Impact of Marketing Contracts on the Rice Yield of Senegal River Valley Producers

Abstract

Rice is a strategic commodity for Senegal. However, local supply covers only 20-30% of domestic demand. The paradox is that this local rice has difficulty being marketed. Thus, agricultural marketing contracts could be an excellent lever to address this problem of rice marketing. The purpose of this study is to analyze the impact of these agricultural marketing contracts on the performance of producers in the Matam region using the LATE/LARF method. The data was collected in the Matam region in 2016-2017. The average local effect of treatment (LATE) has reduced the selection bias generated by observable and unobservable characteristics. The results of the estimate of the impact of the agricultural contract on the income of rice producers show that the participation of producers in the agricultural contract has increased their yields by about 2305.31 kg and income to 219,527.5 FCFA. The study allowed us to affirm that agricultural marketing contracts represent a resilient system of rice marketing in the Senegal River valley, as they can be a lever to link all the rice value chain’s stakeholders, for the benefit of everyone, especially small producers.