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

Valorization ofby-productsValue of cottonseedsNo clear prediction—only in WCA doeshistory of verticalintegration establish asystematic link withginning structureAbnormally low in Mali and BurkinaFaso (monopsony in cottonseedoil markets). but high pricesrealized in other landlockedcountriesBoth demand (for oil and cake)and policy factors beyondthe control of ginners thatexert a big influenceIntermediate outcomeindicatorsFarm-level performanceCompany performance■ Mean yield past5 years (kg seedcotton/ha)■ Trend, past 10yearsAdjusted farm gateto FOT cost(US$/kg lint)■ Expected performanceon yield level stronglyrelated to expectationsfor input provision andextension■ No clear predictionfor yield trend■ Worst in monopolies;best in competitivesectors■ Mean yields that remain highest inWCA; within ESA, concentratedsectors that perform best■ However, yield stagnation in WCAsince mid-1980s■ Zambia (concentrated) providingbest example of yield growth inESA, but overall ESA yields havingfailed to close gap on worldaverageExpectations largely confirmed:US$0.31–0.45 in WCAmonopolies, US$0.38 inMozambique; in market sectors,US$0.21 in Tanzania to US$0.32in Zambia and UgandaCurrent yields heavilyinfluenced by pastinvestments, especially inresearch and extension, sotypology alone does notexplain performancevariationsHybrid regulatory structure inUganda that protectsinefficient companies; rollergins and competition inTanzania that keepcosts down(continued)157