Analysis of Response of Peanut Production in French West Africa: Policy Implications of Currency Devaluation

Approach

The goal of VPI 09S was to use a profit function model with supply and input demand functions so that responsiveness to price changes, policies, and other factors could be assessed. An M.S. Student – Ebere Akobunbu, Senegal (completing thesis in August 1997) – contributed to the initiation of the project.

Achievements

Progress has been slow in finalizing the analyses of data collected from the Kaolak and Fatick regions of Senegal. The data have not met the desired suitability for rigorous analyses. The situation in West Africa, with regard to market structure, price signaling, and household propensities to consume and produce are not synonymous with conditions in the U.S. (the West). Hence, the approach and assumptions heave required some adjustments. The groundnut market in Senegal has not traditionally been an “open” market, and the farmers have usually been price takers, i.e. they sold at whatever price was offered by government buyers. Farmers generally have accepted the government prices and there has been little variation in prices.

Focus

Socioeconomic forces