WT/CFMC/W/87  
19 February  2021 
(21-1420)  Page: 1/59 
Sub-Committee on Cotton  Original:  French  
 
  
FEASIBILITY STUDY ON "TRANSFERRING TECHNOLOGIES AND KNOW -HOW  
FOR THE DEVELOPMENT OF COTTON BY -PRODUCTS" IN MALI  
The following communication, dated 12 November 2020, is being circulated at the request 
of the delegation of Mali.1 
 
_______________  
 
 
  
 
1 This communication concerns a study by the independent consultants Mr Alexis Hougni, Mr Urbain 
Dembélé and Mr Fagaye Sissoko. It deals with the aforementi oned feasibility study, as presented in the 
Thematic Session on Cotton By -Products Development in LDCs on 12 November 2020.  WT/CFMC/W/87  
- 2 - 
  EXECUTIVE SUMMARY  
1.1.  This study  outlines  the current status of cotton co -products, by -products and derivative s in 
Mali and analyses opportunities to develop value chains and markets to help reduce poverty, 
promote food security, create jobs, diversify incomes, improve living standards for women and boost 
the national economy. It is part of a joint initiative on co tton by-products between the World Trade 
Organization (WTO), the United Nations Conference on Trade and Development (UNCTAD) and the 
International Trade Centre (ITC) , launched in response to  request s from developing countries, 
notably the Cotton 4 (C4)  countries — Benin, Burkina Faso, Chad and Mali  — and other African 
cotton -producing countries for technical assistance to develop value chains and markets for value 
addition through cotton by-products.  
1.2.  Cotton is a strategic sector for Mali because it contribu tes more than 10% to fiscal revenue, it 
remains the second largest source of foreign exchange, after gold, and it ensures food self -
sufficiency for more than 4.7  million people in the area where the Mali Textile Development Company 
(CMDT) operates. Yet, only 2% of the lint produced is processed by local textile businesses , which 
means the country is missing out on large amounts of revenue. We are pleased to note that the shift 
towards sustainable development in the cotton -growing  area is the result of the c ombined efforts of 
many actors , including the CMDT, the Upper Niger Valley Board  (OHVN), research bodies, the State, 
the private sector and especially producers who have integrated cotton into their agricultural 
production system.  
1.3.  All the cottonseed produced by ginning seed cotton is crushed by the approximately 100 oil 
mills in the country, the combined capacity of which exceeds national cottonseed production. In 
addition to th ese cotton seed crushing plants, many women's economic i nterests groups (EIGs) are 
being set up that collect the processing waste from the plants to make soap, which is then sold, 
providing those women with a sizeable income . Cotton linters, which are low -quality fibres produced 
during ginning, are used by Sud Coton Textile  (SUCOTEX ) – a company based in Kignan, in the 
Sikasso region  – to produce floorcloths and pack aging material for cotton bales. The oil produced by 
crushin g cottonseed is used for human consumption. The meal is a prized  livestock feed, in a country 
where arable and pastoral farming play a central role.  
1.4.  Given its seed -cotton production capacity, Mali could gain huge competitive advantages from 
fully utilizing  the value chains of cotton by -products, such as stems and husks. It could also further 
develop and diversify value chains for cottonseed meal and oil. These value chains provide 
opportunities to open up new markets, create jobs, increase stakeholder reven ues and, 
consequently, contribute to poverty reduction.  
1.5.  Thanks to the current state of supplies to the Malian market, seed -cotton by-products have a 
certain future. Given the continued increase in domestic demand and the market 's growth potential, 
Mali could reap economic benefits of developing value chains for the by-products from cotton stalks 
and cottonseed.  
  WT/CFMC/W/87  
- 3 - 
  TABLE OF CONTENTS  
EXECUTIVE SUMMARY  ................................ ................................ ................................ ...... 2 
LIST OF TABLES  ................................ ................................ ................................ ...............  4 
LIST OF CHART S ................................ ................................ ................................ ...............  5 
ACRONYMS AND ABBREVI ATIONS ................................ ................................ ....................  6 
1  GENERAL FRAMEWORK OF THE STUDY  ................................ ................................ .........  7 
1.1  Background and rationale of the study  ................................ ................................ ............  7 
1.2  Rationale for investments in cotton by -products  ................................ ...............................  7 
1.3  Aims of the study  ................................ ................................ ................................ .........  8 
1.4  Study methodology  ................................ ................................ ................................ ....... 8 
1.4.1   Overall approach  ................................ ................................ ................................ ....... 8 
1.4.2   Key stages of the study  ................................ ................................ ..............................  8 
2  BASELINE FOR THE STUDY  ................................ ................................ ...........................  9 
2.1  The importance of the cotton sector and its role in Mali  ................................ .....................  9 
2.2  Stakeholders in Mali's cotton sector  ................................ ................................ ............... 11 
2.3  Literature review and concepts behind the terms "co -product", "by -product" and  
"derivative product" in the cotton sector  ................................ ................................ ............... 13 
2.4  Current status of by -product production companies and technologies in Mali  ....................... 14 
2.5  Existing value chains of by -products and priority by -products  ................................ ........... 14 
3  DIAGNOSTIC ASSESSMENT OF THE COTTON SECTOR IN MALI  ................................ ... 17 
3.1  Situation in Mali  ................................ ................................ ................................ .......... 17 
3.1.1   Organization of the actors  ................................ ................................ .......................... 17 
3.1.2   Ten-year performance assessment (2010 -18) ................................ .............................. 26 
3.2  Impact of cotton farming  ................................ ................................ .............................. 35 
3.2.1   On food crops  ................................ ................................ ................................ ........... 35 
3.2.2   Impact of cotton farming on farm/household income  ................................ ..................... 36 
3.3  Cotton producers' organizational structures and their relations with the country 's cotton 
companies  ................................ ................................ ................................ ........................ 36 
3.4  National strategy/policy for value -added cotton products and by -products  .......................... 38 
4  SURVEY OF THE COTTON -FARMING SYSTEM  ................................ ..............................  38 
4.1  General characteristics of the producers surveyed  ................................ ........................... 39 
4.2  Farmland and main crops  ................................ ................................ ............................. 41 
4.3  Producers' total annual income, annual farming income and annual income from cotton  .......42 
4.4  Environmental impact  ................................ ................................ ................................ ..43 
5  MARKET ANALYSIS OF COTTON CO -PRODUCTS, BY -PRODUCTS AND  
COTTON -DERIVED PRODUCTS IN MALI (COUNTRY AND BY -PRODUCT MATCHING)  ........  45 
5.1  Supply and demand for cotton co -products, by -products and cotton -derived products  
in Mali  ................................ ................................ ................................ .............................. 45 
5.1.1   Analysis of (current and future) potential: availability and accessibility of cotton co -
products, by -products and cotton -derived products  ................................ ................................ 45 
5.1.2   Evaluation of available markets for the consumption of cotton co -products,  
by-products and cotton -derived products in Mali  ................................ ................................ ....45 WT/CFMC/W/87  
- 4 - 
  5.2  Economic returns  ................................ ................................ ................................ ........ 51 
5.2.1   Economic calculations ................................ ................................ ................................ 51 
5.2.2  Impact on poverty reduction and gender equality  ................................ ......................... 52 
5.2.3   Establishing businesses producing cotton by -products: challenges and issues  ................... 52 
