How co-ops in Senegal link farmers to finance and markets

The International Trade Centre (ITC) works in Senegal and other countries to help farmers set up farm cooperatives. It's part of our work to help farmers and small businesses reap more benefits from their products - rather than simply selling raw produce.

One cooperative has changed the way farmers work in four towns about two hours from the capital Dakar. The Agricultural Cooperative Society for Inclusive Development of the Niayes (COOPADIN) is one of 29 cooperative societies supported by ITC in Senegal.

COOPADIN was established in 2021 through the West Africa Competitiveness Support Programme - Senegal Component (PACAO-Senegal), funded by the EU and implemented by ITC.

Since then, it's grown to nearly 2,800 members. Among them are 126 individual farmers, as well as 26 economic interest groups. These are a type of consortium that lets businesses, associations and even individuals pool their resources. These groups are a crucial part of life in rural Senegal, and the cooperative amplifies their work in important ways.

Finance to buy seeds and fertilizer through farm cooperatives

Financing to buy seeds, fertilizer and other supplies is a constant challenge. Few farmers have cash reserves, so they have to spend a lot at the beginning of the season, and stretch their money until the harvest.

Through COOPADIN, farmers can buy seeds on credit. They pay a 25% down payment, and settle the balance after the harvest, explained Ngagne Diop, president of the co-op's board.

'It's a real relief for our producers,' he said. 'For the 2023-2024 agricultural campaign, with the support of the State of Senegal and backing from PACAO-Sénégal, we distributed 125 tonnes of urea and 120 tonnes of NPK.' These are the two most important fertilizers.

'These inputs were complemented by quality onion seeds… worth 24,870,000 FCFA (about $44,000) acquired thanks to a subsidy from the PACAO-Sénégal co-funding and subsidy fund,' he added.

Djibril Bèye has farmed and traded for three decades. He says this system has changed his finances

'Thanks to COOPADIN and the support of PACAO-Sénégal, seed prices are lower and payment is staggered,' he said. 'This allows us to better manage our finances and invest in our farms.'

Training for better farming and marketing

In partnership with the National Agency for Agricultural and Rural Advisory (ANCAR), the cooperative offers training on good agricultural practices, sustainable land management, and the SHEP approach.

SHEP stands for smallholder horticulture empowerment and promotion. This approach shifts farmers' mindsets from 'cultivate and sell' to 'sell before producing'. The training helps them increase their income through appropriate technical and commercial skills.

'We have trained members in innovative techniques to optimize their yields and better manage their farms,' said Mouhamed Gueye, a trainer at ANCAR. 'The objective is to help them grow what the market needs, while preserving natural resources.'

COOPADIN organized, with PACAO-Sénégal's support, a training on using the West African Competitiveness Observatory. This platform lets businesses find potential trading partners in the region. The cooperative's mango producers used it to find new buyers in nearby countries.

Marketing activities in Dakar and Guinea

Farmers are often forced by necessity to sell their harvest at the nearest local market. But COOPADIN has implemented a collective marketing strategy, with support from PACAO-Sénégal. Meetings with leading horticultural distributors in Senegal set out a marketing plan for the 2024-2025 campaign.

The cooperative also explored new markets through a trade mission to Guinea, organized with PACAO-Sénégal's support.

And in December 2024, COOPADIN participated in the Dakar International Fair (FIDAK), a major trade fair that showcases local and international companies, thanks to PACAO-Sénégal's support. The cooperative highlighted its members' expertise, strengthened its partner network, and explored new growth opportunities.

Cooperative societies: a virtuous circle

Cooperative societies like COOPADIN play a key role in professionalizing farms and food and scaling up agricultural value chains. Through support services in production, farm management, and marketing, they improve their members' living conditions and contribute to local development.