Senegal’s peanut export ban sparks concerns across sector
SENEGAL – The Senegalese government’s decision to suspend peanut exports for the 2024/2025 marketing season has triggered widespread concern among farmers, exporters, and oil producers.
This agricultural sector, vital to the country’s economy, now finds itself at a crossroads, with stakeholders voicing frustrations over disrupted market dynamics.
Sonacos, Senegal’s leading oil producer, has faced significant setbacks this season. Despite aiming to collect 300,000 tons of peanuts, the company has managed to secure only 76,424 tons so far.
The company blames the shortfall on financial constraints arising from the government-mandated floor price of 305 CFA francs per kilogram, up from 280 CFA francs last year.
Private storage operators, who act as intermediaries by buying peanuts from farmers and selling them to factories, are charging Sonacos 335 CFA francs per kilogram.
This increase has placed additional pressure on Sonacos’ cash flow and stalled purchases in key regions of the groundnut basin, which stretches from the north to the center-west of Senegal.
The export suspension, implemented on November 15, has severed critical ties between peanut producers and international buyers.
Historically, exporters have offered significantly higher prices—ranging between 300 and 500 CFA francs per kilogram—compared to local buyers. This disparity has left many farmers feeling shortchanged.
“We were hoping for at least 500 CFA francs to reward our efforts, but the government has disappointed us,” said Cheikh Tidiane Cissé, Secretary General of the Farmers of the Groundnut Basin.
Producers have voiced frustrations over the new floor price and limited market options. While some have reluctantly sold to Sonacos, others are reportedly selling to traders at rates below the government-mandated price, risking financial losses.
Prime Minister Ousmane Sonko defended the government’s stance, stating, “We were forced to arbitrate taking into account the interests of producers and oil producers.” However, with mounting dissatisfaction among farmers, the policy has left many feeling unheard.
Exporters, meanwhile, remain in limbo. Although the government promised to issue export permits once local processors like Sonacos are adequately supplied, no such authorizations have been granted yet.
This delay comes at a critical time, as global demand for peanuts surges. China, grappling with a poor harvest, has shifted its focus to suppliers like Sudan and India. Senegal risks falling behind competitors despite producing over one million tons of peanuts annually.
Senegal’s peanut sector saw significant growth during the 2023/2024 campaign, with production rising by 12% to 1.67 million tons.
The cultivation area also expanded by 2.3%, surpassing 1.2 million hectares. The government supported farmers by allocating USD 46.6 million to subsidize peanut seed purchases.
However, the temporary export ban, meant to ensure sufficient domestic supply, has cast a shadow over these achievements.
For farmers and exporters, the coming months will determine the long-term impact of the policy. “A good responsiveness of the authorities, for the lifting of the suspension in time, is necessary to avoid a significant loss of income for Senegalese producers,” warned a recent report by N’kalô.
Senegal’s peanut export ban sparks concerns across sector
SENEGAL – The Senegalese government’s decision to suspend peanut exports for the 2024/2025 marketing season has triggered widespread concern among farmers, exporters, and oil producers.
This agricultural sector, vital to the country’s economy, now finds itself at a crossroads, with stakeholders voicing frustrations over disrupted market dynamics.
Sonacos, Senegal’s leading oil producer, has faced significant setbacks this season. Despite aiming to collect 300,000 tons of peanuts, the company has managed to secure only 76,424 tons so far.
The company blames the shortfall on financial constraints arising from the government-mandated floor price of 305 CFA francs per kilogram, up from 280 CFA francs last year.
Private storage operators, who act as intermediaries by buying peanuts from farmers and selling them to factories, are charging Sonacos 335 CFA francs per kilogram.
This increase has placed additional pressure on Sonacos’ cash flow and stalled purchases in key regions of the groundnut basin, which stretches from the north to the center-west of Senegal.
The export suspension, implemented on November 15, has severed critical ties between peanut producers and international buyers.
Historically, exporters have offered significantly higher prices—ranging between 300 and 500 CFA francs per kilogram—compared to local buyers. This disparity has left many farmers feeling shortchanged.
“We were hoping for at least 500 CFA francs to reward our efforts, but the government has disappointed us,” said Cheikh Tidiane Cissé, Secretary General of the Farmers of the Groundnut Basin.
Producers have voiced frustrations over the new floor price and limited market options. While some have reluctantly sold to Sonacos, others are reportedly selling to traders at rates below the government-mandated price, risking financial losses.
Prime Minister Ousmane Sonko defended the government’s stance, stating, “We were forced to arbitrate taking into account the interests of producers and oil producers.” However, with mounting dissatisfaction among farmers, the policy has left many feeling unheard.
Exporters, meanwhile, remain in limbo. Although the government promised to issue export permits once local processors like Sonacos are adequately supplied, no such authorizations have been granted yet.
This delay comes at a critical time, as global demand for peanuts surges. China, grappling with a poor harvest, has shifted its focus to suppliers like Sudan and India. Senegal risks falling behind competitors despite producing over one million tons of peanuts annually.
Senegal’s peanut sector saw significant growth during the 2023/2024 campaign, with production rising by 12% to 1.67 million tons.
The cultivation area also expanded by 2.3%, surpassing 1.2 million hectares. The government supported farmers by allocating USD 46.6 million to subsidize peanut seed purchases.
However, the temporary export ban, meant to ensure sufficient domestic supply, has cast a shadow over these achievements.
For farmers and exporters, the coming months will determine the long-term impact of the policy. “A good responsiveness of the authorities, for the lifting of the suspension in time, is necessary to avoid a significant loss of income for Senegalese producers,” warned a recent report by N’kalô.