6  CONCLUSION AND RECOMMENDATIONS  ................................ ................................ .... 54 
REFERENCES  ................................ ................................ ................................ ..................  56 
ANNEX  ................................ ................................ ................................ ...........................  57 
LIST OF TABLES  
Table 1: Number of cotton by -product development units surveyed ................................ ...........  9 
Table 2: CMDT ginneries and ginning capacity  ................................ ................................ .......20 
Table 3: Production and prices of seed cotton, cotton lint and cottonseed over the last  
10 crop years  ................................ ................................ ................................ .................... 27 
Table 4: Characteristics of the 47 processing plants surveyed  ................................ .................. 30 
Table 5: Average supply of cottonseed per processing plant and their average estimated annual 
needs in 2018 (tonnes)  ................................ ................................ ................................ .......30 
Table 6: Quantities of oil produced per processing plant surveyed over the last  
three crop years (litres)  ................................ ................................ ................................ ......31 
Table 7: Estimated meal production by the plants surveyed (tonnes)  ................................ .......32 
Table 8: Characteristics of local small -scale soap produ ction units  ................................ ............ 33 
Table 9: Estimated quantities of black cake produced by processing plants (litres)  ..................... 33 
Table 10: Estimated number of bars of soap produced by type of processing unit  ...................... 34 
Table 11: Cereal production (maize, millet and sorghum) over seven years  ............................... 35 
Table  12: Producers surveyed in various villages in December  2019 ................................ ......... 38 
Table  13: General characteristics of producers surveyed in the various areas in 2019  ................. 39 
Table  14: Number of years spent in agriculture and in cotton farming  ................................ ......39 
Table  15: Available area and cultivated area at the various locations  ................................ ........ 41 
Table  16: Importance of crops for farm income by location  ................................ ..................... 42 
Table  17 Estimated amount of cotton stalks obtained per farm  ................................ ................ 43 
Table  18: Estimated production of cotton stalks ('000  tonnes)  ................................ ................. 45 
Table  19: Quantities and values of imports of cotton co -products and cotton -derived products  ....46 
Table  20: Quantities and values of e xports of cotton by -products and cotton -derived products  ....46 
Table  21: Industrial crushing facilities' demand for cottonseed (tonnes)  ................................ ....47 
Table  22: Customer demand for cottonseed oil (litres) from crushing facilities  ........................... 47 
Table  23: Customer demand for cottonseed meal (tonnes) from crushing facilities  ..................... 47 
Table  24: Customer demand for black cake (kg) from crushing facilities  ................................ ...47 
Table  25: Estimated annual average income and turnover generated from by -products  
by industrial plants (CFAF)  ................................ ................................ ................................ ..51 
Table  26: Estimated annual income and turnover of small -scale soap -making units (CFAF)  ......... 52 
Table  27: SW OT analysis of the cotton by -products to be promoted  ................................ ......... 53 WT/CFMC/W/87  
- 5 - 
  LIST OF CHART S 
Chart  1: Geographical location of Mali's cotton zone  ................................ ............................... 11 
Chart  2: Value chain mapping for cotton products and by -products in Mali  ................................ 16 
Chart  3: Number of supervised cotton farms  ................................ ................................ ......... 17 
Chart  4: Seed cotton production by CMDT subsidiaries and the OHVN ................................ .......19 
Chart  5: Average cottonseed yields, 2010 -19 (kg/ha)  ................................ ............................. 27 
Chart  6: Degree to which industrial units are satisfied that their raw material (cottonseed)  
needs are being met ................................ ................................ ................................ ........... 28 
Chart  7: Degree to whi ch industrial units are satisfied with the quality of the raw material 
(cottonseed) ................................ ................................ ................................ ...................... 28 
Chart  8: Price of cottonseed sold to processin g units, 2009 -19 (CFAF/kg)  ................................ .29 
Chart  9: Quantities and average prices for cottonseed supplied to crushing units as  
a function of availability  ................................ ................................ ................................ ......29 
Chart  10: Sources of c ottonseed supplied to crushing units (%) ................................ ............... 30 
Chart  11: Average sales price of oil (CFAF/litre)  ................................ ................................ .....31 
Chart  12: Average livestock feed prices (CFAF)  ................................ ................................ ......32 
Chart  13: Degree to which the raw material needs of small -scale soap production units (black 
cake) are satisfied  ................................ ................................ ................................ .............. 33 
Chart 14: Degree to which small -scale soap production units are satisfied with the  
quality of the raw material  ................................ ................................ ................................ ..34 
Chart  15: Size of farming households and number of workers in the villages surveyed in  
the three areas  ................................ ................................ ................................ .................. 40 
Chart  16: Producers' age and experience in farming and cotton farming  ................................ ...40 
Chart  17: Main export crops in the various areas in 2019  ................................ ........................ 41 
Chart  18: Farm incomes in the three cercles  ................................ ................................ ......... 42 
Chart  19: Use of cotton stalks by farms in the various areas (percentages)  ............................... 43 
Chart  20: Future development of farm areas and of phytosanitary products' dosages  
over the next five years  ................................ ................................ ................................ ......44 
 
  WT/CFMC/W/87  
- 6 - 
  ACRONYMS AND ABBREVIATIONS  
APCAM  Assemblée Permanente des Chambres d'Agriculture du Mali  (Permanent Assembly of the Chambers 
of Agriculture of Mali)  
BATEXCI  Bakary Textile Commerce et Industrie   
BDM Banque de Développement du Mali  (Mali Development Bank)  
BNDA  Banque Nationale de Développement Ag ricole  (National Agricultural Development Bank)  
CERFITEX  Centre de Recherche et de Formation pour l'Industrie Textile  (Textile Industry Research and 
Training Centre  
CMDT  Compagnie Malienne de Développement des Textiles  (Mali Textile Development Company)  
COMATEX  Compagnie malienne des textiles  
CPS Contribution  for providing a service  
C-SCPC  Confédération des Sociétés Coopératives de Producteurs de Coton  (Confederation of Cotton 
Producers' Cooperatives ) 
CSCRP   Cadre Stratégique pour la Croissance et la Réduction de la Pauvreté  (Strategic Framework for 
Growth and Poverty Reduction)  
DNCC  Direction Nationale du Commerce et de la Concurrence  (National Directorate of Trade and 
Competition)  
EDM Énergie du Mali  
FAT Financial activities tax  
FENAPHB  Fédération nationale des producteurs d'huile et d'aliment de bétail du Mali  (National Federation of 
Oil and Livestock Feed Producers of Mali)  
FITINA  Fils et Tissus Naturels d'Afrique  
IER Institut d'Économie Rurale  (Rural Economy Institute)  
INSTAT  National Statistical Institute  
ITC International Trade Centre  
ITEMA  Industrie Textile du Mali  
LOA Framework Law on Agriculture  
MDG Millennium Development Goals  
ODHD  Observatoire du Développement Humain Durable  (Sustainable Human Development Observatory)  
OHADA  Organization for the Harmonization of Business Law in Africa  
OHVN  Office de la Haute Vallée du Niger (Upper Niger Valley  Board ) 
OP Farmers' organizations  
PDES  Economic and Social Development Programme  
SCPC  Sociétés Coopératives des Producteurs de Coton  (Cotton producers' cooperatives)  
SYCOV  Syndicat des producteurs de coton et de cultures vivrières  (Cotton and Food Crop Producers' Union)  
TC Technical consultant  
UNCTAD  United Nations Conference on Trade and Development  
UN-SCPC  Union Nationale des Sociétés Coopératives des Producteurs de Coton  (National Union of Cotton 
Producers' Cooperatives)  
