New impact Study released: Siatol in Burkina Faso

Abstract

I&P conducts once a year an in-depth impact study on one of the companies in portfolio so as to analyse its economic and social impacts.

The study, conducted in partnership with the FERDI and (Im)Prove, focuses this year on Siatol, a company based in Burkina Faso and specialized in the production of soya oil.

Founded in 2010 by Marcel Ouédraogo and supported by Sinergi Burkina since 2015, Siatol works with a network of more than 3,000 smallholder farmers.

Methodology

The study was conducted in February 2016 in Ouagadougou (where the factory and the office of Siatol are located), but also in the regions of Leo, Diébougou and Houndé, where the soya producers work.Surveys and interviews were conducted among 314 soybean farmers, 43 employees and 5 poultry farmers. 

Several institutional partners were also met to better understand the soy production chain in Burkina Faso.

Main Findings

Siatol plays a key role in strucuring the soy production chain in Burkina Faso, by providing farm inputs to the producers and by creating an interesting local offer on the marketBy promoting soy crop, Siatol provides producers with an access to a new cash crop, as an alternative to cotton crop. 63% of the producers has never grown soy before Siatol, and 19 % of farmers were not growing any cash crop (cotton, soybean, sesame). Soy crops is likely to increase their income basis when compared to cotton or food crops (10% estimated income increase in comparison with cotton). 
Sales of soybean represent an income of €250/smallholder on averageSoy provides revenue diversification without threatening food consumption. Indeed, growing soybean reduces the need for farmers to sell their food crops on the market: The sales rate of maize decreased from 39% before growing soybean with SIATOL to 25% after.

Siatol contributes to the greater productivity of the producers thanks to its mentoring and the quality of its farm inputs.