Organization and Performance of Cotton Sectors in Africa ... - infoDev

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126Table 10.1 (Continued)Budget elementBurkinaFaso Cameroon a Mali Mozambique Tanzania Uganda Zambia ZimbabweGroup 4Yield (kg/ha) 240 125 450Seed cotton price (US$/kg) 0.21 0.25 0.25Gross revenue (US$/kg) 50.88 31.25 112.50Cost of input (US$/ha) 13.50 5.56 16.86Cost of hired services(US$/ha) 2.00 0 10.33Cost of hired labor (US$/ha) 5.30 0 0Gross margin, excluding labor(US$/ha) 35.38 25.69 85.31Returns to all labor b (US$/day) 0.24 0.28 0.70Returns to family labor(US$/day) 0.24 0.28 0.70Cost per kg c (US$) 0.45 1.27 0.38Family labor input (days/ha) 123.7 91.0 122.5Hired labor input (days/ha) 25 0 0Net margin (US$/ha) –56.51 –128.10 –60.52Input cost/gross revenue 0.27 0.18 0.15Source: Authors.Note: n.a. = not applicable.a. Because no focus groups were undertaken, Cameroon data are from monitoring surveys by SODECOTON. Labor data are not disaggregated by farmer type and aregenerally considered too high.b. Calculations of returns to all labor assume no payment for hired labor.c. For calculations of cost per kg, all labor input is costed at an average casual labor wage.
According to the focus group informants, average labor input per hectare ofcotton production is 40 percent higher in ESA than in WCA. 72 The main reasonis the greater penetration of animal traction technology within WCA, where itis used by nearly all farmers for land preparation and by many for weeding.Efforts are also being made to promote the use of labor-saving herbicides inWCA, whereas in ESA only the top two groups in Mozambique recorded anyuse of herbicides. 73 Thus, weeding is the single largest contributor to this laborusedifferential between the two regions.If one compares higher and lower producing groups, total labor input fallswith production level. Smaller producers require less labor for harvesting, tendto weed fewer times, and require less labor (if any at all) for fertilizer applicationand spraying. However, smaller producers (group 3 in Mozambique, Tanzania,and Zambia; all group 4s) often do not have access to animal traction,even for land preparation, so they may have to use hand hoes, which is muchmore labor intensive. Alternatively, they have to hire plowing services, whichraises their expenditure on hired services above that of larger producers (seeBurkina Faso group 3, for instance).Focus group discussions in Mali and Burkina Faso did not distinguishbetween family and hired labor input, so in table 10.1 all labor input in the WCAcountries is considered to be family labor. Although this conclusion may not beentirely true, average family sizes are much larger in WCA than in ESA, and it isunderstood that most labor tasks on WCA cotton farms are performed by familymembers. By contrast, the top producer groups in ESA rely heavily on hiredlabor, which accounts for more than 70 percent of total labor input for group 1in Mozambique, Tanzania, Zambia, and Zimbabwe (and also in Zambia group2). Smaller producers in ESA countries are more reliant on family labor.As discussed in chapter 6, given the high input costs associated with cottonproduction and the difficulties that African smallholder households have inaffording such inputs, one of the main strengths of coordinated cotton systemsis their ability to provide producers with access to input on credit. Participantsin focus group discussions in Burkina Faso and Mali insisted that all groupsuse the same quantity of fertilizers per hectare (ha). This response may havebeen influenced by the presence of the local extension officer at the discussions.Yet all cotton farmers are entitled to receive a similar quantity of fertilizers (perha of cotton cultivated) on credit, so fairly uniform usage is credible. By contrast,fertilizer use is highly skewed in Uganda and Zimbabwe, the only twocountries in ESA where any inorganic fertilizer is used on cotton. Despite a 50percent subsidy in Uganda, only group 1 farmers reported using fertilizers.According to participants in the focus group discussions, fertilizer use by thetop group in Zimbabwe is higher than in any other country, including WCA.However, in part as a result of nationwide fertilizer shortages in Zimbabwe in2005/06, fertilizer use by group 2 is much less than by group 1, while group 3is not considered creditworthy enough to receive credit for fertilizer—evenunder normal circumstances.YIELDS AND RETURNS TO FARMERS 127
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AGRICULTURE AND RURAL DEVELOPMENTOr
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AGRICULTURE AND RURAL DEVELOPMENTSe
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© 2009 The International Bank for
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Section II. Historical Background a
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BOXES, FIGURES, AND TABLESBoxes2.1
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5.2 Summary of Pricing Mechanisms i
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eference are limited to neighboring
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ACKNOWLEDGMENTSThis study was carri
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ABBREVIATIONS¢ U.S. centACPAgricul
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US$U shWAEMUWCAWTOU.S. dollarUganda
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output markets, improving productiv
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etween these competing needs, provi
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■■■■■competition increase
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monopolies range from 0.98 to 1.15,
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macroeconomics, developments in com
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central body and that the state nee
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CHAPTER ONEIntroductionDavid Tschir
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The debate about how to deal with t
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Figure 1.1 Map of Africa Highlighti
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hypotheses about sector performance
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to reach 25 million tons of lint in
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cotton production was introduced in
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Figure 2.2 Nominal Cotton Prices (U
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Box 2.1 (Continued)Togo, 39 percent
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Box 2.2 Cotton SubsidiesCotton subs
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efers specifically to the presence
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picking, storage, handling, or tran
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national monopoly (state-owned or p