VAT Value added tax  
WTO World Trade Organization  
  WT/CFMC/W/87  
- 7 - 
  1  GENERAL FRAMEWORK OF THE STUDY  
1.1  Background and rationale of the study  
1.1.  This concept note presents the joint WTO, UNCTAD and ITC initiative on cotton by -products. 
The initiative responds to requests from developing countries, notably the Cotton 4 (C4: Benin, 
Burkina Faso, Chad and Mali) and other cotton -producing countries  in Africa , for technical assistance 
to develop value chains and markets for value addition through cotton by-products.  
1.2.  The initiative aims to integrate  poverty -reduction strategies and various development -oriented 
projects – notably the Cotton Roadmap Project – in order to improve the standard of living of women 
and the other most vulnerable and marginalized groups of economic operators in the cotton 
by-product value chains. The initiative  will therefore prioritize interventions that bring tangible 
effects in that respect.  
1.3.  Based on the respective mandates and exper tise of the WTO, UNCTAD and ITC, a joint initiative 
on cotton by-products can offer comprehensive assistance to cotton -producing countries. The 
initiative aims to assist countries in developing cotton by-products in order to  create new income 
streams for f armers and processors, increase domestic value  added and provide access to new 
markets. The initiative is based on consultations with donors, South –South cooperation partners, 
and other implementing agencies to avoid duplication and coordinate efforts on c otton by-products.  
1.4.  The three agencies propose a first  phase of work on the initiative from 2019 to 2020, consisting 
of a feasibility assessment in selected countries to be carried out through the new mechanism of the 
Enhanced Integrated Framework for regio nal projects, and culminating in a ministerial action plan 
to be adopted at the Twelfth WTO Ministerial Conference (MC12). The agencies will report to 
Members at the WTO's biannual Cotton Days, as well as in dedicated cotton events in Geneva and 
in the fie ld. 
1.5.  The initiative espouses a comprehensive approach to value addition, thus aiming to support 
cotton by-products' development in a more holistic framework.  
1.2  Rationale for investments in cotton by-products  
1.6.  Cotton is grown mainly for its fibre, or lint – the raw material in cotton textiles. Nevertheless, 
commercial applications exist for other parts of the cotton plant, such as the stalks, hu lls, cottonseed  
and short -staple fibres. In some countries, such as China, India and the United States of America, 
products derived from the non -lint parts of the plant have been commercialized, adding value and 
income, as well as reducing waste in the cotton value chain . In other countries, especially in Africa, 
due to a variety of constraints, fewer commercial cotton by-products exist – often only oil and meal 
from crushed cottonseed. Cotton by-products therefore represent an opportunity for producing 
countries to incre ase the benefits they derive from their cotton production. These benefits may 
include:  
• new income streams for farmers and processors;  
• increased resilience of farmers to external shocks, thanks to new income streams;  
• increased domestic value  added;  
• access to new markets;  
• an improved trade balance, through increased exports or import substitution; and  
• reduced waste in the cotton value chain.  
1.7.  Thanks to these benefits, value addition, including through cotton by -products, can contribute  
to the achieve ment of the Sustainable Development Goals  (SDGs) , such as Goal 8 (decent work and 
economic growth), Goal 9 (industry, innovation, and infrastructure) and Goal 12 (responsible 
consumption and production).  WT/CFMC/W/87  
- 8 - 
  1.8.  Recognizing these opportunities, many cotton -producing countries – notably the C4 and other 
countries in Africa – have expressed their intention to develop cotton by-products. Nevertheless, 
they underline their need for technology transfer and relevant technical assistance in relation to:  
• identifying priority by-products for development;  
• attracting public and private investment;  
• formulating enabling policies;  
• acquiring and adopting appropriate processing technologies and know -how; 
• putting in place the necessary infrastructure;  
• establishing sustainable supply an d distribution networks; and  
• formulating flanking policies.  
1.3  Aims of the study  
1.9.  The overall aim of the consultation is to conduct a feasibility study on the project concerning 
the transfer  of technologies and know -how for the development of cotton by -products in Mali.  
1.10.   The specific aims are:  
• to analyse the state of play of production and the market (including local (domestic), regional 
and global linkages where applicable) for all potential cot ton by-products;  
• to estimate the production potential for each cotton by -product based on the seed -cotton 
output in recent years;  
• to conduct stakeholder  analysis , including stakeholder mapping and an analysi s of stakeholder 
relations hips; and  
• to analyse th e policy environment influencing the development of cotton by-products.  
1.4  Study methodology  
1.4.1   Overall approach  
1.11.   The overall approach has been to capitalize on the available data and information on the 
Malian cotton sector through a literature review. These data were supplemented by surveys of plants 
that produce and process cotton by-products. A participatory approa ch has been used throughout 
the study to ensure stakeholder buy -in and involvement.  
1.4.2   Key stages of the study  
1.4.2.1   Literature review  
1.12.   The literature review involved consulting documents containing data and information relevant 
to the study. The documents consulte d were available online or were obtained from organizations 
and stakeholders involved in the cotton sector:  
• Mali Textile Development Company (CMDT);  
• Upper  Niger Valley Board (OHVN);  
• Cotton Programme of the Rural Economy Institute (IER);  
• National Directorat e of Trade and Competition (DNCC);  
• Confederation of Cotton Producers' Cooperative (C -SCPC);  
• National Federation of Oil and Livestock Feed Producers of Mali (FENAPHB) ; and  
• Integrated Framework Programme Implementation Unit (UMOCI).  WT/CFMC/W/87  
- 9 - 
  1.4.2.2   Data collection, data pro cessing and report production  
1.13.   Primary data were collected using survey questionnaires sent to cotton growers and cotton 
by-product production and processing plants ( Table  1). A team of interviewers was recruited to 
collect the data. The interviewers were given training on how to use the data collection tools and 
the aim of the study. To facilitate the study, before the data collection began a letter of introduction 
was sent to organizations and stakeholders involved in the cotton sector t o inform them of the aim 
of the study and the data that needed to be collected.  
