WT/CFMC/48  
5 May 2014  
(14-2727)  Page: 1/12  
 Original: French  
 
  DIRECTOR-GENERAL'S CONSULTATIVE FRAMEWORK MECHANISM ON COTTON 
COMMUNICATION FROM MALI 
 The following communication, dated 25 April 2014, is being circulated at the request 
of the delegation of Mali. 
 
_______________ 
 
 1  I N F O R M A T I O N  O N  M A L I ' S  C O T T O N  S E C T O R  S U P P L I E D  B Y  T H E  M A L I  T E X T I L E  
DEVELOPMENT COMPANY (CMDT) 
COTTON PRODUCTION IN MALI FROM 2003/2004 TO 2013/2014 
620,665
589,751
534,122
414,965
242,238
201,462229,018243,589445,314449,661
440,574
 
 
2  BACKGROUND ON THE COTTON SECTOR 
2.1.  In Mali, cotton is a rainfed crop and is grown on a vast number of small-scale farms, chiefly 
in the south of the country. These farms, of which there are 175,000 (2005/2006 season) for a 
known population of around 3.8 million in a normal year, mostly operate without mechanized 
equipment. Animal traction (87% of farm s own at least one "full set of equipment"1) is used to 
cultivate an average of 8 to 9 hectares, 2 or 3 of  which are planted to cotton and the remainder to 
dry grain (maize, millet, sorghum and rainfed ri ce) and diversified crops (cowpeas, groundnuts, 
soybeans, sesame, etc.). These farms operate under 7,177 Cotton Producers' Cooperatives (SCPC) grouped into 288 local unions (UC-SCPC), 41 se ctor unions (US-SCPC), four regional unions 
(UR-SCPC) and one national union (UN-SCPC). 
                                               
1 Meaning a pair of ploughing oxen, a plough, a multi-cultivator, a seed drill, and a cart. WT/CFMC/48 
- 2 - 
  2.2.  The cotton growing area covers 180,000 km², or 12% of the national territory. It is chiefly 
located south and west of the River Niger. Total crop acreage is estimated at 9 million hectares, of which 1.8 million (21%) are under production. 
2.3.  Producers are supported and seed cotton production is marketed by two operators, the 
Malian Textile Development Company (CMDT) and the Office de la Haute Vallée du Niger (OHVN), 
working in tandem with village technical team s (ETV). The CMDT handles 95% of production 
and the OHVN 5%. 
2.4.  The CMDT, which is the sector's main operator, has made the cotton industry the foundation 
and the engine of rural development in the areas concerned, with the aim of improving people's 
living environment and standards, ensuring food security, and promoting all agricultural, forestry 
and livestock farming activities. 
2.5.  Established on 21 October 1974, the CMDT is a semi-public company with a capital 
of CFAF 7,982,340 billion, of which 99.49% is in th e hands of the State and 0.51% in those of the 
company GEOCOTON. Since its strategic turn to the cotton production system in September 2002, 
the CMDT has been performing the following main functions: 
a. support, production and agricultural marketing; 
b. transport, industrial production and track maintenance in cotton-growing areas; 
c. marketing of cotton lint and seed and transportation to the ports of shipment; 
d. sale of cotton lint and seed; 
e. supply of industrial inputs and provisio n of other supplies and equipment; and 
f. purchase and provision of agricultural inputs in the case of an economic interest group 
(UNSPC/CMDT/OHVN). 
2.6.  The trend in cotton production over the past 14 years is as follows: 
TREND IN SEED COTTON PRODUCTION 
Season Number 
of farms Area (ha) Seed cotton 
production (t) Yield 
(kg/ha) 
2000/2001  88,432   227,912   242,726   1,065  
2001/2002  162,408   538,665   570,989   1,060  
2002/2003  153,515   449,293   439,729   979  
2003/2004  165,204   548,895   620,665   1,131  
2004/2005  172,353   565,141   589,751   1,044  
2005/2006  174,749   550,532   534,128   970  
2006/2007  163,420   480,474   414,984   864  
2007/2008  117,933   283,927   242,238   853  
2008/2009  83,993   197,096   201,462   1,022  
2009/2010  101,814   250,465   229,019   914  
2010/2011  106,968   285,985   243,589   852  
2011/2012  161,368   477,817   445,314   932  
2012/2013  166,718   521,436   449,661   862  
2013/2014  173,634   480,541   440,574   917  
 
