Appendix A
Cultivating Potatoes in Mali
This chapter is an introduction on cultivating potatoes in Mali. It starts with describing the production process and continues with the storage and the import of the seed potatoes respectively.
A.1
Production
The production period of the potato depends on the climate: the rainfall and the temperature are of main importance. The climate in Mali is divided in two periods, the rain season and the dry season. The rain season is from June until September - October, the dry season is from October until May. In general, it is colder during the dry season than during the rain season. Therefore the dry season is the favorable and optimum period of potato production. The climate of Mali is given in figureA.1.
The production period of the potato is divided in two parts, the big production and the small production period. The big production starts in October and ends in February. During this period the temperature is relatively low which is good for cultivating the potato. The small production is from May until August. It is almost negligible, since the harvest is very small. Therefore, it is said that the potato only is cultivated once per year.
As noted in the introduction, the potato takes into account only 6 % of the cultivation of food crops. During campaign 2005/2006 the total production was 55000 tons (see tableA.4). This percentage is expected to grow, since the potato is the most beneficial good to cultivate. The total production of potatoes in Mali is not sufficient. It is necessary to import the consump-tion potato from European countries in the months from July until December. In figureA.2
one can find a scheme of the production and import. The production cycle of the potatoes in Mali begins in October when the imported seed potatoes arrive and are cultivated. From the arrival of the seeds until December or even January the potatoes are planted. The harvest starts in the end of December. January, February and March are the months in which the main harvest takes place. Sometimes even in April the last potatoes are harvested.
Figure A.1: Climate of Mali (Bamako), temperature (Celcius), rainfall (mm) and humidity (%)
1831 ha. In that case, the total surface is 2364 ha in 2002. It is obvious that the total surface cultivated with potatoes has increased between 1997 and 2002. Also the previous years, the potato is cultivated more and more. Note that the surface in Sikasso takes into account 80 % of the total surface. Therefore, Sikasso is said to be the region of potato production. The varieties of potatoes which are mainly cultivated in Mali are the Claustar, Mondial, Spunta, Pamima and Odessa. Each variety has its own characteristics. For the consumers it is important that the potatoes have a nice color, a good taste and a good size. All the cultivated varieties are comparable concerning these characteristics. The producers cultivate different varieties of potatoes for a good balance between the yield and the preservability of the potatoes. The characteristics which are of main importance for the producers are the yields, the length of the production cycle and the preservability. Generally speaking, there are three groups of varieties. The varieties which have high yields1 are Pamima and Spunta, see tableA.2. The return is the production of potatoes when cultivating one kg of seed potatoes. The Claustar and Mondial do not have high yields but are good for conservation. The Odessa does not have high yields and is well stored, but it is interesting for its short production cycle. The Pamima, Spunta and Odessa are harvested at first as a result of the short production cycle. The Odessa is sold directly after harvesting within one month, the Pamima and Spunta are sold directly as well, even though it is possible to conserve them little longer. At last the Claustar and Mondial are harvested and stored. The Claustar and Mondial are produced for
1
Figure A.2: Scheme of cultivating and importing the potato Region 1998/97 1998/99 1999/00 2000/01 2001/02 Kayes 2 18 20 18 15 Koulikoro 22 180 118 11 131 Sikasso 1723 1723 1247 1958 2831 Sgou 19 46 88 143 179 Mopti 45 39 56 63 75 Tombouctou 167 126 55 1 50 Gao 77 77 150 67 71 Kidal 6 3 3 2 2 Bamako 1 2 3 5 10 Total 2040 2062 2214 2256 3364
Source: Diakit´e, L., Zida, M., 2003, p. 32
Table A.1: Surface (in ha) cultivated with potatoes per region in Mali
storing such that the producer can obtain higher prices in a later period. By having a good balance between the varieties, the producer is able to sell the potatoes from the beginning of January until June.
In the introduction it is already stated that the potato is very profitable to cultivate; the ben-efits for producing potatoes are high. It is interesting to compare the costs of producing with the prices of the potatoes. In table A.3 the cost structure of the production is shown. The costs for irrigation are included in the labour costs, since the irrigation is mainly performed by hand. Note that in general, producing crops in Mali (as in other countries in Africa) is done by the family of the farmer instead of by only one person. All family members work on the fields, they do not obtain salary and therefore it is difficult to estimate the labour costs. It is beyond the scope of this study to describe in detail the estimation procedure of the (family) labour costs.
