Agro-industry: why Chadian output collapsed in the second quarter

A 67% drop

In its note on the harmonised index of industrial production, INSEED reports a 67% fall in food industry activity in the second quarter of 2026. The main culprit has been identified: sugar production.

Sugar, the weak link

The sugar sector carries great weight in the country's food industry. When it slows, the whole index collapses. Several factors can explain this kind of decline in a sugar sector: the timing of the cane harvesting and crushing season, energy supply problems, the state of equipment, or competition from imported sugar, which is sometimes cheaper.

The precise causes of the decline observed in the second quarter need to be clarified with manufacturers and the authorities, to distinguish a seasonal effect from a structural difficulty.

A Chadian paradox

The decline illustrates a paradox: Chad produces large quantities of agricultural and animal raw materials, but processes little of them. Farming and livestock are growing, while the industry that should add value to them remains fragile and dependent on a few large plants.

What it would take to revive the sector

Manufacturers regularly point to the same needs: reliable and cheaper electricity, access to investment credit, protection against unfair imports and smuggling, and transport infrastructure to move products. The 2027 budget, which emphasises local processing of agricultural and animal production, will test the government's will to remove these obstacles.

Key figures

• Food industry activity in Q2 2026: -67%
• Main cause identified by INSEED: sugar production