2.7.  The decline in production that followed th e record performance in the 2003/2004 season 
lasted until 2008/2009, with an output of 201,453 tonnes. As a result of the historic boom 
in international cotton prices at the end of the 2010/2011 season, production showed signs 
of recovery in 2011/2012. WT/CFMC/48 
- 3 - 
  SEED  COTTON  PRODUCTION  (T) 
 
2.8.  Mali's ginning capacity is 575,000 tonnes. The CMDT currently has 17 ginning plants, 
a workshop producing ties, and a vehicle fleet co mprising more than 150 vehicles and handling 
and civil engineering devices. The fleet is supplem ented by 250 private trucks to ensure that the 
plants are properly supplied and agricultural inputs  delivered to the villages. Private trucks also 
transport all the products generated by the ginning process (lint and seed) to the various ports and local industries. 
2.9.  Local industrial processing of lint production is mainly in the hands of four facilities 
(COMATEX-SA, FITINA, BATEXCI-SAU, MASEDA) and other small linters processing units 
(SUCOTEX, SOFACOH, NEW BRIDGE, etc.) Only ab out 1% to 3% of production is processed 
locally. 
2.10.  Cotton seed is processed into oil, soap and animal feed by more than 52 officially accredited 
industrial crushing units. Total installed capacity can now process more than one million tonnes of cotton seed. 
2.11.  For the purposes of its crop activities, i.e ., the marketing of seed cotton, the collection 
of and payment for seed cotton, ginning, and FO B delivery of the lint, the CMDT uses a pool 
of national and foreign banks to finance its seasonal loans. 
2.12.  The amounts of the seasonal loans negotiated with the banking pool over the past 
ten seasons are listed in the Table below: 
SEASONAL LOANS OBTAINED OVER THE PAST TEN YEARS 
Season Arrangement 
(CFAF) Amount drawn  
(CFAF) Amount drawn 
% Seed cotton 
output 
2003/2004 140,000,000,000 127,899,999,868  91.36   620,665  
2004/2005 130,000,000,000  98,871,819,091  76.06   589,751  
2005/2006 115,000,000,000 107,000,000,000  93.04   534,128  
2006/2007  75,000,000,000  61,276,859,531  81.70   414,984  
2007/2008  50,000,000,000  19,000,000,000  38.00   242,238  
2008/2009  63,000,000,000  52,346,000,000  83.09   201,462  
2009/2010  45,000,000,000  45,000,000,000  100.00   229,019  WT/CFMC/48 
- 4 - 
  Season Arrangement 
(CFAF) Amount drawn  
(CFAF) Amount drawn 
% Seed cotton 
output 
2010/2011  56,000,000,000  56,000,000,000  100.00   243,589  
2011/2012 120,000,000,000 112,800,000,000  94.00   445,314  
2012/2013 110,000,000,000 100,000,000,000  90.91   449,661  
2013/2014 100,000,000,000 100,000,000,000  100.00   440,574  
 
2.13.  The amount agreed in the arrangement depends on the season's output of seed cotton. 
Each amount drawn is 125% covered by the lint sales contracts. The amount drawn depends on 
purchases of seed cotton and the pace of ginning, transportation and shipping. 
3  PRODUCER PRICE-SETTING SYSTEM 
3.1.  The following producer price-setting mechanisms  for seed cotton have been used since the 
creation of the CMDT: 
a. administered price method (1974-1989); 
b. price-setting under a framework agreement (1989-2002); 
c. negotiated price method (2002-2004). 
3.2.  Over the decade 1995-2004, the producer pu rchase price of prime quality seed cotton 
fluctuated between 150 CFAF/kg and 210 CFAF/kg. 
Season 1995/
1996 1996/ 
1997 1997/ 
1998 1998/  
1999 1999/  
2000 2000/  
2001 2001/  
2002 2002/ 
2003 2003/ 
2004 2004/  
2005 
Purchase 
price 
(CFAF/kg) 155 155 170 185 150 170 200 180 200 210 
 