Variety Claustar Mondial Spunta Odessa Pamima
Return (kg) 32 40 52 32 60
Yield (tons/ha) 24 30 39 24 45
Production cycle (days) 80-90 80-90 60-70 55-60 60-70
Storage period (months) 3-4 3-4 2 1 2
Source: Interview producers, 2006
Table A.2: Characteristics per variety
the costs of the seeds is to improve the quality of the locally produced seeds. With a better quality it is possible have the same yield as the European seeds. The local produced seeds are less expensive and therefore planting local seeds, reduces the seed costs and production costs. Section Structure (%) Seed Potatoes 44 Fertilizer 14 Labour 30 Transportation 11 Divers 1
Source: Dorsey, J., Kouyat, S., 2004
Table A.3: Cost Structure of Producing Potatoes in Mali
A.2
Storage
It is very important to store the potatoes. Nowadays, nearly all the potatoes are sold in the same period. The reason is that the producers need to pay back the credits of the bank at the same time. The supply exceeds the demand resulting in an enormous decline in the price. It also causes an insufficient supply of potatoes in the months June, July and August. During these months, consumption potatoes are imported from Europe. It is important to improve the storage facilities in the villages. Even though, the construction of modern warehouses has already started, storing potatoes remains a major problem of the potato value chain (see appendixB).
The period for which it is possible to conserve potatoes depends on two facets. The vari-ety of the potato is important and the quality of the warehouse. In table A.2 the period of conservation is given per variety of potato for a modern warehouse. Besides the half-modern warehouses, there are traditional and half-modern warehouse as well. The traditional warehouses are built by a producer and belong to him and his family. The losses are huge, since the potatoes are not stored in boxes. They are put directly on the floor, up to one meter high. The losses are over 25 % in three months (source interview producers 2006).
A.3
Import of Seed Potatoes
The import of potatoes in Mali is important. Both the consumption and seed potatoes are imported, mainly from European countries. As stated in the section A.1 the seeds are ex-pensive and cover a large part of the production costs. In this section an overview is given concerning the main aspects of the import of the seed potatoes and the input-suppliers. Presently, more than 80 % of the seed potatoes are imported from Europe. TableA.4shows the amount of imported seeds and the prices for 2002/2003 up to 2005/2006. Except for 2003/2004, the total amount increases over the years, which coincides with the fact that the demand and the production has increased over the previous years. The part which is not imported is covered by the locally produced seeds. The disadvantage of the local seeds is that the quality is low. This influences the production negatively. Therefore it is important to do research to improve the quality of these seeds.
From the amount of imported seeds, the surface of cultivation and the production can be determined, see table A.4. The surface is calculated by taking into account that producers use 30 boxes of 25 kg of seeds per hectare. The surface in tableA.1 calculated by taking an average yield of 28 tons per ha. This explains the difference between the two tables.
In Mali there are three enterprises who import seeds potatoes and fertilizers, the input-suppliers. The enterprises, La Sikassoise, Inter-Agro and Cikela Jigi are all located in Sikasso. The exporting enterprises are HZPC (the Netherlands), AGRICO (the Netherlands) and Germicopa (France). Generally speaking, each input-supplier is connected with one of the exporting enterprises. La Sikassoise has got a contract with Germicopa, Inter-Agro is con-nected with HZPC and Cikela Jigi takes care of the export both AGRICO and HZPC. More than fifteen varieties are imported by suppliers and cultivated by the producers. The varieties which are imported mainly are Pamima, Spunta, Odessa, Claustar and Mondial. Claustar is imported from France, whereas Pamina, Spunta and Mondial are only imported from the Netherlands. Enterprise 2002/2003 2003/2004 2004/2005 2005/2006 Inter-Agro 194 244 256 392 La Sikassoise 701 916 862 889 Cikela Jigi 187 187 187 187 Total 1082 1347 1305 1468 Price (f CFA/kg) 720 720 756 756 Surface (ha) 1443 1796 1740 1957 Production (tons) 40395 50288 48720 54805
Source: Traor´e A.S., Dagnoko B., 2006
Appendix B
Potato Value Chain
The potato value chain is described by all the actors which are dealing with the potato pro-duction. Generally speaking, the actors are divided in four groups. The main groups are the input-suppliers, the producers, the merchants and the financial institutions. They are described in detail in the next paragraph. The other important actors are the NGO’s, the de-velopment projects and the research institutions, they are described in the second paragraph. The third paragraph described the organization aspects of the potato value chain. In figure
B.1a scheme of the actors is given.
B.1
Main actors
This section gives attentions to the main actors of the potato value chain. The input-suppliers are described at first, the producers, the merchants and the financial institutions are described after that. After each description, the problems within this group of actors are highlighted.
