Can Haiti's Peanut Value Chain Survive US Generosity? Political Economy Analysis

Can Haiti's Peanut Value Chain Survive US Generosity? Political Economy Analysis

Oxfam America • 2020 • 51 pages
Summary: Oxfam America research backgrounder, written with the Haitian platform PAPDA, on Haiti's peanut value chain and on the United States donation of 500 metric tons of dry-roasted peanuts announced in March 2016. It combines a literature review, a 2017 survey of 186 people in the value chain and an analysis of US peanut policy, and recommends that Haiti support the chain with research, extension, credit, cooperatives and aflatoxin detection.
Key Findings
Full Description

On March 31, 2016, the US Department of Agriculture (USDA) announced a gift of 500 metric tons of dry-roasted peanuts to Haiti. Haitian groups including PAPDA called it surplus dumping that could harm rural livelihoods, while USDA said the gift equaled 1.4 percent of Haitian peanut production. After a meeting with NGOs on June 29, 2016, the Haitian Ministry of Agriculture said it would not accept more donations of this kind. This Oxfam America research backgrounder, by Camille Chalmers, Guelsonne Calixte, François Gérard Junior Denart, Tonny Joseph and Marc J. Cohen, studies the Haitian peanut value chain and the political economy of the donation. A French edition is attached.

The report describes a chain of small farmers, women traders and artisanal processors, with little state support, rainfed production, weak organization and an aflatoxin contamination problem in peanut butter (manba), a breakfast staple. Average yield was 0.47 tons per hectare in 2016, and potential demand of at least 40,000 tons a year exceeds supply of around 30,000 tons. A PAPDA survey in 2017 of 186 people in the Port-au-Prince region, the Central Plateau and the Nord and Nord-Est departments found that peanut earnings did not cover the cost of living, that 97 percent of respondents belonged to no association and that none had received support from the government or any organization. Of the 139 respondents who answered the question, 74.1 percent were satisfied or very satisfied with their role in the chain. The survey did not cover the Artibonite or the southern peninsula.

On the US side, the report describes a subsidized and concentrated peanut sector with surpluses and pressure to move them into food aid. US peanut exports to Haiti averaged just under 100 metric tons a year in the six years before the donation. The report weighs two readings of the 2016 gift, an opening of the Haitian market or a one-time disposal of surplus, and notes that US exports to Haiti fell back to trivial levels in 2017 and 2018. It recommends that the Haitian government support research, training, credit, cooperatives, aflatoxin detection and national food safety standards and protect farmers from subsidized imports, and that donors avoid trade policies that conflict with their aid.

Sectors
Geography
Time Coverage
2010 to 2018

How to cite

Oxfam America, 2020, Can Haiti's Peanut Value Chain Survive US Generosity? Political Economy Analysis, https://webassets.oxfamamerica.org/media/documents/rr-haitis-peanut-value-chain-280420-en_1.pdf

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Oxfam America