Guinea - Agricultural sector review

Report No. GUI-4672 Guinea LU Agricultural Sector Review April 15, 1984 Western Atrica Region FOR OFFICIAL USE ONLY FILE COvPY Document of the World Bank This document has a restricted distribution and may be used by recipients only in the performance ot their otficial duties Its contents may not otherwise be disclosed without World Bank authorization  CURRENCY EQUIVALENTS Currency Unit Syli US$ = 23 Sylis Syli = US$0.0435 WEIGHT AND MEASURES Metric System GOVERNMENT FISCAL YEAR January 1 - December 31  FOR OFFICIAL USE ONLY ABBREVIATIONS AND ACRONYMS AGCD Administration Gen'rale pour la Cooperation et le Developpement (Belgium) AGRIMA National Enterprise for the Distribution of Agricultural Equipment AIRD Associates for International Resources and Development ALIMAG National Enterprise for Distribution of Food in Conakry BAP Brigade Attelee de Production BGCE Banque Guin6enne du Commerce Exterieur BMP Brigade Mecanis'ee de Production BNDA Banque Nationale de Developpement Agricole BSP Bureau of Studies and Planning (Ministry of Agriculture) CCCE Caisse Centrale de Cooperation Economique (France) CCT Cooperative de Consommation des Travailleurs CEDERG Centre d'Etude du Developpement Rural en Guinee CEM World Bank Country Economic Memorandum (February 1984) CER Centre d'Education Revolutionnaire CGR Commissariat General de la Revolution CIDA Canadian International Development Agency CNCIH Credit National pour le Commerce, l'Industrie et l'Habitat COTRA Compagnie de Transport DAPS Directorate for Agricultural Planning and Statistics at GDPS EDF European Development Fund ENCOBE Enterprise de Commercialisation du Betail ENTA Entreprise Nationale des Tabacs et Allumettes ERC Entreprise Regionale du Commerce ERCOA Enterprise R6gionale de la Commercialisation Agricole FAC Ferme Agricole Communale FAO Food and Agriculture Organization (United Nations) FAPA Ferme Agro-Pastorale d' Arrondissement FRUITEX National Enterprise for Exports of Fruits GDPS General Directorate of Plan and Statistics ICCRD Institut Central de Coordination de la Recherche et Documentation IDA International Development Association IFAD International Fund for Agricutural Development IMF International Monetary Fund IMPORTEX National Monopoly for Imports and Exports MAEF Ministry of Economic and Financial Affairs MOA Ministry of Agriculture MOF Ministry of FAPAs and Cooperatives OBETAIL Office de Commercialisation du Betail OCOFI Office de Coordination Financi6re de l'Industrie OFFITAB Office National du Transport de la Banane ONADER Operation Nationale pour le Developpement de la Riziculture ORG Operation Riz Gueekedou PDG Parti Democratique de Guinee PRL Pouvoir R6volutionnaire Local PROSECO National Enterprise for Exports of Agricultural Products (except fruits) This document has a restricted distribution and may be used by recipients only in the performance of their official duties. Its contents may not otherwise be disclosed without World Bank authorization.  - ii - Abbreviations and Acronyms (continued) RPRG Republique Populaire et Revolutionnaire de Guinee SECOMEX Holding Company for Marketing of Exports SEMAPE National Enterprise for the Distribution of Agricultural Inputs SNAPE Service National d' Amenagement des Points d'Eau TAP Technical Assistance Project UNDP United Nations Development Program UNESCO United Nations Educational, Scientific and Cultural Organization USAID United States Agency for International Development USOA Usine d'Outillage Agricole (Mamou) WARDA Western Africa Rice Development Association  - iii - TABLE OF CONTENTS Page List of Text; Tables ............................................................... iv List of Annexes ..... ........... . .... . ...**4* ........ v List of Maps .......... ..... .................. ..* * .................... vi List of Background Papers and Studies ...o ......o..................... vii Country Data* ........................*.*.*...*................ ............. .. ....... ix Preface ..................... ,.... 00 .....0 xi SUMMARY AND RECOMMENDATIONS . ................. . . . . . . .................. ... . xiii INTRODUCTIOIT ................................................ oo ......... *o...... 1 I. SECTOR BACKGROUND .............. . ........................ 