3.3.  In view of the problems that arose in applying the negotiated price, the cotton sector reform 
process led to the signing, on 13 January 2005, of a memorandum of understanding between the 
State, the CMDT and the producers on the price-setting mechanism for seed cotton. 
3.1  Memorandum of Understanding of 13 January 2005 (2005-2008) 
3.4.  This Memorandum of Understanding was based on the following principles: 
a. a base price for the purchase of seed cotton is  notified prior to sowing but at the latest 
on 30 April of each year, and ranges betw een CFAF 160 and 175/kg (top grade) for the 
2005/2006, 2006/2007 and 2007/2008 seasons; 
b. the Support Fund is an instrument offering relative flexibility in setting the initial price 
and not a prerequisite for applying the pricing mechanism; the Support Fund is wholly 
owned by the producers; 
c. the gross income earned by the sector is shared between the producers and the CMDT 
on a 60%/40% basis, respectively; 
d. the gross income generated from cotton lint is assessed on the basis of the "April n" to 
"March n+1" Cotlook A Index arithmetic average; 
e. in a favourable market context, that is, when the final remuneration to be paid to the 
producers exceeds the base purchase price of cotton, a remuneration supplement is 
added to the base purchase price of seed co tton; 50% of this addition is paid to the 
producers as a price supplement, and 50% is set aside for the Support Fund; and 
f. in an unfavourable market context, resource s are drawn from the Support Fund, to the 
extent that it is sufficiently endowed and the amount of contributions allow. WT/CFMC/48 
- 5 - 
  3.5.  Two further memoranda were signed under the same terms on 30 April 2008 for the 
2008/2009 season, with a base price of CFAF 200/kg, and on 13 April 2009 for the 2009/2010 season, with a base price of CFAF 170/kg. For 2009/2010, the amount of CFAF 1,093,210,000 was withheld from the remuneration supplement, at th e producers' request and with the agreement of 
the State and the CMDT, to ensure the operation of the UN-SCPC and its network of cooperatives. 
3.2  Memorandum of Understanding for the 2010/2011 season 
3.6.  The MOU for the 2010/2011 season was signed between the State, the producers and the 
CMDT on 30 April 2010, with a base price of CFAF 185/kg and containing the following 
amendments: 
a. the scale of apportionment of gross income is reduced to 55/45 in favour of the 
producers, the CMDT no longer being in a position to sustain the former 
60/40 percentage as a result of the successive deficits in former seasons; 
b. the reference index for calculating the income from cotton lint is no longer the Cotlook A 
Index but the Africa Index, that is, the average of the four African quotations 
(Burkina Faso, Benin, Côte d' Ivoire, Mali) used by Cotlook; 
c. the simple average over one year is replaced by the weighted average during the 
CMDT's sales periods. 
3.7.  Evaluation of the season led the prod ucers to request that CFAF 1,786,188,111, 
or CFAF 7,333/kg of seed cotton, be wit hheld for the operation of the UN-SCPC. 
3.3  Memorandum of Understanding for the 2011/2012 season 
3.8.  The 2011/2012 season was somewhat unique in that it followed the historic boom in 
international cotton prices (over US$ cents 200/lb) and a substantial rise in domestic production 
(more than 83% compared to the previous season) was forecast. This was the background against which the MOU for the 2011/2012 season was signed on 12 February 2011, for the first time 
within the framework of the Cotton Trade Association (IPC), with an unprecedented base price of 
CFAF 255/kg. 
3.9.  The scale of apportionment ultimately adop ted for the remuneration supplement was as 
follows: Price supplement: 40%, Support Fund (to be established): 30%, UN-SCPC: 15%, Inputs 
Fund (to be established): 15%. For the first time, this MOU provided for certain charges common to the sector, amounting to CFAF 5.343 billion (CFAF 12/kg), to be withheld from gross earnings. Despite the amount withheld, the season ended with a supplement of CFAF 63.764/kg, 
or CFAF 28.395 billion, in favour of the producers. 
3.4  Memorandum of Understanding for the 2012/2013 season 
3.10.  In order to sustain the recovery of producti on that began during the 2011/2012 season, 
and given the level of replenishment of the Support Fund, a base price of CFAF 255/kg was 
adopted for the 2012/2013 season, despite the fact that such a price was not in line with world cotton prices. The season ultimately ended with CFAF 8.447 billion in overpayment to be drawn 
from the Support Fund. 
3.11.  An important point: In view of the State's difficulties in paying the input subsidy, in 2012 
CFAF 10.151 billion was drawn from the Support Fund to reimburse the State for the advance payment it had made to enable the producers to  acquire 20% of the capital of the four CMDT 
subsidiaries. 
3.5  Memorandum of Understanding for the 2013/2014 season 
3.12.  The 2013/2014 MOU was signed under these terms, with a price of CFAF 250/kg. This price 
level was not sustainable in the light of world cotton prices, and the Support Fund would not be 
sufficient to cover the impending overpayment. WT/CFMC/48 
- 6 - 
  3.13.  A return to the initial 60/40 allocation key was considered by the sector's two main 
stakeholders, the UN-SCPC and the CMDT. This will make it possible to raise the level of the final 
purchase price above the base price already paid. 
3.14.  The trend in the base purchase price and the final price of seed cotton since the 
establishment of a mechanism based on the sharing of the gross income earned by the sector 
between the producers and the CMDT has been as follows: 
Season Final price Base price Supplement 
CFAF/kg CFAF/kg CFAF/kg CFAF 
2005/2006 168,994 160 8,994  4,803,947,232  
2006/2007 165,883 165 0,883  366,430,872  
2007/2008 181,889 160 21,889  5,302,347,582  
2008/2009 180,720 200 19,280  3,884,187,360  
2009/2010 197,620 170 27,620  6,325,504,780  
2010/2011 232,333 185 47,333  11,529,798,137  
2011/2012 318,764 255 63,764  28,395,001,896  
2012/2013 236,214 255 18,786  8,447,331,546  
2013/2014* 260,483 250 10,483  4,618,537,242  
*provisional 
 
