WT/CFMC/W/64  
15 October 2015  
(15-5417)  Page: 1/6  
 Original: French  
 
  DIRECTOR-GENERAL'S CONSULTATIVE FRAMEWORK MECHANISM ON COTTON 
COTTON PROJECT 
Communication from Benin 
The following communication, dated 17 September 2015,  is being circulated at the request of the 
delegation of Benin.  
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  The Permanent Mission of the Republic of Benin is  submitting the project below, prepared by the 
Government of Benin, with a view to receiving technical and financial assistance from the cotton 
sector development partners in the framework of  the Director-General's Consultative Framework 
Mechanism on Cotton. 
 
1  PROJECT FOR THE REORGANIZATION OF TH E COTTON SECTOR THROUGH ZONING IN 
BENIN 
1.1  Context and justification 
1.1.  The Government of Benin has opted for an economic growth policy involving the 
diversification of agricultural activities. Hence the country's strategic development orientations and its growth strategy for poverty reduction in which the agricultural sector serves as a lever in the 
fight against poverty. The Strategic Plan to Revive the Agricultural Sector (PSRSA) 2011-2015, 
whose priority focus is the promotion of agricultural activities, calls for the development of 13 subsectors, which include cotton. 
1.2.  Indeed, for some 30 years now the cotton sector has played a leading role in the national 
economy. As the leading creator of wealth and jobs, it is one of the pillars of economic growth in 
Benin and is vital to the improvement of rural household income. Cotton represents 13.5% of 
Benin's agricultural production and accounts for 5% of the value added of the industrial sector and 
33% of exports. 
1.3.  In spite of this potential and in spite of the reforms introduced in accordance with the 
country's economic policies, there has been a downward trend in domestic production since 2010. 
Having reached a peak of 427,156 tonnes of seed cotton during the record season of 2004-2005, 
annual cotton production fell below 200,000 tonnes during the 2009-2010 season, bottoming out at 136,958 tonnes at the end of the 2010-2011 seas on, in spite of the implementation of the 
Project to Improve and Boost the Cotton Sector in Benin (PARFCB). 
1.4.  This fall in production in one of the leading sectors of the national economy led to a sharp 
decline in domestic resources and export revenue, coupled with the negative impact of a decline in 
income affecting above all the rural areas and the small producers. At the same time, a number of 
inefficiencies emerged in the cotton sector during the 2011-2012 season. WT/CFMC/W/64 
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  1.5.  Reacting to this situation, the State provis ionally resumed control, as from the 2012-2013 
season, over the management of the cotton sector pursuant to the decisions adopted by the Council of Ministers on 29 April 2012, namely: (i) re peal of the decree on the transfer to private 
operators of responsibility for organizing consultations on the supply of agricultural inputs, and 
(ii) suspension of the framework agreement be tween the State and the AIC (Interprofessional 
Cotton Association). The objective was to regain the confidence of cotton farmers and to restore cotton production. 
1.6.  In spite of the problems inherent in operationalizing the palliative mechanism that 
characterized the former interprofessional ma nagement structures, seed cotton production 
progressed significantly, reaching 240,028 tonnes in 2012-2013, 307,355 tonnes in 2013-2014, and already more than 380,000 tonnes for 2014-2015. 
1.7.  In order to maintain this growth trend, a new, inclusive institutional framework will have to 
be set up to manage the sector. 
1.8.  Hence the project for the reorganization of the cotton sector, intended to bring about a 
comprehensive and extensive reform that can bring together all of the cotton sector stakeholders 
i n  a n  e f f o r t  t o  s t r e n g t h e n  a  s e c t o r  w h o s e  i m p a c t  o n  e c o n o m i c  g r o w t h  h a s  b e e n  a m p l y  demonstrated. 
1.2  Potential action areas and target groups 
1.9.  In principle, the project covers the entire country , but should focus its activities on the cotton 
producing areas, i.e. mainly the regions of Alibor i, Borgu, Atacora, Donga, Collines, Zou and a few 
communes in South Benin. 
1.10.  The target groups are: the producers, the dist ributers of inputs, the ginners, the traders and 
the State. 
1.11.  In the context of the reorganization of the cotton sector, the target groups are the different 
stakeholders in the sector, in particular the producers (National Federation of Village Cooperatives 
of Cotton Producers); the ginners; the oil extractors; the spinners; the importers/distributors of inputs; and the transporters. 
1.3  Objectives 
1.3.1  Overall objective 
1.12.  The overall objective of the project is to se cure the development of the cotton sector in 
Benin. 
1.3.2  Specific objectives 
1.13.  The specific objectives are: 
a. to create a sustainable participative/inclusive management framework for the sector; 
b. to improve productivity and production to cover the processing capacities of the ginning 
plants in Benin; 
c. to introduce a permanent transparency and traceability mechanism so as to ensure a fair 
redistribution of income to the different stakeholders groups; 
d. to create favourable conditions for improved local processing of cotton products. WT/CFMC/W/64 
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  1.3.3  Results 
1.14.  The main results to be expected are: 
a. For the producers: 
i. availability and accessibility of quality inputs; 
ii. reinforcement of the professional organization; 
iii. guaranteed involvement of producers in decision making at every stage of the 
process; 
iv. guaranteed inclusion of producers among the shareholders of the semi-private and 
private ginning companies; 
v. availability of crop loans; 
vi. increase in producers' output and income. 
b. For the ginners: 
i. increase in raw materials and income; 
ii. proper conditions for ginning and decent sale prices; 
iii. guaranteed transparency in the management of the cotton sector. 
c. For the State: 
i. re-establishment of the State's authority in the management of the sector; 
ii. renewed confidence among the different stakeholder groups; 
iii. guaranteed representation of all of the players in the sector's interprofessional 
organization; 
iv. increased production and improved productivity; 
v. increase in the income of stakeholders; 
vi. improved processing of cotton products; 
vii. availability of a producer income support mechanism. 
1.4  Overview of zoning and the role of the different players 
1.15.  In order to meet the objective of ensuring a balance among production zones without 
disregarding the specificities, we propose the four following zones: 
Zone 1: Banikoara, Ségbana, Karima ma, Malanville, Kandi and Gogounou 
 
