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USDA GAIN: Oilseeds, Cotton, Sugar, Grain and Feed


02 December 2013

USDA GAIN: Senegal Cotton and Products UpdateUSDA GAIN: Senegal Cotton and Products Update

This report updates the September 2013 cotton report. In all selected West African countries, the rainy season started late causing farmers to replant repeatedly. Cotton companies lowered initial targets for MY 2013/14 (Aug/July) by 5 percent but believe they can still produce 1.67 million tons of seed cotton. Ginning activities will start this month or in December at the latest. Burkina Faso continues to be the top producer in West Africa, and forecasts 700,000 tons followed by Mali (450,000 tons), and Cote d’Ivoire (400,000 tons). Chad finally announced its farm gate price in October 2013. Monsanto will open an office in January 2014 in Bobo Dioulasso. In November, the Société Industrielle Cotonnière des Savanes (SICOSA)’s ginning factory was sold to the Union Industrielle Textile de Cote d'Ivoire (UTEXI) in Cote d’Ivoire.
USDA GAIN Report - Oilseeds, Cotton, Sugar, Grain and Feed

Burkina Faso

Production

The forecast for MY 2013/14 seed production will decrease slightly by 4 percent (700,000 tons) compared to the initial target (730,000 tons). The rainy season started late as compared to most West African countries, but didn’t stop until October, one month later than usual. Therefore, cotton plants had enough time to mature.

Bt cotton accounted for 68 percent of the area planted.

Biotechnology Update

Monsanto will officially launch its regional office for West Africa in January 2014 to supervise their agricultural activities. The office will be located in Bobo Dioulasso.

Pricing

Farm gate price for MY 2013/14 is fixed at 235 F CFA ($0.47) per kg down 7 percent than previous year. (See Table 2)

Inputs

For MY 2013/14, fertilizer’s prices increased 15 percent compared to the previous year and cost 15,000 CFA ($31) per 50 kg bag as compared to 13,500 F CFA ($27) last year. Price for urea remains the same as last year’s at 15,500 CFA ($31). (See Table 3)

Mali

Production

The Compagnie Malienne pour le Développement des Textiles (CMDT) will not meet its initial target due to a difficult rainy season which started late in mid-June rather than may. Rains stopped in mid-September.

CMDT forecasts seed cotton production to reach only 450,000 tons, same quantity as last year’s, and representing 11 percent less than the initial target (500,000 tons).

Ginning activities just started two weeks ago, and a better assessment of the campaign will be provided by beginning of 2014.

Pricing

MY 2013/14 farm gate price is fixed at 250 F CFA ($0.50) per kg, 2 percent less from previous year’s rate of 255 ($0.51). (See Table 2)

Subsidized input prices for MY 2013/14 remain the same as last year’s. Fertilizers and urea were both fixed at 12,500 F CFA ($25) per 50 kg bag. (See Table 3)

Cote d’Ivoire

Production

Due to a difficult start of the rainy season, Cote d’Ivoire thinks that seed cotton production for MY 2013/14 will not exceed its initial forecast and will be between 360,000 tons to 400,000 tons representing an 11 percent increase compared to previous year.

Privatization

The agency Ecofin reported on November 19, 2013 the auction sale of the Société Industrielle Cotonnière des Savanes (SICOSA)’s ginning factory located in the North at Korogho. It was sold to the general director of the Union Industrielle Textile de Cote d'Ivoire (UTEXI) to $4 million.

The government of Cote d’Ivoire and cotton stakeholders validated an official document in September 2013 to make new cotton sector reform operational during a meeting.

The reform includes:

  • Privatize production and distribution of cotton seeds so that farmers will be involved
  • Improvement of input delivery
  • Designation of specific zones to individual cotton companies
  • Guarantee farm gate price to at least 60 percent of the Cost-Insurance and Freight (CIF) price of export price

Implementation of the reform will be supervised by the Regulator Authority for the Cotton and Cashew Sector (ARECA) which will be replaced by a regulatory authority.

Pricing

Farm gate price has been fixed at 250 F CFA per kg for MY 2012/13, 6 percent less than the previous year at 265 F CFA ($0.53). (See Table 2)

Input prices subsidization for MY 2013/14 has not been announced yet. Actual prices are set at:

  • Fertilizers: 16,500 FCFA ($33) per 50 kg bag representing 18 percent more than last year’s price at 14,000 F CFA ($28)
  • Urea: 14,250 F CFA ($28.5) per 50 kg bag, an 11 percent increase compared to previous year (12,800 F CFA - $26) (See Table 3)

Senegal

Senegal reviews its forecast for MY 2013/14 due to a difficult start of the rainy season. Seed production is forecasted to reach 31,000 tons representing 22 percent less than the initial target and the same quantity previously forecasted by Post last September.

Pricing

For MY 2013/14, the farm gate price was set at 255 CFA per kg. (See Table 2)

Fertilizers and urea were subsidized both at 9,000 F CFA ($18) per 50 kg bag, same price than previous year. (See Table 3)

Chad

Production

Despite the late start of the rainy season (last decade of June), Chad forecasts a 10 percent increase (100,000 tons) of seed cotton production compared to its initial forecast (90,000 tons). This idea was based on the assessment of the area planted. Final numbers will be announced in January after harvest. However, Post maintains its initial forecast of 90,000 tons.

Cotton yield in Chad continues to be low compared to selected west African countries (0.487 tons per hectares) due to the lack of availability of fertilizer. Only 33 percent of the area planted received fertilizers during MY 2013/14.

Pricing

The cotton seed farm gate price was fixed in October 21, 2013 at 240 F CFA/kg ($0.48 per kg). (See Table 2)

Fertilizer prices for MY 2013/14 have increased by 1,000 F CFA ($2) per 50 kg bag compared to the previous year.

Prices have been fixed at:

  • Fertilizer: 16,000 F CFA ($32) per 50 kg bag
  • Urea: 15,000 F CFA ($30) per 50 kg bag (See Table 3)

Post believes that the late announcement of subsidized input prices and farm gate price may discourage farmers from planting more cotton and use enough fertilizer.

December 2013

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