WT/CFMC/W/84  
19 February  2021 
(21-0713)  Page: 1/42 
Sub-Committee on Cotton  Original: French  
 
  
ECONOMIC FEASIBILITY STUDY ON COTTON  
BY-PRODUCT MARKETS IN BURKINA FASO  
FINAL REPORT  
November  2020 
The following communication, dated 12 November 2020 , is being circulated at the request of the 
delegation of the Republic of Burkina Faso.1 
 
_______________  
 
 
  
 
1 This communication concerns a study conducted by Mr Alexis Hougni and Mr Gaspard Vognan, 
independent consultants, as presented at the Thematic Session on Cotton By -Products Development in LDCs, 
on 12 November 2020.  WT/CFMC/W/84  
 
- 2 - 
 
  CONTENTS  
LIST OF TABLES  ................................ ................................ ................................ ...............  3 
LIST OF CHARTS  ................................ ................................ ................................ ...............  4 
ABBREVIATIONS AND ACRONYMS ................................ ................................ ....................  5 
EXECUTIV E SUMMARY  ................................ ................................ ................................ ...... 6 
1 GENERAL FRAMEWORK FOR THE STUDY  ................................ ................................ ........  8 
1.1 Context and justification  ................................ ................................ ................................ ................  8 
1.2 Objectives of the study  ................................ ................................ ................................ ..................  8 
1.3 Methodology of the study  ................................ ................................ ................................ ..............  8 
1.3.1  Overview of cotton by -products and their value chain ................................ ......................  8 
1.3.2  Overall approach  ................................ ................................ ................................ ........  9 
1.3.3  Data c ollection  ................................ ................................ ................................ ...........  9 
1.3.4  Sampling  ................................ ................................ ................................ .................. 10 
1.3.5  Data processing for the report  ................................ ................................ ..................... 10 
2 BASELINE SITUATION FOR THE STUDY  ................................ ................................ ....... 10 
2.1 The importance of cotton for the C4 countries and its place in their economies  ...............................  10 
2.2 Actors involved in Burkina Faso 's cotton sector  ................................ ................................ .............  10 
2.3 Actors involved and their roles in the production of seed  cotton in Burkina Faso  .............................  10 
2.4 Government intervention in, engagement with and subsidi zation of Burkina Faso's cotton sector ..... 12 
2.5 Setting prices for the purchase of seed  cotton: processes and actors involved  ................................  12 
2.6 Setting transf er prices for cotton  seed: processes and actors involved  ................................ ...........  13 
2.7 Analysis of the political environment: legal and regulatory framewor ks for the production  
of by-products in Burkina Faso  ................................ ................................ ................................ ..........  13 
2.7.1  Development policies and strategies for processing industries  ................................ ......... 13 
2.7.2  Improving the general regime for investment  ................................ ................................ 14 
2.7.3  The institutional framework for promoting processing industries  ................................ ......14 
2.7.4 Opportunities arising from regional integration and globali zation ................................ .....15 
2.7.5  Outlook  ................................ ................................ ................................ .................... 15 
3 DIAGNOSTIC ASSESSM ENT OF THE COTTON SECTOR IN BURKINA  ..............................  16 
3.1 Organi zation of the sector ................................ ................................ ................................ ............  16 
3.2 Performance of the cotton sector, 2010 -18 ................................ ................................ ...................  16 
3.2.1  Production of seed  cotton, lint and cotton  seed ................................ .............................. 16 
3.2.2  Estimated availability of cotton -seed by -products  ................................ .......................... 17 
3.2.3  Trends in cotton production over the last 10 years  ................................ ......................... 17 
3.3 The impact of cotton growing on food crops and household income  ................................ ...............  18 
4 BASELINE SITUATION FOR COTTON BY -PRODUCTS  ................................ ....................  19 
4.1 Value chains and leading actors  ................................ ................................ ................................ ... 19 
4.2 Mapping of actors engaged in cotton -seed development  ................................ ................................  19 
4.3 Types of processing units (according t o technology used)  ................................ ..............................  20 
4.3.1  Industrial units  ................................ ................................ ................................ .......... 20 
4.3.2  Semi-industrial units  ................................ ................................ ................................ ..21 WT/CFMC/W/84  
 
- 3 - 
 
  5 ANAL YSIS OF THE COTTON BY -PRODUCT MARKET  ................................ ......................  26 
5.1 Sub-regional context  ................................ ................................ ................................ ...................  26 
5.2 Supply and demand for cotton by -products in Burkina Faso  ................................ ...........................  26 
5.3 Evaluation of markets for cotton by -products in Burkina Faso  ................................ ........................  27 
5.4 Cotton by -products imported by B urkina Faso  ................................ ................................ ..............  27 
5.5 Cotton by -products exported by Burkina Faso  ................................ ................................ ...............  28 
5.6 Analysis of current and future demand for cotton by -products in Burkina Faso  ...............................  28 
5.7 Market analysis for priority by -products  ................................ ................................ ........................  30 
5.8 Product strengths and weaknesses for purposes of expansion  ................................ .......................  30 
5.9 Opportunities for public -private partnerships (PPP s) ................................ ................................ ...... 34 
5.9.1  Public policy and strategy framework favourable to the private sector  .............................. 34 
5.9.2  Cotton -stalk development  opportunities for PPPs  ................................ ........................... 34 
5.9.3  Cotton -meal development o pportunities for PPPs  ................................ ........................... 35 
5.9.4  Cotton -seed oil production o pportunities for PPPs  ................................ .......................... 35 
5.9.5  Cotton yarn, textile and clothing production o pportunities for PPPs  ................................ ..35 
5.9.6  Prioriti zation of products for promotion  ................................ ................................ ......... 35 
5.10 Economic viability ................................ ................................ ................................ ......................  36 
5.11 Creation of companies to produce cotton by -products  ................................ ................................ . 37 
6 CONCLUSION AND RECOMMENDATIONS  ................................ ................................ ..... 39 
6.1 Conclusion  ................................ ................................ ................................ ................................ .. 39 
6.2 Recommendations  ................................ ................................ ................................ ......................  40 
DOCUMENTS CONS ULTED  ................................ ................................ ...............................  41 
WEBSITES CONSULTED  ................................ ................................ ................................ .. 41 
ANNEX  ................................ ................................ ................................ ...........................  42 
Annex 1: Organi zations and i ndividuals visited  ................................ ................................ ...................  42 
LIST OF TABLE S 
Table 1: Sampling for the quantitative survey  ................................ ................................ .......10 
Table 2: Seed -cotton, lint and cotton -seed production , 2010 -18 ................................ .............. 17 
Table 3: Production of by -products, 2010 -18 ................................ ................................ ......... 17 
Table 4: Type of technology used  ................................ ................................ ......................... 21 
Table 5: Actors engaged in the p roduction of cotton -seed by -products, by gender  ..................... 22 
Table 6: Level of satisfaction with cotton -seed availability  ................................ ....................... 22 
Table 7: Quantity and price of cotton  seed according to availability  ................................ .......... 22 
Table 8: Company needs for cotton  seed relative to availability  ................................ ............... 23 
Table 9: Quantities of product obtained from a tonne of cotton  seed ................................ ........ 24 
Table 10: Annual revenues of processing units  ................................ ................................ ......24 
Table 11: Main sales periods for production units  ................................ ................................ ...25 
Table 12: Oils imported by Burkina Faso between 2014 and 2018  ................................ ............ 27 
Table 13: Strengths, weaknesses, opportunities and risks for priority by -products  ..................... 32 
Table 14: Average employee headcount by production capacity  ................................ ............... 37 WT/CFMC/W/84  
 
- 4 - 
 
  Table 15: Partnerships planned by the GTPOB  cluster  ................................ ............................. 39 
LIST  OF CHART S  
Chart 1: Map of cotton -growing areas in Burkina Faso  ................................ ............................ 11 
Chart 2: Geographical distribution of oil processing units  ................................ ........................ 20 
Chart 3: Major production periods by type of processing unit  ................................ ................... 23 
Chart 4: Partners interacting with the pro cessing units  ................................ ........................... 26 
Chart 5: Mapping of cluster organi zation ................................ ................................ ............... 38 
  WT/CFMC/W/84  
 
- 5 - 
 
  ABBREVIATIONS AND ACRONYMS  
ABNORM  : Burkina Faso Standardi zation, Metrology and Quality Agency  
ACP : Africa n, Caribbean and Pacific countries  
AFP : Financing and  Promotion  Agency  
AGOA  : African Growth and Opportunity Act  
AICB  : Inter-Professional Cotton Association of Burkina Faso  
AMEFERT  : Metallurgy , agricultural material and equipment  
APE : Economic Partnership Agreement  
APEX  : Export Promotion Agency  
APROCOB  : Cotton Companies  Trade Association  
BIB : International Bank of  Burkina  Faso 
BICIA B : International Bank for Trade, Industry and Agriculture of Burkina Faso  
BRVM  : Regional Stock Exchange  
CAP : Production capacity  
CBC : Burkina Shippers Council  
CCIA -BF : Chamber of Commerce, Industry and Crafts of Burkina Faso  
CCIB  : Burkina Chamber of Commerce and Industry  
CCIBF  : Burkina Faso International Trade Centre   
CEFAC  : Construction Permit Facilitation Centre  
CEFORE  : Business Formalities Centres  
CET : Common External Tariff  
CGA : Approved Management Centres  
CGU : Single Window Centres   
CPPOD  : Cooperative of Producers of Oil seed and other Products  
ECOWAS  : Economic Community of West African States   
ERI-BF : Industrial Stud y and Development Company of  Burkina Faso  
EU : European Union  
FAIJ : Youth Initiative Support Fund  
FAO : Food and Agriculture Organi zation of the United Nations  
FAPE  : Employment Promotion Support Fund  of Burkina Faso  
FASI  : Informal Sector Support Fund  
FASO  COTON  : Faso Coton company  
FBDES  : Burkina Economic and Social Development Fund  
FILSAH  : Filature du Sahel  company  
FSCP  : Financial Services Certified Professional  
GDP : Gross Domestic Product  
GHH : Houet Oilseed Processing Group  
GPC : Cotton Producer Groups  
GTPOB  : Burkina Faso Oilseed Processing Group  
INERA  : National Institute for the Environment and Agricultural Research  
MEBF  : Burkina Faso Enterprise Centre  
OHADA  : Organi zation for the Harmoni zation of Business Law in Africa  
ONAC  : National Foreign Trade Bureau  
PIPHE -SA : Project for the establishment of incubators  and business centres in the agri -food sector  
PNDES  : National Economic and Social Development Programme   
PNQ : National Quality Policy  
POSTIA  : Sectoral Policy for Industrial and Artisanal Transformation  
PRASP BF   Regional Sahel Pastoralism Support Project  - Burkina Faso  
SCADD  : Accelerated Growth and Sustainable Development Strategy  
SCOOPS -PC : Specialized Cotton Production Cooperative s 
SDI : Industrial Development Strategy  
SME/SMI  : Small and medium -sized enterprise /industr y  
SN-CITEC  : New Oil and Soap Company   
SNE : National Export Promotion Strategy  
SOAF  : West African Foundry Company  
SOBA  : Barro Transport Company  
SOCOMA  : Gourma  Cotton Company  
SOFIB HB  : Industrial Oil Manufacturing Company of Burkina  
SOFITEX  : Fibre and Textile Company   
SP/CFCL  : Permanent Secretariat for the Liberalized Cotton Sector   
UNIDO  : United Nations Industrial Development Organi zation 
UNPCB  : National Union of Cotton Producers   
WAEMU  : West African Economic and Monetary Union  
WTO  : World Trade Organi zation  WT/CFMC/W/84  
 
- 6 - 
 
  EXECUTI VE SUMMARY  
1.1.  The development of  cotton by -products  provides an opportunity to enhance value -added  in the 
cotton sector . This study seeks to identify priorities for the development and value -enhancement of 
cotton by -products  in Burkina  Faso, propos e strategies to attract investment , and identify areas 
where technology and know-how need to be transferred to support such development . 
1.2.  This study is part of a larger framework of ongoing initiatives in the Cotton -4 (C4) countries 
(Benin , Burkina Faso, Mali and Chad) for the development of cotton by -products . 
1.3.  The data have been collected from services , organi zations and actors  involved in the 
production , processing and marketing of seed cotton . The instruments and tools used to collect basic 
data in the four countries (questionnaire and guide for interviews) have been harmonized . Data were 
collected from 45 oil processors , three  cotton companies , 10 vendors , five members of the 
National  Union of Cotton  Producers  (UNPCB ) and one  equipment manufacturer . 
1.4.  This study describes the current situation of cotton production , assesses the level of 
development  of cotton by -product s and identifies priorities for the further development  of such 
products  in Burkina  Faso.  
1.5.  The cotton sector  of Burkina  Faso is centred around  the Inter -Professional Cotton Association 
of Burkina Faso (AICB) , a robust structure comprising the cotton producers and companies directly 
engaged in the sector . It manages shared functions for all these actors in areas such as determining 
purchase prices for seed cotton  and transfer prices for inputs . The actors engaged in processing 
cotton  seed, however,  are not part of th is structure , and,  unusually, the transfer price for seed is 
included in the price of seed cotton  and administered  under  a decree issued by the Ministry of Trade, 
Industry and Crafts  (MCIA).  
1.6.  The main by-product s identified  and offering opportunit ies for  public -private partnerships  
(PPPs) are as follows :  
i. cotton stalks : a million  tonnes are available for potential use in the industrial production of 
compost (1.2 million  tonnes per year) , briquettes (to meet the demand for wood burning  energy 
in the Sahel region and large urban areas ) and particle  board  (for multiple uses ); 
ii. cotton -seed oil: the country's estimated demand for oil amount s to over 60,000 ton nes, and 
developers can rely on the potential availability of the raw material  and the existence of 
government support mechanisms (industriali zation policy, investment code , etc.); 
iii. meal and livestock feed: there is strong demand  for these products , estimated at  
2,835  million  tonnes per year  (compared to current national production of  100,000  tonnes per 
year) , to feed the country 's 9 million  livestock units ; and 
iv. cotton yarn: nearly all of the country 's production is exported, with only 3% kept back for 
domestic consumption. Since domestic demand is not met, imports of yarn are required from 
abroad . 
1.7.  The development of  these by-product s is hindered by difficulties of a general nature  – lack of 
processing equipment ensur ing product quality , lack of a skilled workforce , high cost of production 
factors , limited access to investment credit , etc. – as well as difficulties specific to each by-product . 
1.8.  Major challenges in cotton -stalk development  include access to the equipment needed for the 
low-cost processing of stalks into compost,  briquettes and particle board , and the market ing of  such 
products . In the case of oil , the challenge s are : for developers to acquire modern processing 
equipment ensuring larger yields of high-quality oil ; the availability of skilled workers for processing 
units; and for the government  to establish regulations governing  this activity and import flows of 
edible oils in accordance with Article  23 of  Joint Order  No. 20110265/MICA/MS/MEF  of 
9 December  2013. For meal and livestock feed , the challenge  is to improve product quality through 
procedures to rem ove gossypol and improve product preservation , while  for cotton yarn it is to 
expand national yarn spinning capacity to meet domestic demand.  
1.9.  Recommendations are made in this report to help meet these significant challenges 
sustainabl y. WT/CFMC/W/84  
 
