WORLD TRADE  
ORGANIZATION  WT/CFMC/24 
13 October 2009 
 
 (09-4931) 
 Original:   French 
  
 
DIRECTOR-GENERAL'S CONSULTATIVE FRAMEWORK 
MECHANISM ON COTTON 
 
Communication from Mali
 
 
 
 The following communication, dated 8 September 2009, is being circulated at the request of 
the delegation of Mali.  
_______________ 
 
 
STRATEGY FRAMEWORK FOR DEVELOPMENT 
OF THE COTTON SECTOR 
 
 INTRODUCTION
 
 
1. The cotton system plays a key strategic role in Mali's economic and social development.  
Cotton lint is the leading export crop, and sales of cotton lint are a major source of foreign earnings for the country.  Cotton contributes to the developm ent of Mali's industrial sector through the ginning, 
textile, food and cosmetics industries. 
2. The transport of seed cotton to the ginning plants an d of cotton lint to its ports of shipment is 
a major segment of the overall transport sector. 
3. For all of the above reasons, but chiefly becau se of the slump that has affected the cotton 
sector over the past ten years, the Government has decided to provide a strategic development 
framework specifically targeting this sector and to  anchor it in the Growth and Poverty Reduction 
Strategy Framework (GPRSF) covering the peri od 2007-2011, taking into account the corresponding 
guidelines set out in the Economic and Social Development Project (PDES). 
4. The aim is to achieve sustainability of cotton production and secure the involvement of all the 
actors concerned, i.e. the producers,  the State, the relevant institutio ns and the technical and financial 
partners. 
5. The strategies developed for that purpose are directed at strengthening the sector's assets, 
remedying its weaknesses and minimizing the threats and risks to which it is exposed. 
6. The Strategic Framework for Development of the Cotton Sector ( Cadre stratégique de 
développement du secteur coton  (CSDSC)) consists of two chapte rs and an accompanying annex: 
 - Chapter 1
:  The cotton sector in Mali:  Competitiveness and vulnerability; 
 WT/CFMC/24 
Page 2  
 
   - Chapter 2
:  National strategic framework for development of the cotton sector; 
  - Annex
:  Action plan of the strategic framework for development of the cotton sector. 
 
I. THE COTTON SECTOR IN MALI:  COMPETITIVENESS AND VULNERABILITY 
7. Cotton plays a vital role in Mali's economy in general and in the country's agricultural sector 
in particular, accounting for close to 9 per cent of  agriculture's share of GDP and between 30 and 
40 per cent of Mali's export revenue. 
8. Cotton growing in Mali is rainfed and is chiefl y practised by a vast number of small-scale 
family farms in the south and west of the count ry.  These small farms, which numbered 180,000 for a 
population of around 3.7 million in 2006, mostly op erate without motorized equipment.  Animal 
traction (80 per cent of farms own at  least one "full set of equipment"1) is used to cultivate an average 
of 2 to 3 hectares under a cotton and cereal production- based system centred on the integration of crop 
growing and livestock rearing.  The cotton produc ing zone has become the country's chief cattle 
breeding area. 
9. Cotton is grown in the Sikasso administrative re gion and in part of the Ségou, Koulikoro and 
Kayes administrative regions.  Cotton-growing ar eas provide one third of the country's cereal 
production, amounting to some 1.3 million tonnes. 
10. In Mali, cotton is an integrated industry a ligned with the activities of the Malian Textiles 
Development Company (CMDT) – a semi-public co mpany in which the State holds a 98 per cent 
stake and GEOCOTON (which has now taken over DAGRIS) the remaining 2 per cent.  The CMDT 
provides 4,000 direct permanent and temporary jobs. 
11. The CMDT plays a leading role in cotton production and the promotion of rural development 
in its area of operation.  It has focused in par ticular on the opening and maintenance of rural tracks, 
the funding of research and the provision of essentia l social services (functional literacy, health). 
12. The CMDT is the sole operator of the country's 17 ginneries, with a total capacity of around 
600,000 tonnes.  Most of the cotton lint produced by the CMDT is for export, only a minimum 
quantity being sold to the domestic textile industr y at a preferential price below the export price. 
13. The country's crafts sector, with its strong cultu ral overtones, is geared towards the domestic 
market, with a small share for tourism.  It mainly consists of hand-weaving activities using 
rudimentary tools or weaving looms made of wood. 
14. The CMDT sells seed cotton to the HUICO MA company and several other cotton seed 
grinding factories producing cotton oil and other cotton by-products. 
15. The village-level Cotton Producers Cooperatives (SCPC) are the other major component of 
the cotton sector's institutional framework.  Ther e are currently 6,709 SCPCs operating under an 
umbrella organization, the National Union of Cotton Producers' Cooperatives (UN-SCPC).  Their 
sales account for close to 98 per cent of total see d cotton production in the area covered by the 
CMDT. 
16. However, a series of structural factors incl uding the decline in world cotton prices, the 
weakness of the dollar, and the marked increase in  the price of hydrocarbons are doing little to 
increase yields or agricultural output in ge neral, and cotton growing in particular. 
                                                      