B.1.1 Input-suppliers
The group of input-suppliers import inputs as seed potatoes, fertilizers and pesticides. In Mali there are three input-suppliers which import seed potato, La Sikassoise, Inter Agro and Cikela Jigi. Cikela Jigi provides fertilizers and pesticides as well. La Sikassoise and Inter Agro are enterprises, Cikela Jigi is a cooperative. One would say that given these three input-suppliers there does exist competition on the input market. Nevertheless, La Sikassoise is the first and largest enterprise since 1973; it provides 65 % of potato seeds (see tableA.4). Inter Agro has a share of 20 % and Cikela Jigi is good for the last 15 %. Cikela is supported by a NGO and an European finance project, it cooperates with the producers: it provides seeds by using contracts with the AV’s.
Input: Difficulties
The major constraint concerning the inputs is the high costs of the inputs and specially the seeds. The seed potatoes take into account 44 % of the production of the potatoes, see table
A.3. It is one of the major problems of the potato value chain. The costs of the seed potatoes will be reduced when there exists more competition on the seed potato market. The costs can also be reduced by reducing the import costs. Nowadays, the transportation costs and taxes on the road cover 36 % and 4 % of the import costs respectively (Diakit´e, L., Zida, M., 2003, p. 29). Another possibility is to improve the quality of the local seeds. The production costs will only reduce when the quality is such that the yields of the European seed can be met. In that case, the producers are willing to use these seeds and less European seeds have to be imported. The local seeds cost 275 f CFA / kg; the imported seed potatoes havie a price of 720 f CFA / kg.
A second difficulty is that often the inputs arrive too late. This is related with the fact that the input-supplier have problems of obtaining the credits. The late arrival is also caused by the fact that the AV’s do not pass the information on the demanded inputs in time (Diakit´e, L. and Zida, M. 2003, p. 30).
B.1.2 Producers
Production: Difficulties
The major problem of the production and the potato value chain in general, is the storage facility of the potato. In paragraphA.2 a detailed description of the storage and the ware-houses is given. The total production in the region of Sikasso is around 55000 tons. The total volume of the modern warehouses is only 660 tons for campaign 2005/2006. Nowadays, an other warehouse of 300 tons is build, but the total capacity is not enough to store the pota-toes in good quality for a long period. It is important to improve and increase the modern warehouses such that more potatoes can be stored for a longer period.
Another constraint is the hard conditions to obtain credit of the Banque Nationale de D´eveloppement Agricole (BNDA) for the producers. The producers need to obtain credits to purchase the seed potatoes. The interest is too high: the producers have to pay 13 % yearly interest. Furthermore, the duration of the credit is too short. The producers have to pay back their credits during the harvest period such that all the potatoes are sold in a short period. The price of the potato decreases and the producers earn less, see also paragraph ??.
B.1.3 Merchants
The third group is the group of merchants. In general the merchants do not conserve the potatoes but are an intermediate between the producers and the clients. They are responsi-ble for the commerce, export and transport of the potato from the fields to the consumers. Therefore they work closely together with the transporters.
It is possible to divide the merchants into three groups considering the level on which they are operating; they are distributing a different amount of potatoes. The retailer is on the lowest level, he is distributing 0.2 up to 3 tons potatoes, the semi-wholesale dealers are responsible for 3 up to 6 tons and the wholesale dealers who are on the upper level, selling between the 7 and 20 tons per week (Diakit´e, L. and Zida, M. 2003).
In general, the merchants work on an individual base. They purchase the potatoes in the villages or at the market in Sikasso, transport and sell independently to other merchants. Nowadays, there do exists cooperatives of merchants. Union Regionale des Commer¸cants Ex-portateurs de Pomme de terre de Sikasso (URCEP) is a union of cooperative who commerce and export the potato in the region of Sikasso. It consists of the six following cooperatives. Faso Kanu takes care of the export to Abidjan (Ivory Coast). The three cooperatives Noun-pansigi, Benkadi Bambougou and Benkadi N’Gorodiassa deal with export to Ouagadougou (Burkina Faso). Yiriwase is distributing to Bamako and Sinignesigi consist only of women, they distribute within Mali as well. In spite of the existence of these cooperatives, the dis-tribution of the potatoes is performed mainly individually. Mali Yiriden is a cooperation for commerce and export for fruits and vegetables, it transports mainly to Burkina Faso, Ivory Coast, Ghana and Togo.
