Moreover, excluding subsidies, the cotton sector is competitive and exports more than 90% of what it produces. However, over the past ten years or so, the huge subsidies granted to producers in the United States (US$ 2.3 billion in 2001/2002), China ($ 1.2 billion in 2001/2002) and Europe ($ 700 million per year) have driven down cotton fibre prices. The price per kg dropped from $ 2.53 in 1995 to $ 0.82 in 2001.
To counter this fall, Mali adopted a reform in January 2005 of the mechanism for determining the price paid to seed cotton producers. The new agreement was a radical step: the basic price is now linked to the world market price, rather than to production costs. The purchasing price per kg of “grade one” cotton fell from CFAF 210 in 2004 to between CFAF 160 and 175 in 2005. Moreover, the minimum price system is no longer guaranteed. What will be the short- and medium-term consequences of the reform for producers and the Malian cotton commodity chain as a whole? To answer that question, CIRAD conducted a field study in the Malian cotton-growing zone, funded by the NGO OXFAM. The results speak for themselves.
On a microeconomic level, applying the new purchasing price will undoubtedly result in a negative margin for producers. In effect, the price will generally not be sufficient to cover seed cotton production costs. Moreover, given that the new price mechanism will result in a drop in incomes among cotton producers (around CFAF 30 billion) and rural populations, it will probably exacerbate poverty in Mali.
On a macroeconomic level, the likely loss for the Malian economy as a whole will be between CFAF 62.32 and 136.5 billion, corresponding to a drop of between 1.86 and 3.9% in the country’s GDP. Moreover, the new mechanism has been introduced at a time when the commodity chain is also suffering from major difficulties linked to the Compagnie malienne de développement textile’s financial problems, while input costs are rising and yields are falling in the cotton-growing zone. This is compounded by the fall in export revenue and in incomes among cotton producers as a result of the price slump.
These various points raise another, broader issue: are the Millennium Development Goals initiated by the United Nations and the Doha agenda* being implemented under the World Trade Organization coherent and above all compatible? Achieving the Millennium Development Goals, particularly a 50% reduction in global poverty by 2015, means implementing determined public policies that are mostly out of step with the increasing liberalization imposed under the Doha Round.
Kako Nubukpo | alfa
Fighting a destructive crop disease with mathematics
21.06.2017 | University of Cambridge
Unusual soybean coloration sheds a light on gene silencing
20.06.2017 | University of Illinois College of Agricultural, Consumer and Environmental Sciences
Heatwaves in the Arctic, longer periods of vegetation in Europe, severe floods in West Africa – starting in 2021, scientists want to explore the emissions of the greenhouse gas methane with the German-French satellite MERLIN. This is made possible by a new robust laser system of the Fraunhofer Institute for Laser Technology ILT in Aachen, which achieves unprecedented measurement accuracy.
Methane is primarily the result of the decomposition of organic matter. The gas has a 25 times greater warming potential than carbon dioxide, but is not as...
Hydrogen is regarded as the energy source of the future: It is produced with solar power and can be used to generate heat and electricity in fuel cells. Empa researchers have now succeeded in decoding the movement of hydrogen ions in crystals – a key step towards more efficient energy conversion in the hydrogen industry of tomorrow.
As charge carriers, electrons and ions play the leading role in electrochemical energy storage devices and converters such as batteries and fuel cells. Proton...
Scientists from the Excellence Cluster Universe at the Ludwig-Maximilians-Universität Munich have establised "Cosmowebportal", a unique data centre for cosmological simulations located at the Leibniz Supercomputing Centre (LRZ) of the Bavarian Academy of Sciences. The complete results of a series of large hydrodynamical cosmological simulations are available, with data volumes typically exceeding several hundred terabytes. Scientists worldwide can interactively explore these complex simulations via a web interface and directly access the results.
With current telescopes, scientists can observe our Universe’s galaxies and galaxy clusters and their distribution along an invisible cosmic web. From the...
Temperature measurements possible even on the smallest scale / Molecular ruby for use in material sciences, biology, and medicine
Chemists at Johannes Gutenberg University Mainz (JGU) in cooperation with researchers of the German Federal Institute for Materials Research and Testing (BAM)...
Germany counts high-precision manufacturing processes among its advantages as a location. It’s not just the aerospace and automotive industries that require almost waste-free, high-precision manufacturing to provide an efficient way of testing the shape and orientation tolerances of products. Since current inline measurement technology not yet provides the required accuracy, the Fraunhofer Institute for Laser Technology ILT is collaborating with four renowned industry partners in the INSPIRE project to develop inline sensors with a new accuracy class. Funded by the German Federal Ministry of Education and Research (BMBF), the project is scheduled to run until the end of 2019.
New Manufacturing Technologies for New Products
19.06.2017 | Event News
13.06.2017 | Event News
13.06.2017 | Event News
22.06.2017 | Life Sciences
22.06.2017 | Materials Sciences
22.06.2017 | Materials Sciences