1 Meaning a pair of ploughing oxen, a plough, a multi-cultivator, a seed drill, and a cart.  WT/CFMC/24 
 Page 3 
 
 
  17. Average seed cotton production has totalled 480,000  tonnes over the past five seasons, with a 
peak output of 620,000 tonnes in 2003-2004. 
18. The dramatic decline in cotton production has immediate repercussions on the economic and 
financial performance of the CMDT and the country' s economic activity.  Economic growth fell from 
7.2 per cent in 2006 to 2.3 per cent in 2007.2  Growth in the primary sector contracted from 4.3 per 
cent in 2006 to 2.5 per cent, mainly because of the marked declin e in the cotton sector. 
19. This significant downward trend in productio n has resulted in a negative net operating 
balance for the CMDT.  The company's balance of CFAF -28.410 billion in 1999 remained unchanged 
seven financial years later, standing at CFAF -28 bi llion in 2006.  This has inevitably affected the 
company's equity. 
20. Mali's cotton sector has undergone a deep and complex structural crisis since 1998.  The 
sector's strengths, weakness and opportunities are as follows: 
A. STRENGTHS AND WEAKNESSES OF THE COTTON SECTOR  
1. Strengths 
21. The main assets of Mali's cotton sector include: 
(a) Ecosystems conducive to rainfed cotton growing, with a dense rural population 
trained in production techniques; 
(b) support (CMDT, Office de la Haute Vallée du Niger  (OHVN)) and specialized 
research (Mali Rural Economy Institute (IER )) structures with a capacity to innovate 
and spread awareness of innovations through agricultural advisory services for producers; 
(c) the rural community is well structured  with a network of cotton producer 
cooperatives possessing their own legal status, which are shouldering increasing responsibility for seed cotton marketing, managing input credit, supplying agricultural inputs and equipment, extension activities, etc.; 
(d) with its level of technical knowledge, the farming community is receptive to 
innovations and capable of rapidly im plementing new technical proposals; 
(e) with its relatively high rate of equipment co mpared to the rest of the country, the 
sector can adjust to the impact of climatic factors and implement seasonal road maps; 
(f) thanks to manual harvesting, cotton is of  good quality and highly competitive on the 
market; 
(g) mechanisms for fixing and announcing th e base purchase price prior to the sowing 
period. 
2. Weaknesses 
22. The main shortcomings of Mali's cotton sector include: 
                                                     
 
2 Report on Mali's economic and social situation in 2007 and outlook for 2008. WT/CFMC/24 
Page 4  
 
  (a) Production levels that continue to be  affected by climatic factors; 
(b) chronic difficulties in securing financi ng and ensuring proper development of 
growing seasons; 
(c) insufficient and limited financing systems fo r the rural community and agriculture in 
particular;  difficulties in obtaining access to  agricultural and especially investment 
and equipment loans; 
(d) heavy indebtedness of cotton producers; 
(e) strong producer dependence on cotton earnings alone; 
(f) high transport costs and lengthy delivery times for inputs and products; 
(g) absence of competitive fertilizer or agricultural pesticide industries; 
(h) inadequate in-country skills in the textile industry and for crafts development; 
(i) insignificant amounts of domestically process ed cotton lint, and ensuing dependence 
on foreign markets; 
(j) high cost of energy (whether self-produced or supplied by the electricity company); 
(k) difficulty in gaining access to informati on, and low capability for processing and 
circulating information; 
(l) inadequate coordination fram eworks for the provision of global market intelligence 
and information concerning new techniques and technology; 
(m) herds receiving scant medical attention and in poor condition; 
(n) insufficient capacity building for producers and producer organizations. 
3. Threats - risks to the cotton sector 
23. The strategy for development of the cotton sector  must take into acc ount evolving exogenous 
factors and threats that may hamper the sector's growth: 
(a) Unfavourable EURO/Dollar parity; 
(b) soaring hydrocarbons prices; 
(c) cotton subsidy policies practised by certain countries and their impact on global 
prices; 
(d) protectionist and "dumping" regimes applie d by certain countries regarding textile 
products; 
(e) increasingly severe soil degradation and loss of fertility; 
(f) dangerous trend towards land-extensiv e cotton and cereal cropping practices; 
(g) deterioration of rural tracks in cotton-growing areas.  WT/CFMC/24 
 Page 5 
 
