BMGF Sub-Saharan Africa Vegetable
Market Opportunity
Macro Opportunity Assessment
12 January 2009
6 of 80 Slides
Certain vegetable commodities are prominent across Africa – in particular
tomatoes and onions constitute ~20-35% of vegetable consumption in SSA
Tomatoes and onions are the two most consumed vegetables in SSA
constituting between ~20-35% of vegetable consumption within each region
Exotic:
• Primary
• Tomatoes
• Onions
• Secondary
• Peppers
• Cabbage
2003 Consumption of vegetables in SSA
(in M’s of tonnes)
100%
12.2
4.8
2.3
2.1
90%
80%
70%
60%
76%
79%
66%
Other
Vegetables
6%
14%
Onions
22%
20%
Tomatoes
72%
50%
40%
30%
20%
10%
9%
9%
15%
12%
West Africa
East Africa
0%
Central South
Africa Africa
Main vegetable commodities in both
West and East Africa
Indigenous:
• Primary
• Amaranth
• African eggplant
• Okra
• Secondary 1
• Spider plant
• Night shade
 As incomes rise people tend to shift
from consumption of indigenous to
exotic vegetables
 Growing demand for exotic
vegetables in urban areas
particularly tomatoes and onions
1) Demand varies by country and
regionally within a country
Note: Consumption includes both fresh and processed vegetables, including watermelons and other melons
Source: FAO; expert interviews
1
Tomatoes have relatively high nutrition balance scores and are the most locally
produced vegetable in SSA
2007 SSA vegetable nutrition and availability analysis
95
Asparagus
Spinach
Lettuce and chicory
90
Vegetable
nutrition
balance score
(NBS)1
85
Okra
Pumpkins, squash and gourds
Cabbages and other brassicas
80
Peas, green
Artichokes
Tomatoes
75 Eggplants (aubergines)
Carrots and turnips
Cucumbers and gherkins
70
65
60
Garlic
Production
statistics on
African
indigenous
vegetables
are not
widely
reported, but
nutrition
balance
scores for
certain
indigenous
vegetables
are: reported.
NBS:
Amaranth: 79
Kale: 85
55
Onions, dry
50
0
1Source:
www.nutritiondata.com
2Source: FAO Production statistics
3Note:
500
1,000
1,500
2,000
2,500
3,000
3,500
2007 Sub-Saharan Africa Vegetable production (in Ks of tonnes)2
Used “lettuce, green leaf” balance score for ‘lettuce and chicory” balance score; used “carrots” balance score for “carrots and turnips
balance score, used “cucumbers” balance score for “cucumbers and gherkins” balance score; used “cabbages” balance score for “cabbages and 2
other brassicas” balance score
Many indigenous vegetables have high nutritional content, they are relatively
very high in calcium, vitamin C and iron as compared to onions and tomatoes
Indigenous Vegetables
5.8
2.7
0.4
4.4
2.2
0.5
3.2
1.7
1.7
1.1
0.9
0.6
135
157
157
9
10
3
0.2
44
120
1.3
3.5
186
113
37
1
1.1
194
75
0.9
3.3
0.9
0.2
3
1.8
4.6
0
4.4
270
42
23
7
30
9
Note: assume headed
cabbage is exotic; need
to confirm if leaf
cabbage is considered
indigenous or exotic
Source: "Advancing urban agriculture through use of indigenous vegetables: African experiences; Chapter 3”, by Ray-Yu Yang and Gudrun B. Keding
3
Across all vegetable commodities significant challenges exist along the value
chain for vegetable production by smallholder farmers
Challenges
Inputs
• Input scarcity (i.e. water, quality seed)
• Inability to afford quality inputs
• Cost/ availability of irrigation
•
•
•
•
Production
Wholesale /
Processing
Market Access /
Retail
Low productivity – low yield
High waste
Quality levels not met
No planning, plant what neighbor plants
Finance
PRELIMINARY
• High cost/ limited access and/or information of highquality inputs
• Little-to-no use of irrigation
• Cannot afford to finance inputs upfront
• Poor farming techniques – limited training available
• Limited use of pest/ disease management, and poor storage
facilities
• Limited market information – limited commercial mindset
• Farmer is a price taker due to limited
market access and product perishability
• Consolidation of produce
• Poor quality and inconsistent supply
• Limited local processing to meet demand
•
•
•
•
• Difficult for smallholders to access
market directly
• Farmers receive low price for produce
• Fragmented retail market for fresh vegetables – primarily sold
in wet markets and kiosks (though “super-marketization”
underway)
• Poor wet market infrastructure (crowded, unsanitary, poor
storage facilities, etc.
• Lack of cold-storage capacity – many
vegetables are highly perishable
• High transport cost
• Poor post-harvest infrastructure/cold-chain
• Poor/undeveloped roads, ports, transport links
• Difficult to access financing
across value chain (farmers,
processors, etc.)
• Lack of available affordable financing
• Farmers cannot afford to finance inputs
Retail / Trade
Logistics
Why?
Source: Dalberg analysis; expert interviews
Many steps in distribution channel – value captured across chain
Farmers are widely disbursed and have low production volumes
Poor post-harvest infrastructure, cold-chain
Poor quality
4
Executive Summary
• With regard to vegetable markets in Sub-Saharan Africa, West Africa is the largest and most attractive region for investment
to increase smallholder farmer income
– West Africa consumes two and a half times more vegetables than East Africa, and comprises 60% of the total vegetable
consumption in Sub-Saharan Africa (SSA)
– Even on a per capita basis, West Africa consumes over twice the amount of kg per year (48kg) than any other region in SSA,
although none come close to the WHO recommended minimum (73 kg/year)
– Nigeria alone makes up 35% of total vegetable consumption in SSA, and 62% of the consumption in West Africa
– While most of the vegetables consumed are produced locally, West Africa imports at least 4% of their consumption from
outside of the region, most of which is from Europe, indicating they cannot meet demand locally
• Three opportunities stand out to increase smallholder farmers income in the vegetable value chain
– Tomato Paste: Many West Africa countries are importing tomato paste from Europe and Asia. In 2003, Nigeria and Ghana
imported 46K tonnes ($51M) and 31K tonnes ($30M) of tomato paste, respectively. Though the local processing sector
requires further development, there is an opportunity to source fresh tomatoes locally or regionally , reaching 32-94K
smallholder farmers, increasing their revenue by up to 700% if the necessary interventions occur (irrigation, training , etc.)
– Onions: There is also a large market for onions in West Africa; in 2005 187K tonnes ($26M+) were imported a year from
Europe into four countries (Senegal 95K, Cote d’Ivoire 44K, Guinea 24K and Mauritania 24K). There is an opportunity to
either source this locally or through regional trade, reaching 12-37K smallholder famers and increasing their revenue by up to
300%
– Processed vegetables: There is a large and growing global market for processed vegetables. There are opportunities to
link smallholder farmers to vegetable processors focused on out-of-region export. Frigoken in Kenya works with up to 65,000
smallholder farmers increasing their income by up to 400% ; this model could be expanded and/or replicated
• To capture these three opportunities, interventions with different partners are required
– Though the challenges and risks vary across the three opportunities, there are some common themes:
– Support smallholder farmers through enhanced production and post-harvest handling techniques, including improved
seed; irrigation; etc.
– Organize farmers for ease of implementation
– Link farmers to a guaranteed, transparent market that they can rely on to sell their goods
– Support local processors, where relevant, through soft-financing, managerial training and business model advice
5