- 7 - 
 
  1.10.   To attract investment , the government needs to : supervise activities linked to  the processing 
of cotton by -products and enforc e the regulatory framework for this activity;  regulate flows of edible 
oil imports ; heighten awareness among developers about the new industriali zation policy and the 
advantages provided by the new investment code; facilitate developers ' access to funds for 
investment in equipment ; tighten the regulatory framework  for this activity and encourage  mergers 
among small processing units  to improve the viability of production centres . 
1.11.   To address the inadequacy of a skilled workforce , it is necessary to:  evaluate the training 
needs of industr ial units and propose a personnel training and retraining plan ; support  profession al 
training in the École Polytechnique de Ouagadougou ( particularly in mechanical and industrial 
engineering ) and in specialized agribusiness training centres; provide support for existing equipment 
manufactur ers and maintenance firms in the form of technical training, technical support missions, 
and internships , and by establishing a platform for exchanging good practices with industrial 
companies in developed  countries, etc.  
1.12.   A number of actors will need to be in volved in ensuring the  availability of cotton  seed: 
producers , in organizing cooperative ly to expand production and improve governance ; and cotton 
research entities , in develop ing technological solutions better adapted to climate -related shocks . The 
development of the sector will also require collaboration between the AICB and the government  to 
keep seed-cotton  prices attractive . 
  WT/CFMC/W/84  
 
- 8 - 
 
  1  GENERAL FRAMEWORK FOR THE STUDY  
1.1  Context and justification  
1.1.  Until recently, cotton was grown in Burkina Faso mainly for its fibre, or lint – the raw material 
for cotton textiles. Nevertheless, commercial applications exist for other parts of the cotton plant, 
such as the stalks, hu lls, cotton  seed and short -staple fibres . In some countries, such as China, India 
and the USA, by -products from the non -lint parts of t he plant have been commerciali zed, adding 
value and income and reducing waste in the cotton value chain. In other countries, especially in 
Africa, due to a variety of constraints, there exist fewer commercial cotton by -products, often only 
oil and meal fro m crushed cotton  seed.  
1.2.  Cotton by -products therefore represent an opportunity for producing countries to increase the 
benefits they derive from their cotton production , including : 
• new income streams for farmers and processors;  
• increased resilience of farmers against external shocks  thanks to new income streams ; 
• increased domestic value added;  
• access to new markets;  
• improved trade balance, through increased exports or reduced import s; and  
• reduced waste in the cotton value chain.  
1.3.  Through t hese benefits , cotton processing  can contribute to the attainment of  the Sustainable 
Development Goals  (SDGs) , including  Goal 8 (Decent Work and Economic Growth), Goal  9 (Industry, 
Innovation, and Infrastructure) and Goal 12 (Responsible Consumption and Production).  
1.4.  Having identified  these opportunities, many cotton -producing countries - notably the C -4 and 
other countries in Africa - have expressed their intention to develop cotton by -products  with the help 
of technology tra nsfers and relevant technical assistance.  
1.2  Objective s of the study  
❖ General objective : study the feasibility of cotton by -product  markets  in Burkina  Faso, as part 
of the project "Transferring technologies and know -how for the development of cotton 
by-products in the C4 countries ". 
❖ Specific objective s:  
- Conduct a review of cotton by -products ; 
- Identify priority by -products for development;  
- Attract  public and private investment;  
- Formulat e enabling policies;  
- Acquir e and adopt  appropriate processing techniques , technologies and know -how; 
- Develop the infrastructure  required ; 
- Establish sustainable supply and distribution networks; and  
- Formulat e flanking policies . 
1.3  Methodology  of the study  
1.3.1   Overview of cotton by -products  and their value chain  
1.5.  The cotton industry provides five main by-product s: cotton lint and seed , obtained after ginning 
the seed cotton ; and oil, meal and seed hulls obtained  from processing the cotton  seed. Added to 
these are cotton plant stalks . The stalks are p rocessed  traditionally to produce organic fertilizer for 
the soil , potash for animal feed  and charcoal for cooking . They are also  processed industrially to 
produce  briquettes for energy production, particle board and other by-products . WT/CFMC/W/84  
 
- 9 - 
 
  1.6.  According to Baffes (2010), cotton  seed make s up between 60% and 65% of seed cotton . It is 
processed to produce meal (45%), hulls (27%) , oil (16%), and waste (12%). A tonne of cotton  seed 
thus yields 450 kg of meal, 270 kg of hulls, 160 kg of oil, and 120 kg of waste . 
❖ Cotton  seed  
1.7.  Cotton  seed can be entirely delinted (removing linters , the down covering the seed), or partially 
delinted . As found by Gilles Tran (1994), whole cotton  seeds contain protein (about 22% of the dry 
product) , fat (20%) and crude fibre ( 28%). The multiplicity of cotton -seed sources and varieties 
make cotton  seed a highly versatile product.  Cotton  seed helps to increase the fat content 
(by 0.2 to 0.3 points) and quantity of milk while slightly lowering its protein content . But the use of 
cotton products for animal feed is limited by their content of gossypol, a yellow polyphenolic pigment 
found in free form in small glands on the seed kernel and coating . Bound gossypol is not toxic 
(though absorbed by the intestine in some cases ) but can degrade protein quality in the raw material. 
Free gossypol is toxic for most species, with varying levels of tolerance . For monogastri c animals , 
the maximum level s identified in the literature are 100 ppm for swine , 50 ppm for laying hens and 
150 ppm for table chickens . Ruminants were long considered immune to gossypol. They are in fact 
able to detoxify free gossypol by binding it to soluble proteins , so if the amount of free gossypol 
ingested does not overwhelm their detoxification capacity the symptoms of toxicity do not appear . 
Given t he apparent harmlessness of cotton by -products  for ruminants, combined with their 
nutritional and economic value, their use  is increasing in all countries . 
❖ Cotton -seed  meal  
1.8.  The content of cotton -seed meal is highly variable : the average protein content is 42% (of the 
dry product) but ranging between 28% and 58% ; crude fibre content varies between 8% and 23% 
and fat content between 0.5% and 15% (Gilles Tran, 1994).  The variations in seed content at the 
start are compounded by the processing technologies  used. Seeds can be delinted  prior to crushing 
to avoid jams in the hulling process . Similarly, since the number of hulls must be optimal for the 
machines to function properly, processing plants choose either to hull the seeds only partially or to 
reincorporate some of the hulls removed, which in the latter case results in meal with lower fat 
content . 
1.9.  The relatively high protein content of cotton meal makes it a useful product . Compared to 
soybean meal, cotton  meal has lower feed unit (FU) and p rotein dispersibility index (PDI) levels , is 
less rich in protein and lysine but much richer in fibre and lignin (Gilles Tran, 1994) . The presence 
of gossypol , however,  limits its commercial viability . 
❖ Hulls and linters  
1.10.   Hulls and linters are highly fibrous materials (53% and 86% fibre, respectively ). Cotton hulls 
are relatively palatable and can stimulate ingestion if added to low-fibre feed for dairy cattle . 
1.3.2   Overall approach  
1.11.   The study  was conducted in three phases: (i) the use of  available documentation to prepare  
key aspects of the work concerning  cotton by-products  at national level ; (ii) the investigation phase, 
consisting of interviews with by-product value chain  actors and with partners  in the field of by-
products ; and (iii) the final phase, in which data are analy sed to produce a provisional report for 
submission to the project sponsor , followed by a final report reflecting the sponsor 's comments and 
desired adjustments.  
1.3.3   Data collection  
1.12.   The collection of data required use of a questionnaire and an interview guide . 
The questionnaire, harmonized for the fo ur countries, was addressed to actors in the value chain of 
these by-products, including oil processing units  and users  of cotton by -products . 
1.13.   The interview guide was addressed to institutional partners concerned with such by-products  
(trade ministries, chambers of commerce  and industry , cotton companies, the UNPCB, 
human  resources , etc.).  WT/CFMC/W/84  
 
- 10 - 
 
  1.14.   The data so collected pertained to: (i) technical and economic characteristics and 
performance ; (ii) strengths , weaknesses  and opportunities;  (iii) national policies for the development 
of by-products ; (iv) outlook for the development of by-products ; (v) support required, etc.  
1.3.4   Sampling  
1.15.   Some  60 actors (out of the 70 anticipated) were surveyed (Table  1). The actors were chosen 
in a carefully considered manner for each of various categories bas ed on individual performance. 
The first category consisted of industrial units (SN-CITEC and SOFIB), the second of averagely well 
performing oil processors and the third of semi -industrial oil and meal producers . 
Table  1: Sampling for the quantitative survey  
Actors Number anticipated  Number surveyed  
Oil processors   50 45 
Cotton companies  3 3 
UNPCB members  
(National Union of Cotton P roduc ers of Burkina  Faso)  5 5 
Wholesalers  10 10 
Equipment manufacturer s 2 1 
Total 70 63 
Source:  Field survey , 2019.  
1.3.5   Data processing for the report  
1.16.   The data were captured , cleaned up  and analy sed using STATA software.  
2  BASELINE SITUATION FOR THE STUDY  
2.1  The i mportance of cotton for the C4 countries and its place in their economies  
2.1.  Among the C4 countries (Benin, Burkina Faso, Mali and Chad) , cotton 's contribution to GDP 
ranges between 3% and 10% , compared to  less than 2% in West Africa 's other cotton -producing 
countries . But cotton exports generate significant revenue for national economies ; in 2001 , they 
account ed for 51.4% of exports from Burkina Faso, 37.6% of those from Benin , 36.2% of those from 
Chad and 25% of those from Mali. This percentage varies  according to each country 's economic 
structure , but the revenues are clearly of strategic importance for the ir economic stability and for 
development investment s in the broader sense . 
2.2.  Depending on the country, c otton -related activities occupy between 100,000 and 
350,000 farms, which  derive most of their income from that crop and employ between 800,000 and 
3,000,000 people (about eight per farm) . 
2.2  Actors involved in Burkina  Faso 's cotton sector  
2.3.  The leading actors in the cotton sector  in Burkina  Faso are cotton producers affiliated with  the 
UNPCB  and cotton companies  grouped in the Cotton Companies Trade Association (APROCOB).  
These two groups are joined together in the AICB.  The government regulates this structure through 
the Permanent Secretariat for the Liberalized Cotton Sector  (SP/CFCL).  
2.4.  Other actors include entities engaged in cotton sector research  (R&D) , banks, service providers 
(transport, input suppliers ), seed crushers , spinners , etc. The cotton sector is structured as described 
below . 
2.3  Actors involved and their roles in the production of  seed  cotton  in Burkina  Faso  
❖ Produc ers 
2.5.  Seed cotton  is produced by individu al producer s, organized initially, from 1996, into 
Cotton  Producer Groups  (GPCs), and later,  from 2018, into Specialized Cotton Production 
Cooperatives (SCOOPS -PC) in accordance with  provisions issued by the Organi zation for the 
Harmoni zation of Business Law in Africa (OHADA ). They are represented at the departmental, WT/CFMC/W/84  
 
- 11 - 
 
  provincial and national levels by the UNPCB. Since the liberali zation of the cotton sector , the 
SCOOPS -PC, which number  9,750, have performed the following functions:  (i) distribution of inputs ; 
(ii) management of short -term and long -term loans (issuance and recovery) ; (iii) organi zation of 
the collection and marketing of seed cotton  produced by their members ( weighing, payment, etc.) ; 
and (iv) other related activities , such as managing member s' contributions  and activities of a social 
nature . The producers are now cotton company directors and shareholders (30% of SOFITEX, 
20% of SOCOMA  and 10% of FASO COTON) , which positions them as key interlocutors and partners 
in cotton sector management at all levels . 
❖ Cotton companies  
2.6.  Since the sector was liberalized in 2004 , three cotton companies have perform ed the functions 
of: (i) providing inputs to producers in the form of short-term (seasonal) loans ; (ii) marketing the 
cotton ; (iii) ginning  the cotton ; and (iv) selling the cotton lint and by -products . 
2.7.  Those companies are: (i) SOFITEX , with capital2 totalling CFAF 19,528 million  
(CFAF  19,528,000,000)  operating in western and southwestern Burkina Faso, with 5,057 employees 
(permanent  and seasonal ) and more than 1,528 "casual workers" ; (ii) SOCOMA, a subsidiary of the 
GEOCOTON group, operating in eastern Burkina Faso and holding 75% of its capital, estimated at 
CFAF 6 billion  (CFAF 6,000,000,000); and (iii) Faso Coton,  based in central Burkina Faso with capital 
of CFAF 3.3 billion  (CFAF  3,300,000,000), held by a consortium that includes : 
the Reinhart  trading  company (31%), the ginner Ivoire Coton/IPS (29%), the input supplier 
AMEFERT (20%),  the transporter  SOBA  (20%), and the UNPCB  (10%).  
Chart  1: Map of cotton -growing areas  in Burkina  Faso  
 
Since  2012, source:  http://www.sofitex.bf/pres_sofitex/presentation.htm . 
March  2016 figures . 
❖ Other actors: cotton research and banking  
2.8.  Cotton research , conducted today by the Institute for the Environment and 
Agricultural  Research ( INERA ), has played an essenti al role in the  production system from colonial 
times to the present . Research supports cotton production in terms of (i) innovation  through the 
development of  high yielding varieties ; (ii) agronomy, shared cultivation methods and natural 
resource management ; and (iii) crop protection , agricultural socio -economics  and the transfer of 
production  technologies . 
 
