Poster prepared by Serena Ferrari for the ILRI-CTA African Dairy Value Chain Seminar, Nairobi, Kenya, 21-24 September 2014

1. The impact of govenance on the performance
of the industrial dairy value chains in Senegal
*Serena Ferrari, Université Libre de Bruxelles (Belgium),
ISRA/BAME (Senegal), CIRAD/PPZS (France)
E-mail : serenaferrari1756@gmail.com
Research carried out with the collaboration of
ROUDART L., DIA D., DUTEURTRE G., CORNIAUX C.
within "The Milky Way for Development" project
Local milk vs powder milk
Dairy supply is a sensitive issue in the Senegalese context,
because of the deficit in the trade balance for dairy products.
It is estimated that around 2/3rd of the demand for milk products
is met by imports. During the last 2 decades, a significant number
of dairy processing enterprises have been set up. They produce
end dairy products from local milk, powder milk, or a combination
of both. Our study aims at understanding the impact of the modes
of governance of the dairy value chains in Senegal on their
performance in terms of price, availability and product differentiation.
The Tool: an Institutional Analysis of the Value Chain,
based on the Global Value Chain Approach (GVC)
1. Choice of an entry point of the chain:
industrial processing
2. Subdivision of the value chain into 2 sub-chains
based on the origin of the raw material:
local milk or powder milk
3. GVC analysis of the chains:
institutional environment, agents’ behavior,
chain organization, performance
4. Distinction among different governance
modes into the two chains,
in accordance with the typology
set up by Gereffi et al. (2005):
market, modular, relational, captive,
and hierarchic value chains
5. Price performance analysis of the dairy chains.
That also allows to evaluate the contribution
of each chain to the national economy,
and the sharing of value added
upstream and downstream players
6. Availability performance evaluation
7. Appraisal of governance modes'
impact on product’s availability
8. Product differentiation performance analysis,
within the Economics of conventions’ framework
Survey on dairy products
in Dakar stores
FERRARI S.*
“Powder milk” chain:
more efficient
Qualitative survey on
the chain agents:
producers, importers,
processors, retailers
Qualitative survey on
agents’ perception of
raw milk and end
products availability
Data collection about
farms’ production
capacities
Quantitative survey
on Dakar consumers’
preferences and selection
criteria of dairy products
Similarities beteween
price performances
of the two chains
Value chains accounting:
agents’ costs and profits
Within the “local milk” chain,
credit provision for animal
feed may represent an
important incentive,
able to increase
interlinkages among
value chain stakeholders
The promotion of local
dairy products rests on
the association of
industrial standardization
with an emphasy put on
dairy products’ sustainability
and territorial anchoring
Methodology
Preliminary results
Indicative bibliography:
- GEREFFI G., HUMPHREY J., STURGEON T., 2005, « The governance of global value
chains ». Review of International Political Economy, vol. 12, n° 1, 27 p.
- MALCOMSON J.M., 2013, « Relational incentive contracts », in: GIBBONS R., ROBERTS J.,
2013, The handbook of organizational economics. Princeton University Press, Neew Jersey, 1233 p.
- SYLVANDER B., 1994, « La qualité : du consommateur final au producteur. La construction sociale
de la qualité : des produits aux façons de produire ». Etud. Rech. Syst. Agraires Dév., n° 28, pp. 27-49