1.14.   Despite the steps taken (letter of introduction, emails, phone calls, provision of interview 
guides, survey  questionnaire s, etc.), we experienced many difficulties contacting c ertain key 
individuals for the exchange and collection of the necessary information.  
1.15.   The survey on the utilization of cotton stalks was conducted with 90 cotton growers based in 
the Bougouni and Sikasso cercles  in the CDMT's South subsidiary  and the Koutia la cercle  in the 
North-East subsidiary . The results are presented in chapter 4. This survey complements the study 
already carried out by Kpadé  and others  (2019) covering 183 stakeholders in Mali: 120 cotton 
producers, 28 traders and 35 users of particle bo ard. 
1.16.   Data collection from production and processing plants for cotton by-products took place in 
Sikasso, Kignan, Koutiala, Ségou and Bamako. These places were selected based on the list of cotton 
by-product production and processing plants registered with FENAPHB and of local cotton by-product 
process ors. Of the 87 FENAPHB members, 48 crushing plants, or 55% , were surveyed  (Table 1 ). 
The sample was based on the availability of processing plants that had agreed to take part in 
interviews.  
1.17.   During the field missions, discussions were held with the various managers. A full list of 
persons interviewed is given in the annex.  
Table 1: Number of cotton by-product development units surveyed  
Stakeholders surveyed  Bougouni  Koutiala  Ségou  Sikasso  Total  
(n) (%) (n) (%) (n) (%) (n) (%) (n) 
Farms  30 33.3 30 33.3 - - 30 33.3 90 
Industrial crushing plants  - - 32 66.7 4 8.3 12 25.0 48 
Small -scale processing units (women's 
EIGs)  - - 32 72.7 - - 12 27.3 44 
Total surveyed  30 16.5 94 51.6 4 2.2 54 29.7 182 
1.18.   All the data obtained were processed, analysed and used to draft this report for submission 
to the commissioning party.  
2  BASELINE FOR THE STUDY  
2.1  The importance of the cotton sector and its role in Mali  
2.1.  Located between 4°15'00''W and 10°15'00''W and between 10°15'00''N and 14°15'00''N, Mali's 
cotton -growing areas cover some 150,000  km² with a population estimated to be around 8  million 
in 2017. The cotton -growing areas cover  the entire Sikasso region,  all the Bla and Baraouheli cercles  
and much of the Tominian and San cercles  in the Ségou region, the whole of the Kati, Kangaba, 
Dioïla and Koulikoro cercles  in the Koulikoro region, and the entire Kita cercle  in the Kayes region. 
They are spread over  four CD MT subsidiaries , as shown in Chart  1. The West subsidiary corresponds 
to the CMDT area in Kita plus the Bafoulabé cercle , with a possible extension into the Kéniéba cercle . 
Cotton growing is fairly new to this area. The Central subsidiary comprises  the CMD T area in Fana 
and the OHVN area. The South subsidiary is the southern part of the cotton -growing zone (the CMDT 
areas of Bougouni and Sikasso). The North-East subsidiary consists of the CMDT areas in Koutiala 
and San and corresponds to  a large part of the old cotton basin.  WT/CFMC/W/87  
- 10 - 
  2.2.  Cotton is a strategic commodity for Mali. It provides the rural population with a regular cash 
income. With almost 98 % of the lint exported, Malian cotton is a  real lever for local development 
and for  supporting the  structuring of rural communities. Small -scale and industrial processors 
process o nly around 2% of Mali's cotton lint output (CMDT, 2020). Yet, t he entire national output of 
cottonseed  is crushed by more than 70  oil mills, whose overall capacity far exceeds n ational 
production (more than 1 million tonnes of seed per year) (according to FENAPHB).  
2.3.  In addition to its financial role, cotton farming ensures food self -sufficiency for over 4.7  million 
people in the CMDT area (Bertea, 2019). At the macroeconomic level , cotton provides more than 
10% of government revenue and is the second largest source of foreign exchange, after gold 
(Hugon,  2005). This drive towards sustainable development in the cotton -growing zone must be 
pursued . It is the result of efforts by the CMDT , research bodies  and the State, which firmly supports 
a sector that is exposed to vicissitudes linked to the dollar exchange rate, fluctuations in the prices 
of inputs and lint, the effects of climate change and subsidies awarded to producers by certa in 
countries. The progress made is also thanks to the work of producers who have followed the national 
policy and accepted  the strategy of integrating cotton into their production system in a balanced 
manner , grown in  rotation with maize, millet  and sorghum. The development in cotton  farming , 
which  has outgrown the institutional framework and agrarian structures , has today transformed the 
face of villages and hamlets and led to the emergence of new towns. In economic terms , the target 
populations  have also improved their living standards, in particular through access to basic social 
services such as health care, education and drinking water (Berthé, 2019). The impact of cotton 
farming can be seen in many areas. For instance, the average distance t o the nearest school was 
reduced from 28  km in 1960 to 2  km in 2017, while the average distance to the nearest health 
centre was reduced from 60  km to 8  km over the same period . 
2.4.  The importance of the cotton sector cannot be addressed without touching on  the crucial issue 
of food security in a Sahelian country like Mali. In this connection , cotton output targets are always 
accompanied by a cereal production strategy, as a result of which crop rotations are used, with 
two cereal crops and a cotton crop. The r esults achieved in recent years have made the cotton zone 
the country's largest producer of cereals. The amount of cereal s produced on cotton farms has 
increased from less than 100 kg per person per year to more than 400  kg, while the food security 
thresho ld of the Permanent Interstate Committee for Drought Control in the Sahel (CILSS)  is 190  kg 
per person per  year. 
