West Africa: Benin The New Cotton No. 2
26 February 2008 Cotton production in two of Africa’s most significant producers is expected to decline again in 2007/08 following preliminary post-harvest assessments. The US Department of Agriculture’s Foreign Agriculture Service (USDA-FAS) reports that in the two countries, Mali and Burkina Faso, the cotton area declined almost 40% while yields showed a minor decrease compared to 2006/07, which was already down from 2005/06.
The area harvested in the two nations was down due to low announced cotton prices, the late arrival of inputs, and late rains. Once rains did arrive, they were poorly distributed and caused flooding in many areas of Mali and Burkina Faso, then ended abruptly, further impacting yields.
However, production in Benin is expected to increase slightly for the second year. While all of this production is not yet collected, Benin appears on track to replace Mali as the second largest producer in the region. Benin has achieved this status by doing something other countries have failed to do: improve yields. Low yields remain one of the most critical constraints faced throughout the region.
Meanwhile, preparations are underway for the 2008 cotton campaign. In Burkina Faso, the procurement of inputs seems to be ahead of last year’s pace. Amid expectations for higher world prices, it is possible that area could increase back to 500,000 hectares (Ha), which is still below the five year average.
Further hurting the sector are rising input costs (which are paid for in Euros) and a weakening US dollar (which is the currency in which exports are priced), which has eroded much of the recent cotton price increases. Until price signals become clearer, it will be difficult to estimate the potential area throughout West Africa for 2008, USDA-FAS says.
In addition, Mali and Benin are at different stages of major privatization processes that will have an impact on farmer incentives to plant cotton in 2008.
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