2008 Rice crisis: Shock and new challenges

This note analyses the 2008 rice crisis as well as the trends and political responses that the rice sector faces in West Africa. It is based on a study (in French) prepared in 2010 by CILSS, CIRAD, FAO, FEWSNET and the WFP entitled: "Rice crisis, market trends, and food security in West Africa", which draws upon regional statistics, national market information systems and fieldwork conducted in six countries (Benin, Ghana, Liberia, Nigeria, Mali, and Senegal).

West Africa currently imports 5.2 million tonnes of rice and only covers 60% of its needs, despite considerable rice-growing potential. The main impediments to local competitiveness are processing and marketing costs, coupled with low productivity. When world rice prices soared in 2008, governments lowered or removed taxes on rice imports, came to the assistance of vulnerable consumers and pursued support policies to increase production and the development of industrial or semi-industrial branches. However, the growth in production (which has remained lower than the increase in consumption) has largely occurred through the increase of area cultivated in rice. The region will for the foreseeable future remain dependent on an international market in which prices are structurally rising and which is increasingly volatile. The most vulnerable urban households will be the most exposed. Increasing the income of such households, promoting the consumption of local foods and regulating prices are therefore the policy options to which priority should be given.

Sahel and West Africa Club, OECD - June 2011