Crop productivity and competitiveness

44. As documented by existing empirical studies, the decreases in agricultural output and export volume in Africa have mainly been the result of declining land productivity. Comparing each African country's land productivity with world and competitors' productivity suggests that technological backwardness of agriculture is a major factor determining Africa's marginalization on the world and domestic markets.

45. Crop productivity deferential analysis (Table 8) indicated that most crops (fruits, vegetables, cassava, groundnuts, rice, maize, millet, sorghum, wheat and olives) have productivity levels substantially lower than the world average. For instance, the productivity of fruits (about 5.0 metric tonnes per ha) in East, Coastal West and Central Africa represents about half of the world average. With an average productivity of 10 tonnes per ha for vegetables, Sahel West Africa, Chad and Southern Africa lag behind the world average by 6.0 metric tonnes. In addition, Coastal West, East and Central Africa are at a distinct productivity disadvantage in vegetable production relative to the world. Their average annual yields per ha range between 5.5 and 7 metric tonnes.

46. In contrast, the average productivity of coffee in East Africa (0.69 metric tonnes per ha) compares favourably with the world average (0.63 metric tonnes). The gross income per ha of about US$1 500 (expressed in world prices) is slightly above the world average of US$1 340. Similarly Coastal West Africa achieves the world average productivity with cocoa beans (0.5 metric tonnes per ha) and the global gross income per ha (US$587). In addition, Southern and North Africa's fruit yields compare favourably with the global figure (9.4 metric tonnes per ha) and gross income (around US$5 000 per ha). In North Africa, the productivity of vegetables (19 tonnes per ha) surpasses the world average by around three tonnes. In addition, Southern Africa's average productivity of grapes (9.7 metric tonnes) compares favourably with the world's 8 metric tonnes. Its sugar cane yield (70 metric tonnes) also surpasses the world's 65 metric tonnes, and its tobacco productivity (2.2 metric tonnes) exceeds the world average (1.6 metric tonnes per ha). Similarly, in Coastal West Africa the productivity of yam (10 metric tonnes per ha) compares favourably with the world average.

47. Even though average sub-regional and world productivity levels in crop production are sometimes comparable, significant differentials are evident when compared to the productivity levels of individual nations that lead the world market. Most priority crops, therefore, are not globally competitive at the sub-regional level due to large productivity differentials compared with leading competitors (for fruits, vegetables, cassava, maize, millet, olives, rice, grapes, groundnuts, seed cotton and wheat). In contrast, coffee, cocoa, sugar cane, tobacco and yams are sub-regional globally competitive crops in terms of productivity. Each country's productivity positions vis-à-vis sub-regional, world and world leaders' respective averages are presented in the section below.

Country vis-à-vis world market leaders' average productivity

48. Comparing the productivity level of African countries with world averages and leading competitors indicates, to a large extent, the technological distance of Africa from markets.

North Africa

49. Annual productivity of sub-regional priority crops in North Africa varies widely among crops and countries (Table 9). The land productivity is low for fruits, olives, vegetables and wheat in North African countries except for Egypt. For instance, Tunisia's productivity was only 52 percent of the world average for fruits production, while the United States achieved 252 percent of the world average. Average annual olive productivity is low in Algeria, Libya and Morocco compared with both the world average and the main European Union (EU) competitors (Greece and Italy). Greece and Italy surpass the world average by 54 percent and 40 percent, respectively.

50. In Egypt, the average annual productivity for fruits (16.7 metric tonnes) is much greater then the EU's figure (10 metric tonnes) but significantly lower than that of the United States (23 metric tonnes per ha). Vegetables also have a high level of productivity in Egypt, yielding about 25 metric tonnes per ha, which is comparable with the EU and the United States. Egypt also compares favourably in wheat production (6.0 metric tonnes per ha) with the EU, Australia and Canada.

51. In North Africa, the productivity of country-specific crops (Annex 8) does not reach competitive levels. The world market for grapes and potatoes is a challenge for Algeria because Chile obtains 13 metric tonnes (55 percent above the world average) and the United States produces 17 metric tonnes per ha (107 percent above the world average). Algeria yields only 3.5 metric tonnes per ha or 42 percent of the world average. In Mauritania, pulse yields are only 40 percent of the world average, while pulse productivity in the EU, Canada and the United States are 2 to 3 times greater than the world average.

Table 9. North African productivity vis-à-vis global and leading countries' averages (1996-2000)

Estimates based on data extracted from FAOSTAT (2002). Note: * MT stands for metric tonnes. Bold for emphasis.