Commerce & Export: Difficulties
a truck; there are not enough trucks available. When a merchant is not able to find a truck, he is not able to transport the potatoes, he does not sell the potatoes and misses income. If the merchants cooperate it might be profitable to purchase a truck together with a credit of a bank. In this way the merchants can overcome the problem of not finding a truck to rent. Another important problem of the commerce is the method of payment. Often, the (oral) agreements between the producers, clients and merchants are not respected. Furthermore, the export is accompanied with high transportation costs and (irregular) taxes on the road (for an example see table ??). Therefore the costs for exporting potatoes increases enormously. Other (minor) problems are the conditions of the infrastructure. As noted before the ex-port to Senegal is restricted by the bad conditions of the road (see paragraph ??). These bad conditions increase the transport time what causes a high percentage of losses and reduces the quality. As a result it is difficult to compete with European potatoes concerning the price and the quality. Another constraint is the lack of storage facilities for the merchants. When the merchant can store the potatoes, they can purchase the potatoes at low prices and sell them at higher prices. Nowadays, a warehouse is constructed by ISCOS which can be used by the merchants. Paying more attention to the packaging of the potatoes will improve the commerce and export as well. Presently, there are potatoes sold in sacs but many potatoes are still sold without any package. Concerning the competition, it would be better when the potato is sold in sacs of 5, 10 or 25 kg. This would add value to the potato. Also more promotion of the potato will increase the popularity and therefore the commerce. The potato is cultivated for a long time, the last ten year the importance has increased, but the potato is still seen as a minor crop for cultivation. To improve the commerce and export, it is necessary to promote the consumption of potatoes on a national level (ECOFIL, 1998, p. 22).
B.1.4 Financial Institutions
The last group of actors of the potato value chain are the financial institutions. These institu-tions can be divided in banks and micro finance instituinstitu-tions. For access to credit it is possible to obtain direct credits at the banks and micro finance institutions. The input-suppliers provide seeds and fertilizers to the AV’s, whereas the input-suppliers themselves obtain the credit of the banks or the micro finance institutions. Two other sorts of credits are provided. The first credit consists of a credit to the input-suppliers for importing the seeds. The second credit is provided to the producers to get access to the inputs. This credit is given on basis of a direct official regulation of the input-suppliers. Thus, the producers contact the banks with a confirmation of the order of seed potatoes at the input-suppliers. The producers, individual or by the AV’s and the input-suppliers obtain credits at banks and micro finance institutions. The merchants do not have access to credits yet. This is a problem for the merchants, they could use credit for purchasing a truck or investing in storage facilities.
Finance: Difficulties
The major problem of the financial aspects is the conditions to obtain credits. Often the interest is high (annual 13 % or monthly 2 %) and it is necessary to have a deposite of 15 % of the loan. Another difficulty is that the duration of the credit is too short. The producers have to redempt the loan directly after the harvest resulting in a decrease of the price (see also paragraph ??). It would be preferred when the duration is longer such that the potatoes can be stored, the producers will obtain higher margins and are able to repay the credits without problems.
A second problem of the financial aspects is the lack of cooperation between the financial institutions. This causes big problems with respect to the provision of the credits. The producers are able to obtain a credit at a second institution without having fulfilled the latter credit. When the financial institutions collaborate, it is possible to set up a list of producers indicating the producers who already have credits. An institution can decide to refuse access to credit for those who have depths at other institutions.
B.2
Other important actors
In addition to the main actors of the potato value chain, there are many other organizations working on the potato as well. In the next sections, a description of the research institutions and an overview of the development organizations and projects are given.
B.2.1 Research Institutions
In Mali there are two institutions which perform agricultural research, the Institut d’ ´Economie Rurale (IER) and the Institut Polytechnique Rural (IPR) in Kalibougou. These institutions perform mainly research on the seed potatoes. It is already stated that it is important to improve the quality of the local produced seed potatoes. This research was introduced by IPR in a collaborative program with the NGO Association Malienne d’Assistance Technique Villageoise (AMATEVI) and SOC-International.
An other sector of research is the Good Practices of Potatoes Production. This sector studies the methods of fertilization, pesticides management and best harvest practices for different varieties, etc. IER-ESPGRN in Sikasso provides this research in collaboration with PRODE-PAM, AMATEVI and ISCOS.
A field of the potato production chain which deserves attention and research as well, is the modification of the potato. Nowadays, the potatoes are only used for direct conservation. The possibility to make the potato into chips or french fries is expected to improve the production chain as well. The IER has lanced a program called IER/TRANS to support the research on transformation.