3 A. Country Physical and Socio-Economic Characteristics ........ 3 B. Agricultural Resource Base . . ... ...... . ....... . ...... 4 C. Investment Policy in the Agricultural Sector ............... 5 D. The Bank's Sectoral Involvement and Strategy ***so*......... 7 II. STATUS; AND POTENTIAL OF AGRICULTURAL PRODUCTION ................ 9 A. The Crisis in Agricultural Production 9 B. Analysis of Agricultural Production . ..10 C. Balance of Payments Implications .. 12 D. Guinea's Comparative Advantage for Rice and Coffee ......... 17 E. Recommendations ..................... . ........ 20 III. AGRICIJLTURAL MARKETING AND PRICING .. ................ 21 A. The Public Marketing System Prior to April 1981 ............ 21 Bo Recent Reforms ...... .................. ............. 22 C. Assessment of the Performance of the Official System ....... 23 D. Reasons for the Failure of the Official System ............. 25 E. Impact of the Liberalization .............................. 27 F. Recommendations o ..................... . ............. 27 IV. ORGANIZATION OF PRODUCTION AND FARMING TECHNIQUES .............. 32 A. The Government's Rural Development Strategy Since Independence o ...... 00. ...0..00.*.... 32 B. The District Agro-Pastoral Farm - FAPA .......*........... 34 C. Recommendations .. ................ ......42 V. AGRICIUTURAL PLANNING AND SUPPORT SERVICES .................. ... 46 A. Agricultural Planning ...... ...... ......... 0..... 46 B. Agricultural Support Services ......... ................ 51 C. Recommendations .............. ........... ... 55  - iv - APPENDICES ........................................................... 63 Appendix I ................ ... ............. 63 Appendix II ..........*.......... ..... 71 List of Text Tables No. Page 2.1 Area, Production and Yields of Major Crops (1954-56, 1975 and 1981).. 11 2.2 Annual Volume of Official Agricultural Exports (1955-58 and (1960-80) .. . . . . . . . . . . . . . . . . . . . . . . . . .13 2.3 Annual Value of Agricultural Exports and Food Imports (1956-58 and 1975-81) ... .............................................. 15 2.4 Annual Volume of Rice and Wheat Flour Imports (1950 and 1960-82) .................. 16 2.5 DRC Coefficients for Rice and Coffee Under Various Techniques of Production and at Various Exchange Rates for the Syli ........................................... 19 3.1 List of Priority Goods ......................................... 22 3.2 State Purchases of Agricultural Products, Selected Years ............................................... 24 3.3 Estimated Costs of Production by Crop and Production Method, Compared with Official and Private Market Prices, 1981-82 ................................... 26 4.1 Income Statement of an Average FAPA . . . 38 4.2 Production Costs and Returns of Rice Cultivation in Different Agro-Ecological Regions and Under Different Tehniques ........ 45 5.1 Organigram of Key Development Ministries and Institutions Involved in Agricultural Sector Planning (Figure) ...................................................... . .......... 48 5.2 Number of Graduates from Agro-Zootechnical Schools, and Number of Staff Employed in Agro-Zootechnical Services (1974/1975 to 1981/82, and projection to 1999-2000 assuming continuation of present training policies) ................... 56 5.3 Agro-Zootechnical Requirements in Year 2000 by Level of Training and Specialty ................................. 61  - v - List of Annexes No. Page 1.1 Population Size (1977) and Number of Farm Households (1975) by Region ........ ............ ........................... . 77 1.2 Political and Administrative Organization of the Republic of Guinea (Diagram) .. .............. ..... . .................. . 78 1.3 Budgetary Allocations, Ministries of Agriculture, FAPAs, and Cooperatives, and Livestock and Fisheries (1981 and 1982) ............... ................... .............. 79 1.4 Public Sector Agricultural Staff by Level of Training and Sub-Sector of Employment (as of June 1982) ........ 80 2.1 Areas IJnder Cultivation by Crop and Administrative Region (1974-75 Census) ................. ....................... 81 2.2 Summaryr of Balance of Payments (1975/76-1981) 82 2.3 Foreigni Exchange Earnings (1979 to 1981). 