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

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efers specifically to the presence of vegetal matter other than lint, whilecontamination refers to the presence of nonplant matter. Both cleanlinessand contamination depend on harvesting methods, storage, transport, andginning practices.Better fiber quality translates into better yarn quality and higher processingefficiency. Among the fiber properties, staple length has the greatest influenceon spinning performance. Cotton fiber represents about 50 percent ofthe cost of yarn. Traditionally, the price of cotton was largely determined byfactors such as staple length, grade, color, and micronaire. 18 Those factors arestill the major determinants of price, but spinners today are also interested inother fiber properties that affect the quality of their yarns and the efficiencywith which they can produce those yarns. As the textile industry has beenstriving to improve quality and efficiency through automatic high-speedmachinery, new technologies place increasingly severe technical demands ontextile fibers, raising the importance of other properties of cotton: strength(or tenacity), uniformity, maturity, fineness, elongation, neps, 19 short fibercontent, spinning performance, dyeing ability, and cleanliness. All else equal,spinners pay a higher price for longer, finer, and stronger cotton lint that iswhite, bright, and fully mature.The most commonly produced and traded cotton lint variety in the worldbelongs to the species Gossypium hirsutum, which is also known as upland cotton.Extra long staple cotton used for producing very fine yarns come fromanother species 20 and accounts for less than 5 percent of world cotton trade.Following the global trend toward improving yarn quality, the market shareof medium and higher grades is rising, while the share of shorter (“coarsecount”) upland cotton is declining. Medium and higher grades of upland cottonnow account for an estimated 75 percent of world trade, or some 7 millionmetric tons, and are typically used in ring spinning.The recognized benchmark for international cotton prices, the Cotlook AIndex, is based on the representative offering price for a “basket” of themedium grade cotton most commonly traded internationally. Those pricequotations refer to a common quality, contractual, and geographical 21 basis(table 2.2). Lint of this quality is typically used in ring spinning for the productionof ring spun carded yarns. 22 The fastest growing and most remunerativemarket for upland cotton is for higher grades and finer cotton used forproducing ring spun combed yarns 23 for the woven and knitted apparel sector.In that segment, the modern high-speed machinery requires better fiber characteristicsto operate at maximum efficiency and spin high quality yarns. Asshown in table 2.2, the fiber properties of most African upland cotton liebetween these two levels, superior to Cotlook A Index specifications but notalways reaching those needed for ring spun combed yarns.In addition to requiring longer, cleaner, whiter, brighter, stronger, and finerfiber, this higher segment of the market (for ring spun combed yarns) is moredemanding of other fiber properties, such as elongation and neps. It also22 BAFFES AND ESTUR
Table 2.2 Fiber Properties of the Cotlook A Index, Typical AfricanUpland Cotton, and Top Quality Lint for Combed YarnsFiber propertyCotlook A indexTypical Africanupland cottonGrade Middling—white Strict low middlingto good middlingStaple length1 3/32 inches(27.8 mm)1 1/6 to 1 3/16inches (27 to30.2 mm)Lint for ring spuncombed yarnsStrict middling—white1 1/8 inches(28.6 mm)Micronaire 3.5 to 4.9 3.5 to 4.5 3.8 to 4.2Fiber strength 25 to 30 grams 27 to 32 grams more than 30 gramsper texper texper texSource: Authors’ estimates based on interviews.Note: A tex unit is equal to the weight in grams of 1,000 meters of fiber. The strengthreported is the force in grams required to break a bundle of fibers one tex unit in size.demands a lower variance in fiber properties, notably greater uniformity oflength and lower short fiber content.Only FiberCotton prices are not solely determined by intrinsic fiber properties and lintcleanliness. Contamination of lint by nonvegetal foreign matter is the mostserious problem confronting cotton spinners. Contaminated cotton causes disruptionsin the spinning process, which increases the cost of spinning andreduces the quality of yarn and end products. There are no cost-effectivemeans of removing contamination once it is present in yarn or fabric. As aresult, contamination leads to the downgrading of end products or even torejection of an entire lot.Cotton that is contaminated, or that is suspected of being contaminatedbecause of its origin, can only be sold at a substantial discount to compensatethe user for inspecting and cleaning the cotton before spinning. Price differentialsfor cotton with the same fiber characteristics range from 5 percent to30 percent, depending on the degree of perceived contamination by extraneousmatter, stickiness, and seed coat fragments. These discounts are usuallyapplied indiscriminately to all cotton originating from an area or a countryconsidered to be affected by contamination.Contamination by foreign matter is more serious with handpicked cotton.Seed cotton picked by hand is cleaner, and the fiber obtained has fewer neps anda lower short fiber content than cotton picked by machine, which must becleaned more vigorously because it has more vegetative residues. Handpickedcotton should, therefore, normally be purchased at a premium over machinepicked cotton. However, handpicked seed cotton often gets contaminated duringMARKET CONTEXT 23
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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
Page 8 and 9: Section II. Historical Background a
Page 11 and 12: BOXES, FIGURES, AND TABLESBoxes2.1
Page 13: 5.2 Summary of Pricing Mechanisms i
Page 16 and 17: eference are limited to neighboring
Page 19 and 20: ACKNOWLEDGMENTSThis study was carri
Page 21 and 22: ABBREVIATIONS¢ U.S. centACPAgricul
Page 23: US$U shWAEMUWCAWTOU.S. dollarUganda
