17
grains from Niger’s border area, exacerbating in this way its production deficit (CILSS et al,
2008). This asymmetric integration is particularly marked with Nigeria, a country with a GDP
twenty times that of Niger. Unofficial cereal exports to Northern Nigeria may occur even in
food crisis years if prices in Nigeria and Naira/CFAF make selling in that market more
attractive (as observed after the poor 2001 and 2004 harvests).
Policies to encourage food production
As indicated in section (i), in Niger attempts at raising land yields and cereal production per
capita generated limited results. Public policy in this field changed drastically over time. In
the early days, the state cereal marketing and food security board OPVN managed most food
trade at a price set by the state, stabilized food prices, maintained a food security reserve, and
provided subsidized inputs to farmers. Import taxes were abolished and the focus of the new
food security policy was on increasing agricultural productivity through a combined
distribution of subsidized inputs and agricultural loans, support to basic food crops
production and strengthening of institutions for their commercialisation (Republique du
Niger, 2000). As a result, the production level and producer prices for cereals, cowpeas and
groundnuts increased considerably between 1973 and 1983 (Hamadou 2000).
As in other African countries, this policy - in which both the input and output prices differed
from free market prices - was abandoned in the early 1980s following the introduction of
structural adjustment programs (SAP) which focused on ‘getting the prices right’ and on
improving allocative efficiency. This change in policy started as an autonomous decision
taken in 1982 by the government to face the unbearable burden resulting from 10 years of
high public investments and was then endorsed by the International Institutions in 1983 (Mas
& Naudet 1992). The reforms of the 1980s and the 1990s had important implications for the
functioning of Niger’s agro-food sector (World Bank 2009). With the signature of the 1983 IMF
Standby agreement, the role of OPVN was drastically reduced. The number of its marketing
outlets was cut, its price stabilisation role was abolished and only the task preserved was that of
managing a much reduced food security reserve. In 1986, fertilizers subsidies were cut, and
private trade and food prices were liberalized, while in 1993 and 1995 veterinary services
were privatized and the trade in veterinary products was completely liberalised ( FAO 2010c).
The abolition of trade restrictions and distorted producer subsidies and the increase in
producer prices were expected to stimulate production and raise incomes in the agricultural
sector (Balassa 1986). In reality, however, these measures did not always translate into higher
producer prices (Tollens 2009) and, even where they did, the price elasticity of aggregate
food supply turned out to be very low (Binswanger 1989). Thus, these policies broadly failed
in Niger as well as in other SSA countries affected by severe market imperfections,
inadequate infrastructure, and – particularly - lack of investments in agricultural research.
Indeed, in such places, output is more responsive to non-price factors, such as technology
improvements (Chibber 1989, Binswanger 1989) than to price incentives. Thus, despite these
attempts at confronting the structural weakness of Niger’s agriculture, the dependence of the
country on climatic factors, backward farming techniques, limited input use and extreme price
fluctuations did not decrease, while the liberalisation of agricultural trade and prices did not
succeed in stimulating production. As a result, agricultural production per capita decreased
by 20 percent during the 1980s, cereal imports rose to 7.8 percent of total consumption
(Tinguiri 1992), while between 1979-1981 and 1990-1992 the daily caloric intake dropped by
5.6 percent and the consumption of meat/person/day fell from 64 to 53 grams (Blein et al.
2008).
A particularly controversial change concerned the outright elimination of farm credits
18
and fertilizers subsidies which worsened the terms of trade of agriculture and delayed the
application of more input-intensive techniques (FAO 2010c, Marou Dodo 2005).
No major policy change has occurred since the late 1990s in terms of output diversification
through the development of dry-season crops, which require better access to modern inputs,
labour-intensive water-conservation techniques and – as a precondition for these increased
investments – security of land tenure. A recent survey shows that the rate of adoption of
improved seeds in some areas in Niger decreased from an average of 69 % between 1997 and
2001 to 48 % in 2002, as a result of the increasing costs and inadequate supply of improved
seeds and fertilizers (Sani and Bagna 2007). To this day, the use of modern inputs and
especially fertilizers (the lowest in CEDEAO after Sierra Leone, Blein et al. 2008) remains a major
problem (Table 2). Similarly, agricultural R&D spending
13
decreased from 15.6 percent per
year during the 1970s (Mazzucato & Ly 1993) to 3.0 percent between 1981 and 1993 (Stads et
al. 2004). In 2001, Niger invested only 0.17 USD per every 100 USD of agricultural output, one
of the lowest ratios in Africa (ibid.) and lower than the value recorded in 1981 (0.37) and 1995
(0.64).
Food prices
The price of millet rose slowly during the first half of the 2000s (Figure 6). However, between
2006 and 2010 millet prices showed a steady upward trend despite the surplus harvests
recorded in 2007, 2008 and 2009
14
. On the other hand, starting from 2007 the inter-annual
volatility has fallen (see later).
Figure 6 - Niger: millet price (CFA per kg) and its trend, monthly data
(January 2000 - December 2010)
0
50
100
150
200
250
300
350
J
a
n
-0
0
J
a
n
-0
1
J
a
n
-0
2
J
a
n
-0
3
J
a
n
-0
4
J
a
n
-0
5
J
a
n
-0
6
J
a
n
-0
7
J
a
n
-0
8
J
a
n
-0
9
J
a
n
-1
0
Millet price CFA
Trend
.
Note: The long-term trend component has been obtained with the Hodrick-Prescott Filter.
Source: Authors’ calculation on FewsNet data
13
In 2001, the National Agricultural Research Institute of Niger (INRAN) accounted for three-quarters of the
country’s total agricultural research staff and close to 60 percent of agricultural research spending. Between
1991–2003, over half of the budget of INRAN was generated from a World Bank loan, 30 percent was contributed
by the Nigerien government and the rest was provided by donors and public and private enterprises (Stads et al.
2004)
14
The progressive specialization of Benin, Burkina Faso and Mali in non-food cash crops (especially cotton) raised
their cereal import needs and reduced cereal-trading opportunities within the Sahel. For Niger this has meant higher
costs, and greater dependence from outside Sahel to satisfy domestic needs.