2.5.  Today  in Mali , cotton is cultivated by more than 200,000 farms, providing livelihoods to 
4 million people directly and 5  million indirectly. Ou tput in the 2017/18 crop season was more than 
728,600  tonnes, generating turnover of CFAF 182 billion from purchases of seed cotton and net 
revenue of CFAF 100 billion for producers. The cotton sector generates 15% of gross domestic 
product (GDP) and, depending on the year, 30 –45% of export revenue. Furthermore, the 
contribution to GDP growth is higher than the cotton sector's value added alone, thanks to the 
multiplier effect of the cash income injected into rural areas from the sale of seed cotton , in the form 
of demand for goods and services supplied by other sectors of the economy, including banking 
(cotton accounts for 80% of the stock of the National Agricultural Development Bank (BNDA)) and 
construction  and public works (the rehabilitation and ope ning of unpaved roads, transportation, 
etc.). With the money they earn from the sale of seed cotton, producers can acquire farming 
equipment  and finance the construction of  basic socioeconomic infrastructure (classrooms, input 
storage facilities, literacy centres, health centres and unpaved roads). Thanks to the cotton industry, 
the south of Mali has become the country's breadbasket, producing 2,440,336 tonnes of cereal crops 
(millet, sorghum and maize) in 2018 -19. The cotton zone accounts for at least 35 % of Mali's cereal 
production, with grain availability of 482  kg per person per year (CMDT, 2019).  WT/CFMC/W/87  
- 11 - 
  Chart  1: Geographical location of Mali's cotton zone  
 
2.2  Stakeholders in Mali's cotton sector  
2.6.  Mali's cotton sector has a range of stakeholders, including producers, the CMDT, the OHVN, 
the State, the IER, international partners, processors, suppliers of inputs, carriers and banks 
(including the BNDA and savings banks ). 
Producers  
2.7.  Producers are the cornerstone of the cotton industry. They are represented at the sectoral level 
by the Cotton Producers' Cooperatives (S -CPC) and at the national level by the National Union of 
Cotton Producers' Cooperatives (UN -SCPC), which was restructur ed on 5  September  2014 into the 
Confederation of Cotton Producers' Cooperatives (C -SCPC), in line with the Uniform Act on 
Cooperatives of the Organization for the Harmonization of Business Law in Africa (OHADA).  
The CMDT and the OHVN  
2.8.  The CMDT and the OHVN are the development agencies responsible for cotton production. Both 
organizations have management and training teams in the various subsectors.  
Research and training facilities  
2.9.  The IER and the Rural Polytechnic Institute for Training and Applied Research (IPR/IFRA) are 
the institutions that have signed a cooperation agreement with the CMDT to carry out research and 
development on cotton. As such, the two institutions are responsible for creating new technologies 
to develop the cotton sector, and the IER co tton programme receives regular funding from the CMDT. 
Among other achievements, that funding has enabled the development of suitable farming 
strategies, effective pest -control techniques and high -yield varieties adapted to the production area, 
such as the  NTA variety.  
WT/CFMC/W/87  
- 12 - 
  2.10.   The Textile Industry Research and Training Centre (CERFITEX) opened in 2004, replacing the 
École Supérieure des Industries Textiles  (Higher School of Textile Industries , ESITEX). Its mission is 
to provide initial and ongoing training and to promote research in the areas of textiles and related 
activities at the national, subregional and regional levels. Its primary purpose is to conduct research 
and provide training, education and skills development. The Centre serves other co untries in the 
subregion, since it supplies the textiles industry and related sectors with high -level management, 
design and implementation staff to roll out programmes and production techniques in the main 
subsectors of the textile industry. In Mali, the CMDT, IER and FENAPHB work closely with the Centre.  
Input suppliers (seeds, fertilizers, herbicides and insecticides ) 
2.11.   Input supplie rs are  approved companies who meet the specifications for the provision of 
agricultural inputs.  
Processors  
2.12.   The processors are : 
• the CMDT, through its ginneries, which turn seed cotton into lint and seed;  
• FENAPHB, which represents the various plants that process seed to make oil and livestock 
feed; 
• Compagnie malienne des textiles  (COMATEX), Bakari Textile Commerce et Industrie  
(BATEXCI) and Fils et Tissus Naturels d'Afrique  (FITINA), which are involved in processing lint 
and producing and marketing textiles (yarn, fabrics for upholstery and industrial  use, and the 
import and export of unbleached yarn and fabric ). 
Carriers  
2.13.   Cotton is transported by the CMDT's fleet of vehicles and private operators. The CMDT charges 
the same transport costs for all fields, irrespective of how far away from the ginnery they are located. 
According to an audit report on the CMDT's transport serv ices, this equal -costs system, which means 
that the  producers located furthest away are not  burdened with extra transport costs, requires a 
centralized body , a role  that no private enterprise would have the capacity or willingness to perform . 
2.14.   When the prod ucts go to market, seed cotton is transported together with the inputs, lint, 
seed and other products.  
2.15.   Lint from the ginneries is transported to the ports of Abidjan and Lomé solely by private 
carriers.  
Organizations involved in financing  
− Banks  
2.16.   The cotto n sector is financed mainly by local Malian banks, led by the Mali Development Bank 
(BDM -SA), supported by foreign  banks.  
2.17.   The BNDA provides loans to the C -SCPC for the purchase of agricultural inputs. The BNDA has 
gradually replaced the CMDT, which previo usly provided loans directly.  
− The Kafo Jiginew decentralized savings and credit network  
2.18.   Owing to the limitations of the CMDT -based lending system and the shortcomings in the 
BNDA's action on the ground, the decentralized network proposed by the cooperative bank , Crédit 
Coopératif , was supported by the Malian authorities (including the CMDT and the BNDA) and by 
some donors. Kafo Jiguinew  (which means Federation of Granaries in the Bambara language) was 
created in 1987 as a n association , incorporat ed under local law, and is based in Koutiala. The main 
aim of Kafo Jiguinew  is to create a network of funds in the cotton -growing  zone to be managed by 
its beneficiaries as a mutual association adapted to the local context , which will seek  to meet the 
savings and lending needs of the population.  WT/CFMC/W/87  
- 13 - 
  2.3  Literature review  and concepts behind  the terms "co -product", "by -product" and 
"derivative product" in the cotton sector  
Definitions of the terms co -product and by -product  
A co-product  is a material created intentionally and unavoidably, at the same time as the main 
product and as part of the same manufacturing process. The main finished product and the 
co-product must both meet certain characteristic specifications, and both must be re ady to be used  
immediately  for a specific purpose.  
 
Co-products are also characterized by their  economic value : the specific market of the co -product, 
pricing, etc.  
The term co-product  should not be confused with by-product . 
A by-product  is a residual pro duct generated during the manufacture or distribution of a finished 
product . 
• Some by-products  are unintentional, unpredictable or accidental, but they can still 
sometimes be used as is, or as an ingredient or raw material  in another production process fo r 
the manufacture of another finished product . 
• Other by-products  are intentionally harvested to be put to better use , though they may 
contribute very little to the profits generated ( for example, animal by-products from abattoirs 
(bones , horns , hooves  etc.)), or they may constitute only a small portion of the main product (e.g. 
metals and rare earths from the refinement of zinc ore and lead ore).  
Source : https://fr.wikipedia.org/wiki/Coprodu it 
2.19.   The cotton industry produces three main cotton by-products: seed, which is separated from 
the lint by ginning, and meal and hulls, which are by-products of cottonseed oil production. According 
to Tran (1994), producing 100  kg of lint generates 165  kg of seed, and 1 tonne of seed produces 
around 200 kg of oil, 300  kg of hulls and 500  kg of meal. 