East Africa

52. In East Africa, average sub-regional productivity rates vary widely between crops and countries (Table 10). Ethiopia and Uganda are competitive in coffee production, as are Sudan and Somalia in fruits production. In contrast, the remaining countries in East Africa have very low levels of land productivity for fruits, vegetables and maize. For instance, maize production in Ethiopia, Kenya, Somalia and Tanzania attains only between 17 and 39 percent of the average world productivity, while the United States yields 252 percent of the world average.

53. Coffee is highly competitive in terms of yields compared to both the world average and the major world competitors - Brazil and Colombia. While the average annual world productivity (1996 - 2000) was about 0.6 metric tonnes, Ethiopia and Uganda outpaced this figure by 43 percent and 26 percent, respectively. Brazil and Columbia exceeded the world level by only 17 percent and 14 percent, respectively. In contrast, Kenyan productivity lags behind, with yields that are 30 percent lower than the world average.

54. In East Africa, country-specific crops (Annex 9) exhibit generally lower productivity than that of world-market leaders. In pulse production, only yields in Burundi (0.93 metric tonnes per ha) and Ethiopia (0.88 metric tonnes per ha) exceed the world average (0.81 metric tonnes per ha). However, production in the EU, Canada and the United States is 2.5 to 3.5 times higher than the world average. Only Kenya (83 metric tonnes per ha) produces sugar cane at a higher rate than the world average (64.6 metric tonnes per ha).

Table 10. East African productivity vis-à-vis global and leading countries' averages (1996-2000)

Estimates based on data extracted from FAOSTAT (2002). Note: *MT stands for metric tonnes. Bold for emphasis.

Central Africa

55. Similar to North and East African countries, Central African countries exhibit lower production levels than competitors for all selected sub-regional crops, i.e. cassava, fruits, groundnuts and vegetables (Table 11). Only for groundnuts do the Central African Republic and Gabon produce quantities comparable to one major competitor, India (all producing about one metric tonne per ha). No country in this sub-region is competitive in country-specific crops (Annex 10). Only Saõ Tomé and Principé has achieved the world average productivity in oil-palm fruit, but it still does not rival Malaysia, which surpasses the world average by 64 percent. On the sesame market, the Central African Republic is competitive with India in production terms, but not with a market leader, such as China.

Table 11. Central African productivity (excluding Chad) vis-à-vis global and leading countries' averages (1996-2000)

Estimates based on data extracted from FAOSTAT (2002). Note: * MT stands for metric tonnes. Bold for emphasis.

56. In Chad (Sahel Central Africa), for all sub-regional crops selected for development (i.e. fruits, groundnuts, millet, paddy rice, sorghum and vegetables) productivity is lower than world competitor figures (Table 12). For example, Mali achieved only half the world's average rice production level.

West Africa

57. In Coastal West Africa (Table 13) fruit and vegetables are at a distinct competitive disadvantage regarding productivity in all countries (Benin, Ghana, Guinea, Guinea-Bissau, Liberia, Nigeria, Sierra Leone and Togo). For instance, fruit yields in Guinea and in Sierra Leone represent only 19 percent and 40 percent of the world average, respectively. However, the average productivity of cassava, yams and cocoa surpasses the world level. High yields per ha exist for the following countries: cassava in Ghana, Benin and Nigeria (between 10 and 12 metric tonnes); cocoa in Côte d'Ivoire (0.6 metric tonnes); and yams in Benin, Côte d'Ivoire, Ghana, Guinea, Liberia, Nigeria and Togo (between 10 and 13 metric tonnes). The cassava market is controlled by more productive non-African competitors, such as Thailand, Brazil and Indonesia. A similar scenario is evident on the cocoa market. Côte d'Ivoire performs well relative to average world productivity, but the world average is outstripped by Indonesia (129 percent) and Malaysia (72 percent). Other West African countries face serious challenges on the world market due to, among other things, low land productivity.

Table 12. Chad (Sahel Central Africa) productivity vis-à-vis global and leading countries' averages (1996-2000)

Estimates based on data extracted from FAOSTAT (2002). Note: * MT stands for metric tonnes. Bold for emphasis.

58. Nearly all country-specific crops in Coastal West Africa are not competitive in terms of productivity (Annex 11). Only coffee in Sierra Leone (1.61 metric tonnes per ha) rivals Brazil (0.74 metric tonnes per ha) and Columbia (0.73 metric tonnes).