83 2.4 Pre-Independence Agricultural Exports and Food Imports. ... 84 2.5 Derivation of the Financial Subsidy on Imported Foodstluffs, 1981 .....85 3.1 Guinea's Public Marketing System (Diagram). . . 86 3.2 Selected Official Prices (1958, 1963, 1968, 1974 and 1978 toD 1981) .................... ...... 87 3.3 September 1981 Producer Price Adjustment for Export Crops .......... 0 ............... 0 ..................... 88 4.1 Averages Area Under Cultivation, Yields and Input Consumption per FAPA, 1979/80 to 1982/83) .89 5.1 Elaboration of the Fourth Five-Year Plan, 1980 (Diagram) ........................ .... 90 5.2 Organizational Structure of the Ministry of Agriculture, Water and Forestry (Diagram) .91 5.3 Organizational Structure of Agricultural Services at the National and Local Levels ..................... ... 92  - vi - List of Maps No. 17023 Agro-Ecological Zones and Locations of World Bank Assisted Projects 17025 Relief and Roads 14289R Rainfall  - vii - GUINEA AGRICULTURAL SECTOR REVIEW List of Background Papers Written by Mission Members I. RESOURCE BASE AND POTENTIAL FOR AGRICULTURAL PRODUCTION 1. The Rural Sector: Present Status and Potential (Main Paper and Tables) E. Pagacz 2. Oil Palm, Coconut and Rubber Sub-Sectors D. Meadows 3. The Livestock Sub-Sector N. Nissen 4. Report on Some Forestry Problems in Guinea A. Lafond II. MARKETING AND PRICING 5. Market Analysis Report N. Roytenberg 6. Guinea's Food Imports and Coffee Exports J. Meerman III. PRODUCTION MODES AND TECHNIQUES 7. The Collective Modes of Production A. Peeters IV. INSTITUTIONS PLANNING AND SUPPORT SERVICES 8. Institutional Setting J-P Le Bouder 9. Agricultural Planning in Guinea T. Zalla 10. Agricultural Statistics T. Zalla 11. Agronomic Research D. Meadows 12. Input Delivery M. Jaudoin 13. Agricultural Credit N. Jaudoin 14. Agricultural Education and Training (UNESCO Report EFM-121) A. Magnen  - viii - V. AGRO-INDUSTRY 15. Problems and Prospects for Agro-Allied Industries K. di Tullio Other Background Studies AIRD, Study of Prices and Rural Producer Incentives, February 1983, by J. Stryker, H. Tuluy, B. Decaluwe and A. Sisson FAO/CP, Guniea's Rural Sector, July 1982, A. Kawalec.  -ix- COUNTRY DATA - GUINEA GEI NATICfAL PROUCT IN 19M 1/ Anial Rate of Grrth (%, constant prices) US $ Kln% 1I93-77 1977-81 1g3-81 19B1 1981-85 Projected GNP at Market Prices 1550 100 4,59 -0.22 2.16 0.93 2.00 Gros Domestic Inest- 225 14 -6.55 7.09 0.04 10.0 5.0) -Int Gross National 150 5 -3.44 0.01 -1.70 -6.25 - Savinp 2 Current Accmot -2 -5 21.25 -39.77 4.92 -7.31 - Ienc E8ports of Goods, ES- 477 29 30.41 2.35 15.53 2.66 1.00 Iports of Goods, NES -455 -27 -20453 3.46 11.44 2.53 - EPUP, IAR FRE AND PRMCTVM Value Added labor Force VA per worker US$ i1n % tha2sands % U$ % Agriol1ure 710 42.38 2022 82C0) 351 51.85 Iutry and 38 22,86 Z71 10.99 1343 198.38 Mirn Services 582 34.75 173 7.02 3445 5OBC86 Total/herage 1675 1if0.0 2466 1C0.00 677 1CO.O) G5iUle PFACE General Gaveresnt Billion Sylis % of GDP 1979 1930 1981 1982 1979 1930 1981 1982 Current Receipts 9.97 11.09 12.32 15.83 33.02 34.54 34.95 42.32 CuTent Expenditure 6.63 7.74 7.21 9.42 21.96 24.11 20.45 25.23 5rrent aiplus 3.34 3.35 5.11 6.43 11.05 0.43 14.50 17.16 Capital Ernitsre 4/ 8.30 3.77 5.96 5.00 27.49 11.74 16.91 13.35 E`@rB1% lAssistanoe 1.15 0.97 1.8) 03 3.82 3.01 5.12 2.21 Central Government 'Pillion Sylis % of GrP 1979 1983 1931 198 1979 193) 1981 1982 Current; Receipts 9.73 10.44 11.52 15.35 32.22 32.52 32.68 40.98 Current penditure 6.44 7.19 7.04 9.09 21.33 22.39 19.97 24.27 Current; Surplus 3.29 3.25 4.48 6.26 10.90 10.12 12.71 16.71 Capital Rpenditure 4/ 8.20 3.70 5.73 4.34 27.16 11.52 16.25 11.58 Ertern 1 Assistance 1.15 0.97 1. 0.83 3.82 3.01 5.12 2.21 (Met) 9/ mx, CREDIT AND PRICES Balml Sylis Dec.1979 Dec.1990 De.1981 Dec.192 ard quasi-mmisy 8.90 12.97 17.17 16.33 BnIk Credit to Pablic Sector 8.61 18.50 22.74 19.55 Back Credit to Private Sector 0.76 1.21 1.02 0.59 Percentages 1979 193) 1981 19B2 1bey and quasi-mnczy as 29.47 40.39 48.71 41.75 % of CaP Genral Price IndeT (1981-1C0) 85.50 91.90 1O.00 104.43 6/ hnr &l% ChaMges in: Bzk Czredit to Pablic Sector -25.60 114.90 22.90 -15.03 Bn1k Credit to Private Sector 7.50 60.30 -16.00 -62.16  RiLflt P8RPLE'S IEEUBL.C Q aItEA