Page 26 and 27: output markets, improving productiv
Page 28 and 29: etween these competing needs, provi
Page 30 and 31: ■■■■■competition increase
Page 32 and 33: monopolies range from 0.98 to 1.15,
Page 34 and 35: macroeconomics, developments in com
Page 36 and 37: central body and that the state nee
Page 39 and 40: CHAPTER ONEIntroductionDavid Tschir
Page 41 and 42: The debate about how to deal with t
Page 43 and 44: Figure 1.1 Map of Africa Highlighti
Page 45: hypotheses about sector performance
Page 48 and 49: to reach 25 million tons of lint in
Page 50 and 51: cotton production was introduced in
Page 52 and 53: Figure 2.2 Nominal Cotton Prices (U
Page 54 and 55: Box 2.1 (Continued)Togo, 39 percent
Page 56 and 57: Box 2.2 Cotton SubsidiesCotton subs
Page 60 and 61: picking, storage, handling, or tran
Page 62 and 63: national monopoly (state-owned or p
Page 65: SECTION TWOHistorical Background an
Page 68 and 69: shares belonging to governments, an
Page 70 and 71: Changes Made Since the End of the 1
Page 72 and 73: long-term development strategies, (
Page 74 and 75: possible link between price-setting
Page 76 and 77: production fell further, to lows of
Page 78 and 79: all aspects of the chain from input
Page 80 and 81: suggestions (a) of establishing fas
Page 82 and 83: Figure 4.1 Decision Tree for Cotton
Page 84 and 85: Figure 4.2 African Cotton Sector Ty
Page 86 and 87: Box 4.1 Is This Typology Specific t
Page 88 and 89: 52Table 4.1 Trading Off: Strengths
Page 90 and 91: CONCEPTUALIZATION OF THE LINKS BETW
Page 92 and 93: chosen in this book and the impact
Page 94 and 95: Table 4.3 Expected Performance alon
Page 96 and 97: Box 4.2 (Continued)Second, farmers
Page 99: SECTION THREEComparative Analysis:C
Page 102 and 103: PRICING MECHANISMS IN WCAPricing me
Page 104 and 105: efore planting, price risk in the s
Page 106 and 107: 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
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Significant in Mozambique, the comp
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Zimbabwe transitioned during the 19
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Box 6.1 (Continued)A move from a co
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82Table 6.1 Summary of Input Supply
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84Table 6.1 (Continued)IndicatorsCo
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CHAPTER SEVENQuality ControlGérald
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Tanzania Competitive 1 2 Very lax n
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Figure 7.1 Estimated Premium for To
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all fiber coming from Africa—are
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Box 7.1 (Continued)newly liberalize
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CHAPTER EIGHTValorization of SeedCo
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competitive market in some of the o
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a few years, it indicates that some
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should eventually make a difference
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CHAPTER NINECotton ResearchDuncan B
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With regard to human and financial
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■■■Be involved in setting res
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made royalty payments to CRI. When
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and to identify complementary inves
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CHAPTER TENYields and Returns toFar
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fact that 55 percent of cotton is p
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Yields by Farmer TypeTo assess perf
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Factors beyond company services als
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Table 10.1 Summary Crop Budgets by
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According to the focus group inform
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Figure 10.6 Net Margins after All C
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All other variables in the budgets
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Table 10.2Summary of Average Yield
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■■■■impression is given tha
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were based on a 2005 cotton farmer
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more recent data are not available
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Figure 11.1 Estimated Average Ginni
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to buy seed cotton immediately afte
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146Table 11.3 Overall Competitivene
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148Table 11.4 Total Value Added per
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Figure 11.3 Total Value Added per c
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CHAPTER TWELVEConclusionsPatrick La
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Table 12.1 Summary of Expected and
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Valorization ofby-productsValue of
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Macro impact■ Total value addedpe
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across concession zones, with newer
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high yields. However, a mixed pictu
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governance and regulatory structure
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against price and exchange rate ris
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Improvements in the Delivery of Ext
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esistant, “stacked” genes), and
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Just as improved sector management
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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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