 Estimated production potential: 156,000 tonnes. 
 
 Total ginning capacity: 88,000 tonnes (one plant in Benikoara and two plants in Kandi). WT/CFMC/W/64 
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  Zone 2: Bembèrèkè, Kalalé, Nikki, Pèrèrè, Tchaourou, Parakou, Sinendé and N'Dali 
 Estimated production potential: 85,000 tonnes. 
 
 Total ginning capacity: 250,000 tonnes (one plant in Bembèrèkè, one plant in Nikki, 
one plant in N'Dali and three plants in Parakou). 
Zone 3: Kouandé, Tanguiéta, Péhunco, Matéri , Cobly, Ouaké, Boukoumbé, Toucountuna, 
Kérou, Natitingou, Copargo, Djougou and Bassila 
 
 Estimated production potential: 82,000 tonnes. 
 
 Total ginning capacity: 25,000 tonnes (one plant in Péhunco). 
Zone 4: Ouèssè, Bantè, Savalou, Glazoué, Savè, Dassa, Bohicon, Abomey, Agbangnizoun, 
Zagnanado, Djidja, Covè, ZaKpota, Aplahoué , Djakotomey, Dogbo, Klouékanmé, Lalo, 
Toviklin, Lokossa, Kétou, Pobè and Adja-Ouèrè 
 
 Estimated production potential: 60,800 tonnes. 
 
