Cotton Sector Research Articles

Agricultural liberalization, cotton markets and buyers’ relations in Zimbabwe, 2001–2008

The paper examines the relations between seed cotton buyers in Zimbabwe's deregulated cotton sector. It draws upon interviews with officials from cotton companies to expose the disagreements and lack of cooperation among them over side marketing of contracted seed cotton and in maintaining common industry standards. In this context, the paper discusses cotton sector reforms spearheaded by some industry stakeholders aimed to address problems in the cotton sector. Despite the companies’ official agreement to the draft reforms of 2004, there were simmering tensions and disputes that strained relations among them. The government's unwillingness to intervene and provide coordination exacerbated problems in the cotton sector. Further, the paper highlights the contradictions in neo‐liberal reforms that seek to promote competitive agricultural markets, and argue against state intervention and strong regulation of markets. It argues that there is a need to reconceptualize the role of the state in some predatory and developing countries that liberalized agricultural markets because of the multiple and uneven effects of the lack of regulation and absence of institutions in the private sector.

Prices, institutions, and determinants of supply in the Malian cotton sector

AbstractCotton, both a source of livelihood for millions of poor rural households and a major source of export revenues, is a vital commodity for the economic and social development of Mali. Inefficiencies in the Malian cotton system at the ginnery and producers’ cooperative levels (e.g., late payment to farmers and poorly functioning credit schemes) have recently led to an important decline in supply, threatening the sustainability of the sector. Using regional data from 1998/1999 to 2008/2009, this study aims to quantitatively assess the contribution of key determinants, such as cotton prices and timely payment, toward the downward trend in cotton area. A dynamic supply model, based on adaptive expectations and partial adjustment, is employed to estimate the effects of prices and institutional factors, such as credit recovery rates and date of payment to farmers, on the Malian cotton supply. Results show that supply responds significantly to cotton prices relative to cereal and fertilizer prices. Date of payment varies across agricultural cycles and late payment negatively influences land devoted to cotton. Low credit repayment rates create disincentives to grow cotton. Therefore, the revitalization of the Malian cotton sector depends upon getting both prices and institutions right.

Generating Income and Conflicts: Profitability and Social Cohesion in Benin’s Cotton Sector

This paper is based on field research in the northern Benin, West Africa. The research aimed to investigate how interpersonal and intra-organisational conflicts disrupted cotton production and froze collective action. Cotton has proven to be the lifeline for farmer organisations, and has driven collective action in rural areas. The struggle to control these organisations and their economic and social benefits created mismanagement and free-riding reactions. The greed for resources, in the end, led to hatred, disruption of ties, and conflicts within and between farmer organisations, which resulted in the decline of cotton production and the freeze of collective action. Results from case studies show that social relations based on kinship and friendship deteriorate when financial stakes are high, and that cooperation within large groups requires legal sanctions to be sustainable.

Occupational exposures and mortality from cardiovascular disease among women textile workers in Shanghai, China

Exposure to textile fiber dusts, like particulate air pollution, may be associated with cardiovascular disease (CVD) mortality. Bacterial endotoxin, a potent inflammagen found in cotton dust, may be a specific risk factor. Female textile workers (N = 267,400) in Shanghai, China were followed for CVD mortality (1989-2000). Factory exposures were approximated by sector classifications based on materials and processes. Quantitative endotoxin and cotton dust measures were available for a subcohort (n = 3,188). Cox proportional hazards modeling was used to estimate hazard ratios (HR) and 95% confidence interval (CI). Slightly elevated mortality risk for the cotton sector was seen for ischemic stroke (HR = 1.12, 95% CI: 0.97-1.31) and hemorrhagic stroke (HR = 1.12, 95% CI: 1.02-1.23). Similar hemorrhagic stroke mortality risk was observed in high dust sectors (HR = 1.12, 95% CI: 1.02-1.24). No association was observed for ischemic heart disease. Exposures in textile factories may have contributed to CVD mortality among this cohort. The specific components of these exposures that may be harmful are not clear and should be further investigated.

