on the three export crops (cloves, vanilla,
and ylang-ylang) are revised annually and in principle, are determined by international prices.
However, an ambiguity about which prices form the base for tariffs, and exporters report paying highly
varying tariff rates at the customs office.
Figure 3-9: Trading across Borders in Comoros and Comparators - Rank and DTF
Source: Doing Business (2018)
42
Figure 3-10: Trading across Borders - Time and Cost
32.
The Doing Business Report ranked Comoros 158 out of 190 economies in 2018, reflecting
a poor environment for attracting investments in all sectors. Comoros ranked regional neighbors,
where Mauritius positioned at 25 is leader, and only Madagascar, at 162, is close to Comoros. It also
ranks lower than benchmark countries such as Cape Verde (127), Fiji (101) and Samoa (87). From this
vantage point, the country is relatively less attractive than the competition for attracting investment in
any sector. Burdensome regulations adversely affect market entry, exit, trade, and competition.
Enforcing contracts appears to be the most challenging area for Comoros (with a ranking of 180th), as
the average time required to resolve a commercial dispute between two domestic investors taking a
little over 500 days. Another problematic area is also the paying taxes indicator. The country stands
out with an unusually high total tax rate (216.5 % of total profit and 4 times the regional average) —
signaling burdensome and difficult to comply-with tax administration processes. Despite generous
incentives and exemptions, the 2007 Investment Code has had limited impact on attracting new
investment. The Code is currently being revised to enhance selectivity, predictability and transparent
application of its provisions, strengthen the legal protection of investors and support small and
medium-sized enterprises while rationalizing tax and customs incentives.
33.
Structuring the agenda for regulatory simplification around the Enabling Business of
Agriculture (EBA) indicators can accelerate investments along the agricultural value chains. The
establishment of simplified, low-cost regulatory systems for seeds, fertilizers, machinery, finance,
markets, transport, information and communication technology (ICT), and water can have a catalyzing
effect on the investments and performance of key players across agricultural value chains—from
smallholder farmers to existing agribusinesses, producer organizations and young entrepreneurs
seeking to enter the sector. The template set by the collaboration between the National Investment
Promotion Agency (ANPI) and IFC to improve Doing Business indicatorslxxxvi can be built upon, with
Enabling the Business of Agriculture (EBA) indicators providing an analogous tool for policy action
and quantitatively monitoring regulatory changes over time, and compared to other countries. lxxxvii
34.
The industrial development agenda for SMEs significantly overlaps with the enabling
environment needs for an agribusiness sector, reflecting the need for a unified strategy. In the
draft National Industrial Strategy (2017) prepared by the MAPEAU, all of the domestic and export
products identified for short-term industrial development are agriculture-derived products. A large
share of the policy actions outlined for medium and long-term development of MSMEs and the private
sector – improvement in business climate, transport infrastructure, access to land etc. – are also the
binding constraints faced by agricultural value chain actors. This convergence is a recognition that in
the Comorian economy, there is a dearth of non-agricultural raw materials to power a diversified
manufacturing sector. Given this convergence, it is critical that private sector bodies like the UCCIA,
43
which represented both industry and agriculture until a recent split, are reunified to ensure coordinated
lobbying for regulatory simplification and policy action.
4 Sources of Demand
Main Messages






The Comorian food and beverage market is almost as large as the economy.
Diets are diversifying and the majority of food expenditure is now on perishables like
vegetables, meat, and fish.
Local producers show signs of competition in the growing domestic market for perishables,
but require strategic linkages with transport and retail for greater competitiveness.
Cloves, ylang-ylang and vanilla face favorable market conditions after a decade long
downturn, and new cooperatives have opportunities to move up the value chain.
Diversification of export revenues is possible with the downstream development of existing
export products and niche products.
An emerging hospitality and tourism sector represents an untapped opportunity for
agricultural producers.
4.1 Size of the Food and Beverage Market
35.
The Comorian food and beverage market is almost as large as the economy. Utilizing the
latest household consumption data (2014), we computed national-level spending on food and
beverages. At $572 million, the estimated domestic expenditure on food and beverages is nearly as
much as all of estimated economic activity – $617 million in 2017 (Table 4.1). If GDP estimates are
revised upwards by 40 – 100 percent, as is expected after a revision of national accounts this year, the
estimated size of the food and beverage market will be far less surprisinglxxxviii. However, Comoros
will remain an outlier to Engel’s Law, which states that as income increase, the budget share of food
declines. Taking consumption per capita to be a proxy for income – since income is not typically wellmeasured – we find that while Engel’s Law generally holds for SIDS, it does not hold for Comoros. In
fact, despite having nearly equal consumption/capita, Comoros (61.4) spends 12 percentage points
more than Cape Verde (49.7 percent) on food (Fig 4.1).
Table 4-1: Size of the Market for Food and Beverages in South-West Indian Ocean
Country
(1)
(2)
Population,
thousand, 2017
(3)
Food and Beverage
Consumption/capita
estimate, USD 2017
Cabo Verde
Fiji
Mauritius
540
899
1,263
615.1
573.1
1224.7
(4)
Market Size
estimate,
millions
(USD 2017)
332.2
515.2
1,546.8
44
Sao Tome and Principe
Comoros
200
796
409.9
719
82.0
572.3
Data Sources: World Development Indicators, Global Consumption Database, Comoros EDMC 1-2-3 Survey (2014)
Note: Column (3) is computed by extrapolating from the last data point for food and beverages expenditure per capita, using
the country’s average GDP/capita growth rate between that year and 2016. Since the last data point for Comoros was taken
from 2014 survey round, the exchange rate used is 1 USD = 405 KMF (December 31, 2014). The market size estimate in
column (4) is a product of the columns (2) and (3).
Figure 4-1: Comoros is an Outlier to Engel’s Law
Food Share of Consumption
Food & Beverage Share
0.8
Sao Tome and
Principe
0.7
0.6
0.5
Comoros
Cabo Verde
Sao Time
0.4
Fiji
0.3
0.2
0.1
0
0
500
1000
1500
2000
2500
Consumption per Capita
Source: Global Consumption Database. Data for Comoros is based on EDMC 1-2-3 Survey (2014).
36.
The majority of food expenditure is on perishables like vegetables, meat and fish. Across
Eastern and Southern Africa, the evolution of dietary choices with income growth shows three trends
– i) 61– 83 percent of consumed food is purchased by the middle class, ii) 70 – 80 percent of purchased
food is processed, and iii) 44 – 55 percent of purchased food is perishable.lxxxix Comoros reflects the
second and third trends (Fig. 4.2) and while there is no quantitative evidence on the first, the growth
of modern retail suggests that it might be subject to the first trend as well. In particular, the large budget
shares for perishables – vegetables, meat and eggs, fish, fruit, and dairy – are a salient market signal
for domestic producers (Table 4.2). Cumulatively, these segments aggregate to a $257 million submarket, which is larger than the entire agriculture sector at present. Investments targeted at enhancing
competitiveness in this sub-market have the potential to raise farm incomes, align supply with future
sources of demand, and professionalize the sector with the entry of agribusinesses and young
entrepreneurs.
45
Figure 4-2: Budget Shares, by Food Segment
Food Expenditure Shares
by Segment
25
25
Percent
10 15 20
19
17
16
4
3.5
3.2
3.1
1.6
.18
0
5
5.3
Cereal
Meat
Fruit
Condiments
Oil
Coffee
Vegetables
Fish
Dairy
Sugar
Beverage
Source: 1-2-3 Survey (2014)
Table 4-2: Budget Shares, by Food Segment
(1)
Food Segment
(2)
Categorization
Cereals (including bread)
Non-perishable/Perishable
(bread), processed low-value
Perishable, unprocessed
Perishable, processed lowvalue
Perishable, unprocessed
Perishable, unprocessed
Perishable, processed highvalue
Non-perishable, processed
high-value
Non-perishable, processed
low-value
Non-perishable, processed
high-value
Non-perishable, processed
high-value
Non-perishable high-value
Vegetables
Meat and eggs
Fish
Fruit
Dairy
Condiments
Sugar
Oil
Beverages
Coffee
(3)
Household
Budget
Share, %
24.5
(4)
Estimated Market
Segment Size,
millions (USD)
140.3
19.2
17.4
110.1
99.5
16.3
5.3
4.0
93.5
30.6
23.0
3.5
20.0
3.2
18.5
3.1
17.6
1.6
9.1
0.2
1.0
Note: Column (3) categorization is derived from Tschirley et al (2015). Column (4) is computed by multiplying column
(3) with estimated size of food market – $572.3 million and divided by 100.
37.
With strategic investments, Comorian producers could compete with imports in the
growing domestic market for perishables. Since the food market is currently dominated by imported
produce that is dried, frozen, canned or preserved in other ways to survive the shipping time to
Comoros, there exists an opening for their fresh, local substitutes if the latter are reasonably
competitive, or if domestic preferences change enough to pay a mark-up for local perishables. At
46
present, eggs and juice concentrate produced domestically occupy significant market shares, signaling
their current competitiveness (Table 4.3). In addition, domestically produced liquid milk and fruits are
competitive in segmented markets (Anjouan) and seasonally (June – November). It is conceivable that
with investments in marketing channels, input supply and a nutrition awareness campaign, processed
high-value products from these value chains could also compete with their imported counterparts.
Table 4-3: Market Shares of Domestic Producers, Product-level
Product
Estimated Domestic
Demand (volume)
Estimated Domestic
Supply (volume)
Rice
Chickena
Eggsa
Milk & milk productsa
Yoghurtb
Juice concentrateb
Animal Feedb
81,539 MT
11,000 MT
24 million
2.8 million MT
115 MT
322 MT
20,000 MT
1,873 MT
76 MT
20 million
24,850 MT
0.07 MT
110 MT
120 MT
Market Share of
Domestic
Producers, %
2.3
0.7
83.33
0.9
0.07
34.2
0.6
Source: aWorld Bank Staff Estimates (2017). bStrategie Industrielle Nationale Basee Sur La Transformation Par Les
Mpme/Pme Des Ressources Locales Aux Comores (2017), based on ITC (2013) data.
4.2 Export Market Trends
38.
International buyers are looking to diversify procurement of vanilla, an opportunity for
new cooperatives in Comoros. The global market for vanilla has continued to expand even as
Comorian production has declined over the last decade. Export data for the major origins over the
period 1999 to 2015 shows that volumes have increased from around 2,000 MT to the 3,000 – 3,500
MT range. Given the global reliance on Madagascar, whose market share is 80%, international buyers
are actively encouraging diversification by supporting vanilla producer organizations in minor origins.
Comorian vanilla cooperatives, which have recently started operating as part of a UNDP – ITC
financed project and have the advantage of being located close to Madagascar, can capitalize on this
opportunity to secure inputs, financing and technical assistance targeted at certifications like Organic
and FairTrade, which can help secure price premiums when the inevitable market downturn occurs.
Figure 4-3: Major Markets for Vanilla Exports, 2008-2016, MT
47
Source: Eurostats; USDA FAS; Central Bank of Comorosxc xci
39.
The demand for Comorian cloves has grown steadily in India, mainly due to a duty
advantage accorded to LDCs. Internationally traded volumes for cloves typically range between
30,000 and 45,000 MT, depending on crop size and stocks at origin, with the principal markets in the
Middle East and Asia, where the spice features prominently in many cuisines. The domestic demand
in Indonesia – principally for kretek cigarettes – is estimated at 80,000 to 100,000 MT, and is central
to market movements given that it is a major producer as well.xcii In the current market, Madagascar is
the largest export origin, exporting 10,000 to 20,000 MT. Tanzania (Zanzibar), Comoros, Brazil and
Sri Lanka are other major origins, all exporting in the range 2,000 – 6,000 MT. While Comoros exports
to all the major markets, its exports have become increasingly focused on India in recent years, where
it shares a significant duty advantage with Madagascar and other LDC origins. In fact, a significant
number of Indian, Arab and Chinese traders come on a seasonal basis to establish clove buying and
export operations in Anjouan. If Indian or Indonesian production ramps up significantly, exports from
Comoros are likely to suffer.
Figure 4-4: Major markets for Clove Exports, 2008-2016
Source: ITC Trade Mapxciii
40.
Comoros is the market leader for ylang-ylang but growing demand has led to emerging
competition from new origins. Market demand for ylang-ylang essential oil has grown and prices
have risen by a factor of 5x in the last decade, with high quality fractions continuing to be used in fine
fragrance, and lower quality fractions increasingly finding use in aromatherapy, soaps and other
cosmetics.xciv Despite these trends, production in Comoros had been declining until very recently.
Madagascar is the only other significant producer, with current production estimated at around 18 MT,
but none of this output is the high-quality fractions produced in Comoros. xcv Extensive plantings of
ylang-ylang have been made recently in Ecuador, and plantings are also reported in Ghana and
Mozambique.xcvi Indonesia and Philippines also produce Cananga oil from a different species, that is
used as an alternative in years when supply from Comoros is restricted.xcvii If these origins can produce
an oil that can compete with some of the fractions offered by Comoros, then prices will fall, and
Comoros will likely have to increase its focus on the production of the highest quality fractions where
competition is likely to be weakest.
48
Table 4-4: France & USA import prices, ylang-ylang oil, 2011-2017, US$ & €/kg
Unit
€/kg
$/kg
2011
74.81
103.99
2012
84.01
108.37
2013
80.68
107.30
2014
106.27
141.34
2015
124.75
138.47
2016
172.68
191.67
2017
208.07
235.12
USA/Madagascar $/kg
176.99
148.75
161.84
104.64
121.55
133.92
140.39
OECD exchange
rates $/€
0.719
0.778
0.753
0.754
0.901
0.904
0.887
France/Comoros
Source: Eurostats; USDA FAS; OECD
41.
Diversification of export revenues is possible with the downstream development of
existing export products and niche products. The value addition of existing export products at origin
is technically feasible and financially viable for multi-purpose processing facilities. As an example,
cured vanilla beans can be transformed to high-value vanilla powder at a grinding facility, that could
also be utilized for grinding cloves, black pepper and coffee for local and regional markets. In addition,
extraction of essential oils from clove leaves, stems and buds – treated as waste currently – by adapting
the ylang-ylang distillation process could lead to Comoros’ entry into established markets.xcviii The
revival of older export value chains like coconut oil, which contributed a large share of revenues until
the 1980s, can be supplemented with new products like coconut water and coconut sugar, which have
growing global markets. Traditional and quintessentially Comorian products like sago flour are now
primed for export to regional markets like Mayotte and the diaspora based in Marseille.xcix As part of
the National Industrial Strategy drafted in 2017, other niche products and markets were also identified,
with the fruits and fisheries segments also being represented (Table 4.5). Industry associations,
incubators and the higher education sector has a key role in the development of these business
operations which require the integration of commercial and agricultural skills and expertise.
Table 4-5: New Industrial Export Products and Potential Markets
Product
Ylang-ylang essential oil
Orange essential oil
Lemon essential oil
Juice concentrates
Vanilla powder and extract
Clove bud, stem and leaf oils
Coconut oil, coconut water and coconut sugar
Black pepper, Clove powder
Smoked Fish
Live crustaceans
Potential Markets
Tourists, new international markets
EU, China
EU, USA
France, South Africa
EU, USA, China
Asia, EU
Philippines, EU, USA, India
India, Indonesia
Mayotte, Reunion, France
Mayotte, Reunion, France
Source: Strategie Industrielle Nationale Basee Sur La Transformation Par Les Mpme/Pme Des Ressources Locales Aux
Comores (2017), Field interviews by World Bank Staff
4.3 Demand from Hospitality Sector
42.
An emerging hospitality sector also represents an untapped opportunity for
agriculture. Among all expenditure categories, spending on hotels and restaurants grew the fastest
over the 2007 – 2014 period (Table 4.6). This is a strong signal of the growing demand for food
49
prepared outside the home, an inference supported by the number of new pizzerias and bakeries in
Grande Comore. However, nearly all the ingredients sourced by these establishments are imported
because of the missing food processing sector in Comoros. The government strategy of stimulating
tourism by attracting more airline carriers and building large hotels could bear fruit for domestic
agriculture producers, as an influx of foreign tourists will raise the demand for high-quality, locally
sourced perishables like tropical fruits, vegetables and fish. However, if the sector remains unable to
meet this demand through production of safe, durable food products that comply with international
phytosanitary standards, the current upward trend of food exports will grow unabated. In the Eastern
Caribbean island countries where tourism is more developed, fresh products (fruits and vegetables,
seafood etc.) account for about 60 percent of food purchased by hotels; however, most continue to be
imported.c
Table 4-6: Evolution of the Price Index (base=100 in 1999)
Grains
Flours
Meat
Fish
Milk and dairy products
Fruit
Vegetables
Potatoes, cassava, tuber
Clothing and shoe
Health care
Transport
Leisure
Education
Hotels and restaurants
Total
2000
101.4
104.5
102.1
103.5
136.1
103.1
102.7
106.6
109.2
97.5
120.0
85.9
100.6
137.8
105.9
2007
130.1
135
103.4
125.8
120.7
246.1
160.5
219.1
132.6
113
138.3
139.8
112.2
196.9
139.9
2013
148,6
2014
148.3
124.1
149.5
115.0
124.7
150.1
115.4
206.1
145.1
158.7
166.2
148.3
112.1
359.1
159.4
234.2
146.9
162.0
163.6
148.3
112.1
359.1
163.2
Source: Department of statistics, Commissariat général au plan (CGP), April 20Sources of Supply: Subsistence production
systems
50
5 Sources of Supply – I: Subsistence Production Systems
Main Messages





Agricultural productivity is low and has remained flat for major crops in Comoros.
Soil quality and water availability are binding constraints for traditional farming in
Grande Comore, but enable fertile production basins in Anjouan and Moheli.
Coconuts and rice no longer dominate cultivation, but paucity of data constrains policy
and investment planning from responding to new production trends.
The cultivation of tubers, pulses and vegetables has grown but requires transfer of modern
inputs, technologies and techniques to stimulate off-season supply, enhance resilience to
pests and diseases, and grow smallholder incomes.
Despite immense potential, a fisheries value chain does not exist, mainly due to absence
of on-shore landing and processing facilities.
5.1 Typology of Production
43. Agricultural production in the Comoros is organized around four main axes: i) cash crops
for export, ii) food crops for subsistence and domestic consumption, iii) livestock production, and iv)
fisheries. This chapter presents an overview of subsistence-oriented food crop production systems and
fisheries, which are predominantly artisanal and serve the domestic market. The next chapter discusses
existing and high-potential agricultural value chains in the cash crops, perishables (fruit and
vegetables) and livestock segments.
44. The first and last agricultural census in Comoros was conducted in 2004.ci Since there are
no other recent microdata sources on number, type and geographical distribution of farms, these
relatively slow-changing statistics are presented below (Table 5.1). This census was instructive in that
it established the following facts, which have not changed significantly in the interim period:
 The majority of farming units were located in Anjouan, with Grande Comore next and Moheli
last, accounting for a tiny share of units in keeping with its population share.
 Women operated nearly a third of all farming units; cooperatives were nascent at the time.
 The vast majority – 83.6 percent – of farming units cultivated 3 crops or less.
 Extension coverage was weak, with only 8.2 percent farms being visited by agents.
Table 5-1: Summary of Agricultural Production Systems, 2004
Metric
Value, 2004
Number of Parcels
95,695
Number of Holdings
52,464
Farm employment
78,995
Share of holdings in Grande Comore, %
43.8
Share of holdings in Anjouan, %
52.4
Share of holdings in Moheli, %
3.8
51
Share of holdings operated by women, %
32.6
Share of holdings operated by cooperatives, %
1.4
Share of holdings with more than 3 crops
16.4
Share of holdings visited by extension last year, %
8.2
Source: INSEED, FAO
Given that the data on production outcomes like output, harvested area and yields is more volatile and
rapidly changing, it is extracted from Central Bank and FAOSTAT databases, which contain more
recent information. Unfortunately, the discrepancy between these sources mean that this data is highly
tentative, particularly for food crops. It is thus difficult at present to plan, monitor and evaluate
investment projects. Updated and more granular knowledge of farming systems and production is
urgently required, and establishment of a data collection, monitoring and planning unit is critical for
making strategic and targeted investments in the sector.
45.
Crop choice and cultivation system are largely determined by altitude of production
basins. In general, low altitude areas, with high temperatures and very high humidity, are suitable for
food crop cultivation while at higher altitudes (above 600 meters), the climate becomes wetter, cooler
and more conducive to livestock rearing, including with European cattle breeds. cii However, producers
on all three islands have exhibited an extensification pattern in recent decades, shifting from fertile
coastal plains to more marginal, upland, mountainous forest areas in search of new agricultural land.
At these higher altitudes, polyculture systems dominate, with staple and staple, staple and cash crop,
and staple and vegetable combinations being most prevalent. Monocropping is concentrated on the
coastal plains between the heights of 0 and 400 meters, where it is restricted to cash crops and
coconuts.ciii
At higher altitudes (above 400 meters), three cropping systems can be distinguished:

Annual crops: annual crops are cultivated where land is available, on plots that might have
not been kept fallow, and with very limited input of organic matter on soil that is vulnerable
to erosion;

Traditional agroforestry: intercropped systems of crops and fruit/forest trees, which
increase resilience to pests and help maintain soil fertility;