 Total ginning capacity: 224,500 tonnes (two plan ts in Savalou, one plant in Glazoué, 
one plant in Paouignan, two plants in Bohicon, one plant in Avogbanna, one plant in Kétou, one plant in Hagoumé). 
1.16.  Roles and responsibilities will be shared betw een the State and the players involved in the 
new organization of the sector as follows: 
a. The role of the State will be to ensure: 
i. the maintenance of rural tracks by introducing an appropriate mechanism involving 
contributions from all of the sector's stakeholders; 
ii. the introduction of an efficient agricultural extension/advisory system; 
iii. the development of research work; 
iv. the production, certification and distribution of cotton seed with the establishment of 
a new ginning and delinting plant; 
v. the control and certification of phytosanitary products; 
vi. certification of the price of seed cotton; 
vii. quality control of seed cotton; 
viii. quality control and classification of cotton fibre; 
ix. the permanent monitoring of compliance with the rules and regulations of the sector; 
x. the introduction of an income support mechanism; 
xi. the follow-up of the organization of primary marketing; 
xii. the collection and production of statistics. 
b. The private stakeholders, including the producers, will have the following role: 
i. production of seed cotton; 
ii. marketing of seed cotton; WT/CFMC/W/64 
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  iii. production, importation and distribution of inputs; 
iv. transport; 
v. ginning; 
vi. spinning, weaving; 
vii. oil extraction and any other forms of processing of seed cotton and byproducts; 
viii. marketing of finished products; 
ix. more generally, the supply to the sector of goods and services that are unconnected 
to government services. 
c. In addition, the States and private operators will be sharing the following functions 
(non-exclusive): 
i. funding of cotton research; 
ii. maintenance of rural tracks; 
iii. follow-up/support/advice for producers; 
iv. setting seed cotton prices; 
v. follow-up/evaluation. 
1.5  Implementation strategy 
1.17.  An organizational mechanism has been set up to implement the project to reorganize the 
cotton sector, and a road map has been prepared. 
1.18.  Specifically, a production zone will be assigned to a cotton company responsible for the 
promotion and regional development of the cotton sector, based on an agreement with the State 
in conformity with the institutional framework for the management of the cotton sector in the 
Republic of Benin. It is clear, however, that the success of the zoning will require political will on 
the part of the government, the cooperation of  stakeholders, and permanent consultations. 
1.19.  The process will take place in the following stages: 
a. adoption of the zoning plan; 
b. creation of a technical committee to implement the zoning plan; 
c. selection of the cotton companies to promote regional development; 
d. introduction of a framework for consultation in each zone; 
e. preparation and signature of an agreement between the State and the cotton company 
on the exploitation of the zone. 
1.6  Organization and management 
1.20.  The Ministry of Agriculture, Livestock and Fisheries will be responsible for the overall 
coordination of the project. The roles and respon sibilities of the different players are clearly 
defined. WT/CFMC/W/64 
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  1.21.  Thus, the Benin National Agricultural Research Institute (INRAB), through the Cotton Fibre 
Agricultural Research Centre (CRA-CF), will be  responsible for applied research on cotton. 
Production, certification and distribution of cotton seed requires the agreement of the Ministry of Agriculture. Extension and support/advisory services to producers are under the joint 
responsibility of the sectoral branches and the Mi nistry of Agriculture. The purchase, certification 
and distribution of cotton inputs is the responsibili ty of the private sector in accordance with the 
regulations in force. The State is responsible for overseeing the project. 
1.22.  We note that SONAPRA, as the State's reference framework, is given the responsibility, in 
cooperation with the other entities involved, for certified seed multiplication and the ginning of seed cotton produced by the seed-producing communes. 
1.7  Funding 
1.23.  The State and the financial institutions have always provided financial support. During the 
1980's, SONAPRA was in charge of all operations. In this context, the banks, with the guarantee of 
collection at source upon payment by SONAPRA fo r the seed cotton, provided SONAPRA with the 
credit it needed to import the inputs. SONAPRA, operating under this system of collection at source 
based on the joint guarantee principle applied at the Village Group level, provided the producers 
with inputs on credit. Unfortunately, there was no price stabilization mechanism, and a financial 
imbalance developed in the sector (the State was injecting money into the sector rather than the 
sector providing the State with resources). The reforms failed to make the sector efficient. 
1.24.  In short, the implementation of a reform of  this kind requires the participation, the 
involvement, and the accountability of all of the players involved in managing the cotton sector. 
 
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