This village level study in Senegal seeks to improve the understanding of peasant behavior in developing countries. Policy makers designing programs for and interventions in the agricultural sector should benefit from an enhanced understanding of the workings of rural grain transactions. The study attempts (1) to provide a summary of principal producer grain transactions and (2) to discuss in greater detail millet marketing in rural Senegal. The methodology presented and conclusions advanced should encourage other researchers and Third World governments to recognize that evaluations of market process are vital to design effective agricultural policies.

For example, many West African countries have chosen to rely on national marketing organizations instead of using the private trader to commercialize food grains. Such reliance stems from their belief that the private market is noncompetitive and that public sector intervention will lead to efficiency gains. The conclusions of this study show that policy makers should first test the assumption of noncompetitive behavior before assuming that intervention will provide greater efficiency.

The first section of this paper provides some background information on Senegal agriculture. Next comes a summary of producer transactions. An analysis of the millet marketing process appears in the third section, while the last section indicates some policy implications.