Cover_Rebuilding West Africas Food Potential

264 Rebuilding West Africa’s food potential

Figure 4. Cotton Value Chain in West Africa

Source: Abbott, adapted from RATES, 2005 and Baffes, 2007

Table 4 presents cotton prices in Burkina Faso, Mali and Côte d’Ivoire for 2005 at the farmgate, the gin,

the port and the EU border (A index). Farmgate prices are at a similar level in the two major exporting

countries and are somewhat lower in Côte d’Ivoire. Based on Baffes (2007) estimates of transaction

and ginning costs, gins appear to be incurring losses in all three cotton-exporting countries. Margins

in transportation costs are lower than were found for cocoa. This is alleged to be a more competitive

industry at the processing and manufacturing levels.

Parastatal Gins

Local Spinners Local Textiles

International Traders

Traders

Farmer

Marketing Chain Active Stakeholders Cotton Status Price Received

Farmgate prices

(^)
Gin price
Port f.o.b price^
Cotlook
“A index”
Seed cotton^
Yarn and textiles
Cotton Lint
Clothing
Yarn, Textiles, Fabric
Cotton Lint
Ginners Agents
Private Gins
Export Market
Yarn, Fabric & Textile Manufacturers
Industrial Apparel Manufacturers
Producer Organization
Table 4. Cotton Price Linkages, 2005 – Burkina Faso, Mali, and Côte d’Ivoire
Burkina Faso Mali Côte d'Ivoire
Farmgate price Seed cotton 175 168 140
Lint basis 422 405 337
Gin losses -106 -89 -21
West Africa
Ginning cost 225
Gin price Cotton Lint 541
Transport costs - domestic 75
Port f.o.b. price 616
EU
Ocean freight 49
A "index 665
Source: Baffes, 2007. Prices are in Fcfa /kilogram on a cotton lint basis. Farmgate price is also expressed as seed
cotton basis in local currency. Gin prices and other downstream prices are after transformation from seed cotton to
lint at an outturn ratio of 41.5 percent (from Burkina Faso data).