B.2.2 Development Organizations
du Changement, second phase (URDOC2) and an European Community Program. APROFA is financed by USAID and URDOC2 by the World Bank.
Nowadays main projects are Programme de D´eveloppement de la Production Agricole au Mali (PRODEPAM), TradeMali and Mali Finance, which are all financed by USAID. The Projet d’Amelioration des Revenues des Exploitation Familiales par la Valorization de la Produc-tion de la Pomme de Terre is an European Community Program. The NGO’s and private institutions also support the technical services and business development services. NGO and Developments projects improve business development services as contracts with banks and micro finance institutions, training on business plans, improving business skills. These activ-ities are facilitating access to credit for vulnerable groups of producers as women.
Note that this study is done in collaboration with PRODEPAM, TradeMali and Mali Finance. Therefore, in appendixC a detailed description of these three projects is given.
B.3
Organizational Aspects
Appendix C
PRODEPAM, TradeMali and Mali
Finance
As noted in the previous section, PRODEPAM belongs to the principal projects on the potato value chain, supported by TradeMali and Mali Finance. This study in being performed in cooperation with PRODEPAM, TradeMali and MaliFinance. Therefore, this section outlines the structure of the program and organizations.
The Programme de D´eveloppement de la Production Agricole au Mali, PRODEPAM is a program which is initiated in September 2004 and financed by the USAID. It was said that PRODEPAM would last for five years. Unfortunately, due to lack of income, USAID has decided to end the program at September 2007.
The work on PRODEPAM is was originally implemented by five international organizations namely IFDC1, CLUSA, Sheladia, KickStart and LOL. Lately, KickStart has decided to leave the program. The program is closely related with TradeMali and Mali Finance. Also Trade-Mali and Trade-MaliFinance are financed by the USAID. PRODEPAM and the two organizations have a shared objective which is to increase productivity and incomes in the agricultural sectors in Mali. The main objective of PRODEPAM is to increase sustainable production of selected agriculture products in target areas. TradeMali is concerned with increasing the trade of selected agriculture products. Mali Finance tries to facilitate the access to finance.
C.1
PRODEPAM
The mission of PRODEPAM is to improve the living conditions of the producers through developing an agriculture which is productive, profitable and durable. PRODEPAM supports the producers with increasing the revenues meanwhile reducing the risks, guaranteeing the agricultural production, creating investment opportunities and a rational management of the natural resources. The general objective is to contribute economic growth which is achievable and does not harm the environment. To realize this general objective it is specified as follows: • Progress and secure the production of the agricultural sectors as rice, horticulture and
cattle-breeding which are important for Mali for internal and external commerce;
• Community capacity building in the agricultural sectors;
• Approve the planning and the management to the use of the natural resources.
Practically, PRODEPAM tries to improve the irrigation systems, to facilitate the access of inputs as seeds, biotechnology and animal nutrition.
C.2
TradeMali
TradeMali is concerned with the support of the commercial, institutional and political envi-ronment. It tries to identify market opportunities and to reinforce the competition between agricultural entrepreneurs. The following activities are taken into account:
• Define a more transparent vision of the potato sector in Mali by shifting norms and requirements of food security and adopt good agricultural techniques;
• Create a more convenient environment for the development of the export market. This can be realized through the access of the infrastructures and an appropriate logistic system. Also reduce the trifling and the (irregular) taxes which are met during the export;
• Trying to obtain a value chain which performs better. This can be met through a better productivity, more competition, better finance systems, approved packaging and discovering new markets.
C.3
Mali Finance
The third organization involved with the development of the potato value chain is Mali Finance. Mali Finance facilitates the financial access by developing the services of the en-terprises, promotion of investment and reinforcing the capacities of the financial institutions. Mali Finance tries to realize this by:
• Organizational support to the micro finance institutions. Furthermore training of agri-cultural enterprises, the credit agents and the bankers is important;
• Formulate the diagnosis of the enterprises, the possibilities for market research and the business plan;
Appendix D
Discussion on Markets of
Commerce & Export
The commerce and export of the Malian potato is analysed in great detail in this study wit a focus on campaign 2005/2006. Therefore it studies the sales of only the Malian and other West-African cities which have demanded potatoes during this campaign. It is interesting to see whether there are other possible destinations to expand the commerce and export. In the next paragraph, the national markets are discussed, the second paragraph discusses the international markets.