2 Since 2012, source: http://www.sofitex.bf/pres_sofitex/presentation.htm . 
WT/CFMC/W/84  
 
- 12 - 
 
  2.9.  Bank loans to cotton companies  finance seed -cotton inputs and marketing, industrial 
infrastructure, etc.  As the financing needs of cotton activity have grown, two bank pools have been 
providing it, one domestic and the other international . 
2.4  Government i ntervention  in, engagement with and subsidi zation  of Burkina  Faso 's 
cotton sector  
2.10.   The Burkina State , the sector 's largest shareholder prior to liberali zation, has since 2004 
gradually  relinquished many of its holdings to producers and private investors . It now  owns only 
35% of SOFITEX, 34% of the French group Dagris, 30% of the UNPCB  and 1% of the local banks 
BIB and BICIA B. 
2.11.   The government 's current role is to define cotton production policies and goals and more 
importantly to regulate the sector  through a permanent secretariat for the liberalized cotton sector  
(SP/CFCL)  created within the Ministry of Trade, (which oversees the cotton sector ). This description 
does not do justice, however, to the vital role the government plays in the sector , where it  has 
always intervened  to subsidize inputs  and back financing for cotton companies  during crises in the 
market – as it did, for example , between 2004 and 2010.  
2.12.   Government support for the cotton sector takes various forms, including:  
• direct subsidies to cotton companies in case of financial deficits ; 
• removal or forgiveness of certain taxes to reduce the purchase  price of agricultural inputs  for 
producers ; and 
• in some cases,  cancellation of unpaid internal input loans  for members of producer 
organi zations during crises that threaten the sector 's future  (for example, CFAF 2 billion  in 
2019 to support plans for  the revival of cotton growing ). 
2.5  Setting prices for the purchase of seed  cotton : process es and actors involved  
2.13.   Setting the buying -in price for seed cotton  is one of the shared functions performed by the 
AICB. The challenge for the cotton sector is to balance the maximi sation  of cotton producer income 
against the returns on capital invested by cotton companies . Price levels for inputs and seed cotton  
are determined so as to reconcile producer and cotton company interests . Purchase prices for seed  
cotton and transfer prices for producer inputs are uniform throughout the country and are set each 
year by the AICB prior to planting  (March–April). 
2.14.   Starting in 2006 , the AICB  has had a new price -setting mechanism  to sustain the floor price 
and/or minimize year -to-year fluctuations in that price by establishing a price smoothing  fund in 
place of the support fund . 
2.15.   Addressing the limitations of the previous mechanism , and in the eyes of producers, the price 
smoothing  fund allows greater transparenc y and greater overall protection for the country 's cotton 
sector . The new mechanism does, however, retain two fundamental features of the old one : 
• rebates and especially a floor purchase price , which continues to be announced at the start of 
planting each year, since this information is important to producers ; and   
• a fund used to maintain the floor price  while "smooth ing" (hence the name  of the new fund ) 
price troughs and peaks . 
2.16.   With the smoothi ng mechanism the price no longer depends on negotiations conducted each 
year between producers and cotton companies. The price now depends on  global price trends , 
determined each year using a mathematical formula to estimate the "trend price ", a centred moving 
average  based on the prices observed for the two preceding seasons  and forecast for the next three . 
The trend price is corrected according to a reference exchange rate .3 It is on the basis of th is trend 
price that the  smoothing tunnel  floor (95% of the t rend price)  and ceiling (101%)  are calculated . 
The trend price  is announced by the AICB  on 1 April of each year , when the corresponding floor price 
is also calculated . 
 
3 As a result of the dollar's variation against the euro, the CFAF is directly pegged to the latter.  WT/CFMC/W/84  
 
- 13 - 
 
  2.17.   Under this mechanism the price paid to producers per kilogram of seed cotton is the floor 
price plus a rebate (if any)  for the previous season ; the cotton is sold  at a "reference price" , which 
is then checked against the floor and ceiling prices . 
2.6  Setting transfer prices for cotton  seed : processes and actors involved  
2.18.   The price of seed is included in the purchase price  for seed cotton , but is administered in 
reality  – and therefore determined – by the government. The price currently in effect , since 2013,  
is CFAF 80/kg , to which  VAT (18%) is added pursuant to  Order  No. 2014-0070 /MICA/SG/DGC/SP -
SFCL determin ing the price and conditions of sale  for seed destined for oil production in Burkina  Faso. 
The price of seed is determined without involving processors , which  have always considered the 
price high . That price has not fluctuated since 2013, despite variations  in the availability of seed as 
a function of seed-cotton production . The actors involved suffer more from the limited availability of 
seed than from the effect of prices considered too high. In fact, t he country 's largest cotton -seed oil 
processing unit  – SN-CITEC, a subsidiary of the G EOCOTON  group  – has a monopoly on the purchase 
of seed. 
2.7  Analysis of the political environment: legal and regulatory frameworks for the 
production of  by-products  in Burkina  Faso  
2.19.   Since the 1990s, through structural adjustment programmes, Burkina Faso  has been on a 
determined path to liberalize its economy , as evidenced by  its withdrawal from the productive 
sectors , relinquishing to the private sector its role as an engine for growth. In order for the private 
sector to play that role fully, the government has worked to create conditions and frameworks 
conducive to the emergence of a dynamic and competitive private sector , including  manufacturing 
in particular . 
2.7.1   Develop ment policies and strategies for processing industries  
2.20.   The third pillar of the country 's National Economic and Social Development Programme  
(PNDES) provides for measures to boost sectors identified as key to the economy and to job creation . 
This pillar reflect s the government 's strong determination  to revitalize the economy through 
particularly promising sectors , such as the processing industr ies. The main policies and strategies  
for those industries  are as follows : 
❖ Sectoral Policy for Industrial and Artisanal Transformation  (POSTIA)  
2.21.   The overall goal of this policy, a dopted on  4 April 2018, is to help the industry and crafts 
sector comp ete, add value and create decent jobs . It seeks to make manufacturing  in particular  a 
more competitive sector and a greater source of wealth and decent employment . To that end , 
activities will be undertaken to support the structuring of subsidiaries and the strengthening of 
managerial, technical and technological capacity among  small and medium -sized enterprises and 
industries (SME/ SMI). In addition, improved access to financing  and the promotion of industrial 
property rights and quality standards will contribute to a more robust, viable and innovative SME/SMI 
sector . 
2.22.   POSTIA 's third line of activity also provides for improving access to efficient and quality energy 
services . 
❖ Policies under implementation  
2.23.   Other p olicies under implementation also support  the manufacturing industries . These 
include : (i) the Industrial Development Strategy (SDI) , aimed at creating an environment favo urable 
to the promotion of competitive industries with a view to contributing to development , expanding 
industrial production , creating jobs and improving the balance of trade ; and  (ii) the National Export 
Promotion Strategy  (SNE) , which  is the basic document around which all the country 's export 
promotion activities are structured . WT/CFMC/W/84  
 
- 14 - 
 
  2.7.2   Improving the general regime for investment  
2.24.   As part of the policies and strategies mentioned above , there has been  continuous 
improvement in the general regime for investment , through such reforms as:  
• Law No. 015-2017/AN of 27 April  2017 , containing the Framework Law for the 
Promotion of SMEs/SMIs  in Burkina  Faso: general in scope, this law  defines the 
institutional and legal framework for the promotion of  SMEs  and SMIs (including  
agro-process ors), organi zed around structures and mechanisms for dialogue and partnership 
with stakeholders, their umbrella structures an d development partners.  
• Investment Code of Burkina  Faso (Law No. 038-2018/ AN, available online ) which 
encourages investment through  specific advantages (partial exemption from customs duty 
and internal taxes) for operators in the  agricultural, forestry and livestock farming sectors . 
• Law No. 023 -2013/AN of 30  May 2013 containing the Investment Policy Law of 
Burkina  Faso. 
• Decree  No. 2017 -1165/PRES/PM/MCIA/MATD/MINEFID of 30 November  2017  
adopti ng the  Charter of Small and Medium -Sized  Enterprises in Burkina  Faso. This SME Charter  
provides  a regulatory framework offering  new solutions for the promotion and development 
of SMEs. Its objective is to extend to SMEs/SMIs , including agro -process ors, the government 's 
general support for the private sector , through a series of specific measures . 
2.25.   The ultimate objective is to build strategies, programme s and coordinated activities 
supporting the emergence of strong and competitive SMEs/SMIs . 
2.26.   All these policies and strategies are being implemented  within a proper institutional 
framework . 
2.7.3   The institutional framework for promoting processing industries  
2.27.   The Directorate of Small and Medium -Sized Enterprises and Industries , within the 
Ministry of Trade, Industry and Crafts, has among its principal functions the promotion of processing 
units for local raw materials.  
2.28.   The SME Financing and Promotion Agency (AFP/PME)  has the  principal mission of 
contribut ing to the development of the private sector by supporting the promotion of 
entrepreneurship  and the emergence of viable and competitive  SMEs/SMIs  in the country.  It consists 
of a national fund to finance the emergence of entrepreneurs capable of operating in the new 
economic environment , which is characterized by the regionali zation and globali zation of business . 
The AFP/PME offers financial services accessible to developers of businesses to process local , and 
notably  agri-food, products . 
2.29.   The Export Promotion Agency of Burkina Faso (APEX -Burkina)  is responsible for 
promoting exports of Burkina products to international markets through the dissemination of 
information on business opportunities . It is also in charge of organizing  international trade events . 
2.30.   The Burkina Faso Standardi zation , Metrology and Quality Agency (ABNORM)  is 
responsible  for implementing the action plan for standardi zation, metrology and conformity 
assessment  in respect of quality infrastructure, under  the National Quality Policy  (PNQ).  
2.31.   Quality infrastructure depends on : (i) a legal framework at national, community and 
international levels ; (ii) the technical framework for  standardi zation, metrology and conformity 
assessment  involving several ministries (for trade, agriculture, animal  resources , scientifi c 
research ), public laboratories  – including the  National Public Health Laboratory  (LNSP),  
Ouagadougou Directorate of Health Care  (DAS), National Building and Public Works Laboratory 
(LNBTP), National Biosafety Agency (ANB)  – and private entities , notably for organic agriculture and 
the "fair trade" label  (ECOCERT, FLO -CERT, Certisys, Lacon).  WT/CFMC/W/84  
 
- 15 - 
 
  2.32.   Promoting and supporting quality entails : (i) promotional structures , or "quality movements "; 
(ii) consumer protection associations ; and (iii) structures for training and advisory assistance on 
quality assurance , etc. 
2.33.   The problems and deficiencies affecting Burkina Faso 's quality infrastructure  system  can be 
summari zed as follows: (i) institutional ly, mandates are not always properly aligned, coordination  
structure  is lacking and  the governing legislation is bloated yet  incomplete;  and (ii) there are 
significant technical deficiencies and insufficient human and financial resources . 
2.7.4   Opportunities arising from regional integration and globali zation   
2.34.   As a member of the West African Economic and Monetary Union ( WAEMU)  and of the 
Economic  Community of West African States  (ECOWAS) , Burkina Faso  benefits from the regional 
integration measures  they adopt . Local goods  (anima l, vegetable  and mineral), handicraft goods  and 
processed goods that are certified and in compliance with rules of origin  are expected to circulate 
freely within these organizations . The regionally integrated approaches taken in these organi zations 
represent an opportunity to be seized . They place trade policy  at the centre  of development 
activities , facilitat ing coordinated assistance in that connection . Globali zation is likewise an 
opportunity , in terms of break ing down economic and trade turf barriers that have impede d or 
blocked access to different markets goods, services and technology . 
❖ The regional financial market  
2.35.   Burkina  Faso operates  in the regional financial market  – the Regional Stock Exchange  (BRVM)  
– in issuing securities and contributing to  the management of institutional actors . Enterprises issuing 
securities in the regional financial market use two methods:  private placement s, entailing the 
issuance of private activity bonds ; and public share offerings . The financial market offers great but 
largely untapped financing opportunities . 
❖ Non-reciprocal trade preferences  
2.36.   Burkina  Faso is a signatory to  agreement s facilitating access to developed country markets , 
including  the Everything But Arms (EBA)  initiative and the  African Growth and Opportunity Act 
(AGOA). These non-reciprocal trade preferences  provide free access to European and American 
markets . 
2.7.5    Outlook  
2.37.   The government 's organi zational initiative to address the immensely challenging constraints 
encountered includ es the following measures : 
• Development of a new industriali zation framework to help strengthen the country 's industrial 
fabric . 
• Review of the Investment Code to make Burkina Faso more attractive as a prime destination  
for investment . 
• Site development for industrial zones  and the creation of Special Economic Zones,  in 
furtherance of the government 's efforts to develop industrial infrastructure . 
• Project for the establishment of  incubators  and business centres in the  agri-food sector  
(PIPHE -SA), in support of the efforts of business developers and innovative projects in the  
agri-food sector , from the project/business idea phase through to the development phase and 
to introduction in the real market environment . 
• Feasibility study for the development of agro-processing units according to each zone 's 
economic sectors and potential . 
• UNIDO -Burkina Faso Cooperation P rogramme , with strategic activities in the areas of 
investment  promotion , youth entrepreneurship , company creation and formali zation, trade 
capacity building and sector -specific attention to value chain issues . The overall objective of 
the UNIDO programme , of four years duration , is to contribute to the development of Burkina 
industry through improvement of productive capacities in the private and public sectors . WT/CFMC/W/84  
 
- 16 - 
 
  The project for the development of cotton by-products  is part of the program me's 
component  4: development of a national strategy for industriali zation, promotion of innovative 
investment s and trade capacity bui lding. UNIDO is therefore  an important partner in the cotton 
by-product development project . 
• Accelerated Industriali zation Plan , an operational document for the development of concrete 
projects in priority sectors, such as livestock -meat, cotton -textiles , quarrying  and building 
materials . 
• Capital e quipment project for SMEs operating as processors of local raw materials 
(PRCPPME/PMI) , which seeks to provid e support in terms of equipment and training to 
130 SMEs/SMIs  (10 per region) with strong potential for generating wealth and creating jobs . 
Beneficiaries stand to increase their production capacity and to take on new activities not 
otherwise possible, or possible but to a lesser extent . 
3  DIAGNOSTIC ASSESSMENT OF THE COTTON SECTOR IN BURKINA  
3.1  Organi zation  of the sector  
3.1.  The cotton sector is made to function by the two families that comprise the AICB : the producers 
and the  cotton companies . While the sector has been liberalized , various critical functions have been 
maintained, including the setting and adjustment of a sing le purchase price for seed cotton  and 
transfer price for inputs , the funding of research and community infrastructure, etc. Several factors 
contribute to cohesion among the sector 's actors, including: (i) the opening up of cotton company 
capital to producers ; (ii) the involvement of producers in determining transfer  prices for inputs and 
purchase price s for seed cotton ; (iii) steady improvement in the activities performed by cotton 
companies vis -à-vis producers ( credit, marketing,  payment for seed cotton  and removal thereof ); 
(iv) continuous coordination between the two families ( general meeting, board of directors , 
dissemination of research findings and validation of research programme s and budgets ). 
3.2.  This cohesion is , however,  sometimes disrupted by misunderstandings among the actors over 
the quality of inputs and services delivered to producers  by the cotton companies , the prices set , 
etc. This is what happened during the sector 's crises in 2011 and 2018, which led to a cotton boycott 
by some prod ucers . Resolving  such crises requires government regulatory intervention and financial 
support in the form of subsidies , as mentioned earlier . 
3.2  Performance of the cotton sector, 2010 -18  
3.2.1   Production of seed  cotton, lint and cotton  seed  
3.3.  Seed-cotton  production varied in a sawtooth manner over the decade. It remained below 
400,000  tonnes between 2010 and 2013 and then hovered  around an average of 600,000  tonnes 
between 2013 and 2017 ( Table  2), before dropping by 29%  between 2017 and 2018 . The trends for 
seed-cotton  and lint production were similar during this period . 
3.4.  About 85% of seed production goes to oil production and 15% to planting . Seeds remaining 
after planting (between 30% and 40% depending on seed quality) also go to oil production  
(AICB,  2019). The average yield of lint was 383 kg/ha between 2010 and 20 19. According to 
estimates by INERA (2010), the production of  cotton stalks  varies between 1.7 and 1.8  tonne/ha. 
Based on an average yield of 1.75  tonnes, total production averages 1,028,421 tonnes , ranging 
between  607,740 tonnes in 2012  and 1,538,418 tonnes in 2018, of which less than 15% is actually 
commercialized  (INERA, 2010).  WT/CFMC/W/84  
 
