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Book (series)Bottlenecks, stresses and risks in the cocoa supply chain in Ghana: recommendations to increase its resilience 2023
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No results found.Cocoa is a key sector of Ghana’s economy, contributing about 2 percent of GDP as well as providing a livelihood, or part thereof, for about 30 percent of the population. This study, based on stakeholder answers to detailed questionnaires and conducted from October 2021 to April 2022, aims to identify and evaluate risks as well as major bottlenecks, threatening and constraining the cocoa supply chain and limiting its resilience. The results show that extreme temperatures, droughts, and pests and disease are the most important risks and stressors that cocoa farmers face. This is also reflected in what stakeholders considered the most important bottlenecks, i.e. inadequate rainfall, the lack of irrigation and weather insurances, and limited domestic processing capacity. Climate change is an important driver of some of these risks and stressors. Key recommendations to strengthen the resilience of the cocoa supply chain in Ghana, that emerge from the study’s findings, include building preventive and anticipative resilience by investing in climate information services and promoting agroforestry; building absorptive resilience through weather insurance and customized finance; building adaptive resilience through irrigation programmes, and; building transformative resilience through improving ICT systems, increasing domestic capacities for processing cocoa beans and investing in productivity. -
Book (stand-alone)Economic importance of cotton in Burkina Faso 2018
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No results found.This report investigated the role that cotton production has played in the economic development and poverty reduction in Burkina Faso, with a principal focus on how cotton prices, as a proxy to agricultural income, affects economic growth. Findings suggest that while cotton contributes to modest rates of economic growth, the lack of profitable investment opportunities in the industrial and service sectors limit agriculture’s growth potential. The artificially low prices paid to Burkinabe cotton producers suppress farm income and constrain the long–term buildup of investment capital needed to adopt more modern and productive technology and management practices. Moreover, the low pricing has aggravated household’s ability to make any meaningful movement out of poverty. One of the major points drawn from this report is that Burkina Faso’s cotton sector has emerged as a model sector that other countries in the region should consider emulating. Burkina Faso has been forward looking and open to innovation as evidenced by its proactive stance in adopting Genetically Modified (GM) cotton and its inclusion of the smallholder farming community as an equal partner in the ginning industry. While cotton sectors in developing countries will continue to face challenges from declining world markets and sustaining productivity, Burkina Faso provides a viable path for cotton’s continued presence in West African agriculture. -
Book (series)Can budget support to the cotton sector be used more efficiently? An assessment of the policy support measures in Mali and Burkina Faso. 2015
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No results found.In Burkina Faso and Mali, cotton is the most important cash crop, given its high contribution to the GDP and to the export sector revenue. Export of cotton lint accounted for 60 and 15 percent of the value of national exports, respectively, in 2014. To maintain the level of cotton production, the two Governments support the sector. Indeed, the analysis based on the Monitoring and Analysing Food and Agricultural Policies (MAFAP) methodology show that producers received incentives of 21 and 12 p ercent in Burkina Faso and Mali, respectively, between 2005 and 2012 (Nominal Rate of Protection-NRP). The analysis provides insights on the level of domestic price protection that compensates price distortions resulting from on one hand, exogenous causes namely the international price distortions and the exchange rate misalignment and on the other hand, endogenous inefficiencies such as the high transport or processing costs. Two adjusted NRP are computed, one using an adjusted benchmark price for cotton that is netted out of policy interventions at the international level (Anderson, 2006) and one using an alternate, non-misaligned exchange rate (BCEAO, 2013). The value chain inefficiencies are then discussed, using the Market Development Gap indicator which reveals that higher producer price could be obtained if inefficiencies were corrected through sound investment policies. Finally, a budgetary allocation analysis is proposed, along with the computation of Nominal Rates of Assist ance that reveal the full extent of policy support to the cotton value chain. Price intervention, with other cotton-related budgetary transfers, represented 9 percent of food and agricultural expenditure in Burkina Faso between 2006 and 2012 and 31 percent in Mali.
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