Plantation in natural forests: banana plantations are often installed on mountainous forest
land with progressive elimination of forest trees, as demographic pressure increases.
46.
Food crops are cultivated with little use of mechanization or modern inputs; marketing
channels are largely informal. In all systems, the agricultural tools are simple, with simple metal
tipped sticks and hoes being the main agricultural implement, and mechanization is nearly absent. The
use of improved seeds, fertilizer and insecticides is rare. The bush fallow system is practiced but fallow
periods have had to be reduced or abandoned as population pressure has increased. Agricultural
extension institutions like CRDE have recently been established, but are under-resourced in terms of
both financial and human resources. An estimated 20 – 30 percent of harvest is marketed, and this
share is larger for tubers and fresh vegetables. Foods are generally sold in very small quantities. Most
marketing is carried out by women and takes one of three forms: i) self-transport by taxi to urban wet
markets, ii) sale to intermediary saleswomen, who then transport it to major markets, and iii) a limited
barter of upland foods (bananas, yams, sweet potatoes etc.) for coconuts or fish at the coast.
52
47.
Soil quality and water availability are binding constraints for traditional farming in
Grande Comore, but enable fertile production basins in Anjouan and Moheli. The soils in
Comoros are of volcanic origin, young and very sensitive to erosion, that is accelerated by the steep,
rugged terrain and inappropriate agricultural practices. While the red ferralitic soils of Grande Comore
are younger, deeper and have low fertility, the brown soils of Anjouan and Moheli are older, shallower
and are rich in organic matter, a critical determinant of fertility. In addition, the extremely permeable
soil in Grand Comore does not retain moisture and consequently, there are no fresh groundwater
(rivers, lakes) sources on the island, making rainwater storage and harvesting is critical for crop
cultivation and livestock farming.civ In Anjouan and Mohéli, surface and shallow groundwater is more
available with the presence of seasonal rivers. However, rapid deforestation threatens the drying up of
these sources as well.
Table 5-2: Cropping calendar in the Comoros
5.2 Production Performance – Snapshot and Trends
48.
National data shows the rise of tubers, vegetables and pulses, while international data
sources systematically overrepresent coconuts and rice. The portfolio of Comorian crops, when
evaluated by their corresponding land allocations in FAOSTAT data, shows a dominance of two crops
– coconuts and rice (Fig. 5.1 and Table 5.3). However, trends in this data – imputed and extrapolated
for several years – also show that land allocated to both crops has shown a markedly upward trend
(Fig. 5.4), which is difficult to reconcile with all other data sources. As an example, the large share of
paddy rice and its output – 30.3 MT – is puzzling since it cannot be reconciled with the 0.5 MT recorded
in the most recent Central Bank data (2011), anecdotal evidence on the collapse of rice production,
nor with customs data, which reflect steadily increasing rice imports; a similar pattern extends to
coconuts as well.cv For eight other food crops, the Central Bank output is more than 100 percent larger
than the corresponding FAOSTAT output, suggesting that the increases attributed to rice and coconuts
are actually derived from tubers, vegetables and pulses (Table 5.3). Given these discrepancies even in
53
the same year, our assessment of the sector gives greater weight to FAOSTAT trends, value-chain
studies and customs data, which is better measured because of its relative ease of collection and linkage
to revenues. Since tubers and pulses did not feature prominently in these sources, this overview is
restricted in its discussion of the aforementioned crop categories.
Figure 5-1: Shares of Areas Harvested, by Crop Categories
Share of Area Harvest, 2010 (3 year MA)
Production Profile of SIDS
100
90
80
70
60
50
40
30
20
10
0
Cabo Verde
Cereals
Oils
Comoros
Roots & Tubers
Mauritius
Pulses
Sao Tome and
Principe
Fruits & Veg.
Seychelles
Cash Crops
Source: FAOSTAT. Shares do not sum up to 100 because of missing data for some categories
Table 5-3: Crop Production – A Snapshot from Most Recent Data Sources
Crop
Oilcrops
Coconut
Groundnuts
Cereals
Paddy Rice
Maize
Pulses
Pigeon Pea
Roots and Tubers
Cassava
Sweet Potatoes
Taro
Fruits, fresh
Bananas
Cash Crops
Cloves
Coffee
Vanilla
FAOSTAT Area
Harvested, 2016
(1000 ha)
35
33.9
1.1
26.9
23.8
3.1
17.4
0.5
16.5
11.1
3.1
1.5
9.0
7.8
FAOSTAT
Yield, 2016
(MT/ha)
3.4
3.0
0.8
1.5
1.3
2.1
8.6
0.8
5.8
6.2
2.4
7.3
4.8
5.7
FAOSTAT
Output, 2016
(1000 MT)
BCC Output,
(1000 MT)
101.1
1.0
40.9b
3.0a
30.3
6.5
0.5a
12.5a
0.4
13.2
68.7
7.4
10.8
48.4a
18.8a
22.1
44.6
53.7a
9.4
1.0
0.1
0.3
0.1
0.2
2.7
0.1
0.02
3.0a
0.04a
54
Vegetables
Tomatoes
Onions
0.8
0.07
0.09
6.3
9.1
2.5
5.0
0.7
0.2
7.1a
1.1a
Sources: FAOSTAT. aBanque Central des Comores (2011), bBanque Central des Comores (2007). Highlighted cells show
a discrepancy of more than 100 percent.
49.
Agricultural productivity is low and has remained flat for subsistence crops. Since 2000,
the trends in yields for both food and cash crops has largely remained flat, except for cassava (Fig.
5.8). Nearly all the output growth has come about due to expansion in inputs, rather than improvements
in Total Factor Productivity (Fig. 5.2). Land expansion is the input growth that has driven production
increases. Even as crop choices have changed, the continued use of poor varieties and outdated
techniques on marginal land and fragmented plots has contributed to a poor production base. This is
compounded by the absence or retreat of the public and private sectors from backward and forward
linkages – input supply, extension, processing and marketing – that can incentivize yield-enhancing
investments. Given growing demand and the inability of domestic production to meet it, the low and
flat yields for all crops have directly translated to an increased food share of imports, as discussed in
chapter 4.
Figure 5-2: Agricultural Growth Decomposition in SIDS
Decomposing Agricultural Growth (2001 - 13)
0.0200
0.0150
0.0100
0.0050
0.0000
-0.0050
Comoros
Fiji
Mauritius
Cape Verde
Sao Tome and
Principe
-0.0100
-0.0150
TFP Growth
Input Growth
Source: USDA Economic Research Service
5.2.1
Cereals
50.
Cereals comprise a large share of dietcvi, but yields in Comoros are lowest among
comparators (Fig. 5.4). Cereals – rice and maize in the Comoros context – are traditionally cultivated
by smallholders on family farms for auto-consumption, with only an estimated 20 – 30 percent of
output reaching markets. While FAO data suggest that cereal production has doubled over this period,
nearly all of it is explained by a doubling of land under rice cultivation, a statistic that could not be
validated through other sources or field interviews (Table 5.5)cvii. The low yields exhibited by rice and
maize is attributable to poor varieties, rudimentary agricultural techniques, and most importantly, the
shift in cultivation to marginal, steeply sloping mountainous land with thin and degraded soilscviii. Suboptimal fertilizer use is also one of the candidates for low soil fertility – while data on fertilizer use in
55
Comoros is missing since 2001, it was less than half the corresponding per hectare amount in Eastern
Africa during the previous decade (Appendix Fig. 1). Lastly, the absence of linkages between maize
and feed production systems reduces the profitability of both harvested maize and animal products.
Table 5-4: Cereal Yields in Neighboring Comparators, MT/ha (2016)
Crop
Rice, paddy
Maize
Comoros
1.3
2.1
Madagascar
4.4
1.7
Mauritius
2.2
6.8
Fiji
3.5
1.5
Source: FAOSTAT. Yield data is calculated using imputed harvest area and aggregate (combination of estimates, official
and semi-official data) production quantities.
Figure 5-4:Cereal Production – Comoros
10000
40000
8000
30000
6000
20000
4000
10000
2000
0
2000
2001
2002
2003
2004
2005
2006
2007
2008
2009
2010
2011
2012
2013
0
Comoros
Madagascar
Mauritius
2000
2001
2002
2003
2004
2005
2006
2007
2008
2009
2010
2011
2012
2013
2014
Hg/ha
Figure 5-3: Benchmarking Cereal Yields
Production (tonnes)
Yield (hg/ha)
Area Harvested (ha)
Source: FAOSTAT, ReSAKSS Database
Table 5-5: Demand and Sources of Supply for Cereals
Milled Rice
Wheat
Flour
(1)
Estimated
Consumption
per capita,
grams/daya
281
(2)
Estimated
Annual
Consumption,
MTa
81,539
(3)
Quantity
imported,
MT
(2016)b
89,089
74
21,473
13,833
(4)
Annual
Imports,
MT (2013 –
2015) a
76,666
(5)
Estimated
Domestic
production,
MT
1,873
Note: Column (2) is estimated by multiplying column (1) by current population. Column (5) is computed by subtracting
(4) and Japan’s 3000 MT from (2). Sources: aUSAID (2016) bBanque Central Comorienne
51.
Rice, Comoros's major staple food, is barely produced in the country. Comorians consume
an average of 281 grams of rice every day, translating to an annual requirement of just over 81,000
MT. More than 95% of this requirement was met through imports from Pakistan between 2013 and
2015, with Japan donating 3,000 MT of rice from Southeast Asia.cix Combining consumption and
customs data sources, it can be deduced that domestic production is no more than 2,000 MT at most.
This is in line with a decline from 2,900 MT, the output recorded by the government in 2007, the last
year rice production data was reported. Anecdotal reports suggest that in previous decades, a domestic
56
variety was cultivated at higher elevations in Anjouan and Moheli, but urbanization and substitution
toward cash crops has led to this cultivation being abandoned. In the 2000s, China too had invested in
a project to re-activate rice cultivation, but production stopped at the end of the project period.
Figure 5-5: Benchmarking Rice Yields, hg/ha
Figure 5-6: Rice Production Trends – Comoros
35000
50000
30000
40000
25000
30000
20000
15000
20000
10000
10000
5000
Source: FAOSTAT
0
2000
2001
2002
2003
2004
2005
2006
2007
2008
2009
2010
2011
2012
2013
2014
2013
2014
Madagascar
United Republic of Tanzania
Comoros
Mauritius
2012
2010
2011
2008
2009
2007
2005
2006
2004
2002
2003
2000
2001
0
Area (ha)
Production (tonnes)
Yield (hg/ha)
Source: FAOSTAT
52.
The state import monopoly, ONICOR, imports more than 95% of the rice consumed in
the country. The National Office for Rice Imports (ONICOR) is the largest rice importer and the sole
buyer of standard white rice 15% broken in Comoros. In recent years, two Pakistani suppliers have
won the tender to supply 60,000 MT of white rice annually, at prices set by ONICOR. Private importers
dealing only in more expensive basmati rice, also from Pakistan, supply the remainder of the rice
imports to supermarkets or act as wholesale distributors themselves.
57
Office National D'importation et de Commercialisation du Riz (ONICOR)
Given Comoros’s vulnerability to high inflation and external price shocks, rice prices are critical
for the economic and social stability of the country. Recognizing the relationship between rice
prices and political fragility, the government entrusted the sole responsibility for its import and
distribution to a parastatal organization, ONICOR, in 1982. Created by presidential decree,
ONICOR’s mandate is to ensure that sufficient and affordable rice stocks are available on the
market.
Since its creation, ONICOR has been undermined by difficulties. It has limited financial autonomy,
as it is obliged to request funds from the Central Bank to finance purchases on the international
market, which has contributed to its unstable performance. Unable to fulfill its mandate, ONICOR
has frequently resorted to the granting of import licenses to private traders. The disappointing
performance of ONICOR is not surprising as it reflects the experience of
similar parastatal organizations in several other countries.
The performance of the rice market in Comoros can be improved by reorienting ONICOR to the
role of a market coordinator and facilitator, while leaving the import and actual distribution of rice
to private enterprises. In such a scenario, ONICOR would focus on the following activities: (i)
setting standards for grade and quality for the import of rice; (ii) development and application of
standards for private companies interested in importing rice; (iii) market monitoring activities and
publication information on imports, sales, stocks and prices; (iv) collection of customs duties and
sales taxes; and (v) maintaining a modest level of stock that can be sold on the market in an
emergency.
The rules governing the management of the reserve stock should be transparent, with information
available to the public on the size of the reserve stock, the manner of accumulation, the
circumstances in which the reserve stock rice will be sold on the market, and the method to dispose
of it. Opportunities should be explored to involve producers and private traders in reserve stock
operations.
5.2.2
Other food crops
53.
Cassava is a major source of calories and the most resilient of local food crops;
introducing high-yielding and biofortified varieties can produce long-lasting food security gains.
Historically a major crop, cassava output is now possibly higher than coconuts, if BCC estimates are
more accurate than FAO (Fig. 5.3). Production of low-yielding varieties is currently concentrated in
the coastal and inland areas as cassava suitability declines at an elevation of 500 m above sea level.
Spatially explicit crop models show that the climatic suitability for cassava is expected to increase,
even as the conditions become less suitable for other crops.cx Given the widespread cultivation and
consumption of low-yielding cassavacxi and its forecasted climate suitability, it has high potential for
rapid delivery of food security and nutrition gains. In particular, technology transfer of biofortified
yellow cassava when intercropped with different grasses can be a potential solution to expand
cultivation in upland areas, stabilize soil quality, increase yields and address vitamin deficiencies, an
approach which has been successfully developed in mountainous Vietnamcxii.
58
Figure 5-7: Area Harvest for Major Non-Cereal Crops
70000
40000
60000
35000
50000
30000
25000
40000
Ha
hg/ha
Figure 5-8: Yields for Major Non-Cereal Crops
30000
20000
15000
20000
10000
10000
5000
2000
2001
2002
2003
2004
2005
2006
2007
2008
2009
2010
2011
2012
2013
2014
0
Coconuts
Cassava
Source: FAOSTAT 2014
Bananas
Cloves
0
2000 2002 2004 2006 2008 2010 2012 2014
Coconuts
Cassava
Bananas
Cloves
Source: FAOSTAT 2014
54.
Potatoes are a profitable crop, but production is highly seasonal and extremely reliant
on seed imports. A profitable crop which grows easily on highland production basins, potatoes
comprise an increasing share of Comoros’ production profile. In an average year, 45 – 50 tons of potato
seeds are imported, but this quantity fluctuates widely (upto 90 tons), driven by fluctuations in access
to credit for producers and relatedly, working capital for importers.cxiii Further, only one variety of
seeds are typically cultivated, with replanting and off-season cultivation of seeds being rare.cxiv
Previous projects that have attempted to import potato seeds and boost production through one-time
injections of capital have suffered from inadequate storage infrastructure, which in turn has led to seed
spoilage due to mildew and insects.
55.
Coconuts have historically been an export as well as food crop, but value addition and
linkage to industrial uses is now non-existent. Once the most produced crop in Comoros, it is
possible that coconut output is now lower than cassava (BCC estimates, Table 5.3). The coconut palm
is planted along the entire coastal belt of each of the three islands, often inter-planted with other food
crops. There are virtually no new plantations, with more than half the trees being planted shortly after
the great cyclone of 1950; the rest are even older. While processed copra was used in local soap
industry and exported until the 1980s, it is neither processed nor exported today. cxv Fertilizer use and
plant disease control are also not prevalent, despite harvesting practices that increase the risk of
infection. Pests like rodents were a serious threat in the 1980s and it is not clear if any pest-management
programs are in operation today. A revival of the coconuts value chain, linked to industry and exports,
requires a technical assessment of the global market demand, and specific investments needed for
competitive production and export readiness.
5.2.3
Fisheries
56.
Domestic artisanal fishing is below sustainable level, contributing to rising fish imports
to meet growing demand. With an Exclusive Economic Zone (EEZ) of 160,000 km2, or 70 times the
size of the country’s land area, the fishery sub-sector is an important source of employment, subsistence
livelihoods, and animal protein among poor, coastal communities in Comoros. In 2009, this sub-sector
accounted for 10 – 12 percent of GDP,cxvi employed nearly 13.5 percent of the labor force (32,500
59
jobs), and provided for nearly half the animal protein intakecxvii. Conducted by full-time and subsistence
fishers alternating between farming and fishing, the activity is largely artisanal and often uses basic
fishing gear and methods.cxviii. Among local fishers, traditional wooden canoes account for two-thirds
of all boats and small, motorized fiberglass boats are restricted to the remaining one-third. The wooden
canoes stay within a circumscribed area of 9,000 km2 on the continental shelfcxix, where fishing
resources are limited, while motorized boats equipped with fish aggregating devices enable some
artisanal fishers to travel further offshore and increase their catch. Consequently, while the sustainable
level of annual fishing is estimated to be 33,000 MT in this area, average annual domestic production
is estimated to be 20,000 – 25,000 MTcxx. Almost none of this catch is exported and in fact, fish imports
to Comoros are growing (Fig. 5.9, 5.10).
Figure 5-9: Fish Trade Balance, by Volume (MT)
Source: FAO Country Review – Smartfish Program (2014)
60
Figure 5-10: Fish Trade Balance, by Value (‘1000 USD)
Source: FAO Country Review – Smartfish Program (2014)
57.
Industrial fishing by EU vessels, a source of revenue, has halted due to a red card
triggered by illegal fishing. The Comoros has signed several renewable agreements on fishing rights
with the EU since 1988, which in exchange for an annual fee, allow a specific number of European
boats to fish off its coast up to a maximum tonnage. Conducted by mainly purse-seine vessels from
France, Portugal and Spain which fish offshore for several varieties of tuna and swordfish, these
agreements have also earmarked funds for the development of a sustainable fisheries policy. cxxi.
However, the EU has terminated the latest agreement in March 2018, citing i) the Comorian authorities’
flag of convenience policy; ii) evidence of illegal fishing activities by the Comorian fleet; iii) poor or
non-existent monitoring and control capacities; and iv) an outdated legal framework for fisheries. cxxii
58.
Processing and infrastructure facilities need to be built to capture greater value
domestically. Even if the EU and Comoros were to sign a new agreement on fishing rights, industrial
fishing vessels will continue to land in neighboring countries but not the Comoros due to its lack of
infrastructure and processing facilities. A modern fisheries value chain, with cutting, gleaning,
smoking, curing and storage facilities has high export and domestic potential, given that Comoros
currently imports 500 – 1,000 MT of fish annually. cxxiii Reportedly, a tuna-processing facility is under
construction, under a mixed public–private venture by Qatar and Sri Lanka.cxxiv The Government has
envisioned several other steps to promote additional local processing, including the construction of
larger boats, a quality-control laboratory and a new fishing school.cxxv
5.3 Priority Actions for Subsistence Production Systems
Taking a value chain approach, Table 5.6 lists targeted investments and policy reforms that are critical
for enhancing farm productivity and marketability of largely subsistence products, and consequently
raising food security and incomes of smallholders:
61
Table 5-6: Priority Actions for Enhancing Food Security and Incomes
Intervention
Maize
Oilcrops
(Coconuts,
Groundnuts)
Input
Supply
One-stop window to simplify time and cost of compliance with
import exemptions
Facilitate access to working capital for seed importers and
distributors (CAPAC) by conditioning financing to viable
business models
Ensure delivery of time-sensitive inputs by distributors and farmer
federations at the start of planting season
Develop small-scale rainwater harvesting and conservation
infrastructure
On-farm
Facilitate
access to
improved,
biofortified,
pestresistant
and
resilient
varieties of
maize
adapted to
Comoros
Promote new
plantations
and
establishment
of a robust
pest control
system
Tubers
(Cassava,
Potatoes,
Yams, Taro)
Facilitate access
to improved,
biofortified, and
resilient varieties
of cassava (eg.
biofortified
yellow cassava)
Promote
replanting
practices and offseason cultivation
Legumes
Rice
(Pigeon
Peas,
Cowpeas,
Mung
beans,
Groundnuts)
Fisheries
Facilitate
access to
modern
fishing gear
and
equipment
Promote
maize-pigeon
pea
intercropping
systems to
lower yield
variability and
enhance soil
fertility
Promote linkages
with animal feed
production
systems
Collection/
Immediate
markets
Regulatory
environment
/ governance
Professionalization of farmer federations (SNAC, FNAC etc.) to
ensure organized transport from remote production basins to
markets
Invest in storage facilities to address seed and output quality and
yield losses
Joining regional agricultural research and technology transfer
partnerships to develop, transfer, and disseminate climate-smart
technologies, inputs and management practices that enhance
productivity, climate resilience
Equipping advisory and extension services with physical and
financial resources to ensure rapid dissemination of climate-smart
inputs, technologies and management practices
Invest in
processing
infrastructure
to enable
landing of
industrial
fishing
vessels
Reorientation
of ONICOR
to role of
market
coordinator
and
facilitator
Invest in
monitoring
and control
facilities to
prevent
illegal
fishing
62
Build capacity to collect, monitor and disseminate real-time
agriculture data by establishing an agriculture data unit.
Setting and
application
of standards
for grade and
quality of
imports by
private
companies
Update legal
framework
for fisheries
Collection of
customs
duties and
sales taxes
Maintaining
a modest
buffer stock
for an
emergency
6 Sources of Supply – II: Agricultural Value Chains
Main Messages

Cash crop production employs 18 – 28 percent of producers and is expanding in response
to surging prices. Strategic investments in quality control, downstream products, and
downstream development are required to mitigate against an impending downturn.

Smallholder growers of cloves and ylang-ylang are receiving the majority shares of
export prices in currently favorable market conditions.

Vanilla growers receive much smaller shares of export prices, as their bargaining power
is reduced by an exporter oligopoly and a government determined price structure.

Two livestock value chains are promising – while eggs are the most competitive value
chain in Comoros, dairy is developing from a small base in Anjouan.

Local chicken meat production is small and frozen chicken wings, a residual from
European demand for lighter chicken meat, are 50 – 100 percent cheaper.

Market development for domestic poultry meat requires a nutrition awareness campaigns
to raise the demand for lighter chicken meat, coupled with supply linkages to maize
production for feed, and a robust veterinary system.

Vegetables are seasonally competitive in segmented markets, but greater domestic
competitiveness is constrained by erratic input supply and poor connectivity.
6.1 Introduction
63
This chapter assesses the current competitiveness and the main opportunities for achieving
scale in selected value chains with large economic footprints and high potential for enhanced domestic
value-addition. According to the state of development of their respective segments, each of the value
chains is classified in the following categories:



Established: Vanilla, Cloves and Ylang-Ylang,
Growing: Poultry and Dairy
High Potential: Fresh fruits and Vegetables
Rapid reconnaissance interviews of more than 120 representative producers, collectors, processors,
traders, industry representatives, and government officials were conducted to collect primary data on
the process, geography and margins for each value chain. The structure of production costs and the
profitability of a representative production unit is also evaluated, thus providing an insight into the
drivers of economic viability and competitiveness. In conclusion, this chapter summarizes production,
processing, and marketing patterns, while outlining gaps, structural bottlenecks, policy options and
investment opportunities for each of the three categories. Detailed background reports are available for
all value chains, segmented by cash crops, livestock, and fresh fruits and vegetables, which correspond
to the established, growing and high potential classifications.
Table 6-1: Value Chains at a Glance
Ylang
ylang
Cloves
Vanilla
Farm
production
Collection/Intermediate Value-added
markets
processing
Established
Retail/Export
1000 – 3000
Smallholders;
18 Cooperatives;
2 Plantations;
High share of
women
11,000 – 12,000
Smallholders;
5 Producer
Organizations
5,000
Smallholders;
3 Cooperatives;
High share of
women
Flower collectors;
Essential oils collectors
aggregate from distillers
Distillation
~ 500 small units
2 Buyers/Exporters
(Bernardi, Biolande)
Collectors deliver dry
cloves to exporters
Drying and
removing stems
High share of
women
Curing
6 – 12 curers;
Controlled by 3
exporters
Exporters Associations
(Anjouan and Moheli)
Collectors of green beans;
Collectors of cured beans
3 major exporters
(Vaniacom, AGK Sarl,
AHH Export);
17 minor exporters
Growing
Milk
Eggs
4,140 Dairy
farmers and
9,450 cows
155 Semiindustrial
intensive units;
Several thousand
backyard units
Mostly direct sales;
Some collectors are also
final retailers;
Informal traders between
Anjouan and Grande
Comore
Non-existent
Pasteurization
and packaging
Minimal:
Niumakélé dairy
plant not fully
operational
Non-existent
Consumption centers in
Domoni and Mutsamudu
Local shop owners, market
vendors, some door-to-door
sales
64
High Potential
Vegetables
Subsistence
producers
Weakly developed:
Central purchasing market
in Moroni;
Local sourcing by one
supermarket chain
Non-existent
Fruits
Subsistence
producers
Non-existent
Jam, juice and
pickling
Minimal: Very
few small-scale
units
Traditional wet markets;
Seasonal market during
Ramadan and Grande
Marriage;
Occasional export to
Mayotte
Roadside sellers and wet
markets
6.2 Established Value Chains
59.
The three cash crop products have already established segments and links along the value
chain. 12,000 – 20,000 smallholder producers (18 – 28 percent of all agricultural producers) are
engaged in cash crop production and form the base of each value chain (Table 6.1). The complexity of
processing varies across value chains – while cloves are exported in bulk as the simple dried spice,
with no value-added processing taking place, vanilla is exported in the form of the cured bean and
ylang-ylang oil is exported according to fractions, a proxy for quality. Green bean vanilla producers
sell to one three major exporters who control the processing and collecting segments as well. Ylangylang has a dynamic processing sector comprising several small enterprises that are struggling to adapt
to changing market demands.
6.2.1
Cloves
Production Trends
60.
Cloves are the biggest source of export revenue and production has ramped up over the
last decade. In an average year, 3,000 – 4,000 MT are produced in Comoros, with output going up to
6,000 MT in peak crop years like 2016 (Fig. 6.1). This level of output is behind the price-setter
Madagascar, which typically exports 10,000 – 20,000 MT, but comparable to Tanzania (Zanzibar),
Brazil and Sri Lanka, which exporting 2,000 – 6,000 MT, with the broad range reflecting typical annual
variability in clove harvests (‘on’ and ‘off’ years).cxxvi As a caveat, these trade data estimates for
Comoros are more than 50 percent higher than their mirror in customs data, or in field estimates
collected from exporters. However, the trend of cloves maintaining its productive base is supported by
all data sources. Field reports of new plantings in Anjouan and Mohéli suggest a slow future expansion
of this base as well.cxxvii The downside of new plantings, especially on land traditionally used for food
crop cultivation, is that clove trees are an effective monocrop after 3 – 5 years and this pattern is likely
to increase exposure to price risk and food insecurity.
65
Figure 6-1: Clove exports from major origins, 2008-2016, MT
Source: ITC Trade Map; Madagascar Central Bank.
See Annex 3 Table A4 for data table
Quality
61.
Comoros produces cloves without any unique attributes or markers of high quality due
to the absence of domestic standards and weak post-harvest management. Clove quality is
determined by the integrity of the post-harvest management – collection, drying and storage processes
– that take place before it is shipped.cxxviii At all three stages, there is significant loss of quality due to
the absence of domestic specifications, in contrast to Madagascar and Tanzania.cxxix The example of
Tanzania is particularly illustrative in that Zanzibar State Trading Company (ZSTC), a parastatal that
has a monopoly over purchase and export of cloves, runs a comprehensive network of well-equipped
buying centers in clove producing regions, has established grades and transparent uniform pricing for
clove purchases and centralized mechanized cleaning, grading and packing facilities. It also operates
a large distillery for production of clove oil and fractionation to eugenol, and has been developing retail
packaging of selected cloves for distribution in the Middle East markets. Consequently, Zanzibar has
a reputation for high quality product meeting all international standards and is able to deliver a high
share of the export price to producers.
Structure
62.
This value chain is short and comprises of the following segments: producer, collector,
exporter. The producer is the owner of the clove trees and sells dry cloves. Harvesting of cloves is
typically done on contract, with harvesters paid by weight of cloves harvested. The producer is
responsible for drying, and this may also be done on contract. Typical payment rates for the producer
are:



Harvesting: KMF 200/kg fresh cloves with stems; KMF 300/kg fresh cloves with stems
removedcxxx
Removal of stems: KMF 100/kg
Drying: KMF 100/kg dry clove outturn
66
Margins
63.
In currently favorable market conditions, cloves growers are receiving more than threequarters of the export price. The costs associating with harvesting, removal of stems and drying are
in the range KMF1,200/kg dry cloves. At a buying price of KMF 2,500/kg, the margin to the producer
is KMF 1,300/kg (€5.09; US$6.11). At an estimated current FOB export price of US$7.80/kg, the
producer is getting 78% of the export price. This is a reasonably high share, considering exporter
weight losses due to collector activities. However, harvesting, drying and cleaning (and collection)
costs are largely fixed, and at significantly lower export prices, as there has been in the past, the margins
to producers are small and unattractive, resulting in producers leaving much of the crop unharvested.
The current strong crop volumes, and new plantings, are driven by the current relatively high market
prices that reflect growing international demand (particularly Asian demand) for cloves.
Collectors are paid KMF 50/kg cloves delivered to the exporter, plus additional allowances for
transport and handling costs, giving an overall allowance of KMF 70/kg. However, the major
complaint of exporters is that the collectors manipulate the product to add weight, damage the product
in handling to reduce quality and increase losses, and reduce the stated price to producers, all
contributing to increase the collector margin significantly at the expense of both producer and exporter.
Inefficiencies in the supply chain, principally collection, offer some scope for improving margins to
production, but further improvements require valorization of the waste streams and development of
value added products.
Geography
64.
Clove production is dominated by Anjouan, followed by Mohéli. Grande Comore has
cloves, and could be a substantial producer, but labour costs for harvesting limit production
potential.cxxxi Mohéli production has been estimated as typically in the range 600 to 1,000 MT (around
20% of the national crop) with Anjouan providing almost all the rest. Cloves are widely distributed in
Anjouan, with centres of production in the west (Sima), the central belt from Mutsamudu across to
Bambao, the NE coast, and the south. There are no formal survey data on the number of producers,
but it is stated (the basis for this is not known) that three-quarters of Anjouanais producers (185,000)
are involved at some level in clove production. Smallholder producer numbers must be in the range
10,000+.
6.2.2
Vanilla
Production Trends
65.
Production of cured vanilla is slowly picking up after a long-term decline, falling from
150 – 250 MT in the 1990s to 20 – 30 MT in recent years (Fig. 6.2). Although reliable export data
is not available, and different sources give conflicting data, the general picture of a production collapse
to such an extent that Comoros is now a minor origin for vanilla, is clear and realisticcxxxii. Driven by
extended periods of low prices (US$20 to US$40/kg) since early 2000s, when the global market has
expanded, this decline is slowly reversing and export volumes are expected to be 30 – 35 MT in 2017,
in response to a big spike in international prices. Since new plantings take 3 years to start bearing beans
and yields build slowly, export volumes are projected to grow over the next few years if new plantings
are maintained and old are replaced, which in turn is a function of prices. However, the limited
availability of existing planting material severely constrains the rate of planting expansion.
67
Figure 6-2: Vanilla Exports from Major Origins to Major Markets, 1999-2015, MT
Source: USDA FAS; Eurostats; Comtrade TradeMap; WITS; Madagascar Customs
Quality
66.
Comoros vanilla has a reputation in the market for producing high quality vanilla, but
local producers have not successfully capitalized on this differentiation. Classified as the
‘Bourbon’ label, the vanilla from Comoros has a strong traditional association in the market for quality.
Cured bean quality is underpinned by the control of harvesting dates, agreed upon every year by sector
representativescxxxiii and Government, to ensure that harvest does not begin before green beans are
mature.cxxxiv Given the ongoing boom, schemes aimed at product differentiation and marketing have
broken down, as the returns to quality are marginal in current market conditions. cxxxv However, the
development of Organic and FairTrade certifications are strategic measures that can help producers
access niche markets and capture price premiums, when prices return to their long-term trend after the
current uptick. In addition, the long-term development of value-added downstream products like
vanilla powder and vanilla extract could be targeted by exporters and vanilla cooperatives, in order to
capture greater value domestically.
Structure
67.
The traditional value chain is undergoing consolidation, with producer-curers and curerexporters likely to be the future structure. Traditionally, smallholder producers of green vanilla,
collectors of green beans, préparateurs (curers), collectors of cured beans, and exporters comprised the
value chain. In this structure, the producers are not contracted and green bean collectors are financed
by curers, who in turn are either self-financed or financed by the exporter. In the latter scenario, the
exporter provides funds for purchase of green beans at an agreed price, but does not pay an advance
fee for the direct costs of curing and the curers’ margin. Collectors of cured beans work for an exporter.
The traditional structure of the sector is breaking down under the influence of a number of pressures,
the key ones of which are:

The very low current production levels: 40 to 50 MT cured vanilla can be produced by an
individual enterprise in other origins;

There are only 3 exporters, and they are becoming significant curers, developing integrated
curing-exporting businesses. Exporters are at a competitive advance to the curers that they
68
finance, as they set the green bean price for the curers but can themselves offer higher price
(making use of the margin to curing);

At current prices, very large sums are required to finance curing operations. For a minimum
commercial scale of 1 MT cured/5 MT fresh, with green beans at KMF 25,000/kg, over
€250,000 is required for bean purchase. Few traditional curers have the assets and capability
to access and manage this level of finance, such that there are almost no self-financing curers
operational. The Association of Préparateurs had 300 members in 2004; current membership
is 72, but only a handful are active and almost all of these financed by exporters;