 
160 165 160200
170185255 255 250
050100150200250300350
Base price CFAF/kg Final price CFAF/kg
 
 
*provisional 
 
4  SUPPLY OF AGRICULTURAL INPUTS  AND PRODUCER INDEBTEDNESS 
4.1.  From the time of its creation in 1974 until 2002, the CMDT supplied the producers with inputs 
(seeds, fertilizers, insecticides, herbicides). 
4.2.  In 2001/2002, it entrusted the supply of cere al inputs, cotton herbicides and treatment 
apparatus in two regions (Koutiala and San) to the Group of Cotton and Food Producers' Unions 
on a trial basis. The trial was extended to all regions in 2002/2003 following the summit meeting 
of the cotton industry in Mali. WT/CFMC/48 
- 7 - 
  4.3.  After its creation in May 2007, the National Union of Cotton Producers' Cooperatives 
(UN-SCPC) requested overall responsibility for supplying cotton and cereal inputs to the producers. Following this request, an interministerial commission was set up to handle tenders for the supply of producers during the 2008/2009 season. 
4.4.  Despite the uneven trend in the buying price of  inputs, the credit sale prices charged to 
producers have remained relatively stable, main ly because of the CFAF 12,500 per bag fertilizer 
subsidy granted by the State since the 2009/2010 season. 
SELLING PRICE OF AGRICULTURAL INPUTS (CFAF/KG, /HA, /L) (CREDIT PRICE) 
Season NPK 
50-kg bag Urea 
50-kg bag Delinted 
cotton 
seed 
15 kg Insecticides  Pre-emerge
nt cotton 
herbicides Post-emergent 
cotton 
herbicides Non-selective 
herbicides 
2001/2002 12,740 8,260  3,317 3,506 7,610  
2002/2003 11,054 9,934  4,313 4,600 12,850  
2003/2004 13,775 12,100  4,770 4,646 12,979  
2004/2005 14,365 11,550  4,770 4,646 12,979  
2005/2006 13,275 11,125  4,560 4,646 12,979  
2006/2007 13,275 11,125  4,560 4,646 12,979  
2007/2008 12,995 11,125 1,294 4,550 4,550 13,975 4,550 
2008/2009 18,467 18,982 1,294 4,507 4,507 14,813 4,507 
2009/2010 13,413 13,413 1,294 4,507 4,507 14,813 4,507 
2010/2011 13,413 13,413 1,294 4,566 4,614 14,813 4,507 
2011/2012 13,413 13,413 1,294 4,566 4,614 14,813 4,507 
2012/2013 13,413 13,413 1,294 4,566 4,614 14,813 4,507 
2013/2014 13,413 13,413 1,294 4,566 4,614 14,813 4,507 
 
4.5.  The amount of this subsidy by season and cotton and cereal production are shown in the 
Table below: 
Season 2013/2014 2012/2013 2011/2012 2010/2011 2009/2010 
Seed cotton 
production (t) 440,574 449,661 445,314 243,89 229,019 
Cereal 
production (t) 1,659,300 1,773,788 1,503,850 1,275,900 1,263,835 
Quantity of 
fertilizer used (t)  168,631  166,659  144,182  108,250  81,607  
Fertilizer subsidy 
(CFAF billion)  19,326  25,178  18,403  10,005  10,449  
 