D.1
National Markets
D.2
International Markets
In section ?? there is given a short outline concerning the export. The map of West-Africa is given in appendixE. The amount of imported potatoes from Europe to West-Africa from 1993 to 2002 can be found in figure ??. In table D.1the quantities imported by West-Africa from Europe are given for 2004. West-Africa has imported 100 861 tons of consumption potatoes from Europe in 2004.
Country Import (tons) Country Import (tons)
Senegal 41409 Mali 496
Mauritania 21683 Guinea 401
Ivory Coast 15131 Ghana 392
Cap-Vert 8471 Guinea-Bissau 350
Gambia 5599 Burkina Faso 203
Togo 4629 Benin 152
Liberia 955 Nigeria 56
Sierra Leone 935
Total 100861
Source EUROSTAT
Table D.1: Import quantities from Europe to West-Africa in 2004
produced in the region of Kayes. The production in Kayes is not sufficient, therefore the potatoes produced in Sikasso might be exported to Mauritania and Senegal. Note that the export to these two countries is limited by the bad conditions of the road.
Country Language Currency
Senegal French f CFA
Mali French f CFA
Ivory Coast French f CFA
Togo French f CFA
Benin French f CFA
Niger French f CFA
Mauretania French & Arab Ouguiya
Guinea French Guinean Francs
Ghana English Cedis
Gambia English Dalasi
Sierra Leone English Leone
Liberia English Liberian Dollar
Nig´eria English Naira
Cap-Vert Portuguese Escudo du Cap-Vert
Guinea Bissau Portuguese f CFA
Appendix E
Map of Mali and West-Africa
Appendix F
Data: Supply & Demand
Date Time Quantity demanded (dt
j, tons)
Destination j t Abidjan Bobo Ouagadougou Accra
Cooperative (3) (2) (4) (5) (6) (7) T (8) (7) T 1/2/2006 1 20 5 15 15 1/9/2006 2 20 1/16/2006 3 20 5 15 15 1/23/2006 4 20 1/30/2006 5 20 5 15 15 2/6/2006 6 20 2/13/2006 7 20 5 15 15 2/20/2006 8 20 2/27/2006 9 20 5 15 15 3/6/2006 10 20 3/13/2006 11 20 5 15 15 30 30 3/20/2006 12 20 30 30 3/27/2006 13 20 5 15 15 30 30 4/3/2006 14 20 30 15 15 60 4/10/2006 15 20 5 30 15 15 60 4/17/2006 16 20 30 15 15 60 4/24/2006 17 20 5 30 15 15 60 5/1/2006 18 20 30 15 30 75 5/8/2006 19 20 5 30 15 30 15 90 5/15/2006 20 20 30 15 30 75 5/22/2006 21 20 5 30 15 30 75 5/29/2006 22 20 30 15 30 75 6/5/2006 23 20 5 30 15 30 75 6/12/2006 24 20 30 15 30 75 6/19/2006 25 20 5 30 15 30 75 6/26/2006 26 20 30 15 30 75 Total 520 65 390 195 435 15 1035 30 60 90
(3) Faso Kanu; (4) Nounpansigi; (5) N’Gorodiassa; (6) Bambougou; (7) Mali Yiriden; (8) URCEP; T: Total
Appendix G
Data: Producer & Consumer Prices
Date Time t Consumer Price cpt
j
Destination j Abidjan Bobo Ouaga Accra
02/01/2006 1 300 250 275 325 09/01/2006 2 300 250 275 325 16/01/2006 3 275 225 250 300 23/01/2006 4 275 225 250 300 30/01/2006 5 250 200 225 275 06/02/2006 6 250 200 225 275 13/02/2006 7 225 175 200 250 20/02/2006 8 225 175 200 250 27/02/2006 9 225 175 200 250 06/03/2006 10 225 175 200 250 13/03/2006 11 225 175 200 250 20/03/2006 12 250 200 225 275 27/03/2006 13 250 200 225 275 03/04/2006 14 275 225 250 300 10/04/2006 15 275 225 250 300 17/04/2006 16 300 250 275 325 24/04/2006 17 300 250 275 325 01/05/2006 18 325 275 300 350 08/05/2006 19 325 275 300 350 15/05/2006 20 325 275 300 350 22/05/2006 21 350 300 325 375 29/05/2006 22 350 300 325 375 05/06/2006 23 375 325 350 400 12/06/2006 24 375 325 350 400 19/06/2006 25 400 350 375 425 26/06/2006 26 400 350 375 425 Average Price cpt j 294 244 269 319