 
  B. OPPORTUNITIES AVAILABLE TO THE COTTON SECTOR  
24. Mali's cotton sector could take advant age of the following opportunities: 
(a) Creation of "organic cotton" market segments; 
(b) development of fair trade-oriented agricultural sectors; 
(c) new market access facilities provided by so me developed countries for developing 
country textile products; 
(d) reorientation of the textile industries relo cation policy as a result of cost increases in 
countries that have been benefiting from the policy; 
(e) existence of a regional textiles training centre (CERFITEX). 
II. NATIONAL STRATEGIC FRAMEWORK FOR DEVELOPMENT OF THE COTTON 
SECTOR 
25. In view of the structural nature of the cott on sector crisis, the State has decided to introduce 
sweeping cotton sector reforms including liberalization of the sector and privatization of the CMDT.  These reforms were set out in the Policy Letter on Development of the Cotton Sector (LPDSC), 
implementation of which is entrusted to the mission for reorganization of the cotton sector ( Mission 
de Restructuration du Secteur Coton  (MRSC)). 
26. The Government's adoption of the LPDSC in  June 2001 led to a cotton sector reform 
programme backed by Mali's development partners , such as the World Bank, IMF, European Union, 
AFD (French Development Agency) and the Fren ch Embassy's Cooperation and Cultural Action 
Service (SCAC). 
27. The overall objective of the reform process is to harness and reduce production costs, to 
secure producer income and to help alleviate povert y, while enhancing the sector's competitiveness.  
The following strategies have been adopted for the purpose: 
(a) Re-focusing of the CMDT's activities throug h gradual withdrawal of the company 
from activities not directly associated with the cotton system (public service tasks, 
support, transport, rural tracks, waterwor ks, input and equipment supply), with an 
ensuing cutdown on staff; 
(b) closer involvement of producers in cotton sector management; 
(c) liberalization of the cotton and oilseed sectors. 
28. Regulation and supervision of activities in the cotton sector, technology development, training 
for producers, and development of value chains for agricultural sectors in cotton-growing areas are 
among the new areas of concern to be addressed under the CSDSC. 
29. The overriding objective of the CSDSC is to increase the cotton sector's contribution to the 
country's economic and social development.  Th e CSDSC is centred on seven specific objectives 
involving the following lines of action: WT/CFMC/24 
Page 6  
 
  - Specific objective 1
:  Build up producer capacity 
 
(a) Provide a structure for and organize producers so that they can become more closely 
involved in managing the sector; 
(b) increase functional literacy to fac ilitate ownership of innovations; 
(c) build up the capacities of producers a nd producer organizations to improve 
productivity and the quality of cotton lint and increase producers' incomes. 
- Specific objective 2 :  Upgrade the sector's supervisory and management bodies 
 
(a) Establish a trade association for the cotton sector to enhance coordination among the 
various players; 
(b) create a Cotton Classing Board with a view to improving the quality of cotton lint 
produced in the country and safeguarding the Mali label in the long run; 
(c) set up an information and follow-up/evaluation system; 
(d) enhance rural advisory services. 
- Specific objective 3 :  Increase private-sector participation in sector management 
 
(a) Privatize four CMDT subsidiaries, with pr oducer and worker participation in the 
capital; 
(b) further withdrawal of the CMDT from the supply of agricultural inputs and 
equipment, to be handed over to the National Union of Cotton Producers 
Cooperatives (UN-SCPC); 
(c) develop the transport of agricultural products  and inputs and related infrastructure and 
equipment. 
- Specific objective 4 :  Increase the sector's productivity,  competitiveness and sustainability 
 
(a) Finance cotton research, with a focus on biotechnology and biosafety; 
(b) enhance rural advisory services by adopting new technical strategies; 
(c) produce, certify and use seed with high-potential lint yield; 
(d) exploit domestic potential for fertilizer and pesticide production; 
(e) maintain, rehabilitate and open rural tracks. 
- Specific objective 5 :  Secure and diversify income 
 
(a) Bolster the support fund to smooth out fluctuations in producers' incomes; 
(b) build up capacities for the management of price risks and cotton price fluctuations;  WT/CFMC/24 
 Page 7 
 
 
  (c) identify and promote income-generating agri cultural sectors (maize, potatoes, sesame, 
soya, sunflower, physic nut, bananas, etc.); 
(d) provide access to the National Agricultural Development Fund (FNDA). 
- Specific objective 6 :  Develop organic cotton growing and fair trade 
 
(a) Exploit progress in biological control research; 
(b) develop "organic cotton" and fair trade market segments. 
- Specific objective 7 :  Increase the rate of domestic processing of cotton lint produced 
 
(a) Rehabilitate existing industrial units (remova l of constraints:  energy costs, human 
resource skills, etc.); 
(b) install new, higher-performance plants, taki ng advantage of niches of opportunity for 
processing and marketing cotton-based products; 
(c) broaden the scope of action of the existing training facility (CERFITEX). 
30. A plan of action for implementing the strategic framework for development of the cotton 
sector over the period 2008-2012 is proposed below (A nnex).  The plan lists the priority actions under 
way and the short and medium-term activities to be implemented with a view to successful 
restructuring of the cotton sector.  The estimated cost is of the order of CFAF 205.7 billion. 
  