- 17 - 
 
  Table  2: Seed-cotton , lint and cotton -seed  production , 2010 -18 
Crop year  Area  
(hectares ) Production  
of seed 
cotton  
(tonnes ) Production  
of cotton  
lint 
(tonnes ) Production  
of cotton  
seed   
(tonnes ) Seeds 
planted  
 
(tonnes ) Yield of 
lint 
(tonnes / 
hectare ) Production 
of stalk s 
(tonnes ) 
2010-11 404,121 365,325 157,090 197,276 19,728 0.389 707,212 
2011-12 347,280 337,556 145,149 182,280 21,874 0.418 607,740 
2012-13 377,087 385,383 165,715 208,107 31,216 0.439 659,902 
2013-14 568,986 601,418 258,610 324,766 48,715 0.455 995,726 
2014-15 647,926 703,000 287,000 379,620 56,943 0.443 1,133,871 
2015-16 662,902 586,000 248,400 316,440 47,466 0.375 1,160,079 
2016-17 740,349 683,000 306,900 368,820 55,323 0.415 1,295,611 
2017-18 879,096 612,698 225,900 330,857 49,629 0.257 1,538,418 
2018-19 646,446 434,317 197,700 234,531 35,180 0.306 1,131,281 
2019-20 602,500 467,000 200,810 252,180 37,827 0.333 1,054,375 
Average  587,669 517,570 219,327 279,488 40,390 0.383 1,028,421 
Sources:  AICB, 2019 , and calculations by the authors . 
3.2.2   Estimated availability of cotton -seed by-products  
3.5.  The quantity of oil produced from cotton  seed in Burkina Faso averaged 37,434 tonnes between 
2010 and 20 19. The 2014-15 crop year saw an annual record in oil production of 50,300  tonnes.  
3.6.  Meal production averaged 99,824  tonnes  over the 2010-19 period . Waste and hulls were 
estimated at 104,816  tonnes over the same period (Table  3). 
Table  3: Production of by -products , 2010 -18 
Crop year  Oil seed  
 
 
(tonnes ) Linters/ short 
fibres  
 
(tonnes ) Meal  
 
 
(tonnes ) Hulls 
 
 
(tonnes ) Cotton -seed  
oil 
 
(tonnes ) 
2010-11 174,260 5,228 69,704 73,189 26,139 
2011-12 161,014 4,830 64,406 67,626 24,152 
2012-13 183,828 5,515 73,531 77,208 27,574 
2013-14 286,876 8,606 114,751 120,488 43,031 
2014-15 335,331 10,060 134,132 140,839 50,300 
2015-16 279,522 8,386 111,809 117,399 41,928 
2016-17 325,791 9,774 130,316 136,832 48,869 
2017-18 292,257 8,768 116,903 122,748 43,839 
2018-19 207,169 6,215 82,868 87,011 31,075 
Average  249,561 7,487 99,824 104,816 37,434 
Source : AICB and calculation s by the authors in consultation with oil processors . 
3.2.3   Trends in cotton production over the last 10 years  
3.7.  A downward trend in production yields has been observed in recent years, as it has  in other 
African cotton -producing countries . The main factors explaining this trend in Burkina  Faso include 
the following : 
• Field conditions: (i) declining soil fertility resulting from poor organo -mineral  management ; 
(ii) haphazard producer practices in the use of inputs ; (iii) changes in climate ; (iv) land tenure 
insecurity , etc. 
• Producer disenchantment with cotton growing , owing to : (i) reductions in the price of cotton 
and/or increases in the cost of inputs ; (ii) in some cases, poor service received from cotton 
companies ; (iii) poor administration of credit for inputs ; (iv) poor communication among 
actors directly engaged in cotton production.  
• The country 's security problems , which make cotton production impossible  in some parts of 
the country, notably in the East . 
3.8.  The 2018 plan to revitalize the cotton sector helped to boost national production by 12% 
in 2019 and 16% in 2020, suggesting some degree of stability , if not growth , in the years ahead. 
Despite its positive impact , however,  the plan has not removed the fundamental constraints 
described here. Burkina Faso could in fact see a significant decline in its production given the 
downward trend in world lint prices . WT/CFMC/W/84  
 
- 18 - 
 
  3.9.  A decline in the production of seed cotton  means less of the raw material for oil and meal 
processing . Given the cotton sector 's predominant place in the national economy, g overnment 
support is therefore required to gain the most from the opportunities offered by the local processing 
of by-products . 
3.3  The impact of cotton growing on  food crops  and household income  
3.10.   Historical analysis has shown that the cotton sector 's system of access to credit and its 
subsidies for inputs have enabled farmers to replace their use of hand tools – first with animal 
traction (ass-hitched at first, then oxen -hitched)  and later with  motori zation. By maintaining a higher 
level of soil fertility and fighting weeds more effectively , farmers have enjoyed superior yields. These 
new cultivation techniques have been applied not only to cotton , but also to  food crops . 
3.11.   Cotton has also taken its place in crop rotation schemes, with cereals and legumes . According 
to Schwartz (1991), Vognan et al. (2003), Poda (20 04) and Eureka  (2007), rotating the planting of 
cotton and cereals on the same plot of land allows cereal crops to benefit from cotton fertili zation. 
Cereal growing also benefits from  other cotton development policies , including  the loans provided 
for cotton -growing inputs and equipment. Cereals benefit from the intensive cultivation  encouraged 
by the "technological package " used for cotton (FAO, 2006) , resulting in improved  cereal yields . 
Cotton -growing zones account for more than 80% of the cereal marketed in Burkina  Faso 
(Agrer,  2007). Bainville (2013) concludes that if the country enjoys some degree of self -sufficiency 
in cereals it is thanks above all to the regions where cotton is most widely grown . 
3.12.   The study by Vognan et al. (2013) , analyses  the impact on two variables – food production 
and producer income – of downward trends in the country 's cotton production between 
2005 (a record  year, with 713,000 tonnes ) and 20 11 (when  production recovered  after having 
plummet ed to 347,000 tonnes  in 2007 ). The study  shows a strong correlation between cotton 
growing and th ose two variables . 
3.13.   The study distinguished among  three types of producer in terms of their reaction s to 
deteriorating conditions for cotton production: (1) those who abandon cotton ; (2) those who reduce  
their cotton acreage ; and  (3) those who maintain or increase it. Depending on the type of producer 
concerned, t he study shows clear correlations  between  the mix of cotton, cereals and livestock  being 
produced on the one hand and food security on the other . Trends in the land areas devoted to  maize 
and cotton are similar, indicating a strong correlation between th ose two crops . The results  of 
producers who maintain  their level of cotton acreage  reveal a strong and positive correlation  between 
cotton and maize acreage in both 2005 and 2011  at a threshold of 5% (r = 0 .866). Among those 
who reduced their acreage this connection is confirmed by a high and significant correlation at a 
threshold of 1% (0.797) between cotton and maize . Among those who abandon ed cotton , the 
correlation between maize and cotton remains strong (0.665 ) at a risk of  1%. These findings confirm 
that a positive correlation exists between cotton and cereal crops.  
3.14.   The reduction in cotton acreage was accompanied by a reduction in farm income, by 22.4% 
on average. The reduction in income was 56.7% among those who virtually abandoned cotton, 
20.7% among those who maintained or increased their cotton acreage and 69% among those who 
reduced it (those leas t able to optimi ze their production plans) . The sale of livestock represent ed an 
important way for those who abandon ed cotton or reduced their output  to make up the loss of 
income from that crop . WT/CFMC/W/84  
 
- 19 - 
 
  4  BASELINE SITUATION FOR COTTON BY -PRODUCTS  
4.1  Value chains and leading actors  
4.1.  The c otton by -products  that have been developed in Burkina  Faso are as follows : 
• Cotton stalks  are mostly  grazed by animals in the field after harvest; about 15% of the 
remaining st alks are then processed as organic fertilizer by producers (INERA, 2010) for the ir 
own use in the fields. The remaining stalks are cut and burned to condition the soil  or plo ughed 
under  for the next year 's crop . Opportunities exist for the commercial production of organic 
fertilizer in Burkina Faso and the subregion . There is tremendous need for it given the 
significant decline in soil fertility . Constraints on the production of such organic fertilizer 
include the lack of adequate equipment for crushing the stalks and turning the compost , 
difficulties in  transport ing the stalks and compost ( wheelbarrows, carts, shovels , etc.), and 
the lack of water (large quantities needed for composting ). Surveys (INERA, 2003) on the use 
of organic fertilizer indicate that producers dislike producing it and that more than 90% would 
be prepared to buy it , rather than produce it,  for use in their fields . Local industrial 
production appears to be a good way to enhance the value  added of  cotton stalks  
and would also improve soil fertility . 
The use of cotton stalks  to produce briquettes  for household energy was initiated in the 2000s 
with the installation of an industrial unit in the town of Boromo (175  km from Ouagadougou  
and from Bobo-Dioulasso). The unit was not long, however, in closing its doors for lack of 
customers:  the cost price of the briquettes  produced was considered too high in urban areas , 
while households in cotton -growing areas could easily burn brush to meet their energy needs . 
• Cotton lint comprises between 40% and 43% of seed cotton . Most of it is exported by the 
cotton companies , with only 2% used locally  to produce different types of cotton yarn by the 
spinning company Filature du Sahel (FILSAH),  which has a process ing capacity of  5,000 tonnes 
per year . Some  types of yarn are exported but others are sold to domestic textile producers 
(some  50,000  artisans, designers , etc.) (MCIA, 2010).  
• Linters , obtain ed after ginning the cotton , are sold to the company Coris and to artisans for 
use in making  mattresses , carpets, etc.  
• Cotton  seed is processed entirely in the country to obtain: (i) edible oil ; (ii) meal, for use as 
livestock feed ; (iii) seed hulls, for use as livestock feed and fuel for oil processing boilers ; 
(iv) soap; and (v) waste . Until 2003 , seed w as considered  a low -value product  and w as 
therefore sold at very low prices (CFAF 30-40/kg).  Since 2007, however, thanks to  political 
efforts to improve the domestic exploitation of cotton  seed, a number of  seed-crushing units  
have been established , leading  to a rise in the purchase price of cotton  seed – from CFAF  40 
to CFAF 80/kg (excluding VAT) . 
4.2.  The largest oil processors are SN-CITEC, SOFIB  HB and Huilerie Bâ Mariam. Smaller processors 
are grouped within three associations: the Burkina Faso Oilseed Processing Group (GTPOB), the 
Houet Oilseed Processing Group (GHH) and the Cooperative of Producers of Oil seed and other 
Products  (CPPOD).  
4.2  Mapping of actors engaged in cotton -seed  development  
4.3.  According to the most recent  survey by the Burkina Chamber of Commerce and Industry 
(CCIB,  2018), the country 's cotton -seed processing units, producing mainly  edible oil  and meal , 
numbered 96. In terms of geographical distribution, nearly two thirds (61%) of these units are 
located at Bobo-Dioulasso. The presence of oil processors around the country 's economic capital is 
so strong because most of the raw materials concerned (cotton  seed) are produced by SOFITEX , 
which is  established in and around  that city . After Bobo-Dioulasso, the second largest source of such 
processed oil is Ouagadougou (26% of the country 's units) , and the third , Dédougou (5%), where 
SOFITEX has a large ginning unit . A small number of the units are located at Banfora, Koudougou, 
Fada N 'Gourma and Ouahigouya (Chart  2). WT/CFMC/W/84  
 
- 20 - 
 
  Chart  2: Geographical distribution of oil processing units  
 
Source:  Field survey , IPSO Conseils,  May 2018.  
4.3  Types of processing units (according to technology used)  
4.4.  In terms of production technology there are two types  of unit : industrial and semi -industrial. 
The industrial units are those  operated by two companies:  SN-CITEC and SOFIB HB ; the 
semi-industrial on es are operated by 100 or so SMEs organized in groups  (GTPOB, GHH and CPPOD).  
4.3.1   Industri al units  
SN-CITEC  
a. Brief description  
4.5.  The New Oil and Soap Company  (SN-CITEC ), established in 1995,  is a company subject to 
private law and a subsidiary of the  GEOCOTON  group . As a producer and marketer of cotton -seed 
oil, it is Burkina Faso 's largest agribusiness in the oil processing sector . It also produces  soap for 
household use , derived from vegetable fat . The company engage s in oil processing  as well as related 
commercial and industrial operations.  The company employs about 400  people , plus  100 or so 
temporary workers, mostly women . 
b. Technological  characteristics  and description of products  
4.6.  With capacity to crush 120,000 tonnes of cotton  seed per year,  SN-CITEC produces 
20,000  tonnes of vitamin A -enriched edible oils under the brand name SAVOR, as well as 
48,000  tonnes of livestock feed and 24,000 ton nes of cotton -seed meal  under the brand name SPAI. 
It thus contribute s significantly to value addition in the domestic economy . 
4.7.  SN-CITEC also produces shea butter (crude, neutralized and refined) as well as sesame oil and 
meal. 
4.8.  The company is equipped to process oilseed of all ki nds. It is heavily equipped with the latest 
generation of technology for all production activities, quality control and marketing (seed storage 
silos, seed cleaning and hulling machines,  sieves , sprayers , solvent e xtraction  plants , refining unit 
for multiple operations  including degumming,  neutrali zation, decolouri zation, de -odorization, 
packaging, etc.). In terms of electricity, the oil processing operations are virtually self -sufficient , 
burning seed hulls (45% of seed content) to generate steam  for a turbine generator and processing 
operations . 
61%
26%
5%
3%
1%
2%
 2%Percentage of oil processing units by location
Bobo Dioulasso
Ouagadougou
Dédougou
Banfora
Koudougou
Fada N'Gourma
OuahigouyaWT/CFMC/W/84  
 