4.6.  The overall debt ratio of farmers' associations in the CMDT area fluctuated between 29% 
in 2003/2004 and 68% in 2006/2007. It was 48% in 2013/2014. The Table below shows the debt ratio in the CMDT area over the past ten seasons: 
Season Seed cotton 
production (t) Gross income 
cotton 
(CFAF) Total credit 
owing 
(CFAF) Debt ratio (%) % 
repaid 
2003/2004 620,665 124,133,000,000  36,435,188,413 29 97 
2004/2005 589,751 123,847,710,000  48,168,084,265 39 97 
2005/2006 534,128 85,460,480,000  43,360,857,104 51 96 
2006/2007 414,984 68,472,360,000  46,731,330,184 68 93 
2007/2008 242,238 41,428,718,360  26,563,995,131 64 82 
2008/2009 201,462 40,292,400,000  23,368,289,743 58 93 
2009/2010 229,019 41,597,553,200  25,588,268,729 62 93 
2010/2011 243,589 45,063,965,000  29,000,627,364 64 96 
2011/2012 445,314 122,461,351,320  49,952,308,005 41 99 
2012/2013 449,661 114,663,555,000  56,419,393,955 49 99 
2013/2014* 440,574 112,346,370,000  54,053,245,443 48 99 
*provisional 
 4.7.  The agricultural loan repayment rate has been of the order of 99% over the last 
three seasons. WT/CFMC/48 
- 8 - 
  5  LINT AND SEED MARKETING 
5.1.  The CMDT sells all of its production (lint, seed, short lint, etc.) through its Trade Directorate. 
Lint is the CMDT's leading product and Mali's second export product. Malian cotton has the following characteristics: 
a. average fibre length = 1 1/8 ; (95.6%); 
b. micronaire = 3.7 to 4.2; 
c. strength, between 28 and 30g/tex, is satisfactory. 
5.2.  The following ten types of Malian cotton are on the market: 
a. upper grades: SARAMA, JULI/S, NERE, JULI, KATI; 
b. middle grades: KATI/C, LIBA, LIBA/C; 
c. lower grades: KOLA, BATA. 
5.3.  Since 2003/2004, a number of successful measures have been taken to enhance quality, as 
illustrated in the Table below: 
Quality 2004 
% 2005 
% 2006 
% 2007 
% 2008 
% 2009 
% 2010 
% 2011 
% 2012 
% 2013 
% 2014 
% 
SARAMA 0.80 1.40  1.20 2  3.70 4.70 1.51 0.38 1.84 0.35 0.60  
JULI/S 3.50 6.40 7.20 7 16.30  22.80  10.36  5.04 13.61 5.41 6.04 
NERE 2.10 3.40  0.40 0.40  0.30 0.60 1.83 1.19 1.76 1.07 2.06  
JULI 13.20 19.40  22.70 28 44.20  41 38.30  31.94  37.95 29.48 32.16  
KATI 24 29.90  31.70 33.80  27.30  24.10  33.62  38.09  31.29 40.88 36.38  
Upper 
grades 43.60 60.50  63.20 71.20  91.80  93.20  85.62  76.64  86.44 77.18 77.25  
KATI/C 12.90 6.50  7.90 9.70  5.20 3.10 6.38 9.82 7.80 11.11 15.27  
LIBA 22.60 20.20  18.20 13 2.60 3 5.66 9.95 4.37 8.41 5.51 
LIBA/C 15.90 10.40  9 5.10  0.10 0.40 1.45 2.08 0.86 2.50 1.54  
Middle 
grades 51.40 37.10  35.10 27.80  7.90 6.50 13.50  21.85  13.02 22.02 22.31  
KOLA 0.70 0.40  0.90 0.60  0.10 0.10 0.43 1.04 0.21 0.47 0.20  
BATA 4.20 2.10 0.80 0.50 0 0.10 0.38 0.39 0.11 0.18 0.08 
Lower 
grades 4.90 2.50  1.70 1.10  0.10 0.20 0.80 1.43 0.32 0.65 0.28  
 
5.4.  Only 2 to 3% of cotton lint production is processed by the local textile industries, i.e. an 
average of 3,450 tonnes over the past ten years. 
5.5.  As regards Malian cotton for export, the Trade Directorate offers its customers a range of 
cotton lint of various grades and fibre length. 
5.6.  Sale is f.o.b., West Africa port. The price of co tton is set according to the market on the basis 
of the New York and Liverpool indices. Cotton is bought by tender. 
5.7.  Payment is made by confirmed letter of credit or documentary remittance by a top-tier bank, 
and contracts may serve as a pledge. 
5.8.  The main destinations of Mali's cotton over the past ten years have been China (30%), 
Viet Nam (10%), Malaysia (9%), Thailand and Indonesia (8%), Pakistan and Bangladesh (6%), 
etc. 
   
