Chapter 9. Constraints to smallholder participation in high-value agriculture in West Africa 305
Box 7. Complete vertical integration in the tomato export sector in Senegal
The Senegalese tomato export sector is dominated by one multinational company which was established
and started exporting tomatoes from Senegal to the EU in 2003. The export supply chain is completely
vertically integrated. Smallholder procurement is 0 percent and production, processing, trade and
distribution is completely integrated within the subsidiaries of the multinational companies. In the
tomato export sector in Senegal rural households therefore only benefited through labor market effects.This case study also shows that it is mainly the poorest households who benefit from the labor market
effects of increased high-value horticulture exports.Figure 9. Revenue impacts for farmers working or not in the tomato industry
Figure 10. Poverty impact from participation in tomato processing
Households employed in the tomato export industry, either in the fields or in the processing units of the
company, have incomes that are more than double the incomes of other households in the region although
they initially, before the multinational company started investing in tomato exports in 2003, had lower land
and non-land asset holdings. Increased tomato exports have resulted in increased employment, increased
incomes and ultimately reduced rates of poverty and extreme poverty.Source: Maertens, Colen and Swinnen (2011).