Producers have been encourage to organize into groups, and more recently Cooperatives (under
the UNDP/ITC Competitiveness Project)1. Whilst there is some advantage to curers to deal
with organized producer groups for ease of securing and contracting for larger volumes, the
market and price advantage to the group is limited. The principle driver for the formation of
producer groupings is for them to take over the curing role and capture the significant added
value to the production of cured beans.
The result of these changes is likely to be a sector made up for producer-curer groups, and curerexporters with very few independent curers, with exporters also contracting out curing if and when
volumes exceed their installed capacity.
Margins
68.
Growers of green bean vanilla are benefiting from the price boom for cured vanilla, but
receive only 15 – 20 percent of export prices due to export oligopoly and government-determined
prices. Prior to the start of each season, the government and sector representatives set a price structure
(Structure de Prix) listing prices, costs and margins at all stages from purchase of green beans to cured
vanilla, which is exported. In practice, this structure is only used to set a marker for the starting
purchase price for green beans and a negotiating position for the costs and margins to curing. cxxxvi In
2017, the Structure de Prix set the green bean price at KMF20,000 but rose to over KMF30,000 and
the FOB export price was calculated at €310/kg, but in practice, almost all cured vanilla will be sold
at €450 to €550/kg and above.
In the current climate of volatile prices, gross farmer incomes have fluctuated between
KMF1.875million (€3,800) and KMF3,500/kg only €535 over the space of last two years. It is unclear
whether margins to production remain sufficiently attractive to growers to continue with the crop when
prices fall back from their current peak. Margins can be maximized by producer cooperatives
developing curing operations, and developing Organic and FairTrade certifications to capture price
premiums.
Geography
69.
Grande Comore dominates the production of vanilla, accounting for an estimated 80%
of total production. Mohéli accounts for the bulk of the rest. The Agricultural Census of 2004
recorded 8,584 vanilla producers in Grande Comore, but this number has declined as many growers
switched to other crops with the following decline in prices. A recent survey reported 4,300 growers,
although it is likely that some of these are not actively growing vanilla but did in the recent past, and
still consider themselves potential vanilla growers.cxxxvii In Grande Comore, vanilla cultivation is
spatially dispersed and not limited to particular zones.
1
Amélioration de la Compétitivité des Exportations des Filières de Rente (ACEFER)
69
6.2.3
Ylang-ylang
Production Trends
70.
Like vanilla, ylang-ylang essential oil production is starting to rebound after a long
decline. In the 1970s and 1980s, Comoros produced 110 MT annually, which dropped to 90 MT in
the 1990s, and reached a low of 24 MT in 2014 (Fig. 6.3). Production has since started to increase,
with nearly 38 MT being exported in 2016 and an expected 40 – 45 MT by the end of the 2017 calendar
year, almost exclusively to France. Although low prices and the supply response – removal of ylang
trees and lack of replacement of aging trees – were the primary cause of the long-term production
decline, the simultaneous decline in field management practices also contributed to a an inability to
rapidly take advantage of an upturn in prices.cxxxviii The recent revival in production has been stimulated
by a continuous increase in demand for all oil qualities, supported by the direct involvement of overseas
buyers, NGOs and users of the oil to modernize distillation techniques, reduce costs, and stabilize the
sector.
Figure 6-3: Ylang-ylang Exports from Comoros & Mayotte, 2008-2014, MT
Source: Eurostats; Comoros Central Bank
Quality
71.
Manipulation of ylang-ylang oil quality has contributed to price declines. Ylang-ylang oil
is separated out into 5 fractions of increasing density, which is one of the parameters most correlated
with perfume aroma and quality.cxxxix In Anjouan, the fraudulent manipulation of quality by heating,
which can increase density and result in a doubling of value, has become widespread.cxl Since
Comoros’ competitive advantage is built on its ability to supply the highest quality fractions, the
inability to detect quality locally has led to reduced prices for Comorian oil. Given the development of
field tests which enable spot testing of quality are underwaycxli, and Anjouan’s current moves to
develop quality controls at the point of exports, it is likely that the industry will be able to solve this
problem in the near future.
Structure
70
72.
Like vanilla, the traditional value chain is consolidating, with distillers grouping to cut
out collectors. The traditional segments of the value chain are: grower, distiller, collector, exporter.
Many distillers are also growers, and will buy in additional flowers for distillation as required. Distiller
– collectors contract pickers for the harvest of flowers, with women supplying a large share of labor
and typically picking 10 – 20 kg daily during the harvest period. At the next stage, collectors of
essential oil aggregate and transport the product to the exporters. Several distiller groupings which cut
out external collectors and supply directly to exporters, have recently been established on both Anjouan
and Mohéli. These groupings are expected to increase in number and size, given the benefits associated
with organizing, in terms of access credit and economies of scale. In particular, the ability to access
modern, stainless steel stills of varying sizes and maximize capacity utilization is a key optimization
benefit of grouping. Additionally, access to improved furnaces and sites with good water supplies in
another important benefit.
Margins
73.
Growers of ylang-ylang flowers are receiving a large share of margins, with distillers
facing the most financial pressure. In the 2017 season, flower prices ranged between KMF 200 and
KMF 400/kg. Nearly all the benefits of the recent rise in flower prices were retained by the growers,
with the large base of growers securing 62 percent of the value and distillers retaining 22 percent. The
margins currently accruing to distillers are insufficient to finance investment in improved facilities
necessary to improve yields and quality outturn, and address the urgent constraints of reducing wood
consumption and securing access to water for distillation.cxlii Two exporters – Bernardi and Biolandes
– which are also importer/suppliers for French compounding companies, dominate the ylang-ylang
value chain. Consequently, there is no exporter margin in this supply chain, a structural point of
difference, when compared to the cloves and vanilla value chains. Additionally, there is a high degree
of vertical integration, with both companies being directly involved in distillation (Biolandes –
Anjouan, Bernardi – Grande Comore), or buying from distillers.
Figure 6-4: Margins across Ylang-Ylang Value Chain
Source: World Bank Mission estimates (December 2017)
71
Figure 6-5: Margins across Improved Ylang-ylang Value Chain
Source: World Bank Mission estimates (December 2017)
Geography
74.
Production of ylang ylang occurs on all 3 islands, but is dominated by Anjouan. Current
estimates for 2017 production of an estimated total of 40 to 45 MT is: Anjouan 25 to 30 MT; Grande
Comore 10 MT; Mohéli 5 MT2. Growth in production is being led by Anjouan, followed by Mohéli.
Production on Grande Comore is domination by supply from the Fernand/Bernardi plantation at
Mitsamiouli (200 ha), followed by CVP at Mbeni. Assuming average smallholder oil yields of around
30 kg/ha3, the total crop area is currently around 1,300 ha. A 2006/2007 survey in Anjouan recorded
449 working stills, 424 of which were owned by individual distillers, with most distillers undertaking
6 to 7 distillations per month. Distillation units were mostly old, and of poor quality (280 made of
galvanized iron, 90 of copper, 75 of aluminium, and only 3 of stainless steel) with 50% of the
galvanized stills assessed as ‘in bad condition’. The average age of distillers was 47 yrs. An earlier
survey (1998) recorded 588 stills of which 427 were functional and 636 distillers. Current estimates
are that there are around 250 functional stills in Anjouan, used by a larger number of distillers, up to
400. There are 2 industrial distilleries on Anjouan, one at Domoni (with 10 stills) and one at Bambao.
There is no survey data on the number of ylang growers in Anjouan, it is simply stated as ‘several
thousand’.
6.3 Growing Value Chains
75.
The livestock sector is growing from a small base, especially when compared to food and
cash crops. There are three main livestock value chains in the archipelago: the cattle dairy value chain,
2
Anjouan and Grande Comore make direct exports from their ports. Production from Mohéli is mainly transported to Grande Comore for export,
but can also be sent to Anjouan. No product insurance cover is available for the crossing from Mohéli – this is at the risk of the product owner
at this point.
3
Based on poor average flower yields of 5 kg/tree/yr, and 2% distillation yield.
72
the small ruminants, and the poultry value chain. The bovine meat value chain barely exists and most
of the meat produced locally can be considered as a by-product of dairy or mixed systems.
The local milk value chain is very rudimentary with no processing of local milk, and very basic
marketing channels. The main constraints faced by the local dairy sub-sector are different from one
island to the other: in Anjouan, production systems are performing well but the supply now exceeds
the market demand; in Grande Comore, this is the opposite, and farmers are unable to produce what
the market requires. Intensive poultry production (for eggs) is productive and the potential for
substitution to imports is very significant. The potential for job and business creation in inputs and
service provision (feed, hatcheries, veterinary) is also important. The most significant productivity
bottleneck is the planning and organization of the supply chain for day-old chicks, which are currently
imported. Orders often arrive several months after what was initially planned by the farmers, causing
laying hens to exceed the normal laying period of one year. A longer laying period decreases their
performancecxliii, but farmers keep the hens to avoid losing their customers and market, even if the
value of egg production does not cover the feeding cost. If production inputs were reliably available,
then the technical performance of poultry farms in Comoros would be comparable with what is
observed in other tropical island countries.
6.3.1
Poultry
Production
76.
The commercial poultry value chain is young, market oriented and local egg production
is competitive with imported eggs. This value chain is already competitive against imported eggs in
Grande Comore (price differential of less than 10 percent) and has the potential to be competitive on
all islands, without a welfare loss for consumers in terms of prices or quality of eggs. Simultaneously,
a traditional poultry value chain also exists on the islands; in fact, free-range backyard chickens are
kept by nearly every rural household. Given the widespread prevalence of these two value chains, the
potential for job and business creation in input supply and service provision is also significant.
77.
At present, locally produced chicken meat represents less than 1 percent of consumption
and is not competitive with imports. Most of the imported chicken meat (11,000 MT/year) is in the
form of frozen legs and wings from livestock powerhouses Argentina and Brazil. Reflecting the pattern
observed across several African countries, local chicken prices are 50 – 100 percent higher than frozen
chicken wings, which are often sold at below cost given European preference for light breast meatcxliv
– and more than 30 percent higher for whole chicken. cxlv Demand is high and rising, as domestic
consumption level – 14 kg per capita annually – is twice the Sub-Saharan Africa average. In
comparison, local production is just 16 MT from broilers and 60 MT from layers. Prices do not
fluctuate much over the year, despite the seasonal increase in demand for poultry meat in July-August,
because of temporary price control mechanisms put in place by the government.
Figure 6-6: Estimated Quantities of Poultry Meat by Origin (MT per year)
Locally produced poultry meat
Number of actors
155 producers
(80,000 layers, 16,000 broilers)
Quantity of meat
76 MT
Imported poultry meat
2 to 3 importers
11,000 MT
73
Share of the market
16 MT of broiler, 60 MT of cull
hens (whole chicken)
(mostly wings and legs)
0.7% of market
99 % of market
Source: World Bank mission estimates (December 2017) and FAOSTAT (imports)
Structure
Figure 6-7 illustrates the three main segments in the local value chain – input suppliers,
producers, and retailers, who are supplied directly by producers.
Figure 6-7 : Local Poultry Value Chain Map – Main Actors per Level
Inputs & services
•Veterinary
technicians
•Input traders
•Input retailers
•Feed
manufacturers
•Hatcheries
•Banks and MFIs
Production
• Type1 producer
(less than 100
animals)
• Type 2
producer (100
to 1,000)
• Type 3
producer (over
2,000 animals)
Retailing
• Shop owners
• Market vendors
Typology of production systems: All intensive poultry producers follow similar production itineraries
(same breeds, same inputs), and sell their products on the same market, but their level of technicity
varies, as well as the size of the farms and the importance of investment. A simple typology of
producers has thus been established, based on these criteria:
Small-scale (less than 100 animals): This type of producer is more commonly observed in Anjouan
than in Grande Comore. Most of these small units are owned and managed by women. This is an
additional economic activity that supplements other sources of livelihoods (usually agriculture is the
main source of incomes). The investment is minimal, and the small poultry house is often built with
local materials (except for the roofing). In Anjouan, these small units are often built of the family house
rooftop, which ensures a good protection against thieves and predators, and avoids spending in a
specific concrete slab. Chicks, feed and inputs are bought from specialized input dealers, often
collectively (all women from the same village source inputs together). However, because of the limited
volume of inputs they require, these units face difficulties in organizing an effective supply chain and
thus often have feed and chicks’ shortages. Marketing of eggs (and cull hens) is usually done within
the village directly to end customers.
Medium scale (100 to 1,000 animals): This is the most prevalent type of production, which supplies
the vast majority of local eggs in Comoros. Around 30% of these units (usually the smallest ones,
under 500 animals) are owned by women. This type of unit is often the main or even the only economic
activity of the owner. The poultry house is more elaborate, investment is significant and has often
required a bank loan. Marketing of eggs is done within the village, or through the shops in the area.
74
Large-scale entrepreneurial farmers (over 1,000 animals): The majority of farmers under this
category have 2,000 – 3,000 animals, which is probably the economically optimal size. (the maximum
size is 11,000 layers). Setting up these units have required important investments and most of these
farmers got loans from MFIs. The workforce usually combines family members and employees.
Margins
78.
Local eggs occupy 83 percent of the market share in Grande Comore; simplification of
import exemptions can lead to total import substitution. The price differential – about 10 percent
– in favour of the imported eggs from India is small enough that domestic producers are
competitive.cxlvi The lower quality of imported eggs – often arriving in Moroni after three weeks of
shipping time – could justify a price premium, but public awareness of Comorian customers on food
quality issues and the demand for safe products is not differentiated enough to create two different
product markets. The small price differential in favour of imported eggs explains why their market
share is 17 percent in Grande Comore. While market shares in Anjouan and Moheli could not be
estimated, it is possible that imported eggs comprise a larger share of local consumption in the other
islands. Since imported inputs account for 80 percent of the farm gate price of eggs, simplification of
exemption procedures can enhance competitiveness on all islands, and possibly lead to total
substitution of imports.
79.
The net profit and income per worker in a medium-scale egg farm is equivalent to the
salary of a mid-level civil servant. Given the short and simple nature of the domestic value chain, a
classic analysis of distribution of margins across segments is not meaningful. The poultry farmer is the
only value chain actor for which a detailed economic analysis is possible and meaningful. The
economic model (see Annex) developed below corresponds to a standard “Type 2” egg producer, with
700 layers (which is very close from the national average of 620 animals). All the data used in this
model are information collected by the mission in the field. The model is calculated on a standard cycle
of 18 months (6 months of growth, 12 months of production).
This model confirms the general sentiment expressed by several interviewed producers, who report
egg production being a profitable activity. The net profit over a production cycle of 18 months is 2.7
million KMF which corresponds to 150,000 KMF per month (365 USD). Since such a small unit
requires only one person to run, the remuneration is therefore, 150,000 KMF per month, equivalent to
the salary of mid-level civil servant. If the size of the unit increases, economies of scale will be
generated, especially on the investment. A unit of 1,500 layers will therefore generate a net margin of
around 360,000 KMF per month (880 USD).
75
Box 1 : Case Study of a Medium-Scale Poultry Farmer
Mr M. is 40 years old and lives in Anjouan, near Domoni, where most of the poultry farmers of
this island are concentrated. He was a high school teacher until recently, but he was tired of
recurrent delays in the payment of his salary and he decided to start his own business. He had a
family plot with water, not far from the city, which was too small to do agriculture, but ideal to do
poultry farming. He was encouraged to start this activity by the fact that many of his neighbours
recently started this business and seemed very satisfied by the results. He applied to SANDUK for
a first loan of 2 M KMF (5,000 USD) to build his first poultry house for 300 layers and got the loan
quite easily. After one year, he took a new loan for another 300 layers building. He buys his feed
locally from private traders, and his chicks from Mauritius (he places orders together with other
farmers). Getting chicks on time is not always easy. Feed supply is not an issue in Anjouan because
there are several suppliers. He has a very good productivity; the mortality is low (5% over one year)
and he has never encountered any big problem. He has now resigned from the public service and
works full time in his poultry farm, which he says generates better incomes than his previous job.
From this model, it is possible to approach the production cost of an egg produced locally: our model
gives a value of 60 KMF for a 700 hens farm. The added value stands at 10 KMF per egg, which gives
a total added value generated by the local egg production sector of 200,000,000 KMF (around 500,000
USD). The graph bellows represents the distribution of the production cost (60 KMF per egg) of a
locally produced egg by type of expenditure. Only traded inputs are considered in this analysis. The
feed represents 80 % of the production cost, and the layer feed only 75 %. In total, imported inputs
represent 93 % of this cost.
Figure 6-8: Production Cost of a Locally Produced Egg – Distribution by Type of Expenditure
small equipement (depreciation), 1%
investment building (depreciation), 4%
water, 2%
egg trays, 5%
day old chicks, 6%
feed starter, 2%
feed growth, 3%
Vet products and care, 1%
feed layers, 75%
Source: World Bank Mission (December 2017)
76
80.
Total import substitution of poultry meat through trade barriers is unfeasible, given large
price differentials, and potentially welfare-reducing impacts of a large price increase. At present,
domestic poultry meat is not competitive with imported frozen chicken wings, so widely consumed
that they now have a local name -- “mabawa”. Even if import taxes on poultry products (19 percent)
were to double, in line with non-strategic food imports, imported wings would remain cheaper than
domestic poultry meat.cxlvii Only local cull layers are competitive with imported broilers, but domestic
quality is much lower and requires a longer cooking period than a grilled preparation that is now
preferred. Paying 50 – 100 percent more for local chicken is only acceptable by customers in very
specific conditions, especially for ceremonies such as Grande marriage during July and August, when
demand surges by up to 4x and the consumption of fresh whole chicken is preferred. cxlviii
81.
However, public investments in nutrition awareness, feed production and animal health
can lead market development and partially substitute imports for domestic poultry meat. In the
absence of public awareness of the nutrition benefits of light meat, consumer preferences for dark meat
drive the demand for frozen chicken wings in Comoros. A public nutrition awareness campaign could
shift demand towards more expensive light meat, against which indigenous broiler meat is likely to be
more competitive. Simultaneously the development of local feed production, with backward linkages
to domestic maize production systems and fisheries, can substantially lower the cost and uncertainty
associated with imported feed, thus stimulating supply. Lastly, supporting the provision of veterinary
care and inexpensive vaccination against diseases like the deadly Newcastle disease – common in
domestic chickens – is critical to prevent shocks that can rapidly deplete a small broiler population.
Together, these program elements have the potential to develop a market segment for domestic poultry
meat. Even if market-oriented meat production remains competitive against imports, this program can
enhance the viability of backyard poultry production systems, which serve as a source of livelihoods
and nutrition for remote communities disconnected from urban markets.cxlix
Geography
82.
About 155 semi-industrial egg production farms are currently in operation, with Anjouan
and Grande Comore accounting for most of them (Table 2).cl Most farms are less than 15 years old
and exhibit good productivity. While the production units are younger and smaller in Anjouan, it has
the most egg producers. Grande Comore houses more than half of the intensive poultry population and
has the highest average size per farm (1,000 animals). Most of the farms are located around Moroni.
In Anjouan, the development of the intensive poultry sector is more recent, and this is probably why
units are much smaller than in Grande Comore. Anjouan has the highest number of farmers, and most
of them are concentrated in Domini area. Mohéli has an average size per farm which is intermediate,
but the number of farmers is much lower than in the two other islands.cli
Table 6-2 : Number of Farms and Animals Per Island
Grande
Comore
Number of intensive poultry units
Number of layers
Number of broilers
Average size of farms (animals/unit)
60
40 – 50,000
12,000
1,000
Anjouan
80
25 – 30,000
4,000
400
Mohéli
15
7,000
n.a.
750
National
155
80,000
16,000
620
Source: FAO Comoros 2016 and ASAVIC 2017
6.3.2
Dairy
77
Production
0
5
Percent
10
15
20
25
83.
An intensive smallholder dairy Figure 6-9: Animal Ownership, by Island
sector exists in the highlands of
Anjouan and is emerging in some areas
Animal Ownership
By Island
of Grande Comore. The dairy value
24
chain shows very different characteristics
20
in Anjouan and Grande Comore. 97
percent of dairy producers are in Anjouan,
13
where nearly a quarter of the households
12
own a cow (Figure 6.9), and the intensive
6.1
5.3
dairy production is concentrated in the
5.1
3.2
2.2
Niumakélé production basin. Dairy
1.1
.7
.19
production is well integrated in the
Moroni
Reste Ngazidja
Ndzouani
Mwali
agricultural production, intensive and
Cow
Rabbit
Sheep
productive, with excess supply on the
Source: 1-2-3 Survey (2014)
island. However, there is no processing of
local milk, marketing channels are
rudimentary, and almost no milk reaches Grande Comore’s markets. In Grande Comore and Mohéli,
the development of modern dairying is still recent, and farmers face critical capacity deficits that limit
the performance of the production system. Cumulatively, local dairy production accounts for a less
than 1 percent of the local consumption of milk and milk products at present. However, given the
relatively high production in Anjouan and the growing stock of dairy cows in Grande Comore, the
potential for local value addition, competitiveness with imports, contribution to livelihoods and the
complementarities with other agricultural production is high.
Table 6-3: Import of Dairy Products in 2013 (Source FAOSTAT)
Liquid milk
Milk powder
Milk condensed
Butter
Cheese
Total
Quantity (MT)
1,383
121
124
7
22
Quantity
(MT Eql)
1,383
920
310
49
66
2,728
% of quantity
(Eql)
51
%
34%
11%
2%
2%
Value
(K USD)
1,184
590
169
37
149
2,129
Source: FAOSTAT 2013
Structure
84.
Dairy value chains are usually complex, involving a wide range of value chain actors especially
at the stages of aggregation, collection, processing and distribution. While the value chain is very
simple in Comoros, there are significant regional variations between Grande Comore and Anjouan.
The figure below gives an outlook of the various categories of actors involved in the local dairy value
chain.
Figure 6-10: Dairy Value Chain Segments
78
Inputs & services
•Veterinary
technicians
•Input retailers
•Banks and MFIs
Production
• Ngazidja
smallholder
producer
•Anjouan
smallholder
producer
collection and
transport
• Milk collectors
and transporters
Retailing
• Milk vendors
• Shop keepers
Anjouan
Producers: Most of the milk producers in Anjouan are located in the Niumakélé area. Niumakélé is a
high-altitude area (500 to 750 meters) characterized by a very high population density (around 1,000
habitants/km2) and by intensive and highly integrated agricultural production systems. Dairy
production has been introduced several decades ago in this area and is now well established (90 % of
farmers own dairy cows) and integrated in crop production systems as well. Farmers usually own 1 to
3 cows, plus their progeny.clii
Milk collectors: in Anjouan, specialized collectors tour the Niumakélé area every morning to collect
milk from farmers from fixed collection points. These collectors then transport the milk to the
consumption centers in Domoni and Mutsamudu. Given the absence of a cold chain and quality control,
part of the milk is soured and curdled and part is sold raw.
Grande Comore
Producers: Intensive dairy production has been introduced in and around Moroni,cliii with the help of
cows imported from Tanzania in a small project implemented by a local NGO (GAD) and MECK
Moroni, in 2013-14.cliv Dairy farmers are thus novices, with very limited experience in the business. A
second group of farmers in the same area have imported cows from Anjouan, with generally more
success because adaptation was easier.clv In contrast to Anjouan, animals are kept in zero grazing
systems but under cow sheds, in small enclosures.clvi The inadequacy of production practices and poor
animal performance is clearly related to poor capacities and knowledge, and lack of experience of these
farmers.clvii This inference is supported by success of a handful of farmers, who are followed by
specialized technicians, and apply proper production itinerary: their animals are in excellent conditions,
and their production performance are fair.
Collectors: Since the dairy basin in Grande Comore is close to the main consumption center (Moroni
and urban areas), and some of producers do not require any collection services and sell directly from
home. However, most of the farmers sell to collectors, who pass by villages in the afternoon to collect
fresh milk. These collectors are also most of the time the final retailers, they sell the milk from their
home which is also their sales outlet, at 1,250 KMF per liter. The marketing channel is very short, and
the milk is sold raw (not soured), without being refrigerated.
Moheli
Producers: In Mohéli, the farming system is very similar to Grande Comore, but animals were all
imported from Anjouan and their adaptation to local conditions was easier. In Grande Comore and
Mohéli, artificial insemination services are not available, and farmers have to use bulls. There are very
few bulls of good breed available and the price of service is therefore high: 20,000 on average.
Traders
79
Given the large price differential in milk prices between Anjouan and Comoros, some collectors
informally send part of their milk to Moroni by boat, using small jerrycans of 5 liters. The milk is
soured and transported without refrigeration. Due to the unpredictability of sea transport, this
marketing channel is not organized and only involves very small quantities. Several past attempts to
formalize and organize this circuit (with the support of projects) have all failed, mostly because of the
irregularity of sea transport. Irregularity of sea transport is due to a variety of factors including weather
and sea conditions which can prevent smaller boats and ships to take the sea, but also condition of
boats and maintenance, and erratic availability of fuel.
Processors
Niumakélé Dairy Plant
The Niumakélé dairy plant has been established in the early 2,000’s by a French NGO, Initiave et
Développement (I&D), to tentatively address the marketing problem that was already occurring
there. The intention was to collect milk from the Niumakélé basin, to process it and to “export”
part of the production to Moroni. This has never worked despite several attempts to revive the
project by successive projects. With the support of I&D, the farmers had established an association
called Neema, which evolved into a cooperative (CoopEBC) in 2015. In 2016, this Cooperative
applied for and obtained a loan of 200 M KMF (approximately 450,000 USD) from SANDUK, in
order to rehabilitate the plant and collect, process and market pasteurized milk and yoghurt. Most
of the machinery have been received and are being installed. However, the industrial process and
type of equipment that was chosen seems to be overly complex for the local capacities, and the key
issue of organization of a cold chain and transport circuit from the collecting point to Moroni has
unfortunately not been addressed and will not be solved by this project.
As of now, there is no other processing of local milk in Comoros – apart from basic clotting done
by some traders to extend shelf life – and all the local milk is sold raw or as sour milk. Local milk
is very much valued by customers, especially during traditional ceremonies. A small number of
units process powdered milk, using it as raw material to produce yoghurt and ice-cream. Most of
them have a very limited capacity of a few hundred liters of milk per day. There is only one
industrial processor in Ngazidja, in Moroni, but it is not fully operational (after a few years of
activity, the first owner closed the factory, which has recently been bought by another investor and
should resume operations soon). The management of this factory, met by the mission, confirmed
that they would be interested by sourcing local milk but that it is not economically viable given the
current market price.
Service Providers
Veterinary service and technical advice: Intensive dairy production requires a high level of technical
expertise, which public services are currently unable to provide. Across islands, a small number of
specialized technicians deliver a full package of service: veterinary care,clviii technical advice, and in
some cases, artificial insemination (AI). While some technicians are purely private, others are civil
servants who deliver these services on a private basis. Most private veterinary technicians also sell
inputs, and some even import them, including veterinary medicines and even sometimes semen for
AI.clix In Grande Comore, the only importer of feed is CAPAC, which orders small quantities of dairy
feed in containers of poultry feed, but supply is erratic.
Margins
85.
The local milk in Anjouan is competitive with imported Ultra-high temperature
processed milk, but not in Grande Comore. There are two to three importers of powder milk and
80
UHT milk in Grande Comore, as well as in Anjouan. They import 25kg milk powder bags which are
used by the food industry but are also reconstituted in smaller quantities by shop keepers and market
vendors. Since low-cost production and excess supply characterizes the Anjouan market, the price is
600 KMF at farm gate, and 800 – 1,000 KMF at consumer level. At its peak, part of the milk supply
does not even find a market. In contrast, the farm gate price in Grand Comoros is 1,000 KMF (2.5
USD) per liter, possibly one of the highest farmgate prices globally. Consequently, The local milk in
Grande Comore costs more than 4 times the price of the reconstituted milk, and almost twice the price
of the imported UHT. The table below shows the respective retail price of local raw milk (Grande
Comore and Ajouan) and liquid milk (liquid UHT or reconstituted from powder).
Figure 6-11: Retail Price of a Litre of Liquid Milk According to its Origin (KMF)
1400
1250
1200
1000
800
800
700
600
300
400
200
0
local fresh
Anjouan
Local fresh
Moroni
Liquid UHT
Liquid
reconstituted
Source: World Bank mission observations (2017)
Geography
86.
Dairy production is concentrated in Anjouan, but growing rapidly from a small base in
Grande Comore. According to veterinary professionals who are the most reliable source of
information on number of animals, there are about 9,000 dairy cows in Anjouan, belonging to 4,000
farmers. In Grande Comore, their number is estimated at 350 cows, belonging to 100 farmers. In
Mohéli, there are around 100 cows belonging to 40 farmers. The table below summarizes estimated
number of farmers, animals, production and productivity, by island:
Table 6-4 : Number of farms, animals and production per island
Number of dairy farmers
Number of dairy cows
Average size of farms (animals/unit)
Production per cow per year
% of lactating animals
Total production
Grande
Comore
100
350
3.5
1,500
70%
367,500
Anjouan
Mohéli
National
4,000
9,000
2.3
3,000
90%
24,300,000
40
100
2.5
2,000
90%
180,000
4,140
9,450
2.3
24,847,500
Source: Interviews with Private Veterinarians (December 2017)
81
6.4 High Potential Value Chains
6.4.1
Horticulture
87.
Vegetable and fruit production is integrated into subsistence production systems across
the three islands. Fresh vegetables have not been a part of the traditional diet for most Comorians;
often, their consumption is reserved for special occasions or restricted to the population segment with
higher purchasing power. However, their demand is increasing, and is being met by fresh imports
from Madagascar and Tanzania (see Annex). Domestic producers are only loosely connected to market
channels. Fruit production is diverse but sparse, which inhibits large-scale collection efforts.
Horticulture offers the potential to generate more income than staple crops on small plots, but in the
absence of organized collection, structured marketing channels and vertical integration, the scale of
production is the principal constraint to the emergence of a processing segment, and the development
of a robust value chain.
Vegetables Production
88.
Commercial vegetable production is highly seasonal and geographically segmented due
to the absence of cold storage and organized maritime transport. Given the growing demand for
horticultural products and their suitability to small plots, vegetable production represents a highly
promising opportunity for local producers. On all three islands, this production is highly seasonal (July
– November) and dominated by small holders. However, the wet markets in Anjouan and Moheli are
characterized by excess supply and low farmgate prices during this period, with little storage to
smoothen prices inter-temporally. While excess produce reaches Grand Comore via maritime transport
on some days, the absence of cold storage at the ports in Anjouan and Moheli leads to significant food
loss along the supply chain.
Table 6-5: Vegetable production from 2008 to 2011 (MT)
Products
Tomato
Onion
2008
6,709
1,043
2009
6,910
1,095
2010
7,131
1,156
2011
7,134
1,161
Source: Central Bank of the Comoros. Annual reports 2011 and 2013.
89.
The low elasticity of off-season vegetable supply is linked to the failures in the input
supply and post-harvest market segments. Even as tomato and onion imports from nearby
Madagascar and Tanzania are growing during the off-season when prices are 2-3 times higher (see
Annex), Comorian producers are unable to respond to market signals by switching to similar, longseason varieties. The wedge between prices and off-season supply is partly driven by failures in the
input supply markets. Neglected by both the public and private sector players in the input supply and
marketing segments, vegetable producer associations, who successfully supplied the upscale Hotel
Galawah when it was operational in the 1990s, no longer have the incentives to modernize their
practices and successfully respond to market signals.
Fruit Production
90.
Fruit production is completely unorganized in isolated plots, and orchards are
conspicuous in their absence. While a large variety of fruit species grow wild on the archipelago
(citrus, mango, litchi, guava, pineapple, banana, papaya), arboriculture and crop husbandry of the trees
82
is non-existent. Like vegetables, fruit production is highly seasonal and food losses are large due to the
complete absence of post-harvest management in the form of aggregation, storage and processing.
Given the weak production system, erratic supply and high packing costs, the successful establishment
of fruit processing units requires multiple interventions and strong market assessment, which have been
largely absent in previous donor-funded projects.clx Developing this sub-sector requires the
introduction and multiplication of short-cycle fruit crops like pineapple and sweet bananas, which can
be started on a small scale and require low upfront investment. Once these investments bear fruit,
linkages with marketing and processing facilities that are shared with the vegetables value chain are
likely to be successful.
Structure
91.
Since vegetable and fruit value chains show significant spatial overlap in structure, this
analysis treats them as single value chain. Despite the existence of the CCIA and two large farmer
associations (SNAC, FNAC), the key upstream (supply inputs, training and technical advice) and
downstream (product collection, transportation, market information) segments are not linked with
producers on a regular and effective basis.
Figure 6-12: Horticulture Value Chain Actors
Input Supply
92.
The erratic supply of seeds and fertilizers and misalignment with the cropping calendar
is a binding constraint on commercial production. The supply of fertilizers, plant protection
products and vegetable seeds – exempt from import dutiesclxi – is made by the central purchasing the
CAPAC (Centrale d'achat des Professionnels Agricoles des Comores)clxii and by private traders. The
volume of imported inputs is estimated in 2015 to be: 80 – 120 MT/year of fertilizer; 0.7 to 1 ton/year
of plant protection products; 15 to 90 MT per year of potato seeds and 0.5 to 0.7 ton/year of seed
market.clxiii Across years, the quantities of imported fertilizer and potato seeds show great volatility
that is unrelated to underlying demand, but driven by access to credit for producers and level of
working capital for importers. Consequently, the distribution of seeds and fertilizers is erratic and not
aligned with the cropping calendar, as cash-strapped importer association (CAPAC) and national
producer federations (SNAC, FNAC) place only pre-financed orders for select customers that pick-up
inputs from their locations. Other private importers and distributors are also retreating from this market,
with their business models no longer placing a premium on origin or quality of inputs. clxiv
Producers
93.
Vegetable production is dispersed across many small-scale traditional producers, who
seek seasonal income than sync with market demand, resulting in seasonal saturation. A small
number of producers are seeking to shift to a different cycle, to sync with high demand periods – i.e.
big wedding ceremonies and migrants' holidays (August) and the month of Ramadan. However, this
83
has not translated to greater processing (eg. tomato drying), which could reduce post-harvest losses
and help smoothen the seasonality of supply.
Processors
94.
The installation of processing units has been tried by various projects, but none have
proven to be sustainable. The processing of horticultural products is so far non-existent, with power
supply, potable water and the high cost of raw material proving to be major bottlenecks. For vegetables,
the processing of tomato paste is a promising option in theory, given widespread use, but competing
with the price of imported past is difficult at current prices.clxv The production of fruit juice and jam,
successfully being done by a Moroni entrepreneur at present, is a model that can potentially be scaled
up.
Sellers
95.
The most important distribution channels are traditional roadside markets or covered
urban markets, exposing producers to the monopsony power of wet-market sellers.clxvi
Aggregation and linkages to modern retail is minimal as producer associations have not invested in the
marketing and promotion of their products, which could enable linkages with growing retail sector. At
present, only one of the four supermarket chains in Moroni – MAG-Market with 3 stores – sources
from 2 producers who regularly deliver vegetables, but not fruit which is more seasonal. A few other
points of sale are operated by SNAC/UWEZO and FNAC-FA. clxvii
Exporters
96.
Island antennas of the SNAC also occasionally organize delivery of products to Grande
Comore and Mayotte (partnership with the COOPAC), but these actions are limited due to lack of
organization among producers and the shortage of working capital. Further, the centralised
management of these operations by the umbrella federation is a significant barrier to more efficient
performance. Mayotte is a promising market for horticultural products, given the relatively higher
prices and low domestic supply on that island. The major factor which prevents a greater frequency of
these exchanges is the inability of the islands of the Union to implement the sanitary and phytosanitary
standards required by Mayotte, which has the status of French overseas department and ultraperipheral
region of European Union.
Margins
97.
The profitability of horticultural production was estimated on the basis of the crop
budgets established by the mission for some common vegetables (tomato, onion, carrot, cabbage,
potato) and a fruit, pineapple.clxviii The crop budgets have been established on the basis of the of cost
and price data collected during interviews with producers and economic operators encountered. The
table below presents the inputs, outputs and gross margins, calculated for an area of 10 acres (1,000
m2), the details of the calculations is in annexe 4. It should be noted that vegetable crops occupy the
land for 3 to 4 months, unlike the pineapple that occupies the land for a year and a half.
84
Table 6-6: Inputs, Outputs and Gross Margins of Some Horticultural Productions (KMF/10 acres)
Costs
Crop
Production
Transport
%
Total
Gross
Product
Gross
Margin
Tomato
295 000
20 250
7%
315 250
445 500
130 250
Onion
218 900
9 600
4%
228 500
336 000
107 500
Carrot
198 650
11 550
6%
210 200
308 000
97 800
Cabbage
221 600
9 400
4%
231 000
352 500
121 500
Potato
382 350
15 200
4%
397 550
547 200
149 650
Pineapple
579 210
49 725
9%
628 935
1 077 375
448 440
Source: World Bank mission (December 2017)
Figure 6-13: Structure of Production Costs
100%
90%
80%
70%
60%
Transport
50%
Material & irrigation
40%
Labor
Inputs
30%
20%
10%
0%
Tomato
Onion
Carrot
Cabbage
Potato
Average
vegetable
Pineapple
Source: World Bank Mission Estimates (December 2017)
98.
This analysis shows that market-oriented horticultural crops production allows
substantial gross margins for the producer. The break-even point is well below the sale price
obtained by the producer, and the gap ranges from 138 to 158 percent depending on the product (see
table below). This margin allows for the absorption of lower yields or seasonal downswings in prices.
On the other hand, these margins become very interesting when prices soar, in times of scarcity of
products. The returns for family labor is also very interesting, it is located between 2,850 and 6,840
KMF per working day (WD). The number of working days for a crop cycle (3-4 months) varies
between 49 and 67 days/10 acres for vegetable crops. The pineapple crop that occupies the land much
longer (18 months) requires about 91 working days for a 10 acres plot (see details in Annex).
The shift of production schedules requires heavier investment in nets, tunnels or greenhouses. The
products price differential that can be obtained is expected to amortize the cost of these investments
without change too much the margin of the producer.
85
Figure 6-14: Break-even Point and Average Selling Price of Horticultural Products
450
400
350
KMF/kg
300
250
200
150
100
50
0
Tomato
Onion
Carrot
Break even point
Cabbage
Potato
Pineapple
Average selling price
For vegetables, an assessment of the cost structure finds that on average, labor accounts for 38% of
costs, followed by inputs (33%), material and irrigation costs (24%) and transport (5%). The breakeven point, below which production would be at a loss, is well below the sale price obtained by the
producer: the gap ranges from 138 to 158% depending on the product. The returns to family labor are
between 2,850 and 6,840 KMF per working day (WD).
99.
At the current stage of organization and development of the horticultural sectors, a
broad-reaching product strategy would be necessary to ensure a regular and varied supply of fruits
and vegetables throughout the year. The market for any individual product is likely too small to justify
investment. For the vegetable sector, the priority would be to professionalize producers and build
integration from production to commercialization by upgrading associations of vegetables producers,
which are already dynamic, to professional organizations. For the fruit sector, the first interventions
should focus on the introduction and multiplication, in private nurseries, varieties of fruit and seedlings
of quality, well adapted to the eco-climatic context of the Comoros, and linking this production to
horticulture value chains.
6.5 Priority Actions for Value Chains
Table 6.8 lists targeted investments and policy reforms, corresponding to value chains segments, that
would develop and enhance competitiveness, raise incomes and create jobs for the entire value chain:
Table 6-7 Priority Actions to Develop Value Chains
Intervention
Vanilla
Cloves
On-farm
Bulking
plots for
planting
material
Advisory
services to
improve
technical
management
of
plantations
Technical
selection of
Ylangylang
Technical
selection of
mother trees for
seed collection
Nursery
management
Milk
Eggs
Fruits and
vegetables
Exchange visits,
support to
veterinary
service
providers in
Grande Comore
Productive
Alliances
(PA) with
mediumscale units
and
entrepreneurs
to support
feed and
Irrigation to
match
production
cycles with
market
demand.
Training and
assistance to
producers.
86
mother trees
for seed
collection
required
chick
production
Improve
water supply
Multiplication
of quality fruit
seedlings.
Expand size
and
management
of nurseries
Collection/
Immediate
markets
Development
of field tests to
detect
manipulation of
quality
Build collection
points in
Niumakélé
(Anjouan)
Cold storage
Professionalizat
ion of
collectors and
direct linkages
between
distillers and
buyers
Processing
Invest in
curing
facilities
Upgrade
drying
facilities
Upgrade
distillation
equipment
Improved
furnaces and
alternative
heating
technology
Transport
Innovation
Invest in
storage
facilities to
address
quality and
yield losses
Support
developm
ent of
niche
qualities
through
Certificati
on
(Organic,
FairTrade
) to
minimize
effects of
downturn
of
Identification
of higher
priced
market
niches for
higher
qualities
Organization of
inter-island
transport of
fresh raw milk
and delivery to
retailers on
Moroni Island.
Improve
transport
conditions for
perishable
products:
standardized
containers,
road
rehabilitation
Technical
education and
entrepreneurshi
p support for
cosmetics
manufacturing
Assess
commercial
viability of
clove oil
production
87
internatio
nal prices
Finance
Development of practical, enforceable loan guarantees
Increasing MFI capacity to appraise the viability and risk of agribusiness proposals
Support for business plan development
Institutional
organization
Producer
groups to
capture
value
added
from
curing.
Long-term
support and
mentoring of
groupings in
group
management,
function and
operation
‘Dairy Hubs’
based on
productive
alliances.
Regulatory
environment
/ governance
Registrati
on and
data
collection
of
growers
and
processor
s
Reduce
government
role in
setting
purchase
price, which
delays
purchases
and reduces
transparency
Collect survey
data on current
extent and
status of
plantings
Export
data
collection
poultry service
center could
imporve access
to services and
inputs.
Register
growers
Collect export
data
Registration
and data
collection of
growers and
processors
Development of professional
associations.
Stricter
enforcement
of food safety
regulations to
reduce
unhealthy
imports
Simplificatio
n of import
exemption
procedures
for
agricultural
inputs (feed)
Develop a
subsector
strategy policy
Public
campaigns
promoting
consumption
of fresh fruits
and
vegetables.
Export data
collection
7 Institutional Environment for Agriculture
Main Messages




