Forum for Science, Industry and Business

Sponsored by:     3M 
Search our Site:

 

Cotton: Malian producers will be paying the price

09.03.2006
Cotton is one of the main cogs in the machinery of the African economy: it accounts for 60% of agricultural export revenue and 5 to 10% of GDP in producing countries, and supports 10 million people, including 3.3 million in Mali.

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
Further information:
http://www.cirad.fr/en/actualite/communique.php?id=382

More articles from Agricultural and Forestry Science:

nachricht Alkaline soil, sensible sensor
03.08.2017 | American Society of Agronomy

nachricht New 3-D model predicts best planting practices for farmers
26.06.2017 | Carl R. Woese Institute for Genomic Biology, University of Illinois at Urbana-Champaign

All articles from Agricultural and Forestry Science >>>

The most recent press releases about innovation >>>

Die letzten 5 Focus-News des innovations-reports im Überblick:

Im Focus: Fizzy soda water could be key to clean manufacture of flat wonder material: Graphene

Whether you call it effervescent, fizzy, or sparkling, carbonated water is making a comeback as a beverage. Aside from quenching thirst, researchers at the University of Illinois at Urbana-Champaign have discovered a new use for these "bubbly" concoctions that will have major impact on the manufacturer of the world's thinnest, flattest, and one most useful materials -- graphene.

As graphene's popularity grows as an advanced "wonder" material, the speed and quality at which it can be manufactured will be paramount. With that in mind,...

Im Focus: Exotic quantum states made from light: Physicists create optical “wells” for a super-photon

Physicists at the University of Bonn have managed to create optical hollows and more complex patterns into which the light of a Bose-Einstein condensate flows. The creation of such highly low-loss structures for light is a prerequisite for complex light circuits, such as for quantum information processing for a new generation of computers. The researchers are now presenting their results in the journal Nature Photonics.

Light particles (photons) occur as tiny, indivisible portions. Many thousands of these light portions can be merged to form a single super-photon if they are...

Im Focus: Circular RNA linked to brain function

For the first time, scientists have shown that circular RNA is linked to brain function. When a RNA molecule called Cdr1as was deleted from the genome of mice, the animals had problems filtering out unnecessary information – like patients suffering from neuropsychiatric disorders.

While hundreds of circular RNAs (circRNAs) are abundant in mammalian brains, one big question has remained unanswered: What are they actually good for? In the...

Im Focus: RAVAN CubeSat measures Earth's outgoing energy

An experimental small satellite has successfully collected and delivered data on a key measurement for predicting changes in Earth's climate.

The Radiometer Assessment using Vertically Aligned Nanotubes (RAVAN) CubeSat was launched into low-Earth orbit on Nov. 11, 2016, in order to test new...

Im Focus: Scientists shine new light on the “other high temperature superconductor”

A study led by scientists of the Max Planck Institute for the Structure and Dynamics of Matter (MPSD) at the Center for Free-Electron Laser Science in Hamburg presents evidence of the coexistence of superconductivity and “charge-density-waves” in compounds of the poorly-studied family of bismuthates. This observation opens up new perspectives for a deeper understanding of the phenomenon of high-temperature superconductivity, a topic which is at the core of condensed matter research since more than 30 years. The paper by Nicoletti et al has been published in the PNAS.

Since the beginning of the 20th century, superconductivity had been observed in some metals at temperatures only a few degrees above the absolute zero (minus...

All Focus news of the innovation-report >>>

Anzeige

Anzeige

Event News

Call for Papers – ICNFT 2018, 5th International Conference on New Forming Technology

16.08.2017 | Event News

Sustainability is the business model of tomorrow

04.08.2017 | Event News

Clash of Realities 2017: Registration now open. International Conference at TH Köln

26.07.2017 | Event News

 
Latest News

Scientists discover species of dolphin that existed along South Carolina coast

24.08.2017 | Life Sciences

The science of fluoride flipping

24.08.2017 | Life Sciences

Optimizing therapy planning for cancers of the liver

24.08.2017 | Medical Engineering

VideoLinks
B2B-VideoLinks
More VideoLinks >>>