( Note: Prepared by Karim Hussein, Head of the SWAC’s Agricultural Transformation and Sustainable Development Unit, with assistance from L.Bossard, C.Perret and P.Heinrigs, SWAC Secretariat, Paris) Thank you very much Mr Chairman, distinguished participants and colleagues. It is an honour for the Sahel and West Africa Club Secretariat to participate on behalf of the OECD in this timely Forum. Please let me start by clarifying that while I am participating on behalf of the OECD, the presentation I will make today does not represent an official position of the OECD nor the SWAC. In fact, the OECD has not focused its analytical work on African cotton and does not have an official position on the issue. However, I will introduce material drawn from the SWAC’s monitoring of the West African economy, regional trends and interactions with West African actors. It is important to say one or two words about the SWAC at this point. The SWAC is not a donor. It was formed as an international response to the serious famines of the Sahel over 25 years ago. Since then it has broadened its scope beyond food security and to cover the whole of the West Africa region. It is an informal Forum for strategic reflection and exchange on West African development perspectives and priorities – bringing together a subset of OECD members and West African stakeholders. Our Directorate is attached to the OECD but it has an autonomous governing body and Work programme and it has a regional mandate. Our work is organised according to four focus areas: medium and long term development perspectives; agricultural transformation and sustainable development; regional integration and local development; and governance, conflict, peace and security. A key part of the SWAC’s mandate is to foster informed debate on regional development policies and practice based on West African field realities and the perspectives of diverse regional actors. We have worked on issues relating to cotton through our scoping studies on the transformation of West African agriculture (studies available at: http://www.sahel-club.org/en/agri/index.htm ); field studies in cross-border cotton production zones; ongoing consultations with West African governments, private sector, producer networks and international agencies on regional agriculture priorities and cotton and joint work with other OECD Directorates on the impacts of trade and agricultural policies in West Africa, policy coherence for development, and the Development Assistance Committee’s work on donor best practice. Throughout we have acted as an impartial facilitator to foster dialogue among West African actors and OECD members. We will demonstrate cotton’s importance in economic, agricultural, social and livelihood terms in West Africa, and hope through this to contribute to better informed dialogue on the key stakes and creativity in the search for appropriate solutions. Finally, my presentation draws on this interaction and I want to thank our collaborators for their contributions.
Transcript of "Facilitates Access To Cash Income, Jobs And Improved Livelihoods (Traditional Textiles Industry)"
Importance of cotton production and trade in West Africa Karim Hussein Principal Administrator, SWAC, OECD Contribution to WTO Regional Workshop on Cotton, Cotonou 23-24 March 2004 Sahel and West Africa Club / OECD
500 000 to 1 000 000 inhab. 100 000 à 500 000 inhabitants Cities and roads > 2000 000 inhabitants 1 à 2 000 000 inhabitants Main paved roads C.Vert Mauritanie Senegal Gambie G. Bissau Guinea S. Leone Liberia Mali Burkina C. d’Ivoire Ghana Togo Benin Nigeria Niger Chad Cameroon SWAC’s coverage in West Africa 0 1000 km
Where is cotton produced? Mali, Burkina Faso, Côte d’Ivoire 51 % Togo - Benin 20 % Chad - Cameroon 13 % 1.2 million tons in 2003 (lint) 3 main areas Source : SWAC / OECD drawing on FAO data
Production trends for cotton lint 1961 – 2003 (Mt) 1961 1970 1980 1990 2000 2003 WEST AFRICA MALI – BKF –CIV TOG - BEN CHAD - CAM 200 000 t 400 000 t 600 000 t 800 000 t 1000 000 t 1200 000 t Source : FAO.See http://apps.fao.org/faostat/
Export trends for cotton lint 1961 – 2001 (Mt) WEST AFRICA WORLD 100 000 Mt 700 000 Mt 3 700 000 Mt 5 900 000 Mt Logarithmic scale Source : FAO. See http:// apps . fao . org / faostat /
Cotton and the transformation of West African agriculture <ul><li>Most agricultural & cotton production by family farms </li></ul><ul><li>Trend of increased production of key export crops </li></ul><ul><li>Cotton linked with increased cereals production </li></ul><ul><li>Reliance on traditional export crops is risky </li></ul><ul><li>Population growth and urbanisation: increased demand </li></ul><ul><li>Cotton remains central to many farming systems </li></ul><ul><li>Increased importance of producer voice </li></ul><ul><li>Key issue: Has cotton generated an agricultural revolution? Where? How? </li></ul>