- 21 - 
 
  c. Supply of cotton  seed  
4.9.  SN-CITEC has no problem getting cotton -seed supplies , receiving as it does priority service 
from the SOCOMA  cotton company , a subsidiary of its GEOCOTON  group,  and from SOFITEX , which 
holds 35% of SN-CITEC's capital . While several crushing units have been established as part of the 
policy to optimize local  exploitation , SN-CITEC has thus far maintained its cotton -seed monopoly . 
d. Principal constraints and solutions under consideration  
4.10.   Like other oil processors, SN-CITEC must contend with fraudulent ly imported and 
clandestinely produced  oil sold in the company 's packaging . Some 90% of the company 's problems 
stem from c ustoms and tax fraud and only about 10% from production factors . In terms of imports, 
extremely large quantities enter through fraudulent customs clearance practices at certain border 
points , with false declarations  as to quantity and transactional value (set at CFAF 155 per litre). 
4.11.   The solution lies in the strict application of all  current regulations , taxation at true values  and 
the collection of all taxes  due upon entry and  commerciali zation. 
4.12.   The health risks of consuming oils available on the market but not subjected to quality controls 
should also be kept in mind . 
SOFIB HB  
4.13.   The Industrial Oil Manufacturing Company of Burkina (SOFIB HB), a subsidiary of the 
SOBA  group , started operating in 198 4. It is a semi -modern industrial company with processing 
capacity of 36,000 ton nes of seed per year , producing 5 ,000 tonnes of oil  and 30,000  tonnes of 
meal. It employs  a workforce of 425 people with about 50 permanent jobs. Of the temporary 
workers , women account for more than 70% . It is rare, however, for the plant to run at full capacity 
and its operations are intermittent . It remained closed, for example, during the 2009-10 crop year . 
Nevertheless,  it has ready access to cotton -seed supplies from Faso Coton, 20% of whose capital is 
held by the SOBA  group . This seeming underperformance has two main reasons: (i) obsolete 
equipment ; and (ii) family intervention in the company 's administrative and financial management , 
in addition to the usual constraints encountered by other processing units ( market slumps, etc.).  
4.3.2   Semi-industri al units  
Social and technical characteristics  
4.14.  The m anagers of cotton by -product  processing companies  are in majority men (35 out of 47, 
or 74%) , averag ing 53 years of age ; 26% (12 of the 47) are women , with an average age of 50 . 
Most of the  by-product processing companies (80.9%) are equipped with modern technology ; 
19% have semi-modern equipment . A comparison by sex shows that 100% of the units belonging to 
men have modern equipment , whereas most of the women use semi -modern equipment  (Table  4). 
Table  4: Type of technolog y used 
  Processing t echnolog y Total  
Gender  Modern  Semi -modern  
Women  Number  3 9 12 
%  25 75 100 
Men Number  35 0 35 
%  100 0 100 
Total Number  38 9 47 
%  80.9 19.1 100 
Source:  Field survey , 2019.  
4.15.   Both skilled and unskilled labour are employed in the processing operations.  Men make up 
around 70% of the skilled labour , while  women constitute more than 80%  of the unskilled , 
performing such tasks as cleaning the  container unit, processing the waste , preparing  and selling 
the product , etc. Women are thus seen to p articipat e actively  in these processing operations . WT/CFMC/W/84  
 
- 22 - 
 
  
Produ cts generated by cotton -seed  processing  
4.16.   All the by-product processing companies (100%) use exclusively cotton  seed as the ir raw 
material . The cotton by -products produced consist of : oil, produced by 100% of the companies ; 
meal, produced by 87.2% , and soap, produced by 12.8%  (Table  5). 
4.17.   The breakdown by gender shows  that all men as well as women produce oil but that only 
women produce soap. Meal is produced by 100% of the men and 50% of the women.  
Table  5: Actors engaged in the p roduction of cotton -seed by-products , by gender   
Proce ssors Oil production  Meal production  Soap production  
Women  Number  12 6 6 
% 100 50 50 
Men Number  35 35 0 
% 100 100 0 
Total  Number  47 41 6 
% 100 87.2 12.8 
Company satisfaction with the availability and quality of seed  
4.18.   Most of the company managers surveyed (93.6%) are not satisfied with the available supply 
of their raw material , while  6.4% are somewhat satisfied ( Table  6). As to seed quality, a majority of 
the processors (55.3%) are somewhat satisfied; 25.5% are very satisfied and 19% satisfied.  
Table  6: Level of satisfaction with cotton -seed availability  
 
Company managers  
  Degree of satisfaction  
Not satisfied  Somewhat satisfied  Total 
Women  Number  12 0 12 
% 100 0 100 
Men Number  32 3 35 
% 91.4 8.6 100 
Total Number  44 3 47 
% 93.6 6.4 100 
Source:  Field survey , 2019.  
4.19.   Obtaining seeds remains a big problem for the processor groups . During times of abundance 
the average quantity of cotton  seed obtained per processing unit averages 10,226 tonnes  
(9,500 tonnes  in the case of female -run units and 10,478 tonnes in the case of  male-run units ), at 
an average price of CFAF 96,852 per tonne  (Table  7). During periods of average availability , the 
average quantity obtained is 6,003 tonnes (6,500 tonnes  for female -run and 5,830 tonnes for male-
run units ), at an average price of CFAF 100,593 per tonne . During periods of scarcity, the average 
quantity obtained is 3,871 tonnes (2,400 tonnes for female -run and 4,382.6 tonnes  for male-run 
units), at an average price of CFAF 105,755 per tonne.  
Table  7: Quantit y and price of  cotton  seed  according to availability  
 
Unit Female -run Male-run Overall a verage  
Periods of abundance    
      
Quantit y Tonnes  9,500 10,478 10,226 
Price CFAF 93,725 97,939 96,852 
Periods of average availability          
Quantit y Tonnes  6,500 5,830 6,003 
Price CFAF 93,725 102,983 100,594 
Periods of scarcity          
Quantit y Tonnes  2,400 4,383 3,871 
Price CFAF 93,725 109,939 105,755 
Source:  Field survey , 2019.  WT/CFMC/W/84  
 
- 23 - 
 
  
Company needs for cotton  seed  
4.20.   A comparison of the cotton  seed needed by companies relative to the quantities actually 
received  reveal s some significant shortfalls  over the last three years . The average annual volume 
companies needed during those years was 11,279.6 tonnes per unit but the volume received only 
3,148.4 tonnes , meaning an average annual shortfall of  8,131.2 tonnes  per unit stemming from the 
limited availability of seed  (Table  8). 
Table  8: Company needs for cotton  seed  relative to availability  
 
Unit Female  Male  Average  
Needs for cotton  seed in 2017 t 15,750 15,173.9 15,322.6 
Needs for cotton  seed in 2018 t 8,000 13,504.3 12,083.9 
Needs for cotton  seed in 2019 t 5,625 6,713 6,432.3 
Average needs for cotton  seed (2017 -19) t 9,791.7 11,797.1 11,279.6 
Average quantity of cotton  seed obtained  t 2,400 3,408.7 3,148.4 
Shortfall  t -7,391.7 -8,388.4 -8,131.2 
Source:  Field survey , 2019.  
Periods of operation for cotton by -product processing plants  
4.21.   For most of the processing plants, production takes place between January and March (for 
26% of the plants) and  between February and May (for 23%). 
4.22.   Most of the production in plants run by women occurs between January and March 
(for 75% of the women) and between March and  April (for 25%) (Chart  3). 
4.23.   Production in male-run plants  falls largely between February and May  (31%) and between 
January and  July ( 17%). 
Chart  3: Major production periods  by type of processing unit  
 
 
 
Source:  Field survey , 2019.  
WT/CFMC/W/84  
 
- 24 - 
 
  
Productivit y of by-product  processing units  
4.24.   The oil extraction rate varies according to the technology used. At SN-CITEC, which has 
modern equipment,  it ranges between 20 % and 30%. The extraction rate of semi -industrial units 
ranges between 12.5% and 16% depending on the fat content lost because of defects in the crushing 
and extraction process . 
4.25.   According to our surveys, one tonne of cotton  seed can yield 125  litres of oil, 0.7  tonnes of 
meal, and 2 ,750 balls of soap . The female -operated processing units obtain better yields than the 
male-operated units for oil as well as meal . The female -run units obtain 150  litres of oil and 
0.8 tonnes of meal from a tonne of cotton  seed, compared to 118  litres of oil and 0.7  tonnes of meal 
obtained by the male run -units (Table  9). This seems paradoxical since the female -run units are less 
well equipped. This suggests that the female -operated units are more productive even with less 
advanced technology.  The explanation may also lie in the quality of the cotton  seed processed . The 
female-operated units are supplied exclusively with domestically produced seed, whereas some of 
the male -operated units import their seed from the North, from Côte d 'Ivoire and from Togo. 
According to the same authors , seeds from those sources have a relativ ely high humidity rate and 
are therefore of poor quality for oil extraction . The female -run units have the additional advantage 
of exploiting the oil residues to produce soap by dissolving them with coconut oil; the male -run units 
do not produce soap, pref erring to sell the oil residues to women.  
Table  9: Quantit ies of product obtained from a tonne of cotton  seed  
  Female -operated  Male -operated  Average  
Yield of oil (litres/tonne ) 153.3 117.6 125 
Yield of meal  (tonnes/tonne ) 0.8 0.7 0.7 
Yield of soap (balls/tonne ) 2,750  
2,750 
Source:  Field survey , 2019.  
Average annual revenues for processing units  
4.26.   The processing units generate average annual revenues of CFAF 412,601,398 from oil , at a 
unit price of CFAF 460 per litre of oil; CFAF 1,020,833 from soap , at a unit price of CFAF 250 per ball; 
and about CFAF 740,200,806 from meal, at a unit price of  CFAF 116,481 per tonne  (Table  10). 
4.27.   Meal is the largest source of income for processing unit s, accounting for 64.2% of revenue, 
followed by oil, account ing for 35.8% . 
4.28.   Male-operated units earn higher revenues: CFAF 437,926,449 from oil and CFAF 850,670,652 
from meal, compared to  the CFAF 339,791,875 earned from oil  and the CFAF 422,600,000 earned 
from meal by the female -operated units . 
Table  10: Annual revenues of processing units  
   Female -run Male -run Average  
Average revenues from the sale of oil  CFAF/year  339,791,875 437,926,449 412,601,398 
Unit price for oil  CFAF/litre 450 465 461 
Average revenues from the sale of soap  CFAF/year  1,020,833   
Unit price for soap  CFAF/ball 250   250 
Average revenues from the sale of meal  CFAF/year  422,600,000 850,670,652 740,200,806 
Unit price for meal CFAF/tonne  115,000 116,739 116,481 
Source:  Field survey , 2019.  
Markets for cotton by -products  
4.29.   Most of SN-CITEC's products (87.85%  of revenue ) are sold in the domestic marke t, compared 
to 11.84% sold regionally and 0.31%  to the European market  (SN-CITEC,  2017).  
4.30.   According to the survey, the domestic market also accounts for most of the products sold by 
SOFIB and those sold by  93.6% of the  medium -sized and small (semi -modern) units. Some of these 
units ( 68.1% of those surveyed) also sell to countries in the sub -region, including Mali and Niger . WT/CFMC/W/84  
 
- 25 - 
 
  4.31.   Within the domestic market, 93.6% of the enterprises market their production in large towns , 
including Ouagadougou  and Bobo-Dioulasso , while  87.9% also sell products in the provinces and 
communes . 
4.32.   Analysis of the product distribution channel s shows that 100% of the enterprises sell their 
products to wholesalers, whereas 38% also sell to  semi-wholesalers  and only 6.4% to retailers . 
Main sales periods for cotton by-products  
4.33.   The largest numbe rs of producers sell their production between January and  June (30%)  and 
between January and Ma rch (19%). Female -operated units accounting for 50% of female workers 
make their sales largely between February and  April; the other 50% do so between January and 
March  (Table  11). Male-operated units accounting for 40% of the male workers sell between 
January  and June, while those accounting for  17% do so between January and December . 
Table  11: Main sales period s for the production units  
    Sales periods  
    Dec-May Feb-April Jan-Dec Jan-June Jan-March  July-August  July-Oct 
Female  Number  0 6 0 0 6 0 0 
% 0 50 0 0 50 0 0 
Male  Number  3 0 6 14 3 6 3 
% 8.6 0 17.1 40 8.6 17.1 8.6 
Total Number  3 6 6 14 9 6 3 
% 6.4 12.8 12.8 29.8 19.1 12.8 6.4 
Source:  Field survey , 2019.  
Stakeholders and development prospects  
4.34.   All (100%) of the processors surveyed belong to groups . According to the surveys, group 
membership is motivated in most cases (74% of those surveyed) by the easier access these groups 
provide to the raw material ; for others ( 13%) it is motivated by a desire for joint security in dealing 
with banks  or because of cotton company  instructions  to join  (13%) . 
4.35.   Cooperation within the groups relates essentially to distribution of the raw material to 
members and market research to help members sell their products . 
4.36.   Most of the enterprises (61.7%) have access to credit ; 38.3% are indebted and thus do not . 
A larger proportion of the male-operated enterprises (65.7%) than of the female -operated ones 
(34%) have access to credit . 
4.37.   All (100%) of the process ors interact with several  partners , including: (i) cotton companies , 
which supply the raw material ; (ii) traders/vendors of their products ; (iii) equipment manufacturer s, 
such as  the Industrial Study and Development Company  of Burkina Faso  (ERI-BF) and the 
West African  Foundry Company  (SOAF ), for the manufacture and installation of processing 
equipment ; (iv) the Chamber of Commerce  to receive support in several areas ( marketing, 
export ation, access to funds , training ); (v) the banks provid ing loans to finance their operations ; 
(vi) the oil processing cluster , etc. (Chart  4). WT/CFMC/W/84  
 
- 26 - 
 
  Chart  4: Partners interacting with the processing units  
 
Source:  Field survey , 2019.  
Partner interests and influence over the sector  
4.38.   The survey shows that enterprises regard these partners as exerting major influence  over the 
processing sector , starting with  cotton companies , with the greatest influence  (10 points) ; followed 
by banks (8 points), the Chamber of Commerce and the oil processing cluster , etc. (6 points).  
5  ANALYSIS OF THE COTTON BY -PRODUCT MARKET  
5.1  Sub-regional c ontext  
5.1.  An analysis of the oilseed sector in Burkina Faso should take account of the context, in terms 
of monetary and economic integration,  that is created by WAEMU  and ECOWAS , with the 
Common  External Tariff (CET) coming into effect , as well as a number of economic partnership 
agreements . Given this context of economic integration , and by virtue of rule s of origin,  the free 
circulation of locally produced oilseed products ( mainly cotton -seed oil  and palm oil)  and the supply 
and demand for those products  need to be analy sed from a sub -regional perspective.  From that 
perspective , analysis of the oilseed product market shows that WAEMU  as a whole is not self -
sufficient in vegetable oils and since the late 1990s has been importing ever greater quantities of 
oilseed products, now estimated at 150,000 tonnes a year. Going forward, the vegetable oil needs 
of the WAEMU  countries are expected to increase by nearly 70%, which would accentuate their 
dependence on imported oil if current trends continue . Here lies a paradox: considering WAEMU 's 
installed capacity  (outside the artisanal sector) , it should be a net exporter of vegetable  oils, to the 
tune of a round  165,000 tonnes . 
5.2  Supply and demand  for cotton by -products  in Burkina  Faso  
5.2.  The potential for cotton by -products is a function of seed-cotton  production,  which in turn 
depends on Burkina Faso 's cotton sector policies  as well as exogenous factors  (climate, global market 
fundamentals) . 
5.3.  Cotton -seed oil production was on the rise between 2003 and 20 06 as new oil processors 
entered the market . Production almost  stabilized between 2007 and 20 11, before seeing an 
exceptional annual increase . More recently (2016 -18), national production of edible oils averaged 
about 45,000 tonnes per year, out of which an average of 37,450  tonnes were derived from seed 
produced in Burkina Faso and the rest from imported seed ( from northern  Côte d'Ivoire  and Togo) . 
Domestic supply of cotton -seed meal is estimated at a little over 99,867  tonnes a year. 
5.4.  Reports from the national forum of cotton -seed oil processors (MCIA, 2018)  however,  paint a 
mixed  picture of the functional condition of such processing plants in Burkina  Faso. Out of a total of 
76.6%
55.3%100.0%
61.7%
6.4%100.0%
25.5%
0.0%20.0%40.0%60.0%80.0%100.0%120.0%
ERI Chamber of
CommerceCotton
companiesBanks SOAF Traders/Vendors Oil processing
cluster
PartnersWT/CFMC/W/84  
 
