1. I Agricultural and rural trajectory of Madagascar ___________ Presentation of Mr. Alain PIERRE BERNARD M’Bour, Senegal 11 to 13 April 2006 MADAGASCAR

2. Plan  1- Main structural characteristics of the agriculture sector  2- Evolution of agricultural and rural policies  3- Perception of the big challenges

3. 1. Main structural characteristics of the agricultural sector 50% of Madagascan population is under 20 years-old 73% of Madagascan population: rural Primary sector: 34 % of GDP Rural population concentrated in certain geographic areas: - Areas of land saturation (High Lands) - Areas potentially exploitable but very little exploited.

4. 1. Main structural characteristics of the agricultural sector Big diversity of activities in the Island: - Food-producing cultures (Rice: everywhere) - Tropical cultures (Coffee, Vanilla, Litchi…: coastal areas) - Temperate cultures (vegetables and fruits…:High lands) - Extensive farming - Fisheries.

5. 1. Main structural characteristics of the agriculture sector Low productivity: - Technical p roblems - Low input use - Non-compliance with norms - Low mechanization Agriculture is often little monetarized in the inner country.

6. 1. Main structural characteristics of the agriculture sector 50% of exports and 9% of imports Main exports : Milliards FMG 1995199820002001 Vanilla165,8120,0390,3955,2 Shrimp120,0425,9619,1602,7 Litchi390,378,894,753,7 Sugar955,233,943,135,6 Coffee263277,354,821,1

7. 2. Evolution of agricultural and rural policies Different periods : Beginning of the 1970s: nationalization Mid-1980s: reforms with the process of structural adjustment Beginning of 1990s: liberalization and disengagement of the State PNDR in DSRP 2003 Vision Madagascar naturellement and MAP Decentralization

8. 2. Evolution of agricultural and rural policies Past and current processes of structural changes: Processes of structural adjustment in Madagascar  Trade liberalization  Export sector liberalization  Foreign exchange liberalization  Foreign and home trade liberalization  Pursuit of foreign exchange liberalization (WTO, SADC, COMESA)  Existence of preferential markets (APE, AGOA…)

9. 2. Evolution of agricultural and rural policies Past and current processes of structural changes: Impacts of the processes  Increase of consumer prices without an improvement of the producer prices (except for the rice)  Diversification of agricultural products  Drop of the place agreed for the traditional export cultures  Emergence of non traditional export products (fishing products, essential oils, fruits, vegetables…)

10. 2. Evolution of agricultural and rural policies Role of Donors: Financial support in the process of structural adjustment (WB, IMF, EU…) Technical and financial assistances (EU, AFD, SCAC, CTHA, CTHT, USAID, BAMEX...) Development of commercial partnerships (AGOA…)

11. 2. Evolution of agricultural and rural policies Local actors: Government: current reflection a driving schema for the development of the agricultural sector - PPIC – LPDR – MCA … Regions: regional plans for development (PRD built in the PRDR) – Communal Plan for Development (PCD)- Program ACORDS… Financial institutions: BOA, BNI, OTIV, CECAM, CIDR, ICAR…

12. 2. Evolution of agricultural and rural policies Several intervening parties: Producers Merchants with the intermediate parties Indirect actors: various associations (portage of information, production of seeds…) Authorities: technical services decentralized in regions, communes Consumers Peasants organizations, NGOs, Projects, Researchers…

13. 3. Perception of the big challenges Constraints faced by operators: Technical constraints:  Low use of inputs  Respect of norms  Low mechanization

14. 3. Perception of the big challenges Constraints faced by operators : Financial constraints:  Weaknesses of the agricultural credit  Heavy conditions for granting credits

15. 3. Perception of the big challenges Constraints faced by operators: Organizational problems: - Weakness of the producers and chain commodities’ organization Weakness of the access to land: - Few titled areas - Existence of saturated land areas Weakness of the agricultural services Weak professionalization…

16. 3. Perception of the big challenges Constraints faced by the operators: Commercial constraints:  Access to information  Regularity of the offer  Prospective new markets  Normalization

17. 3. Perception of the big challenges Constraints faced by operators: Constraints in logistics and infrastructure  Lack and low quality of infrastructures  Weakness of the administrative structures  Deficit in information and difficulty in accessing it  Insufficient and often non adequate scientific and technological research

18. 3. Perception of the big challenges Economic objectives posted in the territory: Continuation of the rural economy towards the industrial economy Increase in agricultural production and agricultural exports Development of the agro-industrial production

19. 3. Perception of the big challenges National program of rural development (PNDR) : To guarantee good governance in the agricultural sector Promotion of diversification and transformation of agricultural products To facilitate access to land capital To increases agricultural productivity To attain international norms on quality to develop agricultural and agro-industrial exports

20. 3. Perception of the big challenges Other big challenges: Management of too many agricultural economically active population Management of the competition of imported products Conquest/re-conquest of export markets, regional (SADC, COMESA, …) and international

21. 3. Perception of the big challenges SYNERGIE OF ALL ACTORS COHERENCE OF POLICIES

22. Misaotra tompoko Merci beaucoup pour votre attention Muchas gracias Thank you very much for your attention Choukran