I

Agricultural and rural trajectory of Madagascar

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Presentation ofMr. Alain PIERRE BERNARD

M’Bour, Senegal11 to 13 April 2006

MADAGASCAR

Plan

1- Main structural characteristics of the agriculture sector

2- Evolution of agricultural and rural policies

3- Perception of the big challenges

1. Main structural characteristics of the agricultural sector

• 50% of Madagascan population is under 20 years-old

• 73% of Madagascan population: rural

• Primary sector: 34 % of GDP

• Rural population concentrated in certain geographic areas:

- Areas of land saturation (High Lands)

- Areas potentially exploitable but very little exploited.

1. Main structural characteristics of the agricultural sector

• Big diversity of activities in the Island:

- Food-producing cultures (Rice: everywhere)

- Tropical cultures (Coffee, Vanilla, Litchi…: coastal areas)

- Temperate cultures (vegetables and fruits…:High lands)

- Extensive farming

- Fisheries.

1. Main structural characteristics of the agriculture sector

• Low productivity:

- Technical problems - Low input use - Non-compliance with norms - Low mechanization

• Agriculture is often little monetarized in the inner country.

1. Main structural characteristics of the agriculture sector

• 50% of exports and 9% of imports

• Main exports :Milliards FMGMilliards FMG 19951995 19981998 20002000 20012001

Vanilla 165,8 120,0 390,3 955,2

Shrimp 120,0 425,9 619,1 602,7

Litchi 390,3 78,8 94,7 53,7

Sugar 955,2 33,9 43,1 35,6

Coffee 263 277,3 54,8 21,1

2. Evolution of agricultural and rural policies

• Different periods :

Beginning of the 1970s: nationalization

Mid-1980s: reforms with the process of structural adjustment

Beginning of 1990s: liberalization and disengagement of the State

PNDR in DSRP 2003

Vision Madagascar naturellement and MAP

Decentralization

2. Evolution of agricultural and rural policies

•Past and current processes of structural changes:

Processes of structural adjustment in Madagascar

Trade liberalization

Export sector liberalization

Foreign exchange liberalization

Foreign and home trade liberalization

Pursuit of foreign exchange liberalization (WTO, SADC, COMESA)

Existence of preferential markets (APE, AGOA…)

2. Evolution of agricultural and rural policies

•Past and current processes of structural changes:

Impacts of the processes

Increase of consumer prices without an improvement of the producer prices (except for the rice)

Diversification of agricultural products

Drop of the place agreed for the traditional export cultures

Emergence of non traditional export products (fishing products, essential oils, fruits, vegetables…)

2. Evolution of agricultural and rural policies

•Role of Donors:

Financial support in the process of structural adjustment (WB, IMF, EU…)

Technical and financial assistances (EU, AFD, SCAC, CTHA, CTHT, USAID, BAMEX...)

Development of commercial partnerships (AGOA…)

2. Evolution of agricultural and rural policies

•Local actors:

Government: current reflection a driving schema for the development of the agricultural sector - PPIC – LPDR – MCA …

Regions: regional plans for development (PRD built in the PRDR) – Communal Plan for Development (PCD)- Program ACORDS…

Financial institutions: BOA, BNI, OTIV, CECAM, CIDR, ICAR…

2. Evolution of agricultural and rural policies

•Several intervening parties:

Producers

Merchants with the intermediate parties

Indirect actors: various associations (portage of information, production of seeds…)

Authorities: technical services decentralized in regions, communes

Consumers

Peasants organizations, NGOs, Projects, Researchers…

3. Perception of the big challenges

•Constraints faced by operators:

Technical constraints:

Low use of inputs

Respect of norms

Low mechanization

3. Perception of the big challenges

•Constraints faced by operators :

Financial constraints:

Weaknesses of the agricultural credit

Heavy conditions for granting credits

3. Perception of the big challenges

•Constraints faced by operators:

Organizational problems:

- Weakness of the producers and chain commodities’ organization

Weakness of the access to land:

- Few titled areas

- Existence of saturated land areas

Weakness of the agricultural services

Weak professionalization…

3. Perception of the big challenges

•Constraints faced by the operators:

Commercial constraints:

Access to information

Regularity of the offer

Prospective new markets

Normalization

3. Perception of the big challenges

•Constraints faced by operators:

Constraints in logistics and infrastructure

Lack and low quality of infrastructures

Weakness of the administrative structures

Deficit in information and difficulty in accessing it

Insufficient and often non adequate scientific and technological research

3. Perception of the big challenges

• Economic objectives posted in the territory:

Continuation of the rural economy towards the industrial economy

Increase in agricultural production and agricultural exports

Development of the agro-industrial production

3. Perception of the big challenges

•National program of rural development (PNDR) :

To guarantee good governance in the agricultural sector

Promotion of diversification and transformation of agricultural products

To facilitate access to land capital

To increases agricultural productivity

To attain international norms on quality to develop agricultural and agro-industrial exports

3. Perception of the big challenges

• Other big challenges:

Management of too many agricultural economically active population

Management of the competition of imported products

Conquest/re-conquest of export markets, regional (SADC, COMESA, …) and international

3. Perception of the big challenges

• SYNERGIE OF ALL ACTORS

• COHERENCE OF POLICIES

Misaotra tompoko

Merci beaucoup pour votre attention

Muchas gracias

Thank you very much for your attention

Choukran