Technical and institutional constraints of a cotton pest management strategy in Benin

A pest management strategy entitled Staggered Targeted Control (in French Lutte Étagée Ciblée, known as LEC) has been promoted in Benin since 1988 as an alternative to the conventional spraying strategy in order to reduce production costs and improve cotton yield and quality. Many cotton growers are eager to use LEC and many projects are promoting it but the strategy is not widely applied in cotton growing areas. This study identifies the main reasons that hinder the adoption of LEC. Results show that LEC in its current form could not be considered a viable innovation because of a lack of alignment among key elements within the cotton sector. Socio-organizational arrangements for the management of pesticide leftovers and the setting up of a mechanism for farmers’ empowerment are key institutional changes that could shift crop protection towards wider adoption of LEC. Actors in the cotton sector have furthermore suggested a transition towards a participatory approach in extension to improve farmers’ expertise in LEC implementation, bypassing existing channels for delivery of LEC pesticides, and promoting alternatives like botanicals and biopesticides.

Revisiting the “Cotton Problem”—A Comparative Analysis of Cotton Reforms in Sub-Saharan Africa

Summary The cotton sector has been among the most regulated in sub-Saharan Africa (SSA), and still largely is in West and Central Africa (WCA), despite repeated reform recommendations by international donors. On the other hand, orthodox reforms in East and Southern Africa (ESA) have not always yielded the expected results. This paper uses a stylized contracting model to investigate the link between market structure and equity and efficiency in SSA cotton sectors; explain the outcomes of reforms in ESA; and analyze the potential consequences of reforms in WCA. We illustrate our arguments with empirical observations on cotton sector performance.

Revisiting the 'Cotton Problem': A Comparative Analysis of Cotton Reforms in Sub-Saharan Africa

The cotton sector has been amongst the most regulated in Africa, and still is to a large extent in West and Central Africa (WCA), despite repeated reform recommendations by international donors. On the other hand, orthodox reforms in East and Southern Africa (ESA) have not always yielded the expected results. This paper uses a stylized contracting model to investigate the link between market structure and equity and efficiency in sub-Saharan cotton sectors; explain the outcomes of reforms in ESA; and analyze the potential consequences of orthodox reforms in WCA. We argue that the level of the world price and of government intervention, the nature of pre-reform institutional organization, as well as the degree of parastatal inefficiency, all contribute to making reforms less attractive to farmers and governments in WCA today, as compared to ESA in the 1990s. We illustrate our arguments with empirical observations on the performance of cotton sectors across sub-Saharan Africa.

EXPORT POTENTIAL OF SILVER FIBER AND ITS IMPACT ON FOREIGN EXCHANGE EARNING IN PAKISTAN FROM 1995-96 to 2004-05 A CASE STUDY OF SINDH

The study is aimed at the investigation of trade implications for Pakistan in the milieu of globalisation. To this end, it examines the nature and application of WTO and identifies its operative tariff and non-tariff instruments. By doing so, it intends to trace out the place of Pakistan in the world market in comparison to its competitors. The study concludes that the pattern of trade preferences and WTO grants do not necessarily guarantee success in the export performance of the recipients. Similarly, various other demand and supply side factors also play an important role in this regard. Nevertheless, the main focus of the study remained on the investigation of trade implications of WTO for Pakistan’s Cotton exports and impact of EU enlargement on Cotton sector of Pakistan. The examination of comparative trade statistics denotes that Pakistan has been one of the leading trading partners of Cotton products for the world and proved to be a forefront supplier of selected Cotton items over the period under review. Although Pakistan’s export performance has been adequate in comparison to its competitors but still it needs to be accelerated

L'économie politique de la réforme des filières cotonnières d'Afrique de l'Ouest et du centre : vers la convergence des modes d'organisation ?

Les filières cotonnières d’Afrique de l’Ouest et du centre sont le lieu d’importantes mutations qui s’articulent pour l’essentiel, autour d’une ligne directrice : la connexion des producteurs de coton au marché mondial est leur seule voie de pérennisation. Cet article tente de montrer que l’analyse du processus de réformes accrédite le constat d’une harmonisation croissante des points de vue des partenaires au développement. Cependant, derrière ce consensus libéral qui semble s’instaurer, subsistent de profondes différences de perception entre les acteurs, sur fond de divergences sur la conception de la valeur à l’origine des réformes des filières.