- 27 - 
 
  96 processing units, only 65.6% are still functioning. Nearly 34.4% are non -functioning or closed 
owing to recurrent problems in the sector . 
5.5.  Those problems include the scarcity of cotton  seed available during the processors ' production 
periods , contractions in the availability of bank financing , unfair competition from imported oil, and 
slumps in the sale of locally produced oils . 
5.6.  Based on analysis of domestic consumption , an estimated average of  six litres of oil is 
consumed domestically per person per year (SPAAA, 2013). Given the shortfall in production  relative 
to consumption  needs , Burkina Faso  has to import  to meet domestic needs , which it does in the 
form of palm oil , a perfect substitute for cotton -seed oil . 
5.7.  Those imports are often unfair, however, in that the quantity imported far exceeds the unmet 
needs . In addition,  some of the imports enter the country fraudulently  and are sold at very low, 
predatory prices . Another explanation could be the fraudulent application of  the rules used by  
importers of semi -refined palm oil  at major African ports of entry . Such importers repackag e 
imported oil  as locally produced crude oil for tax -free sale on the regional market , which makes it 
cheaper than local oil . It is up to the government to fight this threat to local initiatives . 
5.8.  Under these conditions, the cost of producing edible oil locally , and the availability and the 
price of the raw material are strongly influenced by imports of substitute oils . The prices charged for 
cotton  seed make up 54.5% of the production cost . Massive imports of palm oil induced  by a drop 
in its international market price tend to lower the price of locally produced oil . 
5.9.  In terms of domestic market outlets, the processors lack distribution channels of any 
consequence . Customers generally get their supplies from warehouses . In addition, consumer tastes 
and expectations  are rarely taken into account by producers . Edible oil consumption is motivated  by 
product quality  and price, consumer income and type of packaging.  
5.3  Evaluation of markets for cotton by-products  in Burkina  Faso  
5.10.   The cotton -seed oil and meal produced in the country 's processing units is destined almost 
entirely for the domestic market. The oil is used for human consumption and is the leading source 
of fat used in the form of oil. It is a lso used to produce soap and cosmetics. Cotton -seed meal, 
consisting of the residue following oil extraction , is sold largely as livestock feed . 
5.11.   According to the survey , the main  outlet for processing units is the domestic market , which 
absorbs 93.6% of their production . Many units (68.1% of those surveyed) also sell to other countries 
in the subregion, most notably Mali and Niger. Meal is the product in greatest demand at the 
domestic and sub -regional level. The country 's meal production does not cover domestic needs.  
5.4  Cotton by -products  imported by Burkina Faso  
5.12.   Edible oil is the main  cotton by -product imported by Burkina Faso.  Most of the country 's 
imports of  edible oil, however, consist of palm oil and coconut oil . According to data from the ITC 
(2019), Burkina Faso  imported an average of 76,521 tonnes of palm oil and 4 ,385 tonnes of coconut 
oil between 20 14 and 20 18 (Table  12). 
Table  12: Oils imported by Burkina Faso  between 20 14 and 20 18 
Product  2014  2015  2016  2017  2018  Average   
Quantit y 
(tonnes)  Quantit y 
(tonnes)  Quantit y 
(tonnes)  Quantit y 
(tonnes)  Quantit y 
(tonnes)  Quantit y 
(tonnes)  
Palm oil  64,773 92,588 72,334 58,213 94,695 76,521 
Coconut oil  2,659 8,481 3,548 3,923 3,316 4,385 
Sunflower oil  280 262 118 338 424 284 
Olive oil and fractions thereof   29 216 69 74 156 109 
Rapeseed or  colza oil 13 37 3 54 137 49 
Soya oil and fractions thereof  67 44 32 22 101 53 
Peanut oil and fractions thereof  1,709 1,346 1 17 15 618 
Source:  Trade Map, ITC, 2019.  WT/CFMC/W/84  
 
- 28 - 
 
  5.13.   Data from the ITC (Trade Map, November  2019)  show imports of  cotton sewing thread 
averaging 128.6 tonnes per year  from China (more than 60%) and countries in the subregion 
(Mali, Ghana). Sporadic imports from Côte d'Ivoire  and Benin of carded, uncombed cotton 
amounting to less than 15 tonnes per year are also noted . 
5.5  Cotton by -products  exported by Burkina  Faso  
5.14.   According to ITC data, the following cotton by -products  are exported by  Burkina Faso : 
• Sewing thread : an average of 327 tonnes per year  between 20 14 and 20 18. 
• Crude c otton -seed oil , including that with  gossypol  removed : 218 tonnes in 20 17 and 
384 tonnes in 20 18, exported to  Mali (320 tonnes), Togo (40 tonnes)  and 
Côte d'Ivoire  (25 tonnes) . 
• Cotton -seed oil and fractions thereof  (refined or  with gossypol  removed  but not chemically 
modified ): an average of 3,707 tonnes between 20 14 and 20 18, exported to  Mali (87%), 
Mauritania (10%) and Niger (3%).  
5.6  Analysis of current and future demand for cotton by -products  in Burkina  Faso  
❖ Demand  for cotton meal  
5.15.   Growing demand for livestock feed has accompanied climate change and ever more frequent 
droughts . 
5.16.   According to surveys conducted in Burkina Faso by the  African Network of Livestock Breeder s' 
and Pastoralist s' Organi zations  (2011), breeders estimate their meal needs as between 1 and 2.5 kg 
per head per day every six months . Needs for dairy cattle have been estimated at 2-3 kg. For the 
fattening process , the need for concentrated feed supplements is estimated at 500  kg 
every  100 days. 
5.17.   For a cattle population of 9 million , Burkina Faso requires  an average of 15, 750 tonnes  of 
meal per day , or a total of 2,835  million  tonnes  for a six-month period , while domestic meal 
production rang es between 99,500 and 150,000 tonnes per year . There is strong demand for 
livestock feed not only domestically but in the Sahel region generally , where livestock farmers are 
estimated to number 20 million , with an estimated 60 million head of cattle and 160 million small 
ruminants  (Regional Sahel Pastoralism Support Project , PRAPS, 2015).  
5.18.   The resilience of pastoral societies has been put to the test in recent years not only by 
recurrent climate shocks and their environmental, economic, social and politica l consequences, but 
also by a worsening security crisis in the region and by the deterioration of water supply 
infrastructure in grazing areas, disrupting pastoral mobility strategies . 
5.19.   Access to livestock feed in this context has become a strategic necessity.  Strong and steady 
growth in consumption for short -cycle, semi-intensive livestock farming (poultry ) and the 
intensification of production systems ( dairy; sheep, cattle and  pig fattening)  is also making demand 
more dynamic . The supply of livestock feed , on the other hand,  is growing more slowly and 
sporadically, depending on  how crops grown for industrial use (cotton, peanuts, etc.) perform . 
The result is unmet demand . 
❖ Demand for cotton -seed oil  
5.20.   Domestically produced edible oils, estimated to average 65,000  tonnes between 
2010 and 2014 (FAO, 2016) , are derived mainly from seed cotton . As mentioned earlier, this covers 
less than 50% of oil needs, necessitating imports of palm oil , in particular from Côte d 'Ivoire and 
the international market.  Estimated domestic demand for such oils , consumed at a rate of  
six to eight litres per person per year between 2012 and 2017 (FAO, 2016), comes to between 
100,000  and 120,000  tonnes  per year . The cotton -seed oil produced in Burkina  Faso is almost 
entirely consumed domestically . This trend is in line with growth in demand for industrial o il 
generated by population growth and urbani zation. WT/CFMC/W/84  
 
- 29 - 
 
  5.21.   While demand for oil is strong, imports to meet it tend to handicap domestic production . 
Measures are therefore  required to strengthen the technology and quality standards of the country 's 
oil processing industry  so that purchasers can supply their oil needs domestically . 
5.22.   Indeed, oil produced by the country 's semi -industrial units has received  adverse publicity , 
raising  concerns about quality , because of the very bad oil being produced by clandestine units . 
5.23.   This situation, combined with massive imports of palm -based oil, has forced most processors 
to sell at low, unprofitable prices to meet loan payment commitments to the banks having financ ed 
each year 's crop.  One of the challenges for  these semi -industrial units is thus to  organize themselves 
and fight  to remove these barriers through better coordination among actors, the purchase of 
modern equipment for use by units or groups of units, capacity building through recruitment of 
skilled workers, etc.  
❖ Demand  for cotton lint 
5.24.   Spinning is another new niche for local value addition to cotton lint. There is currently only 
one s uch unit in the country: FILSAH , which  produces 20 tonnes of lint. It has gained attention as a 
modern spinning plant engaged principally in the production of open-end 100% cotton yarn used in 
industrial and craft weaving . As a secondary activity it also produces  cotton fabric . 
5.25.   The demand from other users of cotton lint is very difficult to quantify, since this product goes 
directly to thousands of women for manual spinning to produce carded r aw cotton for use in 
traditional weaving . Demand for textile products is largely supplied from abroad . 
5.26.   Bags produced by the country 's FASOPLAST plant are in great demand for various types of 
packaging – cereals, fruit, vegetables, etc. Domestic production does not suffice, however, to meet 
existing demand fo r such packaging . 
5.27.   FILSAH -SA produces enough single and plied cotton yarns to cover only about 3% of  domestic 
demand for those products ; for other types of yarn not produced locally , import s are needed to meet 
all demand . In terms of the bags used for p ackaging , national consumption absorbs 90% of those 
produced by FASOPLAST, with demand for cereal and cotton packaging materials particularly high 
at harvest time (November -January) . Demand from the apparel industry is still incipient  given the 
lack of domestic supply  as an alternative to imports from various sources.  
5.28.   Burkina Faso 's industriali zation plan calls for 20% local processing of cotton , which would 
have a positive impact on  domestic demand for cotton by-products . Potential invest ors exist, as 
evidenced by  the well-advanced project ASTAR Textile Burkina Faso , involving the giant Turkish firm 
AYKA  Textile  Investment . Three sites will be developed as part of this project – at Ouagadougou, 
Bobo-Dioulasso and Koudougou – which promises to create more than 12,000 jobs directly and 
50,000  jobs indirectly (MCIA, 2019).  
5.29.   The government -supported Faso Danfani  promotional effort  followed by label ling has been an 
important contribution to the development of cotton yarn and apparel in the country. Organi zation 
of the second International Cotton and Textile Show  is part of the national policy for industrializing 
the cotton, textile and clothing sector in Burkina Faso . 
❖ Demand  for cotton -stalk products  
5.30.   There is no current demand for products derived from cotton stalks, apart from composting. 
The main products made from cotton stalks are : (i) compost made from crushed st alks providing a 
valued fertilizer ; (ii) potash produced by households for their own use or for sale in village markets ; 
(iii) charcoal and briquettes for use by urban households; and (iv) particle board  produced 
industrially or semi -industrially for multiple uses . 
5.31.   The roughly 1 million tonnes of cotton stalks produced in Burkina  Faso have been 
underexploited  because of a series of specific constraints  (lack of crushers to produce compost, lack 
of equipment for low -cost processing  of the st alks into briquettes and particle board , and insufficient 
demand for briquettes and particle  board due to a lack of awareness about these products among 
potential users). Demand for charcoal , briquettes  and particle  board could become significant WT/CFMC/W/84  
 
- 30 - 
 
  because of the recurrent climate shocks and their consequences for the environment, which in turn 
lead to difficultie s in meeting the Sahel population 's needs for energy and wood . 
5.7  Market analysis for priority by -products  
❖ Cotton stalks  
5.32.   The best prospective sales markets are: (i) in cotton -growing areas for compost ed cotton 
stalks ; (ii) in the Sahel regions and large towns  for charcoal  and briquettes  derived from stalks; 
(iii) and in the large towns (only) for particle board , if supported by a good marketing strategy . 
❖ Cotton lint 
5.33.   As mentioned above nearly all (97% -98%) of the country 's cotton lint is exported. Domestic 
production of  cotton yarn comes entirely from FILSAH , which exports nearly all of its production and 
covers only 3% of domestic demand for single and plied cotton yarn . There is a significant domestic 
market for other types of yarn no t produced locally, which must be imported . Moderni zation is now 
enabling FILSAH to produce a wide range of yarns up to yarn No. 50 metric . This figure will gradually 
increase to between 70 and 80 as from 2020, with finer strands for products requiring suc h yarns . 
The FILSAH unit hopes to reach installed capacity (10,000 tonnes) in 202 0 to produce 
4 million  metres of unbleached fabric per year.  
❖ Edible oil  
5.34.   Domestic demand for edible oil remains strong given the less than 50% national coverage 
rate. According to the FAO (2014), more than 80% of urban households use kitchen oil every day. 
But this demand is at present supplied with oil imported from Asia . 
5.35.   The domestic (local) market profile consists of government institutions (Ministry of 
Animal  Resour ces), NGOs, projects to support livestock farmers  and wholesalers . The markets 
targeted are  in the country 's Sahel, Centre, Nord and C entre -Nord regions . 
❖ Meal and livestock feed  
5.36.   According to the Ministry of Animal Resources ( MRA, 2013), more than 60% of the countr y's 
animal population is found in the arid parts of Burkina, where livestock farmers must use meal and 
other types of forage during the dry season to feed their animals . In addition to that opportunity, 
other countries of the Sahel, such as Seneg al, Niger and Mali, represent a sure market for meal 
produced in Burkina Faso . 
5.8  Product s trengths  and weaknesses  for purposes of expansion  
5.37.   The following analysis shows the main strengths, weaknesses, opportunities and risks, first in 
general terms and then specifically for each by -product . 
5.38.   In general terms, the main strengths are as follows: (i) the relative availability of cotton  seed 
as a r aw material; (ii) the existence of a significant domestic and sub-regional  market for certain 
by-products ; (iii) government policies supporting the development of by-products ; and 
(iv) a welcoming investment code . 
5.39.   General weaknesses include: (i) lack or inadequacy of processing equipment ensuring product 
quality ; (ii) lack or inadequacy of skilled labour ; (iii) the high cost of production factors (energy) ; 
and (iv) the difficulty of obtaining investment loans . 
5.40.   General opportunities relate to : (i) growth in the production of  seed cotton  (+ 16%) ; 
(ii) government policies supporting industriali zation of the cotton textile and apparel sector ; 
(iii) a welcoming investment code ; and (iv) increasingly qualified local personnel  trained by 
vocational schools, including the École Polytechnique de Ouagadougou , which has opened a 
mechanical and textile engineering department . WT/CFMC/W/84  
 