At present, the sector lacks a validated strategy that outlines the path toward achieving the
government’s commitment to economic transformation.
The achievement of food security, productivity, value chain development and climate
adaptation targets identified in SCA2D require substantial investments in agriculture.
Implementation of the National Industrial Strategy necessitates the development of
agriculture-derived products and the support to the sector’s enabling environment.
The institutional structure governing agriculture is decentralized and complex, but service
delivery is poor due to the absence of sustainable revenue-generating models.
88
7.1 Strategic Framework
100. Despite agriculture’s large footprint and weak performance, the sector lacks a validated
strategy that outlines the path toward achieving the government’s commitment to economic
transformation. In 2014, the Government of Comoros developed a multi-sectoral termed Strategy for
Accelerated Growth and Sustainable Development (Stratégie de Croissance Accélérée et de
Développement Durable, SCA2D 2015 – 2019), which outlines its commitment to structural
transformation. As part of the background planning process, the government commissioned the
European Union to draft an update of the 1994 National Agricultural Strategy (Stratégie Nationale
Agricole, SNA). As in other African countries, the updated draft SNA was also intended to be
Comoros’ national chapter for the Comprehensive Africa Agriculture Development Programme
(CAADP), the policy framework for agricultural transformation developed under NEPAD.clxix
Figure 7-1: Strategic Framework for Agriculture
CAADP
Agriculture-oriented
(Pan-African)
SCA2D
Multi-sectoral
(national)
SNA
(National Agricultural Strategy)
However, the draft SNA was prepared in 2014 but has not validated by the Government, leaving a
strategic vacuum that has not yet been filled. Consequently, Comoros does not have a National
Agricultural Investment Program (NAIP), has not signed the CAADP compact, and its progress
towards CAADP goals could not be evaluated for the Africa Agricultural Transformation Scorecard
(AATS, February 2018). This Agriculture Sector Review is intended to provide the stocktaking
necessary for an evidence-based, participatory and inclusive consultation process that leads to an
integrated sector strategy and investment plan that charts the path towards structural transformation. It
will serve as an input for the overlap between SCA2D and CAADP processes, as illustrated below:
Strategy for Accelerated Growth and Sustainable Development (SCA2D 2015-2019)
101. The achievement of food security, productivity, value chain development and climate
adaptation targets identified in SCA2D require substantial investments in agriculture. The
Accelerated Growth and Sustainable Development Strategy (Stratégie de Croissance Accélérée et de
Développement Durable - SCA2D, 2015-2019) is a global framework of actions that builds on the
Growth and Poverty Reduction Strategy (2010-2014) and covers the 2015-2019 period. It defines
89
priority action programs to achieve the Sustainable Development Goals (SDGs) and proposes a longterm vision of “turning Comoros an emerging country by 2030”.clxx
The SCA2D (2015 – 2019) covers all sectors of the national economy and states four objectives: i)
strengthen the foundations of a strong, viable, fair and inclusive economic growth; ii) improve the
population’s living conditions and ensure equity in the access to basic social services; iii) promote the
Comorian natural and cultural heritage and the optimal use of natural resources; and iv) promote good
governance. Each sector has relevant strategies and policies, and these are adopted and operationalized
by each island along the relevant sections of the SCA2D. For instance, the agricultural policy
developed in 1994, with an updated 2014 draft, was intended to be the strategic reference document
for the agriculture sector. Agricultural development targets and climate change adaptation targets are
included within the framework of SCA2D. While the draft SNA is focused on the first pillar of the
SCA2D, some of the proposed actions are also relevant for the other three pillars.
Comprehensive Africa Agriculture Development Program (CAADP/NEPAD)
102.
Comoros has launched the CAADP process, but has not signed the compact. The
Comprehensive Africa Agriculture Development Program (CAADP) is the agricultural component of
the NEPAD (New Partnership for Africa's Development).clxxi CAADP has served as the framework for
action for agricultural transformation across Africa since 2003. CAADP supports member states in
increasing investment and productivity in the agricultural sector and its vision is “to maximize the
contribution of Agriculture to achieving the ambition of a self-reliant and productive Africa and
delivering economic growth and sustainable development for its people as well as playing its full part
on the world stage”. Recent panel-data evidence from 46 countries shows that over the 2004 – 2014
period, CAADP implementation has had a positive impact on agricultural value-added and land and
labor productivity.clxxii
The pan-African goal for the sector is an agricultural-led development to eliminate hunger, reduce
poverty and food insecurity opening the way for an expansion for exports and put the continent on a
higher economic growth. CAADP is also organized on four pillars (or thematic priority areas)
considered as the best investment sectors for agriculture: (i) Sustainable land and water management;
(ii) Market access; (iii) Food Security; and (iv) Agricultural Research and Dissemination of New
Technologies.
90
The development of National Agricultural Investment Plans in every CAADP signatory country is at
the heart of CAADP implementation. To comply with this requirement Comores has drafted the SNA,
which covers the same period as CAADP and outlines the steps required to
operationalize it.
Pillar 1 of the draft SNA is consistent with Pillar 1 of the CAADP, and develops a Sustainable Land
and Water Management Program as one of the Comoros priorities. The implementation of this program
is based on the experience gained within CAADP.
Pillars 2 of the draft SNA cover Pillars 2 and 3 of the CAADP, which are treated jointly in the
organization of the value chains of key products.
On the other hand, Pillar 4 of CAADP is less present in the draft SNA, mainly because of the difficulty
of developing Comorian research subjects autonomously form other countries, giving priority to the
integration of Comorian research into international networks.
Draft National Industrial Strategy for Domestic Processing by Micro, Small and Medium
Enterprises (MSMEs), 2017
103. Implementation of the National Industrial Strategy requires the development of
agriculture-derived products and the support to the sector’s enabling environment. Developed
by the Ministry of Economy (Ministère de l’Economie, de l’Energie, de l’Industrie, de l’Artisanat, du
Tourisme, des Investissements, du Secteur, Privé et des Affaires Foncières), the National Industrial
Strategy for Domestic Processing by MSMEsclxxiii is a follow-up document to the Etude Diagnostique
sur l’Intégration du Commerce (EDIC), which was the ministry’s strategy document for SCA2D. In
particular, the National Industrial Strategy outlines the specific policy measures required to achieve
three of goals identified in the former – i) greater food self-sufficiency, ii) better access to international
markets, and iii) positioning of Comoros in regional markets.
91
Based on the COMESA Industrial Policy (2016 – 2015), the National Industrial Strategy identifies
nine key priority areas: agribusiness, energy, textiles and clothing, leather and leather products, mining,
pharmaceuticals, chemicals and agro-chemicals, light engineering and the blue economy. However,
the list of potential products identified for short-term development for the local and export markets are
all agriculture-derived products (see Table 4.5 in Chapter 4). The policy measures identified for
medium and long-term development of MSMEs and the private sector are also the enabling
environment constraints faced by the agriculture sector. Given the degree of overlap between industrial
development and structural transformation needs, it is evident that the path to emergence runs through
agriculture for Comoros.
7.2 Institutional Structure at the National Level
104.
The Union of Comoros has a number of Ministries, with sub-component departments or
‘directorates’. The institutional framework is complex -- the three islands have considerable autonomy
as well as their own governing bodies.clxxiv In fact, the governance of the islands is under the leadership
of decentralized commissions and technical services responsible for development planning,
programming, monitoring and evaluation.
Ministry of Agriculture, Fishing, Industrial Development, Artisan Artifacts & Environment
105. The Ministry in charge of Agriculture, Fishing, Environment, Territorial & Urban Planning
(Ministère de l’Agriculture, de la Pêche, de l’Environnement, de l’Aménagement du Territoire et de
l’Urbanisme (MAPEAU)) provides sectoral governance at the central-level. Under it are various
directorates: the National Directorate of Agricultural Strategies and Livestock, the National Directorate
of Fisheries and Fishery Resources; the Directorate of General of Environment and Forests; the
National Directorate of Energy and Mines; the National Directorate of Industry and Crafts (DGEF)
and the National Research Institute for Agriculture, Fisheries and Environment (INRAPE). These
directorates are represented in all the three islands.
106. The MAPEAU is responsible for the implementation of the national environmental
framework and environmental policy, as well as being responsible for planning, programming and
the monitoring and evaluation of development actions in the fields of agriculture, livestock, fisheries
and the environment. Executive functions are delegated to the governorates in each island, Regional
Centre for Economic Development (CRDE) and various donor’s projects. The MAPEAU has stated its
commitment to achieving the following four goals for the agriculture sector:




Securing jobs and incomes for those employed by the sector
Enhancement of food security for rural and urban populations
Contribute to the balance of trade between imports and exports
Sustainable management of natural and cultivated environments
National Strategic Directorate of Agriculture and Livestock (DNSAE - Direction Nationale des
Stratégies Agricoles et de l’Elevage)
107. The DNSAE is responsible for the coordination of the agricultural and livestock sector in the
Comoros and lies under the supervision of MAPEAU. DNSAE coordinates the implementation of the
agriculture strategy and agriculture targets under the PRGS. DNSAE is composed of Food Production,
Cash Crop and Rural Economy Departments, and a Division of Livestock Management, which has two
Departments: Animal Health and Epidemiological Monitoring. Each island also has an agricultural
92
office which comprises six departments: Food Production; Cash Crops; Awareness Raising and
Communication; Plant Health; Livestock; and Management and Logistics. Each island office currently
has about 40 staff, of which 20 are agricultural technicians (including livestock). The national DNSAE
office has around 30 programmatic staff of which 15 are under permanent employment and 15 are
contracted, with additional specialized staff, including engineers, nutritional expert, veterinary expert
and livestock breeding specialists.
108. Rehabilitation of agricultural support and extension centers on each island is currently a
top priority within DNSAE and within island offices, and establishing the long-term technical and
financial sustainability of these centers is a pressing concern. Within sub-regions on each island,
agricultural support is provided by Rural Economic Development Centres (CRDE). There is, however,
a very low level of nationally-led agricultural extension support, with almost all agricultural support
initiatives relying on donor-funded projects.
109. Overall capacity is low and unbalanced, as absence of a competitive HR policy and budget
resulted in an aged workforce, with the most capable staff seeking opportunities with donors
financed projects. Typically, project coordinator functions are taken by the most capable managerial
level staff, leading to a progressive weakening of the Ministry and a resulting confusion between
activities carried out by projects and those that should be part of the core functions of the Ministry.
110.
The generational gap is also fueled by difficulties in providing severance payments that
would allow the retirement of several of the senior executives, a known problem of the Small Island
Developing States (SIDS). To compound to the problem, qualified human resources are reduced as a
result of lack of training and continuing education for executives in place.
7.3 Governorates
111. Each island has its own governorate in which a Commissioner is in charge of the
implementation of the Union national strategies and policies and those of the island, in particular
promotion of agricultural production, environment, energy, industry and crafts. Agricultural services
at the island-level depend on the governorate. Financial and human resources are weak in all three
islands. CRDE, newly established following a widespread UNDP model, should be the level of
implementation of the policies, the governorate being then in charge of their impetus and coordination
at the level of each island. However, given the jurisdictional disputes that persist, commissioners often
end up designing their own agricultural strategies. The links between the MAPEAU and the
commissioners are not always efficient, which compromises the efforts in implementing agriculture
policies
7.4 Agriculture Institutions
National Institute of Agronomic, Fisheries and Environmental Research (INRAPE)
112. The Institut National de Recherche pour l'Agriculture, la Pêche et l'Environnement (INRAPE)
is responsible for agricultural and environmental research. Established in 1994, INRAPE is a public
scientific and technical institute under the authority of MAPEAU. clxxv INRAPE is the main partner of
the DGEF and is responsible for addressing research questions related to the environment. INRAPE
has planned to invest most of its research efforts into the conservation of marine ecosystems and to
93
monitor climate parameters. However, funding scarcity constitutes a real obstacle in achieving these
goals. The institute has administrative and management autonomy and has the following mandate:



Prepare and implement research programs (agriculture, water resources &environment)
Consolidate, analyze, and publish findings and experiences, promote exchanges between
national and international researchers, develop training programs on rural development,
fisheries, and the environment for technical and managerial staff; and
Promote methods and techniques that increase agriculture and fisheries productivity, preserve
the environment, and increase conservation.
113. Currently INRAPE’s research projects are heavily reliant on donor-funded projects and
there are few long-term research programs and no long-term climate change adaptation research
programs. MAPEAU plans to strengthen the institutional capacity of INRAPE, including through
proposals to develop a research plan with joint funding from the government and development partners.
Decentralized institutions
114. The Rural Economic Development Centres (CRDE – Centre Rural de Développement
Economique) - are key agencies providing agricultural extension and development support to
vulnerable farming communities. Rural Economic Development Centres (CRDE) were established in
2013 through an important national decree developed in the Union of Comoros during the design of
the CRCCA project (Enhancing adaptive capacity for increased resilience to climate change in the
agriculture sector in the Union of the Comoros – 2014-2018).clxxvi These CRDE replace Agricultural
Advisory Centres (CCA) as the main rural development and agricultural support institution in the
Union of Comoros.
115. The Union of Comoros plans to establish 14 CRDE: 6 in Grande Comore, 5 in Anjouan
and 3 in Moheli. CRDE are responsible for providing extension and technical support to farming
communities in order to support sustainable rural development. CRDE offer an important platform for
supporting climate change resilience at the farm and community level. They work in partnership with
NGOs and farmers associations to support sustainable agricultural development, including for climate
change adaptation in the agriculture sector. They are endowed with a specific legal personality and
administrative and financial autonomy. At the national level, the CRDE are placed under the technical
supervision of the Vice President in charge of MAPEAU and will be financially supported by the Vice
President in charge of Finance and Budget. The role of CRDE includes:







Training of farmers and fishermen;
Provision of relevant information to support sustainable rural development;
Technical extension and advice and support to producers;
Supervising professional organizations and community development structures;
Monitoring and evaluation and data management;
The provision of basic services to support improved working conditions for rural
communities; and
Support for the development of improved rural economic infrastructure
116. Under the new decree, each local region will have a CRDE, which will be managed by a
Director assisted by an accounts manager, administrative assistant and a team of technical extension
staff with at least one higher education diploma or equivalent. The centers are financed by the state but
94
are also authorised to use direct contributions from the public and the private sector. CRDE are
administered by a Steering Committee, with strong civil society representation. The composition of
the CRDE Steering Committee includes: a representative of the prefecture, two representatives of
professional organizations (such as fishermen and farmers), two representatives of NGOs working in
the agriculture, fisheries and environment, two representatives of service providers (nurseries, seed
production, vets etc.), a representative of the local Commissioner, and four representatives of
associations and producer groups of all disciplines.
7.5 Non-Governmental Organizations
117. Non-Governmental Organizations (NGOs) and Community Based Organizations (CBOs)
are important to the local development context on each island. Most communities have
associations, including farmers and women’s associations who play an active role in local management
and development. Village Development Associations (VDA) are present in most villages in the
Comoros. They are often well organized and implement local development initiatives. These village
associations can consist of several 'branches', including for women’s support, youth, community
development, etc. VDAs are often important channels through which projects and organizations engage
with communities.
Professional Organization and Associations (POA)
118. The statutes of POAs reveal a hierarchical arrangement far removed from the
democratic and participative principles that POAs generally follow. These umbrella organizations
are managed by notables, especially civil servants or former civil servants, they are not very
representative, and are distant from the farmer base. These organizations have lost a lot of credibility,
but they have become part of the institutional landscape and have become important stakeholders. The
reorganization that is taking place following the passing of the Agricultural Professional Organizations
Act, which requires the separation of representation and commercial activities, should enable
cooperatives to perform the supply and marketing functions for their members and the representative
organizations to play fully their role.
8 Summary of Recommended Actions and Expected Outcomes
119. As this review’s findings demonstrate, agriculture in Comoros has a large economic footprint
and is central to the country’s economic growth, food security, export revenues, and employment.
Given this agricultural base and the small set of other productive investment opportunities in the
economy, the path for economic transformation of Comoros runs through agricultural transformation.
In fact, economic transformation in Comoros does not imply an exit from agriculture, but building on
it to modernize farming and strengthen efficiency enhancing linkages between agriculture and nascent
sectors like manufacturing and tourism. Consequently, progress on the agricultural transformation
agenda is necessary and urgent, in order to realize the government’s commitment to becoming an
emerging country 2030.
120. The potential for agricultural transformation in Comoros is large and quite evident. Given low
productivity and high exposure to environmental shocks, yield-improving investments in climate-smart
inputs, modern production and processing technologies, and sustainable practices can deliver large
food security gains and build resilience to environment risks. Investments that facilitate internal trade
95
will enhance the competitiveness of crop and livestock perishables, in which Comoros’s remoteness
becomes a buffer against shipped imports, bring local supply in sync with market demand, raise farm
incomes and lower the food import bill. Export promotion in the form of downstream industrial
development of existing products, facing favorable market conditions after a decade long downturn,
can allow Comoros to tap into newer markets and enable producers to capture greater value
domestically.
The specific recommendations that have emerged from this review are grouped in three strategic pillars
below:



Pillar 1: Public Actions to Boost Agricultural Transformation,
Pillar 2: Boosting Food Production and Smallholder Access to Markets
Pillar 3: Export Promotion of Established and New Products
Under each category, recommendations flow from identified priorities and measures, which aim to
address market failures, coordination failures and missing markets in the agriculture sector. The
primary role of the public sector in implementing each recommendation along with the time frame
associated with implementation are indicated. In addition, the expected direct beneficiaries from each
priority are also identified. A few broad patterns can be inferred from the four tables below:
121. First, the provision of traditional public goods for agriculture is qualitatively low, and
government involvement is restricted to price-setting in the vanilla value chain, operation of a rice
import and distribution parastatal, and identification of high-priority food imports. Consequently, there
is an unmet need for strategic public investments in the supply of traditional public goods in agriculture
– advisory and extension services, technology transfer and dissemination, land administration services,
and provision of agricultural data, as is reflected in Table 8.1.
122. Second, the government needs to play a leading role in market development for food crops
in general, and perishables (fruits, vegetables, livestock products etc.) in particular. In Comoros, there
is little public investment in transport systems, cold storage, and information systems that enable a
better functioning of markets for perishables, and induce market participation by subsistence-oriented
producers. While this type of underinvestment is widespread across the developing world, its
consequences are far more debilitating for the Comorian archipelago, a small internal market which is
further segmented. Table 8.2 outlines a set of direct and enabling public actions that can facilitate
internal food trade.
123. Third, the public sector can tangibly accelerate private investment in the sector through
regulatory simplification and reduced compliance costs, playing a matching role in the credit market
for agriculture, and convening dialogue to enable productive alliances between producer cooperatives
and buyers, as recommended in tables 8.1 and 8.3.
124. Last, the private sector can deliver better outcomes in two activities that the government
currently undertakes. In terms of rice imports and distribution, private enterprises now import a large
share of the rice are now well positioned to take on these activities and free up public resources for
more strategic investments of the type discussed above. In the vanilla value chain, the system of
establishing a price structure that ostensibly protects growers from price volatility, now prevents them
from receiving the gains from favorable market conditions that are benefiting cloves and ylang-ylang
96
growers. An approach which monitors the exporter oligopoly in the vanilla value chain, and provides
targeted price or income support during downturns is likely to raise smallholder returns in this sector.
Implementing the agricultural policies and investments outlined below would put the agriculture sector
in Comoros on a sustainable growth path that can raise farm productivity and smallholder incomes,
reduce the current account deficit, enhance competitiveness and create jobs in the agri-food system. In
conclusion, it would jumpstart the process of agricultural transformation and help accelerate the
economic transformation of Comoros.
Table 8-1: Public Actions to Boost Agricultural Transformation
Role of Public
Sector
Timeframe
Short
Medium
Long
Direct
Beneficiaries
Policy
maker
Financer
Convener
Market
maker
PRIORITIES AND MEASURES
PRIORITY 1: Improving access to climate-smart technologies,
innovations, management practices (TIMPs), and advisory
services
PUBLIC ACTIONS TO BOOST AGRICULTURAL TRANSFORMATION
(iii) Join regional agricultural research and technology




transfer partnerships to develop, transfer, and
disseminate TIMPs that enhance productivity,
climate resilience, and nutritive value by:
harmonizing policies, laws, and regulations to
accelerate transfer of off-the-shelf technologies
establishing national center of specialization to
accelerate development in target crop or livestock
product(s)
enabling private sector involvement in technology
development (seed multiplication, animal
breeding)
fostering producer-retailer dialogue that enables
farmer organizations to adapt to market demand
(iv) Improved access to crop and livestock extension
services by:
 equipping public advisory and extension services
(CRDE) physical and financial resources
 promoting technical assistance through productive
alliances between cooperatives and anchor
investors
 enabling development of privately managed dairy
and poultry hubs to disseminate livestock inputs,
animal vaccines and veterinary services
Crop and
livestock
producers
Policy maker
Financer
Convener
Convener
Medium
Medium
Long
Short
Financer
Policy maker
Convener
Medium
Short
Medium
Policy maker
Market maker
Market maker
Medium
Short
Medium
Export crop
producers
Private seed
and animal
breeders
Retailers
Crop and
livestock
producers
Export crop
producers
Extension
agents
Veterinary
technicians
PRIORITY 2: Enable private investments in agriculture by: i)
improving the investment climate for agriculture, ii)
strengthening land administration services to promote land
tenure security, and iii) building capacity to collect, monitor
and disseminate real-time market information.
(iv) Improving investment climate and matching the supply
and demand for investment capital
Producer
organizations
97



structure the regulatory simplification agenda
around the Enabling Business of Agriculture (EBA)
indicators
facilitate supply of agricultural credit by providing
MFIs training on appraisal of agribusiness business
plans
accelerate the development of an incubation
ecosystem with linkages between universities and
private sector representatives for preparation of
viable business plans, early-stage mentoring, and
linkages to MFIs
(v) Strengthening land administration services to promote
land tenure security by:
 equipping land administration office with
geospatial tools and technical assistance
 conducting a participatory titling program in
production basins
 forming multi-stakeholder land recognition
committees to facilitate demarcation and smallscale cadaster census
 developing land-use framework for areas where
both food and export crops are cultivated
(vi) Build capacity to collect, monitor and disseminate realtime agriculture data by establishing an agriculture
data unit to:
 conduct an agricultural census to fill knowledge
gaps, better policy making and enable private
investments
 utilize remote sensing tools to monitor and respond
to weather, yields, prices, pests and diseases in real
time
 organize the development of mobile applications to
disseminate real-time weather and market
information
Agribusiness
startups and
SMEs
Microfinance
institutions
Private sector
representatives
Universities
Food
producers
Export crop
producers
Financer
Financer
Convener
Policy maker
Short
Medium
Medium
Medium
Financer
Financer
Convener
Short
Medium
Short
Policy maker
Policy maker
Short
Short
Policy maker
Market maker
Medium
Medium
Producer
organizations
Small and
medium
agribusiness
Food
producers
Export crop
producers
Producer
organizations
Small and
medium
agribusiness
PRIORITY 3: Reorient role in determination of import tariffs
and distribution of food, to enhance domestic
competitiveness and free up public resources for investments
(iii) Implement a smart targeting approach by:
 assessing pass-through effects of tariffs on
consumer prices and welfare against existing
competitiveness and supply capacity of domestic
production
 enabling annual reassessment of list by developing
criteria-based determination and monitoring of
agricultural production and import trends
(iv) Reorient ONICOR to the role of a market coordinator
and facilitator
 importing and distribution of rice should be
handled by established private enterprises in the
rice import business
 activities should be restricted to setting and
applying standards for imported rice, market
monitoring, collection of duties and sales taxes, and
maintaining a modest emergency stock
Crop and
livestock
producers
Consumers
Food
importers
Public sector
Consumers
98
Key: (1) Direct beneficiaries are identified based on the expected first-order effects. (2) The role of public sector lists the primary
role of the public sector, and it is not restrictive. (3) Timeframe is classified as Short-term for actions that are implementable in 0
– 2 years, Medium-term for 3 – 5 years, and Long-term for more than 5 years.
Table 8-2: Boosting Food Production and Access to Markets for Smallholders
Role of Public
Sector
Timeframe
Short
Medium
Long
Direct
Beneficiaries
Policy
maker
Financer
Convener
Market
maker
PRIORITIES AND MEASURES
Policy maker
Market maker
Convener
Short
Medium
Short
Financer
Policy maker
Short
Medium
Policy maker
Policy maker
Financer
Short
Short
Medium
BOOSTING FOOD PRODUCTION AND ACCESS TO MARKETS FOR SMALLHOLDERS
PRIORITY 1:
Enforcement of import exemptions on
agricultural inputs to reduce input costs and erratic input supply
Increasing input supply to smallholders by:
 introducing a one-stop shop at ports to reduce time
and cost of compliance with procedures required for
importers to obtain exemptions for agricultural
inputs
 facilitate access to finance for input importer
association and farmer federations, conditioned on
preparation of viable business models
 coordinate distribution of time-sensitive inputs at the
start of planting season
Crop and
livestock
producers
Producer
organizations
Private
importers
PRIORITY 2: Strategic public investments in climate-smart
agriculture (CSA) that boost yields and build smallholder
resilience to environmental shocks
Target CSA dissemination to food crop producers by:
 piloting improved, biofortified, and resilient
varieties of cassava, maize, and pulses in
production basins
 providing market incentives to adopt and scale-up
tested CSA technologies, innovations, management
practices (TIMPs) for crop and livestock
production systems
Crop and
livestock
producers
Consumers
PRIORITY 3: Facilitate internal food trade to raise market
participation and food access
(i) Linking highland production basins with coastal urban
markets by:
 enable access to non-motorized (bicycles, carts) and
motorized transport (motorcycles, tuk-tuks) through
temporary and targeted import tariff waivers
 coordinate organized collection from remote areas
and marketing through national-level farmer
organizations
 upgrade and maintain dilapidated rural roads
through locally managed public works programs
Crop and
livestock
producers
Producer
organizations
Traders and
logistics
SMEs
Consumers
99
ii) Investing in market access infrastructure to enhance
marketability of perishables and reduce price volatility:
 enabling private investments in on-farm warehouses
and chilling dairy plant (Anjouan) by assisting
cooperatives with preparing viable business
proposals
 investing in cold storage at ports to facilitate
maritime transport of perishables (fish, dairy,
vegetables and fruits) and reduce food loss in
surplus markets
 operationalizing existing liquid nitrogen facility in
Moheli to facilitate vaccine storage and artificial
insemination for livestock
 facilitating competition between mobile operators to
incentivize wider coverage and increase low-cost
access to market information
iii) Breaking down barriers to inter-island movement of
agricultural goods to reduce transit costs, accelerate volume of
internal food traded, and increase competitiveness by:
 investing in port capacity and infrastructure in
Grande Comore and Moheli to reduce congestion
and tariffs
 organization, regulation and rationalization of fares
for maritime transit
 introduction of a contracting system to establish
market competition on high-frequency routes
Crop
producers
and
cooperatives
Market maker
Financer
Financer
Policy maker
Medium
Medium
Medium
Medium
Financer
Policy maker
Policy maker
Long
Short
Medium
Dairy
cooperatives
Fish
cooperatives
Food
consumers
Crop
producers
and
cooperatives
Dairy
cooperatives
Fish
cooperatives
Food
consumers
Key: (1) Direct beneficiaries are identified based on the expected first-order effects. (2) The role of public sector lists the primary
role of the public sector, and it is not restrictive. (3) Timeframe is classified as Short-term for actions that are implementable in 0
– 2 years, Medium-term for 3 – 5 years, and Long-term for more than 5 years.
Table 8-3: Export Promotion of Established Value Chains and New Products
Role of Public
Sector
Timeframe
Short
Medium
Long
Direct
Beneficiaries
Policy
maker
Financer
Convener
Market
maker
EXPORT PROMOTION OF ESTABLISHED AND NEW
PRODUCTS
PRIORITIES AND MEASURES
PRIORITY 1: Raising smallholder returns in established value
chains by: i) supporting plantation renewal and expansion, ii)
enabling processing yield and quality improvement, iii)
promoting productive alliances between cooperatives and
buyers
(v) Supporting plantation renewal and expansion by:
 consolidation of bulking plots for supply of high
quality planting material to replace aging vanilla
vines
 providing technical assistance for management of
ylang-ylang plantations
 establish well-managed central nurseries for cloves
and ylang-ylang trees
Export crop
producers
and
cooperatives
Convener
Financer
Financer
Short
Short
Short
Exporters
100
(vi) Enabling processing yield and quality improvements by:
 enabling upgrades and investments in vanilla curing
facilities by grower-curer cooperatives
 incentivizing distillery upgrades to water and woodsaving structures and technologies for sustainable
ylang-ylang production
 standardizing low-cost field tests to reduce
fraudulent manipulation of ylang-ylang oil quality
 promote investment in drying and storage facilities
to minimize on-farm losses for cloves
Export crop
producers
and
cooperatives
(vii)
Promoting productive alliances between
cooperatives and buyers by:
 facilitating formation of producer cooperatives
through decentralized extension
 supporting development of niche qualities through
certification (eg. Fair Trade, Organic) to attract new
buyers and capture price premiums
 convening and structuring dialogue with
international anchor investors to assess mutual needs
and identify scope for collaboration
 ensure long-term support and mentoring of
cooperatives through input financing and technical
assistance focused on management and operational
capacity
Export crop
producers
and
cooperatives
(viii)
Export crop
producers
and
cooperatives