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SECTION TWOHistorical Background an
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shares belonging to governments, an
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Changes Made Since the End of the 1
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long-term development strategies, (
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possible link between price-setting
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production fell further, to lows of
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all aspects of the chain from input
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suggestions (a) of establishing fas
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Figure 4.1 Decision Tree for Cotton
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Figure 4.2 African Cotton Sector Ty
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Box 4.1 Is This Typology Specific t
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52Table 4.1 Trading Off: Strengths
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CONCEPTUALIZATION OF THE LINKS BETW
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chosen in this book and the impact
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Table 4.3 Expected Performance alon
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Box 4.2 (Continued)Second, farmers
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SECTION THREEComparative Analysis:C
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PRICING MECHANISMS IN WCAPricing me
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efore planting, price risk in the s
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Table 5.3 Summary of Producer Share
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Finally, FOT price shares in WCA ro
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MALI AND CAMEROON: GOVERNMENT MONOP
Page 112 and 113: Significant in Mozambique, the comp
Page 114 and 115: Zimbabwe transitioned during the 19
Page 116 and 117: Box 6.1 (Continued)A move from a co
Page 118 and 119: 82Table 6.1 Summary of Input Supply
Page 120 and 121: 84Table 6.1 (Continued)IndicatorsCo
Page 123 and 124: CHAPTER SEVENQuality ControlGérald
Page 125 and 126: Tanzania Competitive 1 2 Very lax n
Page 127 and 128: Figure 7.1 Estimated Premium for To
Page 129 and 130: all fiber coming from Africa—are
Page 131 and 132: Box 7.1 (Continued)newly liberalize
Page 133 and 134: CHAPTER EIGHTValorization of SeedCo
Page 135 and 136: competitive market in some of the o
Page 137 and 138: a few years, it indicates that some
Page 139 and 140: should eventually make a difference
Page 141 and 142: CHAPTER NINECotton ResearchDuncan B
Page 143 and 144: With regard to human and financial
Page 145 and 146: ■■■Be involved in setting res
Page 147 and 148: made royalty payments to CRI. When
Page 149: and to identify complementary inves
Page 153 and 154: CHAPTER TENYields and Returns toFar
Page 155 and 156: fact that 55 percent of cotton is p
Page 157 and 158: Yields by Farmer TypeTo assess perf
Page 159 and 160: Factors beyond company services als
Page 161: Table 10.1 Summary Crop Budgets by
Page 165 and 166: Figure 10.6 Net Margins after All C
Page 167 and 168: All other variables in the budgets
Page 169 and 170: Table 10.2Summary of Average Yield
Page 171 and 172: ■■■■impression is given tha
Page 173: were based on a 2005 cotton farmer
Page 176 and 177: more recent data are not available
Page 178 and 179: Figure 11.1 Estimated Average Ginni
Page 180 and 181: to buy seed cotton immediately afte
Page 182 and 183: 146Table 11.3 Overall Competitivene
Page 184 and 185: 148Table 11.4 Total Value Added per
Page 186 and 187: Figure 11.3 Total Value Added per c
Page 189 and 190: CHAPTER TWELVEConclusionsPatrick La
Page 191 and 192: Table 12.1 Summary of Expected and
Page 193 and 194: Valorization ofby-productsValue of
Page 195 and 196: Macro impact■ Total value addedpe
Page 197 and 198: across concession zones, with newer
Page 199 and 200: high yields. However, a mixed pictu
Page 201 and 202: governance and regulatory structure
Page 203 and 204: against price and exchange rate ris
Page 205 and 206: Improvements in the Delivery of Ext
Page 207 and 208: esistant, “stacked” genes), and
Page 209 and 210: Just as improved sector management
Page 211 and 212: More-competitive systems are perhap
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■■■■Interprofessional commi
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were to occur, it would most likely
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APPENDIX AStatistical Tables181
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1989/90 43 111 383 40.7 95 0.491990
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1989/90 62 150 416 41.0 95 0.671990
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1989/90 43 89 482 41.3 95 0.651990/
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1989/90 99 189 521 42.8 85 0.541990
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1997/98 31 327 95 33 to 35 2,950 83
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1994/95 82 344 238 33 207.0 40.0119
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Table A8 ZambiaSeasonLint productio
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Table A9 ZimbabweSeasonLint product
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Table A10 Ginning and FOB-to-CIF Co
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1997/98 1.64 598 210 75 49 74 7.619
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1987/88 17,609 31,238 564 414 911 4
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206 NOTES11. Important cotton secto
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208 NOTES47. Benin is not included
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210 NOTES79. In Zimbabwe and Zambia
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BIBLIOGRAPHYBadiane, Ousmane, Dhane
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and Instability, ed. A. Sarris and
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World Bank. 2007. Strategies for Co
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CFA exchange rate, 17-18b, 19fcompa
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input credit and extension in, 77-8
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firm types, 211n93fixed prices, for
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productivity, 119, 121f, 205n8,209n
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key indicators, 56-58, 57-58t,155-5
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focus group discussions by farmerty
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technology transfer, 170-71by typol
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ECO-AUDITEnvironmental Benefits Sta
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