  WT/CFMC/24 
Page 8 ANNEX 
 
EVALUATION OF THE ACTION PLAN FOR IMPLEMENTATION OF THE STRATEGIC 
FRAMEWORK FOR DEVELOPMEN T OF THE COTTON SECTOR 
OVER THE PERIOD 2008 – 2012 
 
 
Estimated budget (CFAF billion) Objectives Actions 2008 2009 2010 2011 2012 Donors Actors involved 
Support the establishment of SCPCs 1 0.67 0.67 0.67 Government and 
technical and financial 
partners (TFPs) MA, MF, MEIC, MRSC, APCAM, CMDT, 
OHVN, GEOCOTON and MRSC 
Train farmer leaders 1 0.67 0.67 0.67 Government and TFPs MA, MF, MEIC, MRSC, APCAM, CMDT, 
OHVN, GEOCOTON and MRSC Specific objective 1: 
Build up producer capacity 
Increase producer literacy 2.3 2 2 2 Government and TFPs MA, MF, MEIC, MRSC, APCAM, CMDT, 
OHVN, GEOCOTON and MRSC 
Establish a cotton trade association (IPC)  2 2  Government and TFPs MA, MF, MEIC, MRSC, APCAM, CMDT, 
OHVN, GEOCOTON and MRSC Specific objective 2: Improve coordinated management of the 
sector Create the Cotton Observatory 1 1 1  -"-"-idem-"-"- MA, MF, MEIC, MRSC, producers, APCAM, 
CMDT, OHVN, GEOCOTON and MRSC 
Privatize CMDT subsidiaries 2.3  Government and TFPs MA, MF, MEIC, MRSC, producers, APCAM, 
CMDT, OHVN, GEOCOTON, and MRSC Specific objective 3: Increase private-sector participation in 
sector management Further withdrawal of the CMDT from 
agricultural input and equipment 
supply  4.00 2 2 2 -"-"-idem-"-"- -"-"-idem-"-"- 
Fund cotton research 2.00  Government and TFPs MA, producers, APCAM, CMDT, OHVN, 
GEOCOTON, IER and MRSC 
Set up the Cotton Classing Board 2.00  -"-"-idem-"-"- MA, MF, MEIC, MRSC, producers, APCAM, 
CMDT, OHVN, GEOCOTON and MRSC 
Enhance rural advisory services 2.1 1 1 1 -"-"-idem-"-"- -"-"-idem-"-"- 
Recover soil fertility 2 2 2 2 -"-"-idem-"-"- -"-"-idem-"-"- 
Production, certification and 
utilization of seeds 0.88 0.88 0.88 0.88 -"-"-idem-"-"- -"-"-idem-"-"- 
Maintain, rehabilitate and open rural 
tracks 5 5 5 5 -"-"-idem-"-"- MA, MF, MAND, MRSC, producers, APCAM, 
CMDT, OHVN Specific objective 4: Increase the sector's productivity, 
competitiveness and sustainability 
Create a fertilizer production indus try  50  -"-"-idem-"-"- MEIC 
Establish and finance the support fund 5 5 5 5 Governme nt and TFPs MA, MF, MEIC, MRSC, MDEAF, producers, 
APCAM, CMDT, OHVN, GEOCOTON, TFPs and 
MRSC 
Implement price risk and cotton price fluctuation mana gement training 
programme 0.5  -"-"-idem-"-"- -"-"-idem-"-"- 
Support the development of 
agricultural sectors  10 5 5 5 -"-"-idem-"-"- -"-"-idem-"-"- Specific objective 5: 
Secure and diversify sector income 
Open an FNDA disaster fund facility  8.00 x  -"-"-idem-"-"- -"-"-idem-"-"-  
   WT/CFMC/24
 Page 9Estimated budget (CFAF billion) Objectives Actions 2008 2009 2010 2011 2012 Donors Actors involved 
Promote and develop organic cotton 
growing 0.75  Government and TFPs MA, producers, APCAM, CMDT, OHVN, 
GEOCOTON and MRSC Specific objective 6: Develop organic cott on growing and fair 
trade Develop fair trade-oriented sect ors 0.25  Government and TFPs MA, producers, APCAM, CMDT, OHVN, 
GEOCOTON and MRSC 
Broaden CERFITEX scope of action 10  Government and TFPs MA, MF, MEIC, MRSC, MTA, APCAM, CMDT, 
OHVN, GEOCOTON and MRSC Specific objective 7: Increase processing rates for domestically produced cotton lint Finance new plants and diversify 
downstream industries  10 15  -"-"-idem-"-"- -"-"-idem-"-"- 
 
__________