• Seed -derived products  
✓ Cottonseed  destined for  animals may be whole, delinted (the linters are the fibres 
covering the hulls), or partially or fully decorticated. Whole cottonseed contains about 
22% protein, 20% fat and 28% crude fibre (dry -matter content) (Tran, 1994).  
✓ Cottonseed oil  is a vegetable o il extracted from the seeds in the cotton bolls. It is used 
as an edible oil, especially in Africa and Central Asia, but it also has many non -food uses, 
such as in cosmetics and for treating leather.  
✓ Cottonseed meal  is a highly variable product. According to Tran (1994), its average 
protein content is 42%, but can be anywhere between 28% and 58%; the crude fibre 
content ranges from 8% to 23%; the oil and fat content varies between 0.5% to 15%  
(dry-matter content) . In addition to the  variability of the  initial seed, it may also be  caused 
by the  technological treatments. For instance, the seed may be delinted before it is crushed 
to prevent the decorticators from jamming. Similarly, since an optimal proportion of hulls 
is needed for the presses to function pro perly, ginneries choose either to partially 
decorticate the seed or to reincorporate some of the hulls. The latter method normally 
produces meal with a lower fat content.  
✓ Soap:  soap is made from the black cake amassed at cottonseed processing plants.  
✓ Linters:  linters are very short fibres that remain attached to some cotton plants after 
ginning.  WT/CFMC/W/87  
- 14 - 
  ✓ Hulls : hulls and linters are highly cellulosic materials containing 53% and 86% cellulose, 
respectively (Tran, 1994). According to Tran, cotton hulls are relatively palatable  and can 
stimulate dairy cows' intake of feed rations that are low in fibre . 
• Stem -derived products  
✓ Particle board : production of particle board is not widespread in Mali according to the 
pilot project  implemented there  to utilize cotton stalks to manufacture particle board 
(Valorisation des tiges de cotonnier pour la fabrication des panneaux à particules  
(VATICOPP )). The project involved  three different groups: seed -cotton producers, particle 
board distributors and trade rs, and particle board users (artisans, carpenters, etc.).  
✓ Other products made by utilizing cotton stalks include paper pulp, medium -density 
fibreboard, mushroom substrate s, compost (manure), potash, heating oil, briquettes and 
fuel wood. In Mali, cotton s talks are utilized mainly as organic fertilizer or ruminant feed 
or to make potash. Cotton stalks are not currently marketed in Mali 
(Kpadé  and others , 2019).  
2.4  Current status of by -product production companies and technologies in Mali  
2.20.   Mali's cotton industry  produces three main cotton by-products: seed, which is separated from 
the lint by ginning, and meal and hulls, which are by-products of cottonseed oil production.  
2.21.   The CMDT has 18 ginneries.  
2.22.   Cottonseed is crushed by the production plants that produce oil a nd meal for livestock feed. 
In total, there are 96 of these processing plants, 87 of which belong to FENAPHB.  
2.23.   In addition to the crushing plants there are many women's EIGs , around 40 of which were 
included in the framework of this study , that employ an average of 5 women and a maximum of 10. 
These EIGs  recover the residues generated when cottonseed oil is refined (black and white cake) 
and use it as part of the process of manufacturing soap. No statistics are available concerning the 
number of EIGs that manufacture soap this way.  
2.24.   The company,  Sud Coton Textile  (SUCOTEX), based in Kignan in the Sikasso region, is working 
to develop the use of linters to manufacture pack aging material for cotton bales and floorcloths. The 
company was created to take advantage of  the opportunity to utilize the by -products of ginning and 
textiles to meet market demand for products used for industrial pack aging and to meet several other 
household needs . It operates two plants. The first, which opened in 2003, cleans s hort fibres called 
lint cleaner  waste, a by -product of ginning, and reconditions rejected fibres. The second, which came 
online in 2011, uses the non -weave technique to manufacture non -woven cloth from lint and rejected 
fibres, which is used for industrial pack aging, cloths for household use and furnishing. The cleaning 
and production plant can process 5,000 tonnes of raw material per year, which amounts to 
500 tonnes of finished products, which are packed in bales with an average weight of 230  kg. The 
plant exported everything it produced until the new knit fabric mill opened in 2011.  
2.25.   The number of company employees ranges from 40 to 100, depending on the season and the 
production programme.  
2.26.   For the moment, no company produces particle board from  cotton stalks. Producers in Mali 
use cotton stalks as organic fertilizer (49%), as ruminant feed (28%), for potash production (20%) 
and as building material  (3%) (Kpadé and others , 2019).  
2.5  Existing value chains of by -products and priority by -products  
2.27.   Much of the cotton produced in Mali is grown on family -run farms that also keep livestock and 
grow food crops.  
2.28.   Until the late 1990s, cottonseed was considered a burden by the CM DT plant warehouses, 
since there were not enough plants with enough capacity to proc ess all the seed obtained through 
ginning. During this period, the Mali Cottonseed Oil Plant (HUICOMA) was the only processing plant.  WT/CFMC/W/87  
- 15 - 
  2.29.   Since the FENAPHB plants started operations at the turn of the century, however, cottonseed 
has become a major player in M ali's economy. Cottonseed is the main raw material used by the 
FENAPHB plants to produce cooking oil and livestock feed ( meal). The sharp appreciation of these 
two processed products on international markets in 2012 opened up new prospects for cottonseed 
processing in Mali.  
2.30.   Cottonseed oil derivatives are particularly important for women in towns with cottonseed 
processing plants. White and black cake obtained when cottonseed oil is refined were sold for 
CFAF 25,000 and CFAF 15,000 per 200  litre barrel, respectively, to women who use them to make 
soap locally for  sale at  the market. This activity generated an estimated CFAF 15 billion in 2011, 
according to INSTAT -Mali ( Camara , 2015). It provides women who are excluded from the 
mainstream economy with the means to cover almost all of their food needs, and allows some of 
them to save through tontines  and other small shops.  
2.31.   Chart  2 shows the value chains of cotton products and co -products and the stakeholders in 
Mali's cotton sector.  
  WT/CFMC/W/87  
- 16 - 
 
Chart  2: Value chain mapping for cotton products and by-products in Mali  
 
Source:  Authors.  
 
 
WT/CFMC/W/87  
- 17 - 
  3  DIAGNOSTIC ASSESSMENT OF THE COTTON SECTOR IN MALI  
3.1  Situation in Mali  
3.1.1   Organi zation of the actors  
3.1.  The actors involved in the different stages of the production chain are examined below.  
3.1.1.1   Identification of actors involved and their roles in production  
− Producers  
3.2.  Producers are grouped in cotton producers' cooperatives  (SCPCs), which since 
5 September  2014 have been federated in the C -SCPC, pursuant to the Uniform Act on Cooperatives 
of the OHADA. The C -SCPC was created with 7,177 member CPCs, 41 sector unions of SCPCs, 
4 regional federations of SCPCs adhering to its statutes and covering the South (Bougouni -Sikasso), 
Northeast (Koutiala -San), Centre (OHVN - CMDT Fana) and West (Kita) subsidiaries . The 
headquarters of the C -SCPC is in Bamako. The number of cotton farms has increased steadily over 
the la st 10 years ( Chart  3). After a slight decrease between the 2012 -13 and 2013 -14 crop years, 
steady growth resumed and continued through 2019 -20, to exceed 200,000 ( 202,992 farms ). 