Date Time t Producer Price Consumer Price cpt j
Destination j Price ppt Sikasso Bamako Kayes S´egou Mopti Gao
02/01/2006 1 150 162 255 300 375 310 352 09/01/2006 2 150 152 235 287 333 278 340 16/01/2006 3 100 143 216 273 290 246 327 23/01/2006 4 85 134 196 260 248 214 315 30/01/2006 5 75 124 176 247 205 182 302 06/02/2006 6 90 115 156 233 163 150 290 13/02/2006 7 125 124 163 231 159 158 288 20/02/2006 8 90 133 170 229 156 167 287 27/02/2006 9 100 141 177 227 153 175 285 06/03/2006 10 100 150 184 225 150 183 284 13/03/2006 11 125 152 193 231 159 187 286 20/03/2006 12 120 153 202 238 169 192 288 27/03/2006 13 120 155 210 244 178 196 290 03/04/2006 14 120 156 219 250 188 200 292 10/04/2006 15 125 163 223 250 194 209 300 17/04/2006 16 125 169 227 250 200 219 307 24/04/2006 17 125 175 231 250 206 228 315 01/05/2006 18 125 181 235 250 213 238 322 08/05/2006 19 125 188 249 270 231 250 334 15/05/2006 20 135 194 264 290 250 263 346 22/05/2006 21 150 200 278 310 269 275 358 29/05/2006 22 160 206 292 330 288 288 370 05/06/2006 23 175 213 306 350 306 300 381 12/06/2006 24 175 224 305 359 313 322 382 19/06/2006 25 170 236 303 369 321 344 383 26/06/2006 26 170 248 302 378 328 366 383 Average Price ppt, cptj 127 169 229 274 232 236 323
Appendix H
Data: Route
Dest (i, j) Sik Bam Kayes S´egou Mopti Gao Abi Ouaga Accra Bobo
Sikasso 374 269 474 763 142 Bamako 374 598 235 1200 Kayes 598 S´egou 269 235 405 356 Mopti 474 405 581 500 534 Gao 581 Abidjan 763 1200 720 Ouaga 500 1000 455 Accra 1000 Bobo 142 356 534 720 455
Table H.1: Distance Matrix ((dr(i, j), in kilometers)
Dest (i, j) Sik Bam Kayes S´egou Mopti Gao Abi Ouaga Accra Bobo
Sikasso 1 0.5 1 2 0.5 Bamako 1 2 0.5 3 Kayes 2 S´egou 0.5 0.5 1 0.5 Mopti 1 1 1 1 1 Gao 1 Abidjan 2 3 2 Ouaga 1 2 1 Accra 2 Bobo 0.5 0.5 1 2 1
γ(i, j) Sik Bam Kayes S´egou Mopti Gao Abi Ouaga Accra Bobo Sikasso 1 1 1 1 1 Bamako 1 1 1 1 Kayes 1 S´egou 1 1 1 1 Mopti 1 1 1 1 1 Gao 1 Abidjan 1 1 1 Ouaga 1 1 1 Accra 1 Bobo 1 1 1 1 1
Table H.3: Existence of direct route (when value is 1, γ(i, j))
Type Truck k Bam Kayes S´egou Mopti Gao Abi Ouaga Accra Bobo
10 tons 1 1 1 1 1 1 1 1 10 tons 2 1 1 1 1 1 1 1 10 tons 3 1 1 1 1 1 1 1 40 tons 4 1 1 1 1 1 40 tons 5 1 1 1 1 1 40 tons 6 1 1 1 1 1 60 tons 7 1 1 1 1
Appendix I
Bounds Renting Prices
Dest Vol (tons) Expected Renting Costs (f CFA) Normal Renting Costs (f CFA)
j vrk Lower ecrk(0, j) Upper ecrk(0, j) Lower crk(0, j) Upper crk(0, j)
Bamako 10 181800 222200 181800 222200 Bamako 40 657588 803719 361800 442200 Bamako 60 1429165 1746758 541800 662200 Kayes 10 606494 741271 365400 446600 Kayes 40 1808682 2210612 545400 666600 Kayes 60 2024682 2474612 725400 886600 S´egou 10 135900 166100 135900 166100 Mopti 10 181800 222200 181800 222200 Gao 20 431958 527949 318600 389400 Abidjan 40 543600 664400 543600 664400 Abidjan 60 687600 840400 687600 840400 Ouagadougou 10 310431 379415 227700 278300 Ouagadougou 40 1294546 1582223 452700 553300 Accra 40 1793146 2191623 681300 832700 Accra 60 3475454 4247777 906300 1107700 Bobo 10 135900 166100 135900 166100
Appendix J
Results: Individual Trade versus
Cooperation
Time Net Revenue Revenue Rented Truck Costs Administrative Costs
t Zt Rt T rt T ft