Improve regulatory environment by:
ensuring greater representation of smallholders in
bodies representing each value chain
monitoring non-competitive behavior in
concentrated value-chain segments
removing government involvement in price-setting
in vanilla value chain
mitigate effects of price volatility on smallholders
through targeted income support
Convener
Policy maker
Policy maker
Convener
Short
Short
Short
Short
Market maker
Market maker
Convener
Convener
Short
Short
Short
Medium
Convener
Policy maker
Policy maker
Financer
Medium
Medium
Short
Medium
Curers,
dryers and
distillers
Exporters
Curers,
dryers and
distillers
Exporters
Anchor
investors
Curers,
dryers and
distillers
Exporters
PRIORITY 2: Downstream diversification and development of
new products by assessing and enhancing commercial viability
of new products
Assessing and enhancing commercial viability of new products
by:
Export crop
Financer
Short
 conducting technical and financial assessments of
producers
Convener
Medium
commercial viability of derivatives of existing
and
Financer
Short
products (clove oil, vanilla powder, vanilla extract,
cooperatives
Market maker
Medium
aromatic soap etc.) and new products (ground
spices, other essential oils)
Agribusiness
 establishment of technical university courses aimed
startups and
at development of derivatives
SMEs
 multiplication of planting material for crops will
small production bases (coffee, pepper etc.)
 support establishment of small-scale spice grinding
and artisanal extraction facilities
Key: (1) Direct beneficiaries are identified based on the expected first-order effects. (2) The role of public sector lists the primary
role of the public sector, and it is not restrictive. (3) Timeframe is classified as Short-term for actions that are implementable in 0
– 2 years, Medium-term for 3 – 5 years, and Long-term for more than 5 years.
101
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Annex A: Supplementary Figures
Figure 0-1: Benchmarking Trends in Overall CPIA Scores
Overall CPIA Scores
4
3
2
1
0
2008
2009
2010
Comoros
2011
2012
2013
2014
2015
Sub-Saharan Africa (IDA total)
2016
IDA total
Figure 0-2: Progress in Disaggregated CPIA Scores
Change in CPIA Scores: Comoros
CPIA Scores
4
3
2
1
0
Economic
Management
Structural
Policies
2008
Policies for
Public sector
social
management
inclusion/equity and institutions
2016
Figure 0-3: Poverty and Consumption Trends in Comoros
Source: World Bank Macro-Poverty Outlook (October 2017)
105
Figure 0-4: A snapshot of the job market in Comoros
Comoros
788,500
Working-age
population
450,157
59.5 percent
Inactive
205,272
45.6 percent
Employed
184,114
40.9 percent
Unemployed
discouraged
44,565
9.9 percent
Unemployed
ILO
16,206
3.6 percent
In school:
86,625 (42.2%)
Non-agriculture
114,151
62.0 percent
Agriculture
69,963
38.0 percent
Self-employment
61,984
54.3 percent
Wage-employment
52,167
45.7 percent
XXX
Number of workers
Percentage within the category
Public
sector
30,831
59.1 percent
Private
formal
2,869
5.5 percent
Private
informal
18,467
35.4 percent
Source: EESIC 2014. World Bank Staff calculations.
Note: The number of working-age people is extracted from the WB Database for the year 2014 and is based on the
age-dependency ratio that stood at 76.3 percent in 2014.
Figure 0-6: Overall Trade Trends
Figure 0-5: Agricultural Trade Deficits in SWIO Countries
3
60
2.5
50
2
Imports as % of GDP
Exports as % of GDP
Comorros
Madagascar
Mauritius
Seychelles
2011
2010
2009
2008
2007
2006
0
2005
1997
1998
1999
2000
2001
2002
2003
2004
2005
2006
2007
2008
2009
2010
2011
2012
2013
2014
0
2004
10
0.5
2003
20
1
2002
30
1.5
2001
40
2000
Exports/Imports
70
Source: World Development Indicators (WDI). Note: Agricultural imports and exports are classified as food imports and
exports in WDI.
106
Figure 0-8: Benchmarking Yields of Major Crops
Figure 0-7: Benchmarking Livestock Production per Capita
Livestock Production per Capita
Kg/person, 2014
Yields, 1000 kg/ha
Crop Yields
20
15
10
5
80
60
40
20
0
Comoros
0
Comoros
Bananas
Fiji
Coconuts
Mauritius
Maize
Samoa
Rice, paddy
Fiji
Mauritius
Beef and Buffalo Meat
Eggs Primary
Meat, Poultry
Milk,Total
Samoa
Figure 0-9: Comparison of cost to export (US$ per 20-ft container)
1,400
1,200
1,000
800
600
400
200
0
2005
2006
2007
2008
Comoros
2009
2010
Mauritius
2011
2012
2013
2014
Seychelles
107
Figure 0-10: Comparison of port tariffs (US/TEU)
60
50
40
30
20
10
0
Moroni
Anjouan
(Mutsamudu)
Port-Louis
Port-Louis
(import/export) (Transhipment)
Mombasa
Source : Adapted from Schema Directeur Portuaire de l’Union des Comores (MTBS, 2014)
Figure 0-11: Road Density per Land Area (km/1,000 km2)
500
400
300
200
100
0
Seychelles
Mauritius
Comoros
Madagascar Sub-saharan
Africa
Source: World Bank staff calculations (2017)
Figure 0-12: Road Density per Capita (km/10,000 Inhabitants)
14
12
10
8
6
4
2
0
Seychelles
Mauritius
Comoros
Madagascar
Upper MIC
avg.
Source: World Bank staff calculations (2017)
108
Figure 0-13: Rankings on Doing Business Topics (2018)
Figure 0-14: Distance to Frontier (DTF) on Doing Business Topics (2018)
Figure 0-15: Madagascar vanilla prices (nominal), 1997-2017, US$/kg
109
Figure 0-16: Madagascar clove prices (nominal), 1997-2017, US$/MT
Figure 0-17: Seasonal Price Volatility for Fresh Fruits and Vegetables
Seasonal fluctuation of the prices of some vegetable products
2 000
KMF/kg
1 600
1 200
800
400
-
Tomato
Cabbage
Carrot
low price
100
200
300
Potato
300
high price
1 500
2 000
700
1 000
Source: Interview in focus group with 12 producers of Dibouani (Grande Comore)
Figure 0-18: Export Crop Areas in Moheli
110
Figure 0-19: Export Crop Areas in Anjouan
Figure 0-20: Export Crops Areas in Grande Comore
111
Figure 0-21: Main Dairy Production Areas in Comoros
Figure 0-22: Main Poultry (Layer and Broilers) Production Areas
112
Figure 0-23: Horticulture Production Areas in Comoros
113
Annex B: Supplementary Tables
Table 0-1:Trends for Selected Macroeconomic and Poverty Indicators
Income and Economic
Growth
GDP (current US$, millions)
GDP per capita (US$,
nominal)
GDP growth (annual %)
GDP per capita growth
(annual %, real)
Private consumption growth
(annual %, real)
Population, Employment
and Poverty
Population, million
Population growth,
(annual %)
Unemployment Rate
International poverty rate
($1.9)a
Lower middle-income
poverty rate ($3.2)a
Upper middle-income
poverty rate ($5.5)a
External Accounts
Export growth, f.o.b
(nominal US$, annual %)
Import growth, c.i.f (nominal
US$, annual %)
Merchandise exports (% of
GDP)
Merchandise imports (% of
GDP)
Services, net (% of GDP)
Current account balance (%
of GDP)
Other
Doing Business Rank
Human Development Index
Ranking
Avg. '00-15
2014
2015
2016 E
2017 F
457.3
674.8
676.6
878.7
588.5
746.4
615.7
763.0
652.2
789.6
2.6
0.1
2.0
-0.5
1.0
-1.3
2.2
-0.2
2.5
0.1
3.6
1.0
2.0
2.8
3.7
0.7
2.5
0.8
2.4
0.8
2.4
0.8
2.3
0.8
2.4
20.1
18.6
19.6
18.1
19.9
19.1
20.0
19.1
19.2
37.6
37.1
38.1
38.1
38.1
64.7
63.9
65.5
4.1
8.5
-15.0
34.9
-0.5
7.4
1.3
-14.8
21.9
6.5
5.4
3.8
2.9
3.1
3.4
29.5
35.5
31.4
31.8
31.7
-3.5
-7.2
-2.6
-8.6
-5.2
0.6
-8.6
-9.1
-10.6
-8.9
152
156.1
152
159
153
158
160
Source: World Bank Macro-Poverty Outlook (October 2017). Note: (a) Most recent value (2013), 2011 PPPs. Source: WDI, Macro
Poverty Outlook, and official data. Notes: (b) Most recent WDI value (2014). E = estimate, F = forecast
114
Table 0-2: Screening Indicators: Export Crop Value Chains
Number and type of producers
(micro, small, medium)4
Number of smallholders
Prevalence of producer
associations
Share of women in VC
Share of youth in VC
Potential contribution to food
security
(availability/access/utilization)
Environmental Impact (soil,
water, forests)
Distribution of producers
across Islands
Distribution of output across
Islands
Average production value
over last 5 years
4
Ylang ylang
Vanilla
Development Footprint
Growers:
Growers:
Almost all smallholders
All smallholders (see
(see below); 2
below)
plantations (micro)
Curers:
Distillers:
3 (small);
500 (micro)
3-6 (micro)
Cloves
1000-3000 (no survey
data)
18
5,000
10,000+
2
5
Cultivation/harvest:
High
Distillation:
Low/Medium
Cultivation/harvest:
High
Curing:
Medium
Cultivation/harvest
Low
Drying:
High
Low
Low
Uncontrolled &
Neutral/positive
excessive expansion
provided intercropped
planted area could be
with food crops.
negative
Cultivation:
Cultivation:
Tree crop – positive
Medium term perennial
impact soil, water
crop integrated with
Distillation:
support & shade trees –
Currently v negative
positive impact soil,
(deforestation
water
10,000+m3/yr; depletion
Curing:
rivers); potential
neutral
introduction new
technologies heat &
water system very
positive
Anjouan:
G/Comore:
1000-3000 growers
4,300 growers
500 distillers
3-6 curers
Mohéli:
Moheli:
100 growers
400 (est) growers
100 distillers
1-3 (est) curers
G/Comore:
Anjouan:
50-100 growers
300 (est) growers
3 distillers
1-3 (est) curers
Anjouan: 25/30 t
G/Comore: >80%
Mohéli: 5 t
Moheli: <15%
G/Comore: 10 t
Anjouan: <5%
Economic Importance
2017: 45 t (est)
2017: 30-35t (est)
2016: 38 t
2016: 20t
2015: 31 t
2015: 31t
2014: 25 t
2014: 68t
Growers:
All smallholders (see
below)
Harvesting: High
Uncontrolled &
excessive expansion
planted area could be
negative
Cultivation:
Tree crop – positive
impact soil, water.
Drying:
neutral
Anjouan:
10,000+ growers (est;
no survey data)
Mohéli:
1-2,000 growers (est;
no survey data)
G/Comore:
<100 growers (est; no
survey data)
Anjouan: 80%
Moheli: 20%
G/Comore: Minimal
2017: 3,600t (est)
2016: 6,607t
2015: 3,797t
2014: 4,836t
Micro: <10 employees, <€2m turnover; Small: <50 employees, <€10m turnover; Medium: <250 employees, <€50m turnover
115
2013: 41 t
2013: 77t
n/a. See export share
n/a. See export share
below
below
2016: $7.1
2016: $9.7 (6.75)
2015: $4.3
2015: $6.2 (4.4)
2014: $3.5
2014: $7.0
2013: $4.4
2013: $6.7
2012: $3.4
2012: $2.4
% GDP:
% GDP:
2016: 1.2%
2016: 1.6% (1.1%)
2015: 0.8%
2015: 1.1% (0.8%)
2014: 0.5%
2014: 1.1%
2013: 0.7%
2013: 1.1%
2012: 0.6%
2012: 0.4%
Tourism:
Tourism:
High (local fragrance;
Medium (gift sales, field
field tours)
tours)
Services:
Services:
High (manufacture &
Low
maintenance stills)
Competitiveness Indicators
Low (estimate)
Similar
2013: 3,889t
n/a. See export share
below
2016: $43
2015: $26
2014: $34
2013: $32
2012: $31
% GDP:
2016: 7.0%
2015: 4.6%
2014: 5.3%
2013: 5.2%
2012: 5.4%
Tourism:
Low (gift sales; field
tours)
Services:
Low
Processing
(Distillation): 100%
Downstream value
added: <1%
Domestic mkt:
Minimal mkt, strong
growth potential
Dom. tourist mkt:
strong growth potential if
develops
High.
Processing (curing):
100%
Downstream value
added: <1%
Domestic mkt:
Low
Domestic tourist mkt:
Low
Low – simple drying
only
High
High
High
High
High
80+ tonnes
150-200 tonnes
Import substitution potential
Price volatility
Resilience to production
shocks
n/a
Low
High
n/a
V High (extreme)
High
Within current
production range 3,000
to 6,000 tonnes
n/a
Medium
Low
Quality of the policy
environment
Level of donor support
received
Low
Private sector activity (SME
share of market/share of
investments)
High
Avg. production share of GDP
over last 5 years
Avg. value of exports over
last 5 years (US$ millions)
Avg. export share of GDP
over last 5 years:
GDP 2012-2016: US$m
570; 619; 648; 565; 616
Complementarity with other
sectors (tourism, services)
Yield per hectare compared to
world’s top five producers
Domestic value added
(processing)
Growth forecast for domestic
market
Long-term global demand for
product
Access to international
markets (current)
Export potential
5
Enabling environment
Low
High
High
Investment potential
High
Similar
Domestic mkt:
Low
Domestic tourist mkt:
Low
Low
Low
High
figures in brackets exclude potential double counting of Mauritius imports.
116
Recent investment activity by
public sector
Share of loans/portfolio
(banks, MFIs etc.)
Lending appetite (banks,
MFIs etc.)
Low
Low
Low
<5%
<5%
<5%
Banks:
Low
MFI:
Currently: Low
Potential: High
Banks:
Exporters only
MFI:
Currently: Low
Potential: Medium
Banks:
Exporters only
MFI:
Currently: Low
Potential: Medium
Table 0-3: Screening Indicators: Livestock Value Chains
Dairy
Small
ruminants
Intensive
poultry
Backyard
poultry
Number of producers
*
***
*
***
Number of other VC actors
**
*
**
*
% of smallholders
**
***
*
***
Prevalence of VC organizations
***
*
***
*
*
**
**
***
***
*
**
*
Potential contribution to food security
*
*
*
**
Environmental impact (*** if none)
**
**
**
***
Value of imports
**
*
***
*
Import substitution potential
***
**
***
*
Productivity
**
*
***
*
Domestic value added
**
*
**
*
Domestic demand & growth forecast
***
**
***
*
Price volatility
**
*
**
**
Risks
***
*
***
*
Resilience to shocks
*
***
*
**
Quality of policy environment
*
*
*
*
Level of donor support
*
*
*
**
Private sector activity
**
*
***
*
Public investment
*
*
*
*
Access to credit
**
*
***
*
TOTAL SCORE
40
31
43
33
Indicator
Share of Women in VC
Share of youth in VC
117
Table 0-4: Ylang-ylang prices in Comoros, KMF
2017
2,800-3,600
60-75,000
1,600
Per degree
Troisième/kg
Flower price/kg
2015
1,700
17,000
500-650
2014
1,450
14,500
400
2006
750-800
12,500
250-300
Table 0-5: France & USA import prices, ylang oil, 2011-2017, US$ & €/kg
France/Comoros
€/kg
$/kg
2011
74.81
103.99
2012
84.01
108.37
2013
80.68
107.30
2014
106.27
141.34
2015
124.75
138.47
2016
172.68
191.67
2017
208.07
235.12
USA/Madagascar
$/kg
176.99
148.75
161.84
104.64
121.55
133.92
140.39
0.719
0.778
0.753
0.754
0.901
0.904
0.887
Euro €
US$
1
1.19
8,737
2,648
10,397
3,151
OECD avg.
annual exchange
rates $/€
Table 0-6: Ylang grower's production model
Unit
Assumptions
Trees/ha
Flower yld/tree
Exchange rate €/S
No.
kg
Sales:
Flowers
Total sales
kg
Cost of sales
Kg
Harvesting
kg
Transport
Total cost of sales
Unit Price
(KMF)
Quantity
330
10
1,600
3,300
250
50
3,300
3,300
Gross Margin/ha/yr
Gross margin/100 trees/yr
Ylang flower harvester
Flower harvest/day
kg
Amount
(KMF)
5,280,000
5,280,000
825,000
165,000
990,000
4,290,000
1,300,000
250
10
2,500
Table 0-7: Ylang-ylang Oil Distiller’s Production model – wood, unimproved furnace
Unit
Assumptions
Oil yield
Flower charge (kg)
Price/degree/kg
KMF
Price T/kg, KMF
Exchange rate €/$
Unit price
(KMF)
Quantity
Amount
(KMF)
Euro €
US$
2%
100
3,500
70,000
1
1.19
118
Oil fractions:
ES
E
P
D
T
Degrees >900
70
60
50
40
% total yld
8
16
10
8
58
Unit
Unit price
(KMF)
Quantity
Amount
(KMF)
245,000
210,000
175,000
140,000
70,000
0.16
0.32
0.20
0.16
1.16
Euro €
US$
39,200
67,200
35,000
22,400
81,200
245,000
499
594
160,000
25,000
10,000
3,500
198,500
404
481
46,500
95
113
Gross margin/year @ 8 distillations/month
Gross margin/year @ 16 distillations/month
4,464,000
8,928,000
9,092
18,183
10,819
21,638
Gross margin per 33 distillations
1,534,000
3,125
3,719
Amount
(KMF)
Euro €
US$
1
1.19
1,120
1,920
1,000
640
2,320
7,000
14
17
672,000
1,344,000
1,369
2,737
1,629
3,257
231,000
470
560
Sales of oil:
ES
E
P
D
T
Total sales
kg
Kg
Kg
Kg
Kg
Cost of sales:
Flowers
Wood
Labour
Use of still
Total cost of sales
Kg
M3
Unit
Forfait
1,600
12,500
5,000
100
2
2
Gross margin/distillation 100 kgs flowers
Table 0-8:Ylang-ylang Collector's Production Model
Unit
Assumptions:
Price/degree/kg
Price/kg T
Exchange rate €/$
Revenue:
ES
E
P
D
T
Total revenue
Unit price
(KMF)
Quantity
100
2,000
Kg
Kg
Kg
Kg
Kg
Revenue/yr @ 8 distillations/mth
Revenue/yr @ 16 distillations/mth
Revenue per 33 distillations
7,000
6,000
5,000
4,000
2,000
0.16
0.32
0.20
0.16
1.16
119
Table 0-9: Ylang Collector's Production Model (Improved Technology)
Unit
Euro €
US$
1
1.19
1,400
2,400
1,250
800
2,900
8,750
18
21
Gross margin/year @ 8 distillations/mth
Gross margin/year @ 16 distillations/mth
840,000
1,680,000
1,711
3,422
2,036
4,072
Gross margin per 33 distillations
288,750
588
700
Assumptions:
Price/degree/kg,
KMF
Price/kg T, KMF
Exchange rate €/$
Revenue:
ES
E
P
D
T
Total revenue
Unit price
(KMF)
Quantity
Amount
(KMF)
100
2,000
Kg
Kg
Kg
Kg
Kg
7,000
6,000
5,000
4,000
2,000
0.20
0.40
0.25
0.20
1.45
Table 0-10: Ylang distiller's Production Model (Improved Technology)
Unit
Assumptions:
Oil yield
Flower charge kg
Price/degree/kg
Price T/kg
Fuel oil liters/hr
Fuel oil, No hrs
Exchange rate €/$
Oil fractions
ES
E
P
D
T
Cost of sales:
Flowers
Fuel oil
Quantity
Amount
(KMF)
Euro €
US$
1
1.19
Euro €
US$
624
742
2.5%
100
3,500
70,000
5
4
Degrees
>900
70
60
50
40
Unit
Sales of oil:
ES
E
P
D
T
Total sales
Unit price
(KMF)
Kg
Kg
Kg
Kg
Kg
Kg
Litres
% of total
yield
8
16
10
8
58
Unit price
(KMF)
245,000
210,000
175,000
140,000
70,000
1,600
450
Quantity
Amount
(KMF)
0.20
0.40
0.25
0.20
1.45
49,000
84,000
43,750
28,000
101,500
306,250
100
20
160,000
9,000
120
M3
Unit
Forfait
Wood
Labour
Use of still
Total cost of sales
12,500
5,000
0.5
2
6,250
10,000
3,500
188,750
384
457
Gross margin/distillation 100kg
fls
117,500
239
285
Gross margin/year @ 8 distillations/mth
Gross margin/year @ 16 distillations/mth
11,280,000
22,560,000
22,974
44,947
27,338
54,677
Gross margin per 33 distillations
3,877,500
7,897
9,398
Table 0-11: Production Model for a Medium-Sized Poultry Farm
Items
Unit price
Expenditures
No of unit
Price
day old chicks
850
770
654,500
feed starter
330
750
247,500
feed growth
308
1200
369,600
feed layers
300
28,105
8,431,500
Vet products and care
200
700
140,000
6,253
85
529,128
egg trays
water
lump sum
investment building (depreciation)
5,000,000
10 years
500,000
500,000
5 years
100,000
Total expenditures
11,172,228
small equipment (depreciation)
200,000
Incomes
eggs
70
187,600
13,132,000
cull hens
1,000
650
650,000
manure
1,500
70
105,000
Total incomes
13,887,000
Financial result
2,714,772
Box 2 : Business Model for Poultry Hub
POULTRY SERVICE CENTER (POULTRY HUB) PROPOSED MODEL
The proposed enterprise should serve 30 to 50 farmers (20 to 30,000 animals) to have a
sufficient volume of activities.
Entrepreneurs could be young graduates but could also be people who are already in the
business, youth or not.
In order to maximize profits, the services they provide should be diversified:
Sale of feeds: the total volume should be around 1,000 MT per year (required by
25,000 animals in average). This quantity could originate from both local processing of
feed (500 MT per year) and importation of ingredients, and importation of already
processed feed (500 MT per year)
Sales of chicks: the total annual turnover would be around 30,000 chicks per year.
Half of this could be imported, and half could be 1produced locally
Sales of small equipment and other inputs: feeders, drinkers, egg trays
121
-
Sales of veterinary products: vaccines, vitamins, etc.
Advisory and technical services (debeaking, vaccination)
The total investment required to set up such a business will amount to 125,000 USD
composed as follows:
Feed processing equipment (capacity 2 MT/day): 40,000 USD
Hatchery (capacity 2,000 eggs): 10,000 USD
Building: 30,000 USD
Vehicle: 30,000 USD
Generator: 15,000 USD
The entrepreneurs will require financial support (blending of soft loan and matching grant)
as well as capacity support: initial training (theoretical and practical - preferably outside
the country in a similar business), and coaching services (technical, but also on
management and marketing).
Table 1: Imports of fresh and processed fruits in the Comoros between 2009 and 2016 (MT)
Product
Dates, figs, pineapples, avocados, guavas,
mangoes and mangosteens, fresh or dried
Coconuts, Brazil nuts and cashew nuts, fresh or
dried, whether or not shelled or peeled
Apples, pears and quinces, fresh
Other nuts, fresh or dried, whether or not shelled
or peeled (excluding coconuts, Brazil nuts ...
Bananas, incl. plantains, fresh or dried
Citrus fruit, fresh or dried
Grapes, fresh or dried
Fruit and nuts, provisionally preserved, e.g. by
sulphur dioxide gas, in brine, in sulphur ...
Dried apricots, prunes, apples, peaches, pears,
papaws "papayas", tamarinds and other edible ...
Fresh strawberries, raspberries, blackberries,
back, white or red currants, gooseberries and ...
Melons, incl. watermelons, and papaws
(papayas), fresh
Total
2009
2010
2011
2012
2013
2014
2015
2016
223
152
146
75
184
153
12
229
230
95
73
8
2
36
14
Average
147
70
-
11
12
78
89
58
153
55
55
2
14
3
45
93
163
54
5
7
2
12
4
5
5
20
26
5
26
8
10
6
16
11
17
12
6
1
1
2
4
1
3
1
6
-
276
266
5
5
3
1
2
2
1
515
2
1
174
225
1
343
232
579
326
Source: Comtrade database.
122
Table 2: Imports of fresh and processed vegetables in the Comoros between 2009 and 2016 (MT)
Product
Potatoes, fresh or chilled
Tomatoes, fresh or chilled
Onions, shallots, garlic, leeks and other
alliaceous vegetables, fresh or chilled
Cabbages, cauliflowers, kohlrabi, kale and
similar edible brassicas, fresh or chilled
Lettuce "Lactuca sativa" and chicory
"Cichorium spp.", fresh or chilled
Carrots, turnips, salad beetroot, salsify,
celeriac, radishes and similar edible roots,
fresh . . .
Cucumbers and gherkins, fresh or chilled
Leguminous vegetables, shelled or
unshelled, fresh or chilled
Other vegetables, fresh or chilled
(excluding potatoes, tomatoes, alliaceous
vegetables, edible . . .
Sub-total fresh vegetables
Vegetables, uncooked or cooked by
steaming or boiling in water, frozen
Vegetables provisionally preserved, e.g. by
sulphur dioxide gas, in brine, in sulphur
water . . .
Dried vegetables, whole, cut, sliced,
broken or in powder, but not further
prepared
Dried leguminous vegetables, shelled,
whether or not skinned or split
Sub-total processed vegetables
Total vegetables
2009
2010
2011
2012
2013
2014
2015
2016
Average
1
4
2
38
14
86
30
1
68
9
115
39
95
30
3
901
41
139
582
791
821
611
419
2
2
414
455
25
15
6
10
14
3
288
52
8
38
13
2
10
6
202
40
1
1
3
3
66
15
17
24
49
30
92
61
108
95
22
69
13
6
6
1
13
8
726
969
1 081
753
556
165
127
1 958
792
51
131
135
73
28
90
156
10
84
2
5
4
26
18
3
10
42
32
79
34
18
11
189
-
51
431
452
387
206
87
720
871
526
620
605
339
151
821
1 216
13
536
1 252
1 589
1 686
1 092
707
986
1 343
1 971
1 328
36
451
Source: Comtrade database.
Table 0-12: Screening Indicators: Fresh Fruit and Vegetables
Indicator
Number and Type of Producers (Micro,
Small, Medium With Definitions)
Number of Smallholders
Prevalence of Producer Associations
Share of Women In VC
Share of Youth in VC
Potential Contribution to Food Security
(Availability/Access/Utilization)
Environmental Impact (Soil, Water, Forests)
Distribution of Producers Across Islands
Distribution of Output Across Islands
Average Production Value Over Last 5
Years
Avg. Production Share of GDP Over Last 5
Years
Avg. Value of Exports/Imports Over Last 5
Years
Avg. Export/Import Share of GDP Over
Last 5 Years
Tomato
Onion
Development Footprint
Rural
Rural
Smallholder
Smallholder
Unavailable Data
Medium
Medium
Medium
Medium
Low
Low
High
High
Medium
Medium
Medium
Medium
Medium
Medium
Economic Importance
Low
Low
Citrus
Mango
Rural
Rural
Smallholder
Smallholder
Unavailable Data
Low
Low
Low
Low
Low
Low
Medium
Medium
High
Medium
Medium
High
Medium
Medium
Low
Low
Low
Low
Low
Low
High
High
Low
Low
Low
Low
Low
Low
123
Indicator
Complementarity with other sectors
Tomato
Onion
Tourism,
Tourism,
transport
transport
Competitiveness Indicators
Yield Per Hectare Compared to World’s
Low
Low
Top Five Producers
Domestic Value Added (Processing)
Low
Low
Growth Forecast for Domestic Market
Medium
Medium
Long-Term Global Demand for Product
High
High
Access to International Markets (Current)
Low
Low
Export Potential
Low
Low
Import Substitution Potential
High
High
Price Volatility
High
High
Enabling environment
Quality of The Policy Environment
Medium
Medium
Level of Donor Support Received
Medium
Medium
Investment Potential
Private Sector Activity (SME Share of
Low
Low
Market/Share of Investments)
Recent Investment Activity by Public Sector Low
Low
Share of Loans/Portfolio (Banks, Mfis Etc.)
Low
Low
Lending Appetite (Banks, Mfis Etc.)
Low
Low
Private Sector Activity (SME Share of
Low
Low
Market/Share of Investments)
Citrus
Tourism
Mango
Tourism,
transport
Low
Low
Low
Medium
High
Low
Low
Low
High
Low
Medium
High
Low
Low
Low
High
Medium
Low
Medium
Low
Low
Low
Low
Low
Low
Low
Low
Low
Low
Low
Endnotes
i
The joint work between ANPI and the IFC Advisory Services has been targeting seven areas of the Doing Business agenda:
i) Enterprise creation: simplification of procedures for business registration; ii) Property title registry: revision of the new
general tax code and reduction of property registration costs; iii) Access to credit: adoption and promulgation of the law on
leasing; information and training courses for professionals at financial institutions; implementation of a Credit Information
Bureau; iv) Construction permits: Adoption of the new code of the urban planning which has reduced the procedures, the
cost and the duration of granting of permits; v) Execution of contracts: the establishment of the Court of Arbitration and
Mediation of the Comoros (CACOM) for facilitating the settlement of commercial disputes; vi) Cross-border trade: work in
progress for the simplification of import and export procedures (reduction in steps and of duration); In addition to regulatory
