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<u>Table 3. Significance of the agriculture sector in Sub-Saharan African countries</u>

||<br>Share of a<br>(200|<br>griculture<br>3-05)|||<br>Three major agricultur|<br>al exports (|<br>2001)|||
|---|---|---|---|---|---|---|---|---|---|
|Country|% of<br>GDP|% of total<br>exports|Product|Amount<br>(mil. US$)|% of<br>GDP<br>Product<br>|Amount<br>(mil. US$)|% of<br>GDP<br>Product|Amount<br>(mil. US$)|% of<br>GDP|
|Benin|32.2|61.0|Cotton Lint|118.8|5.0 Cashew Nuts|11.1|0.5 Palm Oil|8.5|0.4|
|Burkina Faso|30.6|72.3|Cotton Lint|102.8|3.7 Cattle|16.9|0.6 Fruit Tropical Fresh N|12.0|0.4|
|Burundi|34.8|4.2|_Coffee, Green_|_21.1_|_3.2_ Tea|6.8|1.0 Beer of Barley|1.3|0.2|
|Cameroon|41.1|13.0|_Cocoa Beans_|_116.7_|_1.2_ Cotton Lint|101.2|1.1 _Coffee, Green_|_76.0_|_0.8_|
|Central African Republic|53.9|41.2|Cattle|12.0|1.2 Cotton Lint|6.9|0.7 _Coffee, Green_|_1.9_|_0.2_|
|<br>Comoros 1/|51.0|43.6|Vanilla|5.7|2.6 Cloves, Whole & Stem|1.6|<br>0.7||0.0|
|Congo, Dem. Rep. 1/|46.0|1.8|_Coffee, Green_|_3.2_|_0.1_ Tobacco Leaves|2.4|0.1 _Cocoa Beans_|_2.4_|_0.1_|
|Ethiopia|47.7|25.9|_Coffee, Green_|_135.0_|_1.7_ Sesame Seed|9.7|0.1 Sugar (Centrifugal, Ra|8.0|0.1|
|Gambia, The|32.6|4.3|Oil of Groundnuts|5.5|1.3 Groundnuts Shelled|4.8|1.1 Oil of Linseed|2.1|0.5|
|Ghana|37.5|5.0|_Cocoa Beans_|_396.0_|_7.5_ Cocoa Butter|17.3|0.3 Cigarettes|15.0|0.3|
|Guinea-Bissau 1/|60.3|81.5|Cashew Nuts|47.0|23.6 Cotton Lint|3.6|1.8 Cottonseed|0.2|0.1|
|Liberia 1/|63.6|53.4|Rubber Natural Dry|65.5|12.1 Palm Oil|2.1|0.4 _Cocoa Beans_|_0.8_|_0.1_|
|Malawi|34.7|3.8|Tobacco Leaves|256.9|15.0 Sugar (Centrifugal, Ra|52.2|3.0 Tea|34.1|2.0|
|Mali 1/|36.6|41.0|Cotton Lint|172.0|6.5 Cattle|80.0|3.0 Sheep|18.0|0.7|
|Niger|39.9|3.6|Cattle|16.0|0.8 Sheep|11.8|0.6 Goats|10.5|0.5|
|Rwanda|42.3|7.3|Tea|16.5|1.0 _Coffee, Green_|_14.9_|_0.9_ Hides and Skins|0.7|0.0|
|Sierra Leone 1/|46.1|24.6|_Cocoa Beans_|_2.6_|_0.3 Coffee, Green_|_1.7_|_0.2_ Cigarettes|0.6|0.1|
|Sudan|33.7|4.8|Sesame Seed|94.8|<br>0.7 Cotton Lint|41.1|0.3 Sugar Refined|21.0|0.2|
|Tanzania|44.5|16.7|_Coffee, Green_|_63.8_|_0.7_ Cashew Nuts|63.3|0.7 Tobacco Leaves|41.5|0.4|
|Togo|41.8|8.9|Cotton Lint|45.0|3.4 Cotton Carded Combe|18.6|1.4 Flour of Wheat|8.5|0.6|
|Uganda|32.7|11.6|_Coffee, Green_|_51.3_|_0.9_ Tea|16.2|0.3 TobaccoLeaves|15.8|0.3|

Sources: _FAOSTAT_ ; _World Development Indicators;_ and author's estimates. 1/ The share of agriculture in total exports is for 2001.

In the growth context, agricultural exports and commodities which are primarily consumed domestically (as shown in Tables 2 and 3) are characterized much differently. The following empirical work analyzes two groups of commodities: coffee and cocoa, and cow milk; they are chosen because of their significant but different roles in the African economy. Coffee and cocoa are among high-value agricultural commodities, which require significant land holdings and are mass-produced almost entirely for export, mainly to European countries.<sup>11</sup> In contrast, dairy is a mostly small holder occupation, and milk is consumed within the country and contributes to rural employment to a larger extent. Accordingly, dairy development will be one of the key elements to directly improve small farmer livelihood in rural areas is suitable ecologies. In India, for example, small holder dairying is contributing significantly to employment and income generation particularly of women. Wide spread small holder participation in the sub-sector has lead to India moving from a large importer to an exporter of dairy products. Scale neutral dairy production technologies were important to this accomplishment but even more important was the improvement in infrastructure (rural 11 Coffee and cocoa are quite similar in terms of production and processing technology. However, tea is technically differentiated from them, and as the result, the following empirical model does not include tea.