  WT/CFMC/48  
- 9 - MAIN DESTINATIONS OF MALIAN CO TTON (TONNES) FROM 2004 TO 2013 
DESTINATION 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 Total % 
China 62,193  76,157 74,195  36,149  21,509  16,901  20,208  39,025  92,664  61,495  500,495  30%  
Viet Nam 19,316  27,467 31,563  18,967  15,966  11,384  6,367  5,954  6,299  20,015  163,298  10%  
Thailand 17,259  21,700 25,244  21,061  16,687  10,617  5,970  9,070  2,987  9,009  139,605  8% 
Pakistan 27,882  9,615 2,195  25,260  10,484  1,825  13,403  3,608  200 3,015  97,487  6% 
Indonesia 12,733  9,032 18,983  21,022  8,582  8,838  7,973  21,878  4,243  19,495  132,778  8% 
Bangladesh 13,234  21,144 9,852  9,117  3,663  1,107  10,421  5,489  5,071  18,092  97,190  6% 
Taiwan 11,516  13,423 16,144  4,237  1,440  599 3,400  1,683  828 2,309  55,579  3% 
Italy 15,237  10,479 4,516  5,540  1,333  368 2,593  197 517 1,022  41,802  3% 
Malaysia 9,597  11,527 1,648  4,560  2,278  19,275  16,067  9,483  57,586  22,908  154,928  9% 
Morocco 5,866  2,273 6,965  5,801  4,809  4,195  1,359  661 959 703 33,591  2% 
Germany 9,932  6,113 2,556  2,490  856 2,164  600  1,005  417 26,132  2% 
India 8,207  2,085 1,348  2,247  6,478  1,464  174  6,347  23,599  51,949  3% 
Hong Kong, China   500        1,900  2,400  0% 
Bahrain 785 8,945 1,740    147 197  1,125  1,249  14,188  1% 
Tunisia 1,204  1,361 1,416  890 1,088     197 739 6,895  0% 
Mali 1,995  7,617 2,390  2,336  2,345  3,491  2,105  3,030  4,762  4,418  34,489  2% 
Turkey  1,849 1,164  359 140 80 587 119 497  4,795  0% 
France 2,455  1,006 1,014  2,488  346 287 504 1,103  361 679 10,243  1% 
Belgium 5,823  1,629 1,293  2,104  281 245 317 100 280 679 12,751  1% 
Dubai 5,290      588 1,600  742   8,220  0% 
Portugal 2,222  637 3,935  952 724 79 437 131 218 679 10,014  1% 
Mauritius 370 639 2,097  2,894  950 1,066  823    8,839  1% 
Brazil   9,497  4,106        13,603  1% 
Latvia 12,563  66 200 20       12,849  1% 
Philippines 3,041  1,747 894         5,682  0% 
Other 9,934  3,559 1,269  3,298  1,590  436 1,051  746 718 679 23,280  1% 
TOTAL 1,663,083  100%  
 