simplification and with IFC support, a steering committee and sub-committees for structured Public-Private Dialogue around
Doing Business indicators have been created, as have two “one-stop” business registries, a leasing framework and an
alternative dispute resolution framework. A study (together with the Bank of France) is underway for the establishment of
a credit information bureau. A new Competition Law is being enacted and various new codes have been adopted (tourism,
urbanism, etc.) The recent progress in the Doing Business rakings (a 10-point improvement in the ranking for starting a
business) is the result of these efforts. However, the advances made are for the most part formal, and full implementation
remains a priority going forward.
ii
ACET (2017)
The three dimensions of food security are availability, access and utilization. Availability: Food must be available
in sufficient quantities and on a consistent basis. It considers stock and production in a given area and the capacity to
bring in food from elsewhere, through trade or aid. Access: People must be able to regularly acquire adequate
quantities of food, through purchase, home production, barter, gifts, borrowing or food aid. Utilization: Consumed
food must have a positive nutritional impact on people. It entails cooking, storage and hygiene practices, individuals
‘health, water and sanitations, feeding and sharing practices within the household (WFP).
iv
OECD (2011)
v
CIA World Factbook 2016
iii
124
vi
Mohéli is 5 million years old and formed of a low central ridge reaching 790m, while Anjouan is younger (3.9
million years) with steep sided mountains reaching to 1595m at the summit of Mt. Ntringui.
vii
Dahari
viii
The rural population of Comoros is growing at 2.3 percent and it is ranked in the 90th percentile globally (Find Friends,
World Development Indicators)
ix
GDP per capita is $770 in 2016 (World Development Indicators).
x
42.4 percent of population were below the national poverty line in 2014 (World Bank Poverty Assessment 2017).
xi
World Bank Poverty Assessment (2017)
xii
The share of working-age people at school amounts to 42.2 percent of inactive population
xiii
Nearly 200,000 Comorians are estimated to reside outside the country, with a majority in France. Per World Bank
estimates, remittances account for 20 percent of household income, and nearly 25 percent of GDP.
xiv
World Bank Poverty Assessment (2017)
xv
World Bank Poverty Assessment (2017)
xvi
World Bank Macro-Poverty Outlook (2017)
xvii
Comoros’ international air passenger traffic is marginal, the smallest of the Indian Ocean islands: in 2012,
Comoros accounted for less than 3% of the region’s traffic (World Bank 2012)
xviii
World Development Indicators (2014)
xix
Remittances from the diaspora accounted for 25% of Comoros’ GDP in 2013, exceeding its exports (15% of GDP) (CIA
World Factbook 2016).
xx
Comoros was in the top three countries of the world in terms of food import share of merchandise imports every year from
2010 to 2012 (CIA World Factbook 2016).
xxi
CIA World Factbook 2016
xxii
Wheat flour, palm oil, and processed sugar are other important food imports. The agricultural trade deficit was $126.9
million (22% of GDP) in 2015. While the food share of imports and exports have declined in the last two years, it is unclear
whether this is cyclical or a long-term trend reflective of structural changes in the economy.
xxiii
Comoros Disaster Risk Profile (World Bank 2017)
xxiv
Cyclones typically hit during the rainy season (December to April). Karthala (elev. 2,361 m) on Grand Comore Island
last erupted in 2007; a 2005 eruption forced thousands of people to be evacuated and produced a large ash cloud (CIA World
Factbook).
xxv
Maplecroft, a UK-based firm that specializes in risk analytics and forecasting, ranked Comoros in 2008 as the most
vulnerable country to face the future impacts of global warming, such as increased storms, rising sea levels and agricultural
failure. Under certain scenarios, up to 10 percent of the coastal population could be displaced due to erosion and
contamination of coastal water tables by sea water, potentially destroying coastal infrastructure - including much of the road
network - and raising the incidence of malaria (Country Partnership Strategy 2014).
xxvi
CIA World Factbook 2016, ReSAKSS Database
xxvii
World Development Indicators (2014)
xxviii
The poultry yields/carcass weight in Comoros, Mauritius, Fiji and Samoa is 800, 1114.4, 1804.1 and 800 g/animal
respectively (FAOSTAT).
xxix
Babu and Shishodia (2017)
xxx
In Anjouan, the annual deforestation rate was 8 percent between 1995 and 2014. Between 2000 and 2005, the annual
deforestation
rate
in
Comoros
was
7.4
percent,
the
highest
in
Africa
(UN
2007).
https://rainforests.mongabay.com/deforestation/archive/Comoros.htm .
xxxi
Union
of
Comoros
–
Economic
Management
Guidelines
(2009)
http://www.lescomores.com/en/economy/agriculture.php
xxxii
Union
of
Comoros
–
Economic
Management
Guidelines
(2009)
http://www.lescomores.com/en/economy/agriculture.php
xxxiii
Agricultural land = 155,000 ha and arable land = 65,000 ha (World Bank). Population employed in Agriculture
= 69.963 (World Bank Poverty Assessment 2017)
xxxiv
Doing Business (2018)
xxxv
World Bank Climate Change Knowledge Portal
xxxvi
AQUASTAT (1999)
xxxvii
UNDP (2015)
xxxviii
The network covers a total of 834 km, 508 km of which approximately (i.e., 61%) in Grande Comore, 232 km in
Anjouan and 94 km in Moheli.
xxxix
The 2014 update of the road condition survey conducted under the Plan Directeur National des Transports Routiers
(PDNTR) revealed that 57.6% of the total road network (67.9% of the priority network) is in poor or very poor condition.
125
xl
In Colombia, a reduction in transit time led to a 50 to 200 percent improvement in agricultural productivity (World
Bank).
xli
Agricultural Census (2004)
xlii
The country's foreign trade is mainly carried out by the port of Mutsamudu (Anjouan), which is the only deep-water
port capable of accommodating large-scale vessels and which has a large and efficient loading and unloading equipment
enabling the shipment of large vessels which can be handled in less than a day. This port, where handling is conceded to
Anjouan Steevdoring Company (ASC, subsidiary of Steevdoring Mauritius), is a redistribution center for the main
regional ports. Traffic has grown steadily (about 32,000 containers in 2013 and nearly 40,000 by 2015), of which only
about 10% is destined for Grande Comoros. The Port of Moroni, in Grande Comoros, managed by Bolloré Africa
Logistics since 2012 under an agreement with the Comorian State and has experienced a significant improvement in its
facilities and equipment and in its management. However, with an average annual volume of about 10,000 containers, it
remains much less developed than that of Mutsamudu due to the shallow water that does not accommodate large vessels
on the one hand and its Close to the city center, which makes it very difficult to access it, especially during working hours,
in view of traffic congestion. At Mohéli, a port is being built, by extension of the landing stage of Fomboni; It should
make it possible to significantly improve the unloading and storage capacity of the goods, which were very low.
xliii
Modernisation of Comoros’ main port of Mutsamudu (Anjouan) could help position the country as a regional
transshipment hub. Comoros’ Port masterplan study conducted in 2014 indicates that Mutsamudu could reach a
transshipment traffic of 150,000 TEUs under the median investment scenario by 2030 (figure 10) provided major
infrastructure upgrades are realized to consolidate its fairly competitive position in the sub region. Indeed, Mutsamudu
needs to keep up with nearby ports which have comparable draughts (14 meters or more) and larger container terminals.
Installation of a trade free zone in the vicinity of Mutsamudu would also facilitate logistics and improve its
competitiveness as was done in Port-Louis, Mauritius.
xliv
World Bank, World Development Report 2013: Jobs for Development (Washington, DC: World Bank, 2012)
xlv
A large civil service captures a large share of public expenditures – the wage bill consumes three fourths of tax revenues
(World Bank Poverty Assessment 2017)
xlvi
A. Rahmn, “Investment Climate Reforms and Job Creation in Developing Countries. What Do We Know and What
Should We Do?” (Policy Research Working Paper 7025, World Bank, Washington, DC, 2014).
xlvii
Doing Business Indicators (2018)
xlviii
Early 2014, the banking and financial system consisted of 10 financial institutions approved by the Central Bank of the
Comoros: (i) 4 banks (Banque de développement des Comores, Banques pour l'industrie et le commerce, Exim-BanqueComores et Banque fédérale de commerce); (ii) 3 decentralized financial institutions (Union des Mutuelles d'épargne et de
crédit ya Komor (MECK), Union des Sanduk d'Anjouan et Union des Sanduk de Mohéli); (iii) and 3 financial
intermediaries (Société nationale des postes et des services financiers, la Maison comorienne des transferts et des valeurs,
et Comores assistance internationale).
xlix
World Development Indicators
l
World Development Indicators. Difficulties surround the enforcement of financial contracts in Comoros, especially in a
few notable cases where the recovery of claims by creditors has been stymied by weak judicial processes. Furthermore, the
uncertain legal environment has also led banks to lend against collateral that is linked to fluctuations in gold prices,
exposing some financial institutions to systemic market risk. Moreover, tightly-knit social relations in the Comoros also
hinder even-handed application of the law. Reinforcement of legal institutions, improving property rights and the quality
of collateral, and the rigorous and the systematic application of financial contracts are, therefore, critical for the health of
individual financial institutions, overall financial stability and further financial deepening ( IMF 2015, ‘Financial
Inclusion: Can It Meet Multiple Macroeconomic Goals’, Staff Discussion Note SDN/15/17.
li
When it underwrote 69% of price support financing due to agreed policies with the government.
lii
http://prod1-afd-mig.integra.fr/home/pays/afrique/geo-afr/comores/projets-comores/projet-finance-Meck-Moroni
liii
BCC Annual Report (2016)
liv
MECK Moroni
lv
https://www.themix.org/mixmarket/countries-regions/comoros
lvi
The MECK network offering loans over a maximum period of 5 years for agriculture, for amounts ranging from
100,000 KMF to 5 million KMF, with interest from 9%. The main conditions are collateral to an amount equal to 20% of
the amount of the loan. The Sanduk network proposes: (i) ordinary credits whose purpose is the financing of any income
generating activity for a maximum capped at 1.5 million KMF, payable in 2 years, a guarantee for a value of 150% of the
amount borrowed is requested; and (ii) the credit of solidarity savings to the attention of the poor in addition to financial
institutions, for an amount capped at 100,000 KMF, payable in 6 months. The rate of interest for agricultural productive
activities is 1%/month, calculated on the amount of principal outstanding. Land represents 90% of the guarantees provided
by borrowers.
126
lvii
In 2016, the Government of Comoros, made access to credit easier by establishing a new credit registry in the Central
Bank (DB16). However, only 9.8 percent of all adults are covered by a credit registry and this number is even lower
among agricultural producers (Doing Business Indicators 2018)
lviii
While the Chamber of Agriculture (CA) split from UCCIA in 2016, ostensibly to cater to specific needs of
agribusinesses, it has been unable to secure office premises, financial resources, and its legitimacy as a sector
representative is challenged by older organizations. (World Bank field mission interviews 2017)
lix
The first short list of participants in the contest "Dare to Undertake" was published by the Chamber of Commerce
and Industry of Ndzuwani (CCIA) last August. Out of the 167 projects related to the creation of companies that
have been submitted to the screening committee, 75 were retained, while 92 have been rejected for not satisfying the
required criteria. Among these pre-selected projects, 20 relate to agriculture, 18 to fisheries, 17 to livestock, and 6
to new technologies. Also, tourism and catering have five, and distillery has four, while two are in crafts and other
three in service provision.
lx
Al-Watwan news reports here and here (February 24, 2017)
lxi
UN Energy Profile, http://www.irena.org/EventDocs/Aboud_Presentation_SIDS_IRENA_workshop.pdf
lxii
UN Energy Profile
lxiii
Doing Business Indicators 2018
lxiv
World Bank Mission (2017)
lxv
http://www.thinkgeoenergy.com/comoros-islands-hopeful-for-up-to-30-mw-geothermal-potential/
lxvi
https://news.nationalgeographic.com/news/energy/2013/13/131223-earthspark-solar-micro-grid-haiti/
lxvii
https://poweringag.org/news-events/video/solar-milk-cooling-siaya-county-kenya
lxviii
The customary land tenure system is the legacy of the bantu migrants who were reported to be the first settlers on the
islands. Land is a common property for a village (community), a clan (lineage), or a family. Each and every family has
solely the right of use, and can exploit a piece of land or transmit the occupancy rights to his progeny as long as they
cultivate the parcel. Originally, common properties cannot be divided, nor privately appropriated to a member, neither sold
(especially to individuals outside the community). The rights to use or to occupy can be claimed by another member if the
land is left idling or abandoned. The social legitimacy of use or occupation rights on idling land is at the origin of many
land squatting and conflicts.
lxix
The manyahuli are theoretically the property of the daughters but they are in practice managed by uncles on the
maternal side. The sons do not hold the rights to claim the succession regarding the manyahuli. Sharecropping is also a
common arrangement between two families.
lxx
In the tenth century, the Sultans from Iran colonized the islands, and constituted the first Muslim community of
the archipelago. They brought in the Islamic socio – politic organization and laws, mainly referring to the Coran and
the Minadj-at-Twalibin writings. Village and community properties were rearranged into sultans’ domain called
usoyezi. Families and notables who pledge political allegiance to the Sultan were granted land use rights to the
usoyezi. The Muslim laws also allow the constitution of private property through the vivification (occupation and
valuing) of idling or abandoned land. These private parcels are called milk. The sultan or individuals can donate
parcels – called waqf – to the religious authority for the promotion and development of Islam. Apart from the
building of Mosque and Koranic school, the waqf can be leased out to private with the rent supporting the expansion
of Islam. The Sultan organization, instead of absorbing and replacing the community tenure, went to coexist with it.
lxxi
In 1886, the colonization (originally the protectorate) of the Comoros by France introduced the colonial, also
called French, modern, or State legal system comprising a set of laws issued during the colonial period
(specifically Decrees in 1911 and 1926), plus a more recent Civil Code adopted in 1975 that conveys the following
principles: (a) all lands belong to State domain except the preexistent recognized community tenure and the private
titled properties, (b) the State can transfer private property rights through land registration and titling process, (c)
colonial laws will strictly apply to affairs regarding titled lands. The colonial laws also retrieved former Sultan
properties into State domain (World Bank Mission 2018).
lxxii
Most of the rocky soils have poor – quality due to its eruptive volcanic origin which is easily eroded. As a
strategy to value small agricultural space, food crops are mixed (maize, banana, cassava) on a small plot – averaging
0.026 ha per household, each farm has an average of 2 plots (Bourgoin et al., 2016).
lxxiii
Land archives were burned and colonial concession were re-colonized by population on the field. State – own
land and forest have over the years been appropriated as community and private land.
lxxiv
These are new land titles issued after the revolution of 1975 – 1978. The concept of customary system is also
present in cities: each urban district is the property of a lineage. Urban households are requesting land title for two
127
main reasons, which have little to do with land securing: 1) it is mandatory to hold a private land title to obtain a
building permit, and 2) land title is currently used as a collateral for credit/ loan application with banks/ MFI.
lxxv
The absence of geodetic benchmarks, the exploitation of old – fashioned topographic material by agents who
were mainly trained on-the-job would raise the issue of the location reliability and the security of the mapping of
titled parcels.
lxxvi
Comoros scored 7.0, while the SSA average was 8.6 in the Quality of Land Administration Index (Doing
Business 2018).
lxxvii
With the recent development of decentralization and Communes in the Comoros, ongoing reflections open the
possibility of recognizing customary occupation as presumed private property.
lxxviii
250 and 600 US$ per square meter (Assessment report GAIC – 2iEC)
lxxix
Imani (2007) “Survey of Non-Tariff Barriers To Trade: Comoros”
lxxx
Comoros are members of the COMESA Free Trade Area (FTA), and imports from (and exports to) other
COMESA FTA member countries are thus exempted of custom duties (but other import taxes still apply). The
Union of the Comoros is also a member of the Southern Africa Development Community (SADC) and the Indian
Ocean Community (IOC), but the former has not established a free trade area and the latter is not considered a
regional economic community. Tanzania, has become a major trade partner of Comoros over the last decades thanks
to its cultural, linguistic and geographic proximity. However, it is not member of COMESA, and its exports to
Comoros thus do not benefit from any preferential tariff. A Tripartite FTA, regrouping COMESA, East African
Community (EAC) and SADC, is under preparation and should boost further regional trade. The membership to the
COMESA FTA will allow business operators to access to cheaper inputs, but it will also expose them further to
competition from highly competitive countries (such as Kenya for dairy and poultry).
lxxxi
World Integrated Trade Solution
lxxxii
World Bank mission (December 2017)
lxxxiii
IOC database
lxxxiv
In theory, exempted inputs only attract a fee of 1% of their value. In practice, obtaining this exemption is a
cumbersome process: the importer must be licensed as such by the Ministry of Economy and Finance, then has to
apply for an exemption from the same Ministry, for each importation. Exemption is granted by customs only if both
documents can be produced. This process is so cumbersome, lengthy and costly, that importers often prefer paying
taxes that going through this, especially for small and recurrent importations such as chicks. (World Bank mission,
December 2017)
lxxxv
State of the Seed Sector in Comoros (July 2010)
lxxxvi
The joint work between ANPI and the IFC Advisory Services has been targeting seven areas of the Doing Business
agenda: i) Enterprise creation: simplification of procedures for business registration; ii) Property title registry: revision of
the new general tax code and reduction of property registration costs; iii) Access to credit: adoption and promulgation of
the law on leasing; information and training courses for professionals at financial institutions; implementation of a Credit
Information Bureau; iv) Construction permits: Adoption of the new code of the urban planning which has reduced the
procedures, the cost and the duration of granting of permits; v) Execution of contracts: the establishment of the Court of
Arbitration and Mediation of the Comoros (CACOM) for facilitating the settlement of commercial disputes; vi) Cross-border
trade: work in progress for the simplification of import and export procedures (reduction in steps and of duration); In addition
to regulatory simplification and with IFC support, a steering committee and sub-committees for structured Public-Private
Dialogue around Doing Business indicators have been created, as have two “one-stop” business registries, a leasing
framework and an alternative dispute resolution framework. A study (together with the Bank of France) is underway for the
establishment of a credit information bureau. A new Competition Law is being enacted and various new codes have been
adopted (tourism, urbanism, etc.) The recent progress in the Doing Business rakings (a 10 point improvement in the ranking
for starting a business) is the result of these efforts. However, the advances made are for the most part formal, and full
implementation remains a priority going forward.
lxxxvii
Enabling the Business of Agriculture
lxxxviii
This data will be available in autumn 2018.
lxxxix
Tschirley, D., Reardon, T., Dolislager, M., & Snyder, J. (2015). The rise of a middle class in East and Southern Africa:
Implications for food system transformation. Journal of International Development, 27(5), 628-646.
xc
Exports are also made to Mauritius (2013 11t; 2015 26t; 2016 13t), but it is thought that these are then re-exported and
counted in the EU and US import figures and so are not included in this data.
xci
From Central Bank report. The discrepancy with 2014 data from EU & US is extreme. Central Bank data for 2015 is
likely to be correct, some minor exports having been made to markets outside the EU/US.
128
xcii
Since domestic clove production and exports are also high, Indonesia typically imports 5,000 to 10,000 MT. A significant
fall in Indonesian usage of clove in cigarettes would have a major impact on international demand and prices for cloves, as
Indonesia would become a substantial exporter into a reduced international market.
xciii
Total figure for 2016 is probably inflated by double counting in trade statistics, but estimates of exporters in Comoros
were also widely variable, ranging from 2,700 to 6,200 MT.
xciv
The drivers for price increases have been strong demand for all fractions, and prices have risen for all fractions. Prices
for the low quality troisième have risen sharply relative to the higher qualities as the margin to production of troisième was
so small that some distillers were stopping distillation after the high-quality fractions had been obtained.
xcv
Trade data for Europe, the major market, is not available for Madagascar, as the HTS code for ylang also includes clove
oil and naouli, both of which are also produced by Madagascar.
xcvi
It is not known whether these plantings have been made with the form genuina (matching Comoros) or macrophylla
(cananga), and if genuina whether the environmental conditions will give an oil with the quality characteristics to match
those of Comoros or Madagascar.
xcvii
Cananga oil produced in Indonesia and Philippines from the form macrophylla is not a direct competitor with ylang oil
but it can be used as an alternative to the troisième grade when supplies are restricted and/or the price differential between
the 2 oils is too large. Currently cananga oil is quoted at US$150/kg.
xcviii
Clove leaves are not currently used in Comoros, but clove leaf oil is a large volume market. Madagascar produces 1,000
to 2,000 MT annually and current prices are in the range US$15 to 18/kg. Clove stem oil is a standard product with current
prices around US$17.50/kg. Clove stems are currently a waste product in Comoros, although occasional purchases are
reported at around KMF 450/kg. With an oil content of around 15%, the raw material cost of production of the oil would
be in the range US$6.10/kg. Lastly, a niche market exists for clove bud oil. The oil is priced in relation to clove prices,
based on an oil content in the 15% range. Current prices are around US$24/kg.
xcix
Nutrizione Foods, started by entrepreneur Anturia Mihidjai, has led the processing and retailing of sago.
http://carrefourentrepreneursoceanindien.org/comores-le-sagou-au-coeur-du-succes-de-nutrizione-food/
c
World Bank (2015).
ci
Covering all three islands, the census was undertaken by sampling 12 agricultural holdings from each of 152
villages/localities (Primary Sampling Units). The enumeration took place in two phases: in the first phase data were collected
by enumerators through direct interview, on the demographic and socio-economic characteristics of the agricultural
holdings. In the second phase, 912 (i.e. a half of the selected SSUs) agricultural holdings were investigated with objective