59. In Sahel West Africa, sub-regional priority crops have productivity levels on-par with the world average, yet they cannot keep pace with their main competitors (Table 14). Some of these crops (for groundnuts, sorghum and rice) exhibit a large productivity gap with both the world average and major competitors. Only for millet do Gambia, Mali and India achieve roughly similar yields per ha (between 0.8 and 1.0 metric tonnes). In vegetable production Cape Verde and Senegal equal the world average but are at a serious comparative disadvantage compared to the EU-15 and the United States. Production levels of country-specific crops in Sahel West Africa are far behind the world average and leading countries (Annex 12). This is the case for maize (in Burkina Faso, Mali and Cape Verde), seed cotton (in Burkina Faso and Mali), cassava (in Gambia and Senegal, though not in Cape Verde and Niger) and fruits (in Senegal, though not in Cape Verde).

Southern Africa

60. In Southern Africa, the majority of priority crops (fruits, sugar cane, grapes and tobacco, though not vegetables and maize) have competitive yields at the sub-regional and in some cases at the country level (Table 15). For instance the fruit productivity in South Africa of 16.2 metric tonnes, as well as marginally that in Namibia, is higher than the world average. South Africa can compete with the EU - 15 but it is far from being on-pace with the United States. For sugar cane all Southern African nations can compete with and have higher yields (ranging between 70 and 100 metric tonnes) than the world average and Cuba. South Africa surpasses Chile in grape yields, but remains behind the United States in both grape and tobacco productivity. Certain crop yields are dramatically inferior to the world average and major competitors (especially the United States) in other Southern African countries. Lagging productivity is evident for fruits (Angola, Botswana, Comoros, Lesotho, Madagascar, Malawi), vegetables (Botswana, Lesotho, Madagascar, Malawi, Mauritius, Namibia, Zambia) and maize. Maize production, which ranges from 0.9 to 1.8 metric tonnes per ha in Lesotho, Malawi, Namibia, Zambia and Zimbabwe, is far below the United States' yield (8.3 metric tonnes per ha). Productivity is not at competitive levels for country-specific crops (Annex 13), such as sunflower (Botswana), potatoes (Lesotho and Malawi), rice (Madagascar), millet (Namibia) and wheat (Lesotho).

Table 13. Coastal West African productivity vis-à-vis global and leading countries' averages (1996-2000)

Estimates based on data extracted from FAOSTAT (2002). Note: * MT stands for metric tonnes. Bold for emphasis.

Table 14. Sahel West African productivity vis-à-vis global and leading countries' averages (1996-2000)

Estimates based on data extracted from FAOSTAT (2002). Note * MT stands for metric tonnes. Bold for emphasis.

Table 15. Southern African productivity vis-à-vis global and leading countries' averages (1996-2000)

Estimates based on data extracted from FAOSTAT (2002). Note:* MT stands for metric tonnes. Bold for emphasis.

Concluding remarks: limited technological competitiveness across countries and crops

61. Coffee, sugar cane, tobacco and yams have a moderate need for an increase in productivity through investment in production technologies. However, these crops primarily require investment in post-harvest and processing technologies with due consideration by respective governments to circumventing the existing constraints related to transport, communication, roads, marketing and trade services.

62. Most priority crops (fruits, vegetables, cassava, maize, millet, olives, rice, grapes, groundnuts, seed cotton and wheat) need substantial investment in both production and processing technologies. Two investment strategies (Table 16) depending on national land productivity have been proposed (by country): (1) substantial investment in production technologies and/or (2) substantial investment in value-adding technologies.

63. In summary, the results of the productivity differential analysis suggest that the comparative advantage of the African crop sector is primarily determined by differences in technology and the productivity of input factors across competing countries. Because there are differences in the intensity of production factors depending on the state of technology, there are also differences in productivity (and efficiency). These differences in efficiency largely determine the country's ability to trade and compete on domestic markets as well as at regional and world levels. In the context of an increasingly global and competitive marketplace, most African countries face poor land productivity and a lack of the top technology use in crop production and agro-processing. In addition, the prevalence of smallholdings in African agriculture - seldom exceeding 5 ha and often less than 1 ha - hampers the long-term capacity of producers to competitively expand output and export volumes.

64. The development of political support would also be needed to enhance trade between African sub-regions, particularly in staple food crops. More analysis of trade flows among countries and sub-regions would be instrumental to define agricultural products that may be more cheaply traded among African countries. To this end, regional policies, mechanisms and institutions for enhancing sub-regional and regional trade flows should be established and implemented.

Table 16. Commodity development strategies based on productivity differential analysis with world leading countries