Chart  3: Number of supervised cotton farms  
Source:  CMDT 2019.  
3.3.  As an institution, the C -SCPC plays four main roles: (i) representing and defending the interests 
of all actors in the cotton sector vis -à-vis public authorities, communities and rural development 
partners; (ii) safeguarding and defending the m oral, professional and material interests of its 
members through concerted action at different levels; (iii) disseminating the information necessary 
to improve the activities of members and cotton producers; and (iv) conducting cooperative 
education activi ties. 
WT/CFMC/W/87  
- 18 - 
  3.4.  From an operational standpoint, the C -SCPC performs eight missions:  
− developing and adding value to cotton and cotton farmer income through sustainable use of 
natural resources;  
− supplying agricultural inputs and equipment to producers of cotton as wel l as food crops;  
− marketing seed cotton and delivering it to ginning plants;  
− conducting research and disseminating information on world cotton lint prices;  
− improving productivity and the quality of seed cotton;  
− involving producers in interprofessional mana gement of the sector and participation in capital;  
− processing agricultural products;  
− developing domestic and international partnerships with other sectors.  
3.5.  With the cotton sector 's restructuring, producers now have a 20% share in the capital of CMDT 
subsid iaries. Producers are also represented on the committee that sets producer prices for seed 
cotton, where they negotiate for the best price.  
− CMDT and OHVN  
3.6.  These are two development agencies concerned with cotton production and offering 
management and training teams for different segments of the sector.  
3.7.  The Mali Textile Development Company  (CMDT)  is the cotton sector 's largest company. It 
is dedicated to developing cotton -growing areas and thereby improving living standards, particularly 
for farmers. CM DT's main activities are: 
− agricultural advisory assistance for cotton producers: an integrated development mission 
focused on cotton -related activities, including agricultural extension, cotton research, the 
placement of seeds, the maintenance of rural tra cks and the monitoring and evaluation of 
such activities ; 
− the primary marketing of seed cotton ; 
− the transport and ginning of seed cotton ; 
− the sale of cottonseed to local processing industries ; 
− the sale of cotton lint for export and to Malian textile industries.  
3.8.  The CMDT also furnishes seeds for planting, insecticides and fertilizer for the following growing 
season according to producer needs. The CMDT sells other inputs to producers at a price equal to 
the cost of purchasing them plus its related expe nses (cost price). Since the 1994 -95 crop year, the 
sale price for such inputs has always been lower than the cost price, and the gap has been increasing. 
This means that the CMDT is indirectly subsidizing the purchase of inputs and part of the related 
taxes.  
3.9.  The CMDT also engages in cottonseed processing through its 18 ginning plants and in marketing 
the cotton lint. Following its privatization, the CMDT has been restructured into four regional 
subsidiaries:  
− the North-East subsidiary comprises Koutiala an d San ; 
− the South subsidiary covers Bougouni, Sikasso, Kignan and Koumantou ; 
− the Central subsidiary covers Fana, Dioila, Bamako, Ouéléssébougou and the OHVN area ; 
− the Western subsidiary covers Kita.  
3.10.   The CMDT is a semi -public corporation created in 1974. Its  capital, largely State -owned 
(99.49%), amounts to more than CFAF  7.9 billion. The French company GEOCOTON holds the other 
0.51%. On 11  June 2010, the State transferred 20% of the capital in the company 's four subsidiaries 
to the SCPCs (CMDT, 2014).  WT/CFMC/W/87  
- 19 - 
  3.11.   As of year-end 2018, the CMDT employed 1,717 permanent and 3,407 seasonal workers. Its 
Board of Directors has 11 members: 8 representing  the State, 2 cotton producers and 1 GEOCOTON. 
The company is managed by a Chief Executive Officer supported by 7  central mana gers and 
5 subsidiary managers (for the 4 regional subsidiaries plus the Cotton Classing Office in Koutiala). 
The company today has 18 ginneries with total ginning capacity of 640,000 tonnes of seed cotton 
per year ( Table 2 ). 
3.12.   The Upper Niger Valley Board (OHVN ) operates in the cercles  of Koulikoro, Kati and 
Kangaba around Bamako. It was designated in 1991 as a public administrative body with the mission 
of promoting the development of food and industrial crops in its area of operations. The OHVN also  
performs a public service mission in supporting production; local natural resource and land 
management; rural planning, infrastructure and structuring/organization; and the monitoring and 
evaluation of development activities. The OHVN has the same mandate  in its area of operations as 
the CMDT: to collect all marketable cotton production. The inputs and seeds used in the OHVN area 
are supplied by the CMDT, which also receives deliveries of all output. The cotton purchase price 
paid to producers is the same throughout the country. Similarly, the OHVN sells inputs at the same 
prices as the CMDT.  
3.13.   Trends in seed cotton production by the CMDT 's subsidiaries and the OHVN are shown in 
Chart  4. 
Chart  4: Seed cotton production by CMDT subsidi aries and the OHVN  
 
Source:  CMDT 2019.  
  
 - 50,000 100,000 150,000 200,000 250,000 300,000 350,000Cotton Production (tonnes)
South North-East Centre West OHVNWT/CFMC/W/87  
- 20 - 
  Table 2: CMDT ginneries and ginning capacity  
No. CMDT 
subsidiary  Ginnery  Year established  Ginning capacity  
(tonnes/year)  
1 West Kita 1995-96 45,000  
2 Centre  Bamako  1966-67 15,000  
3 Centre  Fana 1969-70 35,000  
4 Centre  Dioila  1979-80 52,000  
5 Centre  Ouéléssébougou  2004-05 45,000  
6 North -East Koutiala -1 1961-62 7,000  
7 North -East Koutiala -2 1965-66 22,000  
8 North -East Koutiala -3 1971-72 35,000  
9 North -East Koutiala -4 1995-96 52,000  
10 North -East Karangana  1985-86 35,000  
11 North -East Kimparana  1963-64 7,000  
12 South  Kignan  1996-97 52,000  
13 South  Sikasso -1 1964-65 20,000  
14 South  Sikasso -2 1979-80 52,000  
15 South  Koumantou  1990-91 52,000  
16 South  Bougouni -1 1976-77 17,000  
17 South  Bougouni -2 1996-97 52,000  
18 South  Kadiolo  2018-19 45,000  
Total for CMDT  640,000  
Source:  CMDT, 2020.  
