Industrialization remains a major challenge for the ongoing structural transformation of the economy. To address this challenge, several policies, reforms, strategies, and structural projects have been implemented to ensure the full development of the industrial sector in Côte d'Ivoire, particularly the processing of its agricultural raw materials.

 

In fact, the agri-food sector is a key component of the manufacturing industries and constitutes the backbone of the structural transformation of the economy. The country has significant potential for diversifying its industrial fabric through the processing of its main agricultural raw materials (cocoa, coffee, cashew, sugar, palm oil, mango, pineapple...) which would also stimulate the development of other manufacturing industries (cosmetics, tires, chemicals, textiles, pharmaceuticals, biofuels...).

 

Based on the potential of the agricultural sector in Côte d'Ivoire, the Ivorian government has identified agri-food as one of the seven (07) industrial clusters to be developed. The goal is to achieve an integrated development of the agri-food chain to enhance its contribution to growth, the creation of decent jobs, as well as to reduce the import bill for food products, and to diversify and increase exports. This will involve:

 

• Upstream, developing the industries for manufacturing inputs (fertilizers and small agricultural production tools);
• Downstream, developing the industries for processing agricultural products for domestic consumption and export, and distribution/marketing services for the products;
• Cross-support, developing research services, financing instruments for production and investment, and transportation and distribution of products.

 

Operationally, the realization of these ambitions will go through (i) increasing production and industrial competitiveness, (ii) developing industrial zones, and (iii) improving quality and strengthening the fight against counterfeiting.

 

Agri-food in numbers

The agri-food sector was the leading branch of the secondary sector in terms of value added, contributing 29.5% in 2015. By 2021, it ranked third (17.9%) behind other manufacturing industries (26.3%) and construction (18.3%).

 

 

Source: Ministry of Commerce and Industry

 

 

The agri-food sector is dominated by four (04) segments, namely cocoa and coffee products (32%); oilseeds (23%); dairy products and products based on fruits and vegetables (21%); and beverages (10%), representing over 85% of the sector's turnover in 2017. The remainder consists of cereal products (7%), processed meat and fish products (5%), and tobacco (2%).

 

The government’s priority sectors for processing are cocoa, coffee, cashew, palm oil, horticulture (mango, pineapple, dessert banana, etc.), and sugar.

 

The cocoa processing rate was established at 26% in 2021, up from 24% in 2020, with the average cocoa processing rate rising to 28% over the period from 2016 to 2021. Cocoa processing is primarily limited to the first transformation, with more than 13 grinding factories having a capacity of over 700,000 tons, with the main players being SACO (Barry Callebaut Group, 27%), Olam (22%), CARGILL (17%), Cemoi (10%), Ivory Cocoa Product (3.5%), Choco-Ivoire (3.5%), and others (17%). In the medium term, the goal is to achieve a cocoa processing rate of 50% to better leverage the value chain.

 

As for coffee, the processing rate is estimated at 36% for the 2020-2021 campaign, compared to 14.43% for the 2019-2020 campaign, with a processing volume fluctuating between 10,000 and 13,000 tons per year.

 

Regarding cashew, local processing capacity is estimated at 328,300 tons/year for thirty-four (34) processing units. Additionally, about ten projects for establishing units are underway, which could increase processing capacity to 405,000 tons/year by 2025. The effective processing rate rose from about 6.2% in 2016 to 14.1% in 2021, with 136,854 tons processed by twenty-two (22) processing units. The main players are Olam Ivoire (50%), Ivoirienne Noix de Cajou (12%), and SITA (10%).

 

The palm oil sector is highly concentrated and integrated, with 16 agro-industrial complexes regulated by the AIPH (Interprofessional Association of the Palm Oil Sector) involved in the first and second transformations, with an estimated annual processing capacity of 388,000 tons in 2015. The main actors are PALMCI (64%), Palm Afrique (15%), SIPEFCI (15%), and other independent oil mills (6%).

 

The sugar sector is highly integrated and concentrated, organized as a duopoly consisting of the companies SUCAF and SUCRIVOIRE, each owning two (02) agro-sugar complexes. The domestic sugar market is protected by a ban on sugar imports, except for temporary exemptions from the state; national consumption is only partially covered (70% in 2016) by local production, which was estimated at 180 KT in 2021, down from 207 KT in 2020.