Occupational exposures and mortality from cardiovascular disease among women textile workers in Shanghai, China

ObjectivesTo explore whether cardiovascular disease (CVD) mortality is associated with occupational exposures in the textile industry, including bacterial endotoxin, a contaminant in cotton dust and a potent inflammagen.MethodsA cohort of...

Enhancing Sustainability of Cotton Production Systems in West Africa: A Summary of Empirical Evidence from Burkina Faso

Africa has been hesitant to adopt agricultural biotechnology, lagging behind global trends over the past decade. One exception is Burkina Faso, a West African country that commercially released 125,000 ha of Bt cotton in 2009. Bt cotton may serve as a working example of how African countries can enhance sustainability using modern, science-driven technology to increase production levels while reducing input use and energy consumption. This paper reports the potential impact that Bt cotton can have on sustainability in Burkina Faso’s cotton sector based by summarizing empirical evidence from previously published studies. Based on the summary of published data collected from six years of field trials and producer surveys, Bt cotton increased cotton yields by an average of 21.3% and raised income by $106.14 per ha. Using an energy balance model, the introduction of Bt cotton would also result in a 6.6% saving in energy use. The significant increase in productivity and economic returns could be the catalyst for Burkina Faso, and other African countries, to emerge from the decade or so of stagnation and regain their competitive stance in world cotton markets while providing environmental and social benefits.

The effects of the removal of US safeguards on imports from China

The expiration of temporary safeguard measures against Chinese exports of certain cotton apparel to the US beginning 2009 is estimated to result in lower apparel prices in the US by $0.02/kg, on average, whereas cotton prices in the US remain unaltered in the medium term (2009–2015). A price equilibrium simulation model (of both the cotton apparel and cotton sectors) was used to estimate the trade effects of China's increased access into the US import market on other Asian and Latin American exporters to the US, and ultimately in these exporters' demand for US cotton.

A Retrospective View of the EU's Cotton Production, and Future Perspectives

The expansion of the European Union (EU) to include Greece and Spain in 1981 and 1986 respectively led to an expansion of sectors protected under the Common Agricultural Policy (CAP), which included cotton. In the subsequent decades, the EU's cotton policy has undergone several revamping attempts. By bringing cotton production and processing under the EU umbrella, EU policy makers admitted the role and significance of its production for the agriculture and economy of southern Europe. Nevertheless, the course of this policy has been highly contentious, and will probably remain so for years to come. This paper offers a retrospective view of the EU's cotton policy and then considers current and future perspectives of the cotton sector, as cotton, a commodity that is produced worldwide and a basic input for the textile and clothing industry, attracts the interest of both EU and world agriculture.

The Burkinabè Cotton Story 1992–2007: Sustainable Success or Sub-Saharan Mirage?

Summary Like many other African countries in the early 1990s, Burkina Faso was urged to engage in a far-reaching liberalization of its state-led cotton sector. Instead it engaged in more gradual and sequenced reforms characterized by institutional innovations and partial privatization. But while the reforms coincided with a threefold increase in cotton exports in the space of a decade, there is heated debate about whether the reforms truly induced sustainable growth. In addition to reviewing existing evidence, this paper develops a counterfactual analysis to more rigorously assess the reform’s impacts after accounting for the confounding influence of exogenous shocks and centrally administered farmgate prices. The paper shows that while many elements of the reform process did achieve important economic objectives, return migration from Cote d’Ivoire explains around a third of production growth, financial elements of the reforms were not fully sustainable, and institutional arrangements failed to fully empower cotton farmers.

