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Markets for cotton by-products : global trends and implications for African cotton producers

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  • Baffes, John

Abstract

This paper analyzes and compares the structure of cotton by-products industries in se-lected 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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Bibliographic Info

Paper provided by The World Bank in its series Policy Research Working Paper Series with number 5355.

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Date of creation: 01 Jun 2010
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Handle: RePEc:wbk:wbrwps:5355

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Keywords: Crops&Crop Management Systems; Energy Production and Transportation; Agricultural Industry; Livestock&Animal Husbandry;

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  1. Anderson, Kym & Martin, Will, 2005. "Agricultural trade reform and the Doha development agenda," Policy Research Working Paper Series 3607, The World Bank.
  2. Anderson, Kym & Valenzuela, Ernesto, 2006. "The World Trade Organization's Doha cotton initiative : a tale of two issues," Policy Research Working Paper Series 3918, The World Bank.
  3. Hinkle, Lawrence E. & Monteil, Peter J. (ed.), 1999. "Exchange Rate Misalignment: Concepts and Measurement for Developing Countries," OUP Catalogue, Oxford University Press, number 9780195211269, September.
  4. Thaeripour, Farzad & Hertel, Thomas W. & Tyner, Wallace E. & Beckman, Jayson F. & Birur, Dileep K., 2008. "Biofuels and their By-Products: Global Economic and Environmental Implications," 2008 Annual Meeting, July 27-29, 2008, Orlando, Florida 6452, American Agricultural Economics Association (New Name 2008: Agricultural and Applied Economics Association).
  5. David Tschirley & Colin Poulton & Patrick Labaste, 2009. "Organization and Performance of Cotton Sectors in Africa : Learning from Reform Experience," World Bank Publications, The World Bank, number 2604.
  6. Falck-Zepeda, Jose & Horna, Daniela & Smale, Melinda, 2007. "The economic impact and the distribution of benefits and risk from the adoption of insect resistant (Bt) cotton in West Africa:," IFPRI discussion papers 718, International Food Policy Research Institute (IFPRI).
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