   
 WT/CFMC/48 
- 10 - 
  5.9.  The income generated on the sale of cotton lint accounts for more than 90% of the CMDT's 
turnover. 
5.10.  Previously regarded as a byproduct, cotton seed has increased in value, and its selling price 
has been rising gradually since the 2003/2004 season. It is exclusively reserved for the local 
crushing plants. 
LINT PRODUCTION AND TURNOVER OVER THE PAST TEN SEASONS 
Season Production Turnover 
Volume 
(t) value 
(CFAF) Unit price 
CFAF/kg Amount 
(CFAF) Unit price 
CFAF/kg 
2003/2004 259,644 207,549,943,469 799 190,930,477,087 735 
2004/2005 239,631 132,384,173,450 552 130,938,964,634 546 
2005/2006 223,388 145,408,705,055 651 142,908,192,437 640 
2006/2007 175,755 108,309,841,078 616 107,631,564,762 612 
2007/2008 100,939 69,924,170,710 693 69,506,983,335 689 
2008/2009 85,147 67,153,742,525 789 62,427,859,873 733 
2009/2010 96,488 71,475,865,369 741 71,835,284,717 744 
2010/2011 103,403 92,932,154,432 899 92,822,514,524 898 
2011/2012 186,743 234,343,450,900 1.255 231,760,151,350 1,241 
2012/2013 191,626 170,921,182,462 892 170,156,524,130 888 
COTTON SEED PRODUCTION OVER THE PAST TEN SEASONS 
Season Production (t) Oil production 
Value Unit price 
CFAF/T 
Total Seed Oil CFAF (net of taxes) 
2003/2004 326,044 26,084 299,960 10,048,660,000 33,500 
2004/2005 313,717 24,077 289,640 13,033,800,000 45,000 
2005/2006 275,149 26,246 248,903 7,382,711,883 29,661 
2006/2007 212,264 20,669 191,595 4,789,875,000 25,000 
2007/2008 128,781 13,738 115,043 5,752,150,000 50,000 
2008/2009 105,813 9,253 96,560 7,724,800,000 80,000 
2009/2010 118,907 8,645 110,262 9,372,270,000 85,000 
2010/2011 126,179 17,031 109,148 9,296,026,012 85,169 
2011/2012 237,839 19,483 218,356 18,689,745,108 85,593 
2012/2013 235,308 25,056 210,252 18,352,476,576 87,288 
 