Case Individual Cooperate Individual Cooperate Individual Cooperate Individual Cooperate 3 15790016 15889273 21616515 21715772 4960389 4960389 866110 866110 13 12737369 12755609 22654778 22916268 8653209 8855209 1264200 1305450 14 15887772 16474825 25520481 25787744 8234239 8151809 1398470 1161110 19 23055486 23978965 32148285 32157851 7590719 7288436 1502080 890450 24 22152038 22847428 30255175 30413561 6875327 6793113 1227810 773020
Appendix K
Results: Rented versus Owned
Trucks
Time Net Revenue Revenue Truck Costs Administrative Costs
t Zt Rt T rt+ T pt T ft 3 16732727 21646786 4179789 734270 13 14103034 22900722 7695988 1101700 14 19064816 25787970 5758224 964930 19 25905979 32236951 5556702 774270 24 24567619 30414364 4945635 901110
Table K.1: (Net) revenue, truck and administrative costs (in f CFA) owning a 60 tons truck
Time Net Revenue Revenue Truck Costs Administrative Costs
t Zt Rt T rt+ T pt T ft
10 tons 40 tons 10 tons 40 tons 10 tons 40 tons 10 tons 40 tons
3 15975518 16759938 21688748 21715966 4838960 4109848 874270 846180
13 12861028 13773763 22908418 22893360 8733780 7945986 1313610 1173610
14 16385350 17969797 25787869 25787890 8181408 6676983 1221110 1141110
19 23947443 25427575 32157986 32158151 7240093 5760126 970450 970450
24 22758547 24296480 30414280 30414303 6822712 5264803 833020 853020
Time Net Revenue Revenue Truck Costs Administrative Costs t ∆Zt % ∆Rt % ∆(T rt+ T pt) % ∆T ft % 3 82495 0.52 -27024 -0.12 -121429 -2.45 11910 1.38 13 101669 0.80 -7851 -0.03 -121429 -1.37 11910 0.91 14 -89474 -0.54 125 0.00 29599 0.36 60000 5.17 19 -31522 -0.13 135 0.00 -48343 -0.66 80000 8.98 24 -88881 -0.39 719 0.00 29599 0.44 60000 7.76
∆ (%) is difference (in terms of percentage) of ’Owning 10 tons truck’ minus ’Owning no truck’
Table K.3: Improvement in (net) revenue, truck and administrative costs (in f CFA and percentage) with an owned truck of 10 tons compared with no owned trucks
Time Net Revenue Revenue Truck Costs Administrative Costs
t ∆Zt % ∆Rt % ∆(T rt+ T pt) % ∆T ft % 3 866915 5.45 194 0.00 -850541 -17.15 -16180 -1.88 13 1014404 7.95 -22909 -0.10 -909223 -10.27 -128090 -9.84 14 1494972 9.07 146 0.00 -1474826 -18.09 -20000 -1.72 19 1448610 6.04 300 0.00 -1528310 -20.97 80000 8.98 24 1449052 6.34 742 0.00 -1528310 -22.50 80000 10.35
∆ (%) is difference (in terms of percentage) of ’Owning 40 tons truck’ minus ’Owning no truck’
Appendix L
Results: Sensitivity Analysis
Transportation Costs (T ) Symbol No trucks 10 t. Truck 40 t. Truck 60 t. Truck
Initial Setting 9312919 9402518 7818093 6723154
Depreciation C. 5th year cd
l 9312919 9329441 7704055 6622260
Interest 10 %, 10 years depr. i, nd 9312919 9318865 7691170 6607769
Purchase Pr. lower tp 9312919 9368865 7777708 6777000
Purchase Pr. upper tp 9312919 9436172 7858478 6830846
Variable C. lower cgl 9312919 9359392 7683833 6551416
Variable C. upper cgl 9312919 9429215 7965833 6903916
Exp. Rent lower ecrk 8497738 8617543 7297956 6348821
Exp. Rent upper ecrk 10128100 10141785 8313230 7080315
Normal Rent crk 6142020 6226525 5804422 5672098
Normal Rent lower crk 5623120 5742925 5450324 5378374
Normal Rent upper crk 6660920 6710125 6137022 5939598
Worst Case* 5623120 5802216 5596851 5636188
*Worst case: Normal Rent (crk) lower, Purchase Price (tpl) upper, Variable Costs (cgl) upper