Land Use, Production Growth, and the Institutional Environment of Smallholders: Evidence from Burkinabè Cotton Farmers

The cotton boom in Burkina Faso consisted of a growth in cotton land shares together with an overall increase in total cultivated land. This paper examines the impact of institutional changes in the cotton sector on the evolution of smallholders’ land-use decisions. The empirical analysis is supported by a structural model that takes into account the specific institutional features of the Burkinabè cotton sector and builds upon household-level data collected in rural Burkina Faso. We attribute most of the change in land use to the newly established institutional arrangements between producers and stakeholders, mechanization, and slackening of the food-security constraint. <i>(JEL O13, Q15)</i>

The changing landscape of Indian agriculture

AbstractIn tracking the revolutionary changes in the Indian agricultural sector, it is quite clear that technology, institutions, and markets have had a very important role to play. Of course, the public sector played a pivotal and catalytic role when India ushered in the Green Revolution in late 1960s and early 1970s. The public sector imported new seeds, organized their distribution and demonstration, and provided price and market support, all “not‐for‐profit.” The cooperative sector, supported and facilitated by the government, again with the spirit of “not‐for‐profit,” helped bring in the White Revolution in milk through Operation Flood in 1970s and 1980s. This spirit is now being gradually replaced by “for‐profit” objective driven by the private sector, as is demonstrated in the revolutionary changes brought about by the introduction of Bacillus thuringiensis technology in the cotton sector during 2002–2007. On top of this, the corporate sector is also changing the complexion of the Indian agrisystem through notable changes in organized food processing and retailing. This change in spirit from “not‐for‐profit” to “for‐profit” in the growth process of Indian agriculture has significant implications for the concept of CISS, i.e., competitiveness, inclusiveness, sustainability, and scalability, which needs to be studied carefully and in detail. Accordingly, this article traces some of these dynamic changes and their likely implications.

Peasant struggles in Mali: from defending cotton producers’ interests to becoming part of the Malian power structures

This article describes how the organisation and representation of cotton growers in Mali developed from the mid 1970s to the current day, from the setting up of Village Associations through to the privatisation of the cotton industry. The research focused most closely on the relationships between the growers’ organisations and the state-owned cotton company, as well as on the different struggles throughout this period. It can be seen that at the same time as peasant participation was increasing, a ‘cotton elite’ also emerged. Far from reshaping the power structures operating in the cotton sector, this elite appropriated them.

Circular symmetry in topologically massive gravity

We re-derive, compactly, a topologically massive gravity (TMG) decoupling theorem: source-free TMG separates into its Einstein and Cotton sectors for spaces with a hypersurface-orthogonal Killing vector, here concretely for circular symmetry. We then generalize the theorem to include matter; surprisingly, the single Killing symmetry also forces conformal invariance, requiring the sources to be null.

Islamic structured trade finance: a case of cotton production in West Africa

PurposeThe purpose of this paper is to show a creative way to fulfill financing needs of entities involved in pre‐ and post‐harvest production activities in extreme cases while mitigating inherent risks by Islamic structured trade finance from the real‐life case of cotton production in Burkina Faso.Design/methodology/approachThe existing Islamic structured finance design for SOFITEX was analyzed in details so as to provide clear understanding of the subject matter. This structure was evaluated and a new design is proposed to better accommodate the financing need of SOFITEX.FindingsThere are some inherent drawbacks, explained in details, of the existing Islamic finance structure. Salam contract for pre‐harvest input financing in favor of farmers can, unlike existing structure, accommodate the complete supply chain financing solution, hence, support the whole production cycle from input procurement to the exports of cotton fiber. That is, it fits better for financing the agricultural sector.Research limitations/implicationsThe case and the structure studied in depth are limited to the cotton sector. This could be widened in subsequent researches.Practical implicationsIslamic finance instruments provide us enough room to fulfill financing needs in extreme cases as a better alternative to conventional financing tools. A method of mark‐up calculation for structured cotton trade finance is developed for Murabaha and Salam contracts.Originality/valueThe paper sheds new light on how to finance the agricultural sector starting from input procurement to the sale/export by Islamic finance instruments. It also shows how to get guarantees in the form of commodities in warehouse rather than bank guarantees, mortgage, sovereign guarantees, etc.

Institutional Diversity and Performance in African Cotton Sectors

This article analyses the performance of cotton sectors across East, Southern, and West Africa, paying particular attention to the wide diversity of institutional arrangements that they now exhibit. It finds strong support for earlier contentions regarding trade‐offs between competition and coordination, and between the roles of public and private sectors. New insights provide concrete and context‐specific guidance to policy‐makers and stakeholders regarding the key challenges they will face and the risks they will need to manage as they work to improve productivity and ensure an equitable division of benefits within cotton sectors.