5.11.  The fall in world lint prices over several past seasons has had a highly negative impact on 
the sector as a whole: drop in the producer purchase price, deepening of the CMDT's deficit year 
by year, problems with the supply of agricultural an d industrial inputs, increase in the selling price 
of cotton seed, etc. This prompted the Mali Government to undertake structural reforms in order to 
revitalize cotton farming and hence the cotton industry as a whole. 
6  RESTRUCTURING OF THE COTTON SECTOR 
6.1.  The severe crisis that had been affecting the cotton sector since 1999, induced by the steep 
drop in world lint prices that weakened the CM DT, and aggravated by the consequences of the 
farmers' boycott of cotton production, led to a process aimed at reforming the sector, which began 
in late 2000. 
6.2.  This is the context in which the Mission for Reorganization of the Cotton Sector (MRSC) was 
established by the Government in order to steer this process. 
6.3.  The Policy Letter on Development of the Cotton Sector (LPDSC), adopted on 6 June 2001, 
lays down a plan of action based on the followin g three-pronged strategy: re-focusing of the work 
of the CMDT on the cotton sector, closer involv ement of producers in cotton sector management, 
and liberalization of the sector. 
6.4.  The LPDSC plan of action, updated in 2003 and 2005, led to the following, inter alia : 
a. the organization of producers in cotton producers' cooperatives (CPC) at the local, 
regional, (UR-SCPC) and national (UN-SCPC) levels; WT/CFMC/48 
- 11 - 
  b. establishment of a framework for regulation of the cotton sector, including the Cotton 
Trade Association (IPC), which is a formal consultation forum for all stakeholders to obtain information and take decisions concerning the sector, and the Cotton Grading Board (OCC); 
c. establishment of a mechanism for setting the purchase price of seed cotton and the 
attendant Support Fund; 
d. privatization of the CMDT by 2009, to be replaced by four private cotton companies. 
The capital of these four companies will be held as follows: 61% by a private operator, 
20% by the producers through the UN-SCPC, 17% by the State, and 2% by the workers; and 
e. creation of the four production subsidiaries and launching of the CMDT privatization 
process as the final stage in the reform. 
6.2  Privatization process 
6.5.  Le CMDT Privatization Plan, adopted by the Council of Ministers on 4 October 2006, provides 
for the division of the CMDT into four subsidiaries, of which CMDT Holding will own 100% of the 
shares. The privatization of the CMDT subsidiaries will be the final stage in the restructuring of the cotton sector, and will involve selling 20% of the shar es of each subsidiary to the producers, 2% to 
the workers, 17% to the State, and 61% to the recognized private investors. 
6.6.  The transfer of 20% of the shares, worth CF AF 10,151,730,000, to the producers became 
effective on 10 June 2010. 
6.7.  The workers are still in the process of setting up the mutual structure that will represent 
them in the capital of the subsidiaries. The State has yet to come forward. 
6.8.  The MRSC, which was entrusted with the sale of 61% of the shares to the recognized private 
investors, issued an international call for tenders on 22 February 2010. On 25 February 2011, the 
Chief of the MRSC announced the YUEMEI Group as the provisional successful bidder for the 
western subsidiary (Kita) and the northeastern (Koutiala-San) or southern (Sikasso-Bougouni) subsidiary. 
6.9.  Negotiations with the YUEMEI Group regarding the southern and western subsidiaries began 
on 23 March. Although several meetings took place between the two parties, none of the 
documents in the negotiation dossier was formally adopted. Moreover, the negotiations concerning 
the selling price, based on the reference prices defined and adopted by the Malian party, could not 
take place. 
6.10.  In the face of these failures, on 18 June 2012 the call for tenders for the sale of 61% of the 
capital of the CMDT subsidiaries was declared unsuccessful by the MRSC. 
6.11.  These were the circumstances in which the Prime Minister sent the MRSC and the other 
stakeholders in the cotton sector the engagement letter dated 5 March 2013. Implementation of this letter was centred on the following six activities: 
1. finalize the implementation of the Cotton Trade Association (IPC); 
2. clarify the relationship between the CMDT and the UN-SCPC as a shareholder in the 
four subsidiaries; 
3. review the CMDT Privatization Plan (SOP); 
4. analyse the different reform experiences in the countries of the subregion so as to learn 
from them; 
5. improve the accounting and management of the CMDT subsidiaries; and 
6. monitor developments in the cotton sector. WT/CFMC/48 
- 12 - 
  6.12.  Apart from the review of the Privatization Plan, most of the above activities have been 
implemented under the direction of the MRSC, whose mandate has been extended until June 2014. 
AGRICULTURAL PRODUCTION STATISTICS 2003-2014 
Crop 2002/ 
2003 2003/ 
2004 2004/ 
2005 2005/ 
2006 2006/ 
2007 2007/ 
2008 2008/ 
2009 
Cotton          
Number of farms 154,411 165,204 172,353 174,749 163,420 117,933 83,993 
Area (ha) 420,034 515,943 533,223 521,029 459,265 269,145 189,684 
Yield (kg/ha) 994 1,150 1,047 976 868 861 1,036 
CMDT 
production (t) 417,493 593,126 558,034 508, 396 398,501 231,797 196,600 
OHVN 
production (t) 22,229 27,539 31,548 25,607 16,403 10,393 4,849 
Production 
Bafoulabé area (t) - - 169 119 61 48 13 
TOTAL MALI (t) 439,722 620,665 589,751 534,122 414,965 242,238 201,462 
Maize        
Area (ha) 207,714 249,213 267,898 279,460 288,724 251,144 207,509 
Yield (kg/ha) 1,558 2,033 1,817 2,089 2,140 1,937 1,935 
CMDT 
Maize 
production (t) 323,618 506,662 486,660 583,789 617,860 486,443 401,459 
Millet – 
Sorghum        
Area (ha) 731,670 761,936 775,169 815,229 833,134 806,705 839,318 
Yield (kg/ha) 768 1,043 909 1,043 1,013 987 976 
CMDT 
Millet - sorghum 
prod. (t) 561,941 794,630 704,496 850,328 844,102 796,522 819,587 
CMDT 
Forage crops        
Area (ha) 18,503 19,351 21,714 25,183 28,093 27,197 26,325 
 
Crop 2009/2010 2010/2011 2011/2012 2012/2013 2013/2014 
Cotton        
Number of farms 101,814 106,968 161,368 166,718 173,634 
Area (ha) 240,083 277,286 458,622 502,032 465,364 
Yield (kg/ha) 926 857 940 871 919 
CMDT 
Production (t) 222,269 237,717 431,114 437,300 427,674 
OHVN 
Production (t) 6,750 5,872 14,200 12,361 12,900 
Production 
Bafoulabé area (t) 0 0 0 0 0 
TOTAL MALI (t) 229,019 243,589 445,314 449,661 440,574 
Maize      
Area (ha) 215,744 222,439 336,429 367,963 375,727 
Yield (kg/ha) 2,129 2,187 2,033 2,276 2,139 
CMDT 
Maize 
production (t) 459,281 486,522 683,897 837,374 803,563 
Millet - sorghum 
production      
Area (ha) 805,466 789,550 911,805 921,082 922,187 
      
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