measurements of area of parcels and crop density and yields.
cii
Natural meadows and rangelands, a substantial fodder resource for ruminants, are present only on the highlands of La
Grille and Karthala Mountains in Ngazidja. However, because of the distance to villages and transport networks, and because
of the unavailability of surface water in Ngazidja, they remain underused. In other areas, natural fodder resources such as
grassland are not present because of the high population density, but conditions are ideal for cultivation of tropical fodder
grasses such as elephant grass.
ciii
Along-the drier coastal areas, coconuts are a basic staple, with bananas, cassava, breadfruit and some maize is also
cultivated. Bananas, cassava and maize are also grown in the wetter, more fertile uplands, together with
rice, pigeon peas, yams and vegetables (World Bank 1984).
civ
Saline groundwater is available near the seashore, but requires treatment to be suitable for agricultural use. Underground
acquifers and low-yielding springs are common on the island.
cv
FAOSTAT data also show a shift towards coconut production and away from other non-cereal crops in terms of harvested
area this period, perhaps reflecting changes in relative prices, which are unavailable (Fig. 8). However, there is no
corresponding increase in exports of coconut products in the customs data, or evidence for greater local demand for coconuts.
cvi
Food Balance Sheets, 2014
cvii
FAOSTAT 2014
cviii
Comoros Embassy; Union of Comoros
cix
USAID (2016) Food Fortification Initiative
cx
Under a projected rise of 2 °C by 2050, the area suitable for cassava production is likely to increase significantly in
the upland areas of Anjouan, remain suitable in coastal regions, and marginally improve in the hostile, volcanic regions
surrounding Mount Kartala on Grande Comore (Bourgoin et al. (2016)).
cxi
Cassava yields in Comoros are 5.6 tons/ha, the lowest among its comparators Madagascar, Mauritius and Fiji.
cxii
Talsma et al. (2016)
cxiii
Seed Sector Baseline Study (July 2010)
cxiv
Dahari
cxv
World Bank (1984)
cxvi
National Investment Promotion Association 2016; Union of Comoros – Economic Management Guidelines 2009
129
cxvii
Labor force is estimated to be 245,000 (WDI 2014). The government estimated number of direct fishing jobs to be 8,500
and indirect to be 24,000 in 2009.
cxviii
Commonly used fishing gear includes mosquito nets and sheets, baskets or cages, iron pipes and spears, and a
hook and line (Hauzer et al. 2013).
cxix
FAO – Comoros Country Partnership Framework (2014)
cxx
On average, fishing catch is estimated to be 16,000 MT by the National Investment Promotion Association 2016 –
significantly less than production potential. However, the UN Environment Statistics estimate for the 2010 catch was 52,000
MT. At the individual level, fishing catch was estimated to range between 75 and 117 kg/month in Grande Comore’s fishing
villages in 2010 (Hauzer et al. 2013).
cxxi
The Comoros is situated on the migration path of tuna and swordfish, the main targets of industrial fishing off the coast
of East Africa. The Indian Ocean Tuna Commission has found that tuna species are not overfished, although swordfish show
signs of overexploitation.
cxxii
EU Parliament Press Release: http://www.europarl.europa.eu/news/en/press-room/20180312IPR99504/endingthe-eu-comoros-fisheries-deal
cxxiii
National Investment Promotion Association http://www.invest-comoros.com/fishing
cxxiv
UNCTAD (2017)
cxxv
COFREPECHE, MRAG, NFDS, POSEIDON, 2013. Évaluation rétrospective et prospective du protocole de l’accord de
partenariat dans le secteur de la pêche entre l’Union européenne et l’Union des Comores, Contrat cadre MARE/2011/01 Lot 3, contrat spécifique n° 4, Bruxelles, 111 pp
cxxvi
Comoros exports to all the major markets but exports have become increasingly focused on India, where it shares a
significant duty advantage with Madagascar and other LDC origins against Brazil and Indonesia.
cxxvii
Since new plantings require 9 years to start producing significant yields, this expansion is likely to be slow.
cxxviii
Producers sell sun dried cloves, which are not protected from dirt, dust, and animals, thus compromising the hygienic
status of the product. When it rains, cloves must be covered or collected inside as any wetting during this stage results in a
darker color. If left in heaps for too long before drying, cloves develop a whitish shriveled appearance (‘khoker’ cloves).
Exporters also complain that collectors frequently add extraneous matter and water cloves to add weight and packing too
many cloves into the sacks (60kg in a 50kg sack), thus crushing the buds and increasing headless cloves and a high
percentage of dust. Exporters estimate a minimum of 5% losses from these factors.
Storage of cloves is a critical factor, and significant loss of quality can occur if cloves are stored in poor conditions – loss of
color, development of molds and pest infestations, fermentation. While exporter warehouse facilities are usually adequate,
storage facilities with producers and collectors are frequently minimal.
cxxix
In practice, exporters often have to meet the International Standard (ISO 2254) or the buyers own standard. With the
exception of one exporter (AgriVentures) none of the exporters has any mechanical cleaning sorting or grading equipment.
None of the exporters has any re-drying facilities – all drying is by sun drying in the open.
cxxx
4 kg of fresh cloves with stems gives 1 kg dry cloves with stems; 3 kg of fresh cloves with stems removed gives 1 kg
dry cloves
cxxxi
The standard contract rates for clove harvesting (KMF200/KMF300 per kg) are not attractive on Grande Comore. These
would probably have to more than double to secure wider labour involvement, but no clear response was given on this issue.
cxxxii
Data for individual years presented in Figure 1 should be treated with caution as the level of double counting included
in the figures is not clear and it is assumed that exports to Mauritius are all re-exported to the EU/US. Uncontrolled
movement of beans between Madagascar and Comoros is also reported. The overall picture however is clear, from industry
reports from inside and outside Comoros and trends in the export data, that production has been in long term decline reaching
recent lows of less than 30 MT, but is now increasing on the back of new plantings made since 2014.
cxxxiii
Assocations of Producers, Préparateurs, Exporters and Office National de la Vanille
cxxxiv
There is always pressure from vanilla farmers to begin the harvest earlier from their need for funds (a single annual
harvest) and fear that beans might be stolen before harvest; and curers want to begin buying before others start and
competition pushes up prices. As a result, there is always some low level of ‘early harvesting’. However, when bean prices
are very high, as at present, all these pressures are increased significantly, and early harvesting levels increase. However,
of all the main origins, Comoros can be said to have the strongest level of control over start of the vanilla harvest.
cxxxv
This news report is an example of the quality decline taking place due to high prices.
cxxxvi
Enforcement of the green bean purchase price is variable. In general, as the price is published, all farmers know the
price and will not sell beans for less. In the current 2017 harvest season, those buyers who brought early harvested beans
before the official price was announced at lower prices than the official price, are being politically pressured through the
Office National de la Vanille to make an additional payment to growers to bring the price up to the official price.
cxxxvii
Survey results reported by Office National de la Vanille; survey data not seen
130
cxxxviii
In the short term significant increases in flower production can be achieved through improvements in field management
(particularly through imposing a pruning regime to maximize flowering). Well managed ylang trees should yield 10 kg
flowers/year, but under poor management (or with old trees) this will fall to an average of 5 kg or less.
cxxxix
The full physiochemical characterization of the different fractions is given in the International Standard (ISO
3063:2004) and comprises 5 parameters – Relative density, refractive index, optical rotation, acid value, ester value.
cxl
From Oliver de Bontin, (IFEAT 2006)
cxli
Additional tests for oil quality can be developed, but none is foolproof and they need to be compatible with use in the
field or in simple facilities. Buyers are now also using a lamp test (‘bougie’) to assess oils: when a drop of high quality
fraction is placed on a filter paper and heated, no residue should be left; if a residue is left, it indicates that the oil has been
manipulated. Optical refraction and refractive index can be assessed simply. If a clear characterization of the fractions could
be achieved with Near Infra-Red Spectroscopy, this would allow simple field testing, but this has yet to be tested. Where
tests indicate uncertainty about oil quality, then samples could be sent to regional laboratories for detailed Gas
Chromatograph (GC) analysis – the standard assessment of the factions in the market.
cxlii
Under a scenario of higher oil yields (from improved distillation technology and equipment and improved management),
returns to distillation can be substantially improved to generate sufficient revenues to finance investment in improved
distilleries. Where this is combined with development of sustainable commercial producer groupings based around
centralized distilleries, it will provide the basis for technical specialization, employment in the distillery as well as investment
in the necessary facilities and equipment.
cxliii
Modern layer strains reach a maximum laying pace (peak) at 30 weeks of age (around 0.9 egg per hen per day) but this
then decreases progressively to reach 0.8 at 70 weeks, 0.65 at 90 weeks and so on. The quantity of feed consumed remains
constant over this period. After 1.5 years of age, in the Comoros context, the value of production does not cover the
production costs anymore and animals must be renewed.
cxliv
BBC News https://www.bbc.com/news/world-africa-37617379
cxlv
The price differential is significant (+ 100 % for local chicken compared to imported “mabawa”, + 30% for whole
chicken). This explains the huge penetration of imported poultry meat in the local market (more than 99% of the market).
Only the cull layers (1,000 KMF per head) are somehow competitive with imported broilers, but their quality is much lower,
they require to be cooked for a long time and cannot be grilled as it is often the case for chicken in Comoros. Paying 50 to
100 % more for a local chicken is only acceptable by customers in very specific conditions, especially for ceremonies such
as grand marriage, where consumption of fresh whole chicken is preferred. The broiler producers therefore target this period
for production, because it’s the only moment of the year where customers will accept to pay such a surplus for chicken meat.
cxlvi
World Bank mission (December 2017)
Since we do not know the production costs of traders, we cannot evaluate the magnitude of this policy’s effects
on market prices. It is conceivable that if importers have a large enough profit margin, they could cut on their margin
in order to not pass on price increases to consumers, and maintain their market shares.
cxlviii
The broiler producers therefore target this period for production, because it is the only time of the year where
customers will accept to pay such a surplus for chicken meat. According to a major importer/ met during the mission,
the demand can be 4x during July and August. The impact on prices is however limited because the government
imposes a price limitation on strategic commodities during these seasons, and this includes poultry meat and
“mabawa”.
cxlix
Gates Foundation letter: https://www.gatesnotes.com/Development/Why-I-Would-RaiseChickens?WT.mc_id=20160608191716_CoopDreams_BG-TW&WT.tsrc=BGTW&linkId=25350277
cl
This estimate was compuled by triangulation of second hand information collected during field visits since there is no
recent official data about intensive poultry farms in the country. The 2004 agricultural census did not record
cli
There is no official data about intensive poultry farms in the country because the large majority of which are less than 15
years old. The 2004 Agricultural Census did not record animal populations, disaggregated by type of production (intensive
and free range), because it predated this value chain’s emergence. The number of farmers and animals is thus approached
by triangulation of second hand information during the World Bank mission.
clii
Exotic breeds (Brown Swiss, Holstein, Montbéliarde) have been introduced long time ago in this area and the local cows
are mostly crosses with 50 to 87.5 % of exotic blood, which are well adapted to the local conditions. The “grazing”/feeding
system is very peculiar: animals are kept tethered permanently on agricultural plots where they stay 2 to 3 months before
being moved to another plot. They therefore ensure the fertilization of the plot, and consume the crop residues if any. There
are no cow pens and animals are permanently outside, exposed to sun and rain. They are mostly fed with fodder crops such
as elephant grass (Pennisetum Purpureum), Guatemala grass (Tripsacum Laxum), associated with legume trees such as
glyricidia spp, which are grown between plots and act as anti-erosive devices. Animals are complemented with concentrate
feed, purchased locally. Anjouan is free of theileriosis and other major contagious diseases, and prophylaxis is therefore
quite simple (regular deworming and bi-annual vaccination against anthrax) and well applied by the majority of farmers.
cxlvii
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Cows are milked only once a day in the morning because farmers cannot sell the evening milk, because of the absence of
chilling and storage facilities; this of course limits the production but benefits to the calves. Male calves are kept up to 3
years and are sold for meat. AI services are available only from time to time (see below services) and farmers mostly use
local bulls, at a cost of 3,000 KMF per service.
cliii
Most of the intensive units are located around Moroni, especially in the area of Mdé, Vouvouni and Iconi, south of the
Capital.
cliv
In the scope of this project, they received imported cows (150 pure Holstein cows and heifers, imported from Tanzania),
on credit. GAD provided the technical support. The beneficiaries of this project created a local association, ADEC, which
is still active today. A large proportion (50% or more) of these cows did not survive, because of the very different climatic,
sanitary and feeding conditions, exacerbated by the very limited capacities of the recipients. Around 50 to 70 of these cows
have however survived, but many of them are kept in very poor conditions and are not even lactating because their owners
are not able to manage the reproduction aspects (detection of heats in particular). Majority of beneficiaries have thus not
repaid the loan to MECK. There are however in this group some farmers who are able to properly manage their animals and
generate benefits.
clv
The highlands of Grande Comore, especially the area of la Grille, are also suited to dairy production, because of the cool
climate and abundance of grass, but because of constraints of access and water availability, very few production units are
located there.
clvi
This system is in theory better than the Anjouan tethering system but most of these cow pens are not properly maintained
and cleaned and animals live in mud and dung which has an impact on their health and on milk quality.
clvii
Farmers grow fodder (elephant grass mostly) in dedicated plots, but with limited success, and they therefore also harvest
wild grass and weeds to feed animals. Some animals receive complements, but most of them are underfed. The hygiene
conditions are also very poor. In addition, most of the farmers do not properly treat their animals, despite the presence of
theileriosis in Grand Comoros, which is a major threat for cattle rearing.
clviii
In Grande Comore, the main sanitary problem is theileriosis that has been introduced from East Africa. It would be
difficult to envisage the development of a vibrant dairy sector on this island if this disease is not controlled. There are
different ways to control the disease including by controlling its vector, the tick, but the most efficient way to prevent it is
through vaccination. The vaccination process is complex and requires availability of liquid nitrogen clviii to store the vaccine,
and simultaneous injection of an antibiotic. This has an impact on the cost of vaccination, which is around 40 USD per head
(for a lifelong protection). However, considering the impact of the disease, the cost of good dairy animals and the price of
the milk, the benefit/cost ratio of this operation is significant.
clix
Artificial insemination: AI was introduced in Niumakélé by ID around 20 years ago and it has had a very positive
influence on the dairy sector. More recently, AI campaigns have been organized between 2010 and 2015 under the PNDHD
project (see para 16). Some AI technicians have been trained by these two projects, especially in Anjouan, where around
600 animals have been inseminated since 2010. The main problem that hinders the availability of AI services is the supply
of liquid nitrogen, which is needed for the conservation and storage of semen. The PNDHD project established a nitrogen
plant, but for unknown reasons, is was decided to locate it in Mohéli, which is by far the island where the demand in AI
services is the lowest. In Anjouan, where the demand for AI services is the highest, the AI technician cannot keep AI semen
stocks permanently because of the nitrogen issue, and they only organize scheduled campaigns, on synchronized heats. Most
of the cows are therefore served by bulls.
clx
Installation of processing units have been tried by various projects, but none have proven viable. A value chain project,
supported by UNDP, financed the establishment of two small processing units – for dried tomato, and juice and jam – with
two groups of women in Anjouan. Both units stopped operating after the project due to insufficient market assessment, lack
of working capital and inadequate capacity of the units to procure raw material, packaging and other inputs. Unpredictable
supplies and prohibitive packaging costs (glass bottles, jars and lids) are the binding constraints to successful operation of
any processing units (World Bank field visits).
clxi
Since 2012, inputs are exempt from all taxes and customs (Arrêtés conjoints n° 012-004/VP-MPEEIA/CAB et 012036/VP-MPEEIA/CAB et Arrêtés conjoints n° 17-004/VP-MAPEATU/CAB et 17-007/MFB/CAB portant exonération
totale des taxes et droits de douanes sur les intrants agricoles). However importers must have an approval of the MPEEIA,
renewable annually and establish an exemption for each import. Despite its provisions, the prices of inputs remains high
(see price list in Appendix 3) and the availability is still too uncertain. Fertilizer supply would cover 10% of the needs around
and often arrives too late at the producers (especially for vegetable production).
clxii
After the government withdrew from input supply, CAPAC, an importer association, was created in 2000 by the project
PAFIA (Projet d'appui à la filière des intrants agricole), placed under the control of the SNAC and endowed with a working
capital by PAFIA was able in the first years to play an important role in the import and the distribution of agricultural inputs.
Today the CAPAC no longer has own working capital, but continues to import and distribute inputs independently from
SNAC, but only on pre-financing of orders by customers.
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clxiii
Diagnostic du secteur agricole comorien à partir des volets transversaux du PDDAA (NEPAD). Saïd Mahamoudou,
mars 2015.
clxiv
Specialized private companies, such as COMAGRO at Moroni and Réseaux agricoles at Mutsamudu (Anjouan), provide
import and distribution of agricultural inputs and also provide technical advice to the farmers, while trying to ensure adequate
and continuous availability of inputs. National federations of producers (FNAC and the SNAC) import and distribute also
from time to time inputs to their members. Other non-specialized traders sell, from time to time, inputs, but without concern
for their origin or their quality. Finally shops, like Doigts Verts at Moroni, stopped distributing inputs recently.
clxv
Tomato paste in a tube is widely consumed in Comoros households. Tomato paste is imported from the Middle East or
Asia and the selling price in shops is 1,150 KMF / kg. At this price, the local transformation of tomato concentrate is difficult
to envisage.
clxvi
The rights to rent a space at Mutsamudu Bazari market location is 3,000 – 6,000 KMF per month, depending on the size
of the location and the level of facilities provided.
clxvii
Modern distribution is still in an embryonic state clxviiand limited to the capital and the main towns of region. 4
supermarket chains of Moroni: Komocash (5 stores); MAG-Market (3 stores); Sara-Market (3 stores) and Sawa-price (6
stores). Single Mag-Market distributes vegetables and fruits premisesclxvii MAG Market sources mainly from 2 producers
who regularly deliver vegetables. The delivered products are paid by check, once a month. MAG-Market also sells vegetable
(onion, garlic, potato) products imported from the sub-region. The delivery of fruit is not regular, because of the very marked
seasonality of production. There is also, in Moroni, a few points of sale, specialized in fruit and vegetables (SNAC/UWEZO,
FNAC-FA), private specialty stores. The point of sale UWEZO remains very rudimentary, prices are attractive but it is a
very limited supply of product. The specialty store, Rabissi Djema, visited by the mission, is installed in a large wellappointed room, with many refrigerators. But at the time of the visit, the store was virtually empty, the palette of horticultural
products was limited to 4 products.
clxviii
Production cost have been estimated with the use of inputs of good quality, in optimal doses, at the market price.
Necessary labor was counted, to ensure good crop husbandry, relying on average the use of 20% of employee at 2,500
KMF/working day.clxviii The yields taken into account are yields expected in relation to the level of crop husbandry and
inputs provided. Production level takes into account loss in the field estimated between 10 and 25%, depending on the level
of perishability of the products. The products prices are average prices reported by the interviewed producers. The transport
costs of the products to the market, currently supported by producers and representing 4 to 7% of production costs, have
been included in the calculation of the costs.
clxix
CAADP provides a set of principles and broadly defined strategies to guide national strategies or “compacts”. Among
the key targets of CAADP are a 6% annual growth in agricultural GDP, and an allocation of at least 10% of public
expenditures to the agricultural sector. 41 African Union Member States have signed CAADP compacts, 33 of which have
developed formal national agriculture and food security investment plans.
clxx
Stratégie de croissance accélérée et de développement durable 2015-2019 (SCA2D) (Mai 2014)
clxxi
NEPAD arose from a mandate given by the OAU to the Heads of State of Algeria, Egypt, Nigeria, Senegal and South
Africa to develop an integrated socio-economic development framework for Africa. The resultant framework was adopted
by the OAU in July 2001. (www.nepad-caadp.org)
clxxii
Benin (2016)
clxxiii
Strategie Industrielle Nationale Basee sur la Transformation par les MPME/PME des Ressources Locales aux Comores
(December 2017)
clxxiv
Management of public finances is strongly influenced by the complexity of the political and institutional system. The
Union combines a centralized system and a strong autonomy of individual islands. Union law takes precedence over that of
islands and is binding on all of the Union. In this institutional configuration, management of public finances involves several
entities, including National Assemblies (AN), the executive, and finance ministries and treasuries of the islands and Central
government. The budget and treasury management is based on the sharing of responsibilities for tax and budget between the
central government and those of the islands.
clxxv
law n°95-09/AF, decree n°95-106
clxxvi
Programme National de Développement Humain Durable (PNDHD) (2013)
133