- 31 - 
 
  5.41.   General risks  include : (i) changes in climate affecting the production of cotton and thus 
reducing the availability of cotton  seed; (ii) falling world prices for lint bringing down the purchase 
price paid to producers, which, in turn, adversely affect s cotton production (causing pro ducers to 
abandon the crop).  
5.42.   The main strengths, weaknesses, opportunities and risks specific to each by-product  are 
shown in Table  13 below .   
  WT/CFMC/W/84  
 
- 32 - Table  13: Strengths , weaknesses , opportunities  and risks for priority by-product s 
By-product  Strengths  Weaknesses  Opportunities  Risks  
Stalk s Existing potential 
(1 million  tonnes)  - Insufficiently exploited  
- Lack of crushers for the production of compost  
- Lack of equipment for low -cost transformation 
of stalks into briquettes and particle board   
- Insufficient demand for briquettes and particle 
board  
- The products are not familiar to potential users  Opportunities for the processing and sale of 
cotton -stalk by-products  includ e: 
- Compost in the cotton -growing areas (1.2 million 
tonnes required)  
- Charcoal and briquettes in the  Sahel regions to 
meet the energy needs of the population  
- Particle board  in the large towns  The stalks could be 
destroyed by fire during 
preparation of the fields  
Oil  - Relative availability of 
cotton  seed for processing  
- Existence of a large 
domestic and sub - 
regional market  - Modern processing equipment guaranteeing oil 
quality is lacking or insufficient  at units other 
than SN -CITEC  
- Inadequate hygiene measures in some of the 
small and medium -sized units  
- Poor extraction and refining yield s (between 
12.5% to 16% compared to over 20% 
elsewhere ) 
- Weak government capacity to enforce 
regulations for this activity, resulting in unfair 
competition from oil importers and clandestine 
process ing of oil unfit for consumption , 
tarnishing  the reputation of local cotton -seed oil 
producers  
- Difficulties for the government to regulate 
flows of edible oil imports pursuant to Article 23 
of Joint Order No. 20110265/MICA/MS/MEF  of 9 
December 2011, establi shing the characteristics 
required of edible oils for consumption in Burkina 
Faso  - Relative availability of cotton  seed for processing   
- Strong demand for oil, particularly in growing 
urban areas (120,000 tonnes per year , compared 
to domestic production of 60,000 to 65,000 tonnes 
per year ) 
- Establishment of the B obo oil processing cluster , 
which facilitates partnership among the various 
links in the production and sales  chain 
- Label ling project for oils produced by small and 
medium -sized units  Mass importation of palm 
oil, in some cases in a 
fraudulent and anti -
competitive manner  
Meal and 
livestock 
feed 
 - Relative availability of 
cotton  seed 
- Existence of a domestic 
and sub -regional market  - Presence of gossypol , limiting its consumption 
by animal s 
- Poor quality of livestock feed produced by 
small and medium -sized units  - Strong demand and numerous markets at the 
domestic and sub -regional levels (the Sahel 
region ) Insecurity in the Sahel 
region (Mali, Niger, 
Burkina Faso)    
  WT/CFMC/W/84  
 
- 33 - By-product  Strengths  Weaknesses  Opportunities  Risks  
Cotton yarn  Strong domestic demand 
for use in traditional 
textiles (Faso  Danfani)  - Inadequate capacity of the FILSAH unit to 
satisfy the domestic market (with coverage of 
only 3%)  - Recent strengthening of FILSAH  production 
capacity  
- Government -supported Faso Danfani promotional 
and label ling effort  
- Organi zation of the International Cotton and 
Textiles Show as part of the national policy for 
industriali zation of the cotton, textiles and apparel 
sector in Burkina Faso  
- Human resource development for the  textile 
sector ( establishment of a textiles engineering 
department at the École Polytechnique de 
Ouagadougou ) 
- Establishment of the Cotton, Textile and Apparel 
Council of Burkina Faso, bringing together all 
actors in the cotton, textiles and fashion sector  Falling world prices 
adversely affecting 
domestic production of 
seed cotton  
 
 WT/CFMC/W/84  
 
- 34 - 
 
  5.9   Opportunities for public -private partnerships (PPPs)  
5.9.1   Public policy and strategy framework favourable to the private sector  
5.43.   Since 1991, Burkina Faso has been engaged in a vast programme of economic reforms to 
liberalize its economy and make the private sector the main engine for growth . This programme  has 
led to trade and price liberali zation, financial sector reform , the adoption of various provisions to 
motivate the private sector , the adoption of a Private Sector  Development Policy Letter , the 
strengthening of support institutions for the existing private sector (ONAC, CBC, CCIA -BF, etc. ), 
The creation of new institutions (MEBF, APEX -Burkina, etc.) and various funds to support private 
initiatives (FAIJ, FASI, FAPE, FONADER, etc.) . 
5.44.   Since its creation in 2002, the Burkina Faso Enterprise Centre (MEBF) has supported private 
sector actors through coordinated services provided by Business Formalities Centre s (CEFORE) and 
the Construction Permit Facilitation Centre (CEFAC), in collaboration with Single Window Centres 
(CGU) and Approved Management Centres (CGA).  
• Preferential agreements . Burkina Faso  has signed agreements to facilitate access to 
developed county markets . These include:  (i) agreements between the ACPs and  the EU and 
the African Growth and Opportunity Act  (AGOA ) providing free access to European and 
American markets . The African Continental Free Trade Area  represents an opportunity for 
trade in cotton by -products . 
• Restructuring and upgrading programmes . As part of its common industrial policy, 
WAEMU  has undertaken to establish a regional restructuring and upgrading programme  in 
each of its eight member countries , with execution entrusted to UNIDO . The programme is 
aimed at reviving industrial production, promoting inves tment and job creation,  and making 
companies and economies more competitive at regional and international level , all of which 
will improve  product quality and adherence to international standards . 
5.9.2   Cotton -stalk development opportunities for PPPs  
5.45.   Value can be derived from cotton stalks  in several ways , primarily in the form of compost, 
briquettes as an energy source and particle  board as a building material . 
5.46.   The reasons producers  use organic fertili zer so little relate to constraints on its production 
(lack of water and equipment, the arduous labour required , etc. ). However , producers would be 
prepared to buy organic fertilizer  – up to more than 1.2 million tonnes of it (2 tonnes per hectare 
per year for 600,000 hectares of cotton ). 
5.47.   There is demand for c harcoal and briquettes derived from cotton stalks  within the 
Sahel  region s – particularly in the Liptako -Gourma region (Burkina Faso, Mali and Niger). Demand 
for these products stands to rise given the long -term prospect of firewood shortages , owing to steady 
deterioration in forest ecosystems  caused in turn by adverse climatic conditions and increased 
human activity  linked to rapid population growth . 
5.48.   Assuming woodburning energy needs of 0.5 tonne per household per year , that demand 
should be significant . The authorities should therefore consider brick production while seeking 
balance d usage between  the quantities of stalks required for compost  and those used in the 
production of  briquettes and particle board . 
5.49.   There is no history of particle  board use in Burkina  Faso, but under a project financed by 
CORAF for converting cotton  stalks into that product in  the West African countries of Benin, Mali  and 
Togo (VATICOPP)  the first furniture made from such materials (stools,  tables, doors ) has been  
produced by pilot units in those three countries . The production of particle board to address the 
country 's lumber shortfall thus represents another opportunity for the development of cotton stalks . WT/CFMC/W/84  
 
- 35 - 
 
  5.9.3   Cotton -meal development o pportunities for  PPPs 
5.50.   The strong demand for meal to be generated by intensive and semi -intensive livestock 
farming constitutes another investment opportunity . The potential market for such meal is estimated 
at more than 2,835 million  tonnes , which would feed  9 million head of cattle for six  months , 
compared to domestic meal production ranging between 99,500 and 150,000 tonnes per year . 
5.51.   The demand for livestock feed is strong, both domestically and in the  Sahel region , where 
there are  an estimated  20 million livestock farmers  with an estimated 60 million head of cattle and 
160 million small ruminants  (PRAPS, 2015 ). Diversif ying their output accordingly is thus a good way 
for process ing units  to manage cotton -seed scarcity, during times of low rainfall . According to 
discussions with oil processors , profitability can be maintained a t such times by selling meal . 
5.9.4   Cotton -seed oil production o pportunities for  PPPs  
5.52.   With needs for oil not covered by domestic production amounting to more than 60,000  tonnes , 
and given the availability of the raw material and a supportive government framework 
(Industriali zation Policy, Investment Code , etc.),  the oil processing  sector represents a good 
opportunity for  PPPs. Several challenges, however, need to be addressed: (i) organi zing small units 
into economic interest groups (GIEs) operating in the form of  a cluster ; (ii) acquiring modern 
processing equipment to improve extraction and refining rates and perform quality assurance 
functions ; (iii) training skilled labour ; (iv) strengthening the capacity of equipment manufacturing 
and maintenance firms so that existing units r eceive adequate support ; (v) improv ing the 
environment in which processors operate by cracking down on clandestine units producing oil unfit 
for consumption and damaging to the image of locally produced oil; and (vi) enforcing regulations 
in place for the sector and regulating import flows of edible oils . 
5.9.5   Cotton yarn, textile and clothing production opportunities for PPPs  
5.53.   Burkina Faso is at a tipping point in developing its cotton lint, following the model of countries 
such as M orocco, Ethiopia and Vietnam . This is a political commitment being implemented through 
the installation of industrial units in collaboration with such countries as Turkey ; training in the fields 
of industrial and textile engineering; and the organi zation of actors with the founding of the  
Burkina  Cotton, Textiles and Clothing Confederation (CCTH -BURKINA ). This structure is seeking to 
position itself as a mobili zing and federating tool for companies in Burkina Faso 's cotton value chain , 
helping member companies  develop  and fully play their role as economic operators . 
5.54.   Drawing on the reputation of its founding members  and their interlocutors in each country , 
on the experience gained since ince ption, on the full readiness of all its members and the support 
expressed for it by both public and private institutions, CCTH -BURKINA has set up various structures 
for carrying out its mission . 
5.9.6   Prioriti zation  of products for promotion  
5.55.   Based on analysis of the opportunities for PPPs to develop  cotton products and by-products , 
priority is being given to the following : 
1. Meal in conjunction with edible oil: Burkina Faso has deficits for both products and 
production potential exists . 
2. Cotton stalks : more than 80% of this biomass is now burned , though it has multiple  
potential uses . 
3. Cotton yarn  constitutes one of the best opportunities in Burkina  Faso: the country has 
undertaken to  develop local cloth production , for which  FILSAH only covers 3% of the yarn 
needed . 
5.56.   While some do not consider cotton yarn a cotton by-product  per se , processing lint locally is 
the only way to increase the value added to cotton  and to guarantee a better purchase price for  
producers , something that will ensure the sustainability of cotton – and therefore seed – production.  WT/CFMC/W/84  
 
- 36 - 
 
  5.10  Economic viability  
a. Cotton stalks  
5.57.   While briquettes may not be the most efficient or profitable  source of energy , they remain the 
most viable energy source from an environmental standpoint and the most accessible for 
development as a renewable  source . Where income levels are low , populations will continue to use 
biomass energy  widely without fully transitioning to other sources in the short or medium term in 
most countries . For now, since sales prospects exist  in the Sahel region , it appears viable to produce 
briquettes in cotton -growing areas as a way to gain more profit from the crop . 
5.58.   The availability of compost derived from stalks could improve seed-cotton yields – now barely 
a tonne per hectare , despite  the potential for the varieties used to reach 3 tonnes per hectare  – by 
an average of around 25% (INERA, 2010). The additional gain derived would average 
CFAF 62,500 per hectare at a purchase price for cotton of CFAF  250 per kilogram . 
b. Cotton  seed  
5.59.   The exploitation of cotton  seed generates significant income at every link in the chain. 
The cotton  sector as a whole earns CFAF 18-20 billion  from the sale of cotton  seed, with an output 
of 225,000 tonnes of seed, charged at CFAF 80,000 per tonne.  
5.60.   SN-CITEC's annual revenue for the last three years was estimated to average 
CFAF 18.5 billion  overall and CFAF 1.15 billion  per semi -industrial unit . 
c. Cotton -seed  oil 
5.61.   Assuming that oil bears 42% of the costs incurred , it should be priced  by producers  at 
CFAF 675 per litre , making locally produced cotton -seed oil less expensive than imported palm oil 
from Asia. The production price is, in fact, estimated at CFAF  675 per litre against CFAF 720 per litre 
as it le aves the importer's warehouse  (CCIB, 2014 ). It is the fraudulent sale of imported oil sold at 
giveaway prices , however, that truly tilts the playing field , with losses of income to local oil 
processors ranging between CFAF 175 and CFAF 200 per litre of oil (at a sales price of CFAF 500 per 
litre). This requires  the government to regulate edible oil import flows pursuant to Article  23 of 
Joint Order No. 20110265/MICA/MS/MEF  of 9 December  2011, which establish es the required 
characteristics of edible oils to be consumed in Burkina Faso.  
d. Turnover for the processing units  
5.62.   In the absence of operating accounts for the processing units, profitability is analy sed on the 
basis of  turnover.  
5.63.   For the largest processing uni t, SN-CITEC, turnover for the last two years was steady at about 
CFAF 18.4 billion . Between 20 07 and 20 13, however, it slumped to about CFAF 15 billion  per year , 
owing to accumulated company losses estimated at nearly CFAF 4 billion  (EUR 6 million ), resulting 
in turn from sluggish sales of oil  that has become uncompetitive  with imported alternatives.  
5.64.   SN-CITEC contributes to public finance by paying hundreds of million s of CFA francs in taxes . 
It also directly and indirectly support s thousands of jobs (suppliers of packaging,  contractors, etc.).  
5.65.   According to surveys of small and medium -sized processing units, the average annual  
turnover  per developer comes to CFAF 740.2 million  for meal  and CFAF 412,601  million  for oil . 
Soap,  produced by female -operated units only, generates an average of CFAF 1.02 million  per unit 
per year. WT/CFMC/W/84  
 