Economic and social importance of cotton in West Africa <ul><li>Draws on West African comparative advantage : high quality, low cost, internationally competitive until recently </li></ul><ul><li>Complements production of staples and cereals </li></ul><ul><li>Facilitates access to cash income , jobs and improved livelihoods (traditional textiles industry, education, health) </li></ul><ul><li>Capitalises on existing infrastructure (e.g. FCFA zone) </li></ul><ul><li>Fosters agricultural innovation , even beyond cotton </li></ul><ul><li>Contributes to community development and strong POs </li></ul><ul><li>But </li></ul><ul><li>Risks: climate, volatile markets…… </li></ul>
Cotton yeld (kg/ha) 500 1000 1500 62 76 84 97 10 000 30 000 70 000 Maize Production (Mt) From cash crop production to commercial farming : Sikasso zone (Mali) 1962 - 1997 Source : SWAC /OECD (ECOLOC Study of SIKASSO)
Mali : maize and cotton production 1961 – 2003 (Mt 000) Cotton Maize Source : FAO. See http:// apps . fao . org / faostat /
Key stakes according to regional actors <ul><li>Cotton is special : limited alternatives in the Sahel. It is urgent to find solutions to address price volatility </li></ul><ul><li>Diversification is important but insufficient </li></ul><ul><li>Actions needed to preserve quality and competitiveness (cost/price ) </li></ul><ul><li>Scepticism on value-added of new reforms after liberalisation </li></ul><ul><li>Foster regional demand and processing </li></ul><ul><li>Raise public awareness of potential negative impacts of international trade and agricultural policies </li></ul><ul><li>Work to address related challenges facing other sub-sectors and African agriculture as a whole as it integrates with the global economy </li></ul>
New initiatives: some examples <ul><li>Regional approaches: agricultural support, developing markets, demand, processing capacities and the textile industry </li></ul><ul><li>Diversification – identify opportunities to develop alternative agricultural and non-agricultural value-added activities that generate hard currency </li></ul><ul><li>Risk management / insurance scheme against price volatility </li></ul><ul><li>Mechanisms to monitor impact of subsidies </li></ul><ul><li>Trade capacity building initiatives: initiatives to enhance developing country / private sector and producer voice </li></ul><ul><li>……… .. </li></ul>
Challenges and questions new initiatives need to address (i) What are the empirical impacts of international agriculture and trade policies on West Africa? (ii) How can West Africa address new competition generated by the adaptation of existing policies and trade regimes? (iii) How can processing really foster a profitable and competitive textile industry in W.A.? Lessons from the past? Who will invest? (iv) How might diversification provide alternative opportunities for adding value - particularly for small farms ? (v) What conditions are required to attract local and foreign investment? (vi) What institutional issues need to be addressed to ensure international negotiation processes help foster agreement that addresses African and international concerns? (vii) Regional initiatives and regional integration?
Thank you Additional resources SWAC web pages on agricultural transformation and cotton www.oecd.org/sah (icon - cotton) www. sahel-club.org /en/agri/ index.htm www. sahel-club.org / fr /index.htm OECD initiative on Policy Coherence for Development www.oecd.org/development/policycoherence DAC guidelines on strengthening trade capacity www.oecd.org/dac/trade
Cotton lint Share of National Export Revenue 2001: Examples 6 key producers Source : FAO 32.6% Benin Burkina 49.7% 36.4% Chad Mali 14.6% Togo 11,2% Cameroun 5.8%%
Cotton yield (kg/ha) 500 1000 1500 62 76 84 97 10 000 30 000 70 000 Maize Production (Mt) The Mali case From cash crops to commercial farming in Sikasso 1962-1997 Source : SWAC /OECD (ECOLOC Study of SIKASSO)
Mali : Maize and cotton production 1961 – 2003 (Mt 000) Cotton Maize Source : FAO
<ul><li>Cotton support system favoured high access to agricultural innovation by farmers in the CMDT area: - long term financial and technical support - demand-led innovation process - close extension support - efficient upstream and downstream agricultural services </li></ul><ul><li>Agricultural revolution in this zone </li></ul><ul><li>CMDT facing new reforms, cuts and privatisation: what perspectives for cotton farmers? </li></ul>Agricultural innovation and cotton production in Mali
A particular slide catching your eye?
Clipping is a handy way to collect important slides you want to go back to later.