News Onion Analysis 2018
'The Dutch onion is a household name in Senegal'
No country in the world buys as many Dutch onions as Senegal. It is a household name and our ambassador also has the Dutch onion high on his agenda. In addition, more and more Dutch entrepreneurs are setting foot in the country themselves.
Senegalese eat on average between 25 and 30 kilos of onions per person per year. The onion is deeply rooted in the culture and in the national cuisine. It is therefore not surprising that in 2017 more than 167.000 tons of Dutch onions found their way to this old French colony.
This mega-export also has a downside. In 2017, the government introduced a quota because the land was overflowing with onions. A quota has also been set for the current season. With the absence of Russia, Senegal is the export engine. Mauritania and the Ivory Coast are playing an increasing role. Yet Senegal remains the undisputed number 1.
Raised between farmer and gardener
Theo Peters is the ambassador for the Netherlands. The embassy focuses not only on Senegal, but also on Guinea, Guinea-Bissau, Mauritania, The Gambia and Cape Verde. However, partly because of the economic growth, Senegal is the country where the embassy is most active.
Peters grew up in Limburg, between farmers and horticulturists. During his career at the Ministry of Foreign Affairs, he held various positions. "In preparation for a previous position, I did an internship at companies indirectly related to agriculture," he explains. "Here I learned what the Netherlands has to offer in the agricultural field. That is impressive."
Peaceful and stable
"The Dutch onion is an important product in this country," explains Peters. "Before I left here, I visited Beemsterboer. My wife and children went to Senegal. Safety and the presence of good education were therefore important. large interest. Dakar is a great place for that."
"Senegal is also interesting for companies. It is stable and safe. There have always been peaceful elections since the 60s. That has (positive) repercussions on the economic climate. The trade unions are left quite free, as is the press. There are also large agricultural and horticultural areas, although knowledge and production are obviously not at the same level as in the Netherlands."
-Theo Peters
Senegal as a production country
Peters sees companies developing in various areas. The country is not only seen as an export destination, but also as a base of operations. "More and more companies are establishing themselves here. An example is Van Oers Senegal, which was originally Dutch, and grows green beans, spring onions, sweet corn and melons here." Beemsterboer recently started a company to grow onions for the local market, and more such initiatives are underway.
"The choice for Senegal as a production base is also easy to explain. After 8 to 9 days of transport, the product will be available in the Dutch supermarkets. It is important to explore the market well and to be proficient in the French language. Here lies an important role for the embassy; we guide companies and projects. This way we have good ties with the government and that helps to open doors that would otherwise remain closed. Don't get me wrong; if the government sets a quota, our opinion will not be asked."
Self-sufficient
The ambitions of the country run parallel to this. An example of this is becoming self-sufficient in rice and onions. "About 350.000 tons are grown annually," says Peters. “However, 50% is lost in storage and in transit.” There are opportunities here for Dutch companies, such as supplying seed, crop protection products, fertilizers and technology."
Local production is increasingly protecting the market. In order to guarantee a good price, during certain periods no Dutch onions allowed. "We notice that companies want to be kept closely informed of developments. As an embassy we have an informative role and we try to help," says Peters.
"This country also has a lot of bureaucracy and the regulations are not always predictable. The Senegalese see that things have to change, but that change is taking place slowly. The business climate is improving quickly and that includes a good infrastructure. That is why huge investments are being made in it. the port of Dakar.The Netherlands helps Senegal with the development of the maritime sector and also assists the private sector.”
Building ports
Peters agrees that Senegal's plans are very ambitious. "For the time being, there are sufficient opportunities for Dutch entrepreneurs. The growth in onion production is due to the prevention of losses, for which the level of knowledge must be improved. In the long term, therefore, the opportunities lie in exporting knowledge."
In addition, the Mali connection (by means of a railway) is important in order to be able to export. Significant investments are also being made in the ports. "We are also working on the harbor in Ziguinchor. The peace in the agricultural area was disturbed by rebels for a long time. Now it is quieter, so that the area is developing well. The importance of agriculture is increasing cautiously."
Peters no longer experiences the above changes in the country. His term will end in 2019 and then he will leave for another country with his family.
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Niels van der Boom
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