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Economic importance of cotton in Burkina Faso











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    Book (series)
    Bottlenecks, risks and stresses in the cotton supply chain in Burkina Faso
    Recommendations to increase its resilience
    2023
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    Cotton plays an important role in the economy of Burkina Faso, accounting for about 4 percent of GDP and 14 percent of export earnings. The COVID 19 pandemic had a strong impact on international cotton supply chains, with confinement measures affecting sales of textiles and apparel as well as international logistics, which in turn affected cotton markets and disturbed trade and international prices. In addition, national cotton supply chains are vulnerable to other shocks and stresses such as droughts, pests, storms, and irregular weather patterns resulting from climate change. This study aimed to identify major bottlenecks, risks and stresses affecting the cotton supply chain in Burkina Faso, with the purpose of deriving lessons to strengthen its resilience capacity and development, and with it, to improve the situation of the millions of livelihoods dependent on the cotton supply chain. The findings show that disruption in global cotton markets led to lower domestic cotton purchase prices in Burkina Faso, but that the overall impact on cotton domestic markets was limited. Nonetheless, poverty and food security was negatively affected. Key constraints include low incomes, natural capital, availability and costs of irrigation systems and tractors, and the availability of financial options. The low level of domestic processing of cotton fibre is also considered an important bottleneck. The key risks to the cotton supply chain in Burkina Faso are identified as climate change, pests and insecurity. Furthermore, governance issues negatively impacts on farmer’s motivation, farming skills, extension services and the availability of financing options.
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    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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    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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    Brochure, flyer, fact-sheet
    The Cotton-4 (C-4) countries in the context of the global cotton market: Situation and short- and medium-term outlook 2022
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    This document analyses the cotton market in the Cotton-4 (C-4) countries, Benin, Burkina Faso, Chad and Mali. It studies the current market situation and medium-term prospects of the sector and considers the way forward.

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