This is the second call for applications to support the development of the milk market system in Mauritania. The aftereffects of the 2022 Russia-Ukraine war, and regional conflicts continue to cause supply chain disruptions, putting pressure on the availability and affordability of safe, clean, and nutritious foods, such as milk. Despite the economic gains achieved in the last year (e.g., inflation reduction, GDP growth), it is imperative to acknowledge the potential impact of geopolitical tensions on trade dynamics. Moreover, the increased frequency of climate disasters presents additional challenges, potentially limiting agricultural production and perpetuating food insecurity in the region.
Agriculture is the backbone of Mauritania’s economy. More than 40 percent of the population live in rural areas, and an estimated 50 percent depend on agriculture for their income. Farming generates 25 percent of gross domestic product (GDP). Despite its potential, the country imports around 60 percent of staple foodstuffs. Local food production is concentrated in a few value chains, including cereals (e.g., rice, maize, wheat and sorghum), livestock (meat, milk, and feed/animal feed), vegetables, chicken, and dates. Meat and milk consumption are a major source of micronutrients. According to the 2022 Global Nutrition Report (globalnutritionreport.org), while Mauritania has made progress on stunting rate, and maternal, infant, and young children nutrition, the country has made little progress to address low weight-for-height among children under five years of age, which remains at 10.1% of children under 5 years of age affected, which is higher than the average for the Africa region (6.0%). Addressing the current high level of food and nutrition insecurity will require investing in local agribusinesses to increase productivity in key value chains, such as dairy.
Mauritania has significant potential in the dairy sector across different regions where it could benefit from improved productivity, conservation, and distribution that will make the sector more productive and resilient. According to the Mauritania Investment Promotion Agency (Agence de Promotion des Investissement en Mauritanie, APIM), individual consumption of milk (and its products) is estimated at 0.52 kg per inhabitant per day, around 2,080 tons consumed per day, and nearly 760,000 tons/year. This data reflects the importance of dairy products for consumers in Mauritania, who consume almost four times the average per capita consumption in Sub-Saharan Africa, according to the Global Agriculture and Food Security Program (GAFSP). However, total milk production (the most important dairy product) is insufficient, around 150,000MT in 2022, and a deficit of around 50,000MT is covered by imports every year (according to Clal Dairy Economic Consultants). Although an industrial sector exists in the country, it cannot cover the total demand for milk. Given the country’s heritage as a pastoral country, nearly all of the milk produced locally does not enter the formal market and is either self-consumed or sold as raw milk. Owing to limited dairy processing capacity, Mauritania imports fresh milk equivalent products – powdered, UHT and evaporated milk – which fulfills nearly 80% of the country’s formal demand.
Despite the growing private sector and their increasing demand of milk and milk products, private sector producers face several hurdles such as limited access to finance and technical assistance at farm and firm levels that could support them to improve sourcing and operational efficiencies, equipment, and technology acquisition to further increase their capacity and production activities.