- 37 - 
 
  e. Job creation  
5.66.   The largest industrial unit, SN-CITEC, employs around  1,300 workers . The second largest , 
SOFIB , employs 435. Each of the small semi -industrial units employ an average of 66 workers: 
54 women and 11 men, reflecting strong participation by women in the workforce, for both 
temporary  and permanent employment  
5.67.   A study by the Ministry of Trade  (2013) provide s employment headcount figures according to 
the production capacity of processing units (Table  14). 
Table  14: Average employee headcount by production  capacity  
Production capacity (CAP)  
(in tonnes )  Average headcount 
permanent  employees  Average headcount 
temporary employees  
CAP<500  9 43 
500≤CAP<1 ,000  7 50 
CAP≥1 ,000  23 78 
CAP≥2 ,000  269 217 
Source:  MCIA, 2013.  
5.68.   Oil processors tend to make the greate st use of temporary workers to conduct their activities. 
This stems from the temporary nature of cotton -seed oil production in Burkina Faso , which is limited 
to an average of six months each year.  
5.69.   Beyond the jobs they sustain directly, oil processors also generate employment in areas such 
as transport (handling, sales) , oil-bottle cleaning  and catering. On average, the generation of one 
permanent job  leads to three jobs indirectly . 
5.70.   Several women 's groups are active in making soap using the waste residue that oil processors 
sell them at very low prices . Treated with coconut oil, this waste is made into soap and sold to 
provide women with much -needed income . 
5.71.   In terms of the types of jobs created and the predominance of women and youths in this 
activity, it can be said that by-products  help to reduce poverty while respecting sexual equality as 
well as ability . 
5.11  Creation of companies to produce cotton by-products  
5.72.   We have examined products suitable for development by PPPs.  According to the OECD, 
PPPs consist of contractual agreements between the government and one or several private partners 
(which may include oper ators and financiers) under which the private partners provide services in 
such a way that public -service objectives are aligned with the profitability sought by the private 
partners – with the effectiveness of such alignment depending on sufficient transfer of the associated 
risk to the private partners . 
5.73.   Such projects will be developed for priority submission to private investors. The project s must 
also be  judged sufficiently profitable  to attract investors.  A strategy has been developed to mobilize 
financial resources  to that end . 
5.74.   The joint entrepreneurship model  appears to  be the most suitable for  the development of  
by-product s. This model consists of a PPP in a form adapted to the conditions in Africa.  Unlike  the 
classic PPP, this model engages the government with three partners : 
• a strategic partner with the technology, financing and know -how required to make the  joint 
venture work; 
• a group of domestic and regional investors wishing to invest in the venture ; and 
• a pool of prospective non -African investors willing to take shares in the venture . WT/CFMC/W/84  
 
- 38 - 
 
  5.75.   In this case, government participation in the financing could consist of leasing land and to 
some extent offering tax benefits (exemptions, etc.) for a clearly defined period.  
5.76.   This model offers the following advantages:  (i) limited cost to  and significant revenues for  the 
government in the form of taxes and dividends; and (ii) participation of the government and partners 
in the project 's Board of Directors . The government 's share of capital would be very small but 
necessary to reassure the investors . 
5.77.   The business cluster approach can be incorporated in this PPP model. Clusters help companies 
coordinat e synergies and cooperat e within a particular sector and territory  with all the local actors 
concerned  (private services, public services, authorities, and partners of all kinds) . 
5.78.   At least one pilot project is underway with the GTPOB  cluster  in Bobo-Dioulasso , which has 
mobilized 44 oil-processing enterprises and 54 other structures and partner organi zations, public as 
well as private , around its project . The following chart and table provide a mapping of the relations 
and interactions among such actors  and the partnerships planned . 
Chart  5: Mapping of cluster organi zation  
 
Source:  Final study for  Burkina  cluster , 2013  (adapted) . 
WT/CFMC/W/84  
 
- 39 - 
 
  The partnerships planned by the cluster in the area of cotton by -products are described 
in the following table.  
Table  15: Partnerships planned by the  GTPOB  cluster  
Field of activity  Type of partnership planned  
Research  Production of  good-quality seed, introduction of new varieties of oils 
(INERA).  
Training  Strengthening of worker capacity  (CCI-BF, MEBF) . 
Introduction of new training courses adapted to cluster functions  (UPB) . 
Qualit y Support for the establishment and operation of a hygiene and safety 
committee and the  Hazard Analysis Critical Control Point  (HACCP ) 
system . 
Information  Information on the quality of the oils produced by the member 
companies of the  cluster  (National Public Health Laborator y), on 
provisions applying to the industry , on the price setting mechanism, 
etc. 
Investment  Explor ation of  possible partnerships between the cluster  and the  
Burkina Economic and Social Development Fund (FBDES).  
Advisory support  Advisory services provided to the companies (MEBF, CCI -BF,). 
Financ ing Financial support for collective and individual projects submitted by 
members of the  cluster  (FSCP, PNDES,  …). 
Sources:  Final study for the Burkina  cluster , 2013  (adapted) . 
6  CONCLUSION AND RECOMMENDATIONS  
6.1  Conclusion  
6.1.  This study has describe d the current situation of cotton production and cotton by -product 
development and identifie d priorities for their development in Burkina Faso.  
6.2.  The country 's cotton sector is cent red around  the Inter -Professional Cotton Association of 
Burkina Faso, a robust structure comprising the cotton producers and companies directly engaged 
in the sector. It manages shared functions for all these actors in areas such as determining purchase 
prices for seed cotton  and transfer  prices for inputs. The actors engaged in processing cotton  seed, 
however, are not part of th is structure , and,  unusually, the transfer price for seed is included in the 
price of seed  cotton and administered under a decree issued by the Ministry of Trade, Industry and 
Crafts  (MCIA).  
6.3.  The main by -products selected for priority, and offering opportunities for PPPs, are as follows:  
(i) cotton stalks: a million tonnes are available for poten tial use in the industrial production of 
compost (1.2 million tonnes per year) , briquettes , to replace the severely depleted resources for 
wood burning  energy in the Sahel region and its large urban areas, and particle board for multiple 
uses; (ii) cotton -seed oil: to cover 60,000 tonnes in unmet demand for oil in the country, given the 
potential availability of the raw material  to developers and the exi stence of government support 
mechanisms (industriali zation policy, investment code,  etc.);  (iii) meal and livestock feed: there is 
strong demand for these products, estimated at 2,835 million tonnes per year (compared to current 
national production of 100, 000 tonnes per year), to feed the country 's 9 million livestock units; and  
(iv) cotton yarn: nearly all the country 's current production is exported, leaving only 3% for the 
domestic market; this means that imports of yarn are required to meet national dem and. 
6.4.  The development of these by -products is hindered by difficulties of a general nature – lack or 
insufficiency of processing equipment ensuring product quality, lack or insufficiency of a skilled 
workforce, high cost of production factors, limited access to investment credit, etc. – as well as 
difficulties specific to each by -product.  
6.5.  Major challenges in cotton -stalk development  include access to the equipment needed for the 
low-cost processing of stalks into compost,  briquettes and particle  board , and the market ing of  such 
products. In the case of oil, the challenge s are for developers to acquire modern processing 
equipment ensuring larger yields of high -quality oil and to hire skilled workers for their processing 
units; and for the governme nt to enforce the regulatory framework for this activity and to regulate 
import flows of edible oils in accordance with Article  23 of Joint Order  No. 20110265/MICA/MS/MEF 
of 9 December  2013. For meal and livestock feed, the challenge  is to improve product quality 
through procedures to remove gossypol and improve product preservation , while  for cotton yarn it 
is to expand national yarn spinning capacity to meet domestic demand.  WT/CFMC/W/84  
 
- 40 - 
 
  6.2  Recomm endations  
6.6.  Based on the  analysis above, the recommendations of this report are as follows : 
6.7.  In order  to attract investment (public and private) in the development of by -products , and to 
make the activity more profitable , the government needs to : 
- improve the environment in which c otton by -products are processed by enforcing the 
regulatory framework for this activity  (cracking down on  sub-standard units or non -operating 
units that take their quota in cotton  seed but resell it, driving up its price); 
- regulate flows of edible oil imports to prevent unfair competition , which often leads to  slump s 
in the sale of locally processed  oils; 
- heighten awareness among developers about the new industriali zation policy and the 
advantages provided by the new investm ent code ; 
- facilitate developers ' access to funds for investment in equipment , with particular attention to 
women developers ; and 
- tighten the regulatory framework for this activity and encourage mergers among small 
processing units to improve the viability of production centres . 
6.8.  To improve the availability of cotton  seed as a raw material : 
- Producers  are recommended to improve the productivity of cotton crops by using organic 
fertilizer produced from cotton stalks  and by adopting good agricultural practices . 
- Cotton research  institutions  are recommended to offer producers technological packages 
adapted to changes in climate (adaptation of technical, biotechnolog y and other protocols ). 
- The AICB  and the government are recommended to propose attractive seed-cotton  
purchase prices while strengthening the local processing of lint to reduce the effects of drops 
in world prices.  
- Cotton companies  are recommended to improve the support they provide producers 
(supply  of inputs, orientation, purchases, timely payment for and delivery  of seed cotton ). 
- The UNPCB  is recommended to improve the governance of cotton producer cooperatives, 
make elected representatives accountable to their constituents, etc. 
6.9.  The government and its partners are recommended to address deficits in specialized 
personnel, develop a skilled local workforce over the medium  and long term , and facilitate 
transfers of technology and know -how by: 
- evaluat ing the training needs of industrial units and propos ing a personnel training and 
retraining plan ; 
- support ing vocational training at the École Polytechnique de Ouagadougou (particularly in 
mechanical and industrial engineering) and in specialized agribusiness  training centres ; and  
- provid ing support for equipment manufactur ers and maintenance firms in the form of technical 
training, technical support missions  and internships  and by putting them in contact  with 
industrial companies in northern countries, etc.  
  WT/CFMC/W/84  
 
- 41 - 
 
  DOCUMENTS CONSULTED  
• Baffes, J. (2010), Markets for Cotton By -Products: Global Trends and Implications for African 
Cotton Producers , Washington D.C., World Bank.  
• Burkina Chamber of Commerce and Indust ry (CCIB)  (2014), Étude de marché de l'huile de 
coton au Burkina  Faso. Rapport définitif , Ouagadougou, Burkina Faso, 66 p ages. 
• FAO (2013), Suivi et analyse des politiques agricoles et alimentaires (SAPAA), 2013. Analyse 
des incitations et pénalisations pour l'huile de coton au Burkina Faso , Technical notes series , 
MAFAP , FAO, Rome . 
• Song-Naba, Florent  (2016), 'Entreprises informelles de transformation agroalimentaire au 
Burkina  Faso: entre impératifs sanitaires et réalités économiques ', Editions Ices , Revue 
Congolaise de Gestion  2016/1 N o. 21–22, pp. 125-155. 
• Tran, Gilles  (1994), French Association for Animal Production  (AFZ) , Revue de l'Alimentation 
Animale  No. 482, November  1994.  
• Regional Sahel Pastoralism Support Project  - Burkina Faso (PRASP) (2015), Analyse de la 
faisabilité d 'investissements transfrontaliers : Projet d 'unité industrielle de fabrication 
d'aliment bétail à Dori , 50 p ages plus  annexes.  
• Ministry of Industry, Trade and Crafts  (MICA)  (2010), Politique Nationale Qualité , 94 pages 
plus annexes, Ouagadougou , Burkina Faso.  
• Ministry of Industry, Trade and Crafts (MICA)  (2013), Note sur la mévente de l 'huile 
alimentaire de production , ISSN 1729 -0228.  
• Ministry of Trade, Industry and Crafts  (MCIA) (2018), Rapports du forum national des huileries 
à base de graine de coton , 22 p ages. 
• WAEMU, Egrenage du coton -graine , Guide technique n° 2 , Version 1 , 72 pages.  
• Vognan,  Gaspard  and Ouatarra,  Marcel  (2013), Quand le coton décline,  quelles incidences sur 
le revenu et la production alimentaire des paysans au Burkina Faso? , AGRAR  conference 
report , 2013, pp. 139-148. 
WEBSITES CONSULTED  
http://www.hanna -shop.com , 15-11-2019 
http://www.directindustry.fr/  5-12-2019 
http://www.widra.com/site/  5-12-2019 
  WT/CFMC/W/84  
 
- 42 - 
 
  ANNEX  
Annex 1 : Organi zations  and individuals visited  
No. Surname and  
first n ame Organi zation  Type of actor  Geographi cal 
location  Telephone  No. 
1 NABA Tigré de Tèma  SATOL  Processor  Ouagadougou  70 262 137 
2 MOUSTAPHA Soudan  RMB Processor   70 203 013 
3 Mr YARO  DJAMADJIGUI  Processor  Koudougou  76 533 874 
4 TIBY Sékou  SOTISEF  Processor  Dédougou  70 326 070 
5 KY Albert  STPA Processor   70 269 711 
6 CISSE Mamoudou  HSBC  Processor  Houndé  70 341 734 
7 AKAMBI Malicki  AKAMAF  Processor  Bobo 76 622 668 
8 TERRA Boukary  BHT Processor  Bobo 70 204 849 
9 TERA Bachirou  HBT Processor  Bobo 70 204 301 
10 DIARRA/KABORE  Dénise  DELICE  Processor  Bobo 76 611 166 
11 SINON Salifou  DJENE DIOR  Processor  Bobo-Dioulasso  70 204 719 
12 BIRBA Yacouba Bobo  ETS BIRBA Y  Processor  Bobo-Dioulasso   
13 SANOGO Issa  HKL Processor  Bobo-Dioulasso  70 220 011 
14 GNIME Sidiki  HUILERIE DE 
KONSA  Processor  Bobo-Dioulasso  70 235 614 
15 HAIDARA Sekou  HUNOFA  Processor  Bobo-Dioulasso  70 203 144 
16 SANOGO Seydou  MADOR  Processor  Bobo-Dioulasso   
17 Ms GNOUMOU Claudine  AFFAK  Processor  Bobo-Dioulasso  77 961 009 
18 KONATE Kassari  NAKAM  Processor  Bobo-Dioulasso  70 230 198 
19 Ms AOUBA Assétou  NIDOR  Processor  Bobo-Dioulasso  70 353 325 
20 NEBIE Adama  NOHFA  Processor  Bobo-Dioulasso  78 349 191 
21 BARRO Siaka  HSF Processor  Bobo-Dioulasso  70 215 293 
22 CAMARA Mamadi  SAOF  Equipment 
manufacturer  Bobo-Dioulasso  70 204 797 
23 TRAORE Ibrahim  Sofitex  By-product m anager  Bobo-Dioulasso  70 238 843 
24 YE Louis Yazon  SOCOMA/AICB  Secretary General, AICB Ouaga  70 202 124 
25 SINOU Idrissa  AICB Economist  Ouaga   
26 GUINKO Jean Pierre  SP/FCL  Permanent  Secretary  Ouaga  70 200 179 
27 ILBOUDO Seydou  Minist ry of 
Trade  DG and focal p oint, 
MCIA Ouaga  70 756 650 
28 BIHOUN Bambio  UNPCB  President/prod ucers Tuy 760 606 000 
29 KOURA  Yacouba  UNPCB  Produc er (Vice 
President)  Gourma  76 514 736 
30 DAO Sibiri  UNPCB  Produc er (SG)  Nayala  76 516 587 
31 IDOGO Mathias  UNPCB  Produc er  76 110 629 
32 Ms 
ZOUNGRANA  Delphine  UNPCB  Coordinat or  Bobo-Dioulasso  76 500 919 
33 Dr DAKUO Déhou  INERA  Agronom ist Bobo  
34 Dr KOULIBALY 
Bazoumana  INERA  Agronom ist, Manager of 
the cotton programme    
 
__________