Markets for Cotton By-Products : Global Trends and Implications for African Cotton Producers
This paper analyzes and compares the structure of cotton by-products industries in selected countries (Uganda, Tanzania, Benin, and Burkina Faso) in the context of the global vegetable oil market. It reaches several conclusions. First, because the...
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| Language: | English |
| Published: |
2012
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| Online Access: | http://www-wds.worldbank.org/external/default/main?menuPK=64187510&pagePK=64193027&piPK=64187937&theSitePK=523679&menuPK=64187510&searchMenuPK=64187283&siteName=WDS&entityID=000158349_20100629151725 http://hdl.handle.net/10986/3840 |
| Summary: | This paper analyzes and compares the
structure of cotton by-products industries in selected
countries (Uganda, Tanzania, Benin, and Burkina Faso) in the
context of the global vegetable oil market. It reaches
several conclusions. First, because the markets for various
edible oils are highly integrated with each other,
examination of each oil market should be done in conjunction
with all other (relevant) edible oil markets. Second, the
recent surge in demand for commodities used as feedstocks
for biofuels is unlikely to become a new source of growth
for the cotton oil market. Third, within the context of
deepening the on-going reform efforts in West and Central
African countries, cotton by-products should be taken into
consideration, both in terms of the cotton price setting
mechanism and the size of the organization of the cotton
by-products industry. Fourth, trade policies including
export bans or import tariffs to protect the domestic
crushing industries, and policies that favor crude over
refined oils, should be rationalized. Fifth, large
cottonseed processing operations using advanced technology,
while efficient from a technological perspective, tend not
to be economically profitable in the African context. Last,
research efforts for new cotton varieties should consider
the value of by-products, not just lint. |
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