Main Article Content
Livestock is a strategic sector that occupies nearly 60% of rural households and accounts for 4.3% of Senegal's Gross Domestic Product (ANSD, 2016). The dairy sector plays a decisive role in this sector, given its importance in the food security of the population and the income it generates (Alari et al, 2011). However, national milk production is in deficit; the country relies on imports of large quantities of milk powder, 25,000 tons/year, to cover its consumption needs (MEPA, 2016). These imports weigh heavily on public finances, up to 60 billion FCFA/year, thus accentuating the trade balance deficit, which was 2,977 billion FCFA in 2016 (ANSD, 2018). The analysis of the milk value chain highlights, in addition to the difficulties of securing production in the dry season, the poor access to energy in production areas (Enda Energie, 2015). Thus, in these localities, the milk can neither be preserved nor processed to be valorized and allow producers to earn stable incomes. It is in this context that a milk valorization platform was installed in 2016, in the village of Tatki located in a dairy basin in northern Senegal. After two years of operation of the platform, the financial results showed real difficulties in making the business of selling fresh milk to dairy industries profitable, given the landlocked nature of the area. Indeed, the cost price is 320 CFA francs per liter, for a price proposed by the industrialist set at 325 CFA. According to economic calculations, the floor price of a liter of fresh milk should be set at 550 CFA francs, for a minimum average commercialized volume of 471 liters per day, within the framework of a concessional credit at a rate of 5%. These conditions do not correspond to the reality of the current market and could not be applied without a subsidy. Thus, in order to make the platform profitable, it seems essential to add value to the milk by processing it on site. In this regard, the production of yogurt has given very interesting results that could be replicated in other villages in the northern zone. The financial analysis of the activity, for financing at a subsidized rate of 7.5% per year for a period of 7 years and a deferred repayment of 2 years, shows a rate of return of 18% for a period of 15 years, when local milk is processed into yogurt. The wealth generated (10% NPV) amounts to 227,269,450 FCFA and the time to recover the capital invested is 3.90 years.
This work is licensed under a Creative Commons Attribution-NoDerivatives 4.0 International License.
Submission of an article implies that the work described has not been published previously (except in the form of an abstract or as part of a published lecture or academic thesis), that it is not under consideration for publication elsewhere, that its publication is approved by all authors and tacitly or explicitly by the responsible authorities where the work was carried out, and that, if accepted, will not be published elsewhere in the same form, in English or in any other language, without the written consent of the Publisher. The Editors reserve the right to edit or otherwise alter all contributions, but authors will receive proofs for approval before publication.
Copyrights for articles published in IJIER journals are retained by the authors, with first publication rights granted to the journal. The journal/publisher is not responsible for subsequent uses of the work. It is the author's responsibility to bring an infringement action if so desired by the author.
National Statistics and Demography Agency (ANSD). 2015. Regional Economic and Social Situation Saint Louis.
National Statistics and Demography Agency (NSTAD). 2018. Economic and Social Situation of Senegal in 2015.
Alary V, Cornials C, Gautier D. 2011. Livestock's contribution to poverty alleviation: How to measure it? World Development.
National Agency for Statistics And Demography (ANSD). 2016. Transport Sector Report.
Broutin C, Levard L, Goudiaby M. 2018. What Trade Policies for the Promotion of the "Local Milk" Sector in West Africa. GRET Synthesis Report.
Commission of Regulation for electricity sector. 2019. Official Bulletin No. 27/28.
Dia D. 2009.” dairy farming territories under the test of political and economic dynamics: elements for a geography of milk in Senegal”. PhD thesis
ENDA Energy. 2015. Study on the diagnosis of the milk value chain in the regions of Saint Louis, Louga and Kolda.
Ferrari S. 2017. PhD thesis report on the viability of industrial dairy chains in Senegal: an analysis in terms of governance.
Gret, Enda Graf Sahel. 2006. Etat des lieux de la filière lait et produits laitiers au Sénégal.
Ministry Of Livestock and Animal Production (MEPA). 2016. Sector Review Report.
Ministry of Livestock. 2005. Quality Control in Dairy Processing Guide to Good Hygiene Practices.
Departmental Service of Podor Livestock. 2018. Annual report
Spintech. 2018. Technical data sheet of the 1000 liter milk tank.