− COPACO Cotton Company  
3.14.   COPACO is responsible for negotiating contracts for the sale of cotton lint under the best 
conditions and helping to formulate and implement CMDT marketing policies. It receives 0.5% of 
sales contract value as remuneration for these services.  
− Research, training, outreach  
3.15.   The cotton research programme is governed by a protocol between the CMDT and the IER, 
which covers research and development activities in the following areas:  
− varietal selection and adaptation ;  
− agronomy and adaptation of agricultural technology and methods ;  
− pest control and adaptation of related p rotection technologies and methods.  
3.16.   With respect to crops rotated with cotton (maize, millet, sorghum, etc.), other diversification 
crops and the maintenance of productive potential, the IER takes action upon request, according to 
the CMDT 's needs.  
3.17.   The research support projects financed by the CMDT to date have focused on the following 
areas:  
• the development of more efficient cotton varieties ; 
• the study of regionalized approaches to fertilizer made from the cotton plant ; 
• research into the integrated cont rol of insect pests ; 
• economic assessment of the impact of research on cotton varieties.  
3.18.   To date, five varieties have been developed through this research and disseminated by the 
CMDT in its areas of operation.  WT/CFMC/W/87  
- 21 - 
  3.19.   Training is provided for four target groups:  
• Technical teams at the village level: according to its annual report, the CMDT plans to retain 
five such teams (for outreach, management of means of production, marketing, natural 
resource management, and training and organization) plus a coordinat ion team. Each team is 
trained to perform specific tasks.  
• Farms: producers are trained in technical areas of general importance. Farm representatives 
are invited to attend the training sessions, which take place in the villages. Village resource 
persons ar e assigned a particular topic on which to provide training for new farming operations 
and retraining for existing ones.  
• Resource persons from the farmers' organizations (OPs): the training in this case is for 
resource persons playing an active role in OPs.  They include leaders of village associations  
and groups, socio -professional associations, management organizations and women 's groups.  
• Rural artisans and partners: persons designated by the village to specialize in a specific field. 
Such specializations n ot only help to boost incomes but also provide a service to farms.  
− Investment policy  
3.20.   Investment policy affects research, training, outreach, credit, land tenure, processing, rural 
engineering and transportation. Starting with research, efforts are underwa y to develop more 
efficient varieties.  
3.21.   Credit pertains to inputs and equipment. For inputs, the general policy seeks to improve the 
efficiency of procedures and lowering input -related costs. Sales prices are paid in cash and on credit. 
The amounts are a f unction of production quotas for seed cotton.  
3.22.   Since the cotton crisis in the 1990s, the CMDT 's industrial strategy has been to encourage 
cotton varieties with higher ginning outturns. The strategy has seen two distinct phases: before and 
after the 1999 cr isis. Following the devaluation of the CFA franc in 1994, the CMDT reshaped its 
marketing policy around two main goals: quantitative, to guarantee high cotton production volume; 
and qualitative, to rebuild the image of the Malian cotton brand.  
3.23.   In its purs uit of both these goals, the CMDT has invested heavily over the past five years – 
some CFAF 60 billion – to bring online four new ginning plants and modernize three others.  
3.24.   With respect to regional engineering, the State 's public service mission is confin ed to 
subsidizing lowland development and maintenance of rural tracks.  
− State subsidies for the sector  
3.25.   As part of the effort to reduce fiscal exemptions under the Structural Adjustment Plan (SAP), 
and to further the 1  April 2000 reform of the General Tax Co de, the tendency now is to gradually 
restore the application of common law to certain segments of the cotton sector. This is particularly 
so for the CMDT and the BNDA – apart from the current grace period granted to the CMDT  for the 
payment of certain taxe s, on account of the crisis.  
3.26.   With respect to the BNDA, which was previously exempt from the goods and services tax 
(GST), the cost of farm credit is now burdened by a new 15% financial activities tax (FAT). In view 
of producers ' high debt and low income levels, improving farmer solvency requires serious reflection. 
Given the difficulties observed during the last two crop years (2018 -19 and 2019 -20), linked to 
rainfall problems, the following proposals could be considered on a cas e-by-case basis, according to 
each situation, including debt rescheduling, settlement of arrears by the State or other partners, an 
increase in producer prices and production -linked subsidies.  WT/CFMC/W/87  
- 22 - 
  3.27.   Measures already being taken by cotton sector leaders to improv e the solvency of small -scale 
producers include the following : 
• continued State price subsidies for cotton and cereal fertilizer, expanded to cover natural 
phosphates (PNT) and agricultural lime ; 
• timely removal and ginning of and payment for seed cotton fro m the previous crop year 
(before the end of April) ; 
• timely supply of sufficient levels of agricultural inputs ; 
• debt rescheduling in areas affected by adverse weather ; 
• soil improvement in cotton -growing areas.  
3.28.   Consideration of the following is recommended:  
• the use of fuzzy cottonseed in areas where the start of crop year is difficult, particularly in the 
North -East; 
• a change in the use of subsidies (to subsidize production rather than inputs) ; 
• support for producers in establishing supplementary irrigation systems.  
− Subsidi zing production factors (inputs, equipment, etc.)  
3.29.   With respect to the CMDT, the cost of providing service inputs (the purchase and distribution 
of fertilizer, herbicides, insecticides and farm equipment) exceeds total receipts fr om sale of the 
inputs. This deficit constitutes a subsidy for cotton and cereal production. Until the 1991 -92 crop 
year, that subsidy was financed , at least partially , by the Netherlands, by a KfW line of credit and 
by a grant from the CMDT. The subsidy ha s helped to encourage the use of inputs at a time of 
stabili zing cotton prices.  
3.30.   During the 2009 -10 crop year, several West African governments, including Mali, subsidized 
inputs made much costlier by a spike in oil prices that year. The sale price for fertilizer was set at 
CFAF 12,500 per 50  kg bag, or CFAF  250,000/tonne, or CFAF  250/kg. For the 2009 -10 crop year the 
subsidy for the cotton zone was CFAF  51,742/tonne, or CFAF  52/kg, dropping to CFAF  40,421/tonne, 
or CFAF  40 /kg, in 2011 -12, before rising  to CFAF  56/kg in2012 -13. 
− Domestic taxes  
3.31.   The special regime that the State once allowed the cotton sector to enjoy is now giving way 
to the common law system, as a consequence of the economic reforms under way. The same is 
happening in the cotton sectors o f neighbouring countries (Burkina Faso and Benin).  
3.32.   The CMDT, for instance, does not have the right to make temporary imports, which penalizes 
it relative to other cotton -producing countries. In addition, cotton lint has not been subject to value 
added tax (VAT) since the signature of the 1986 framework contract. The country 's special import 
tax has also been a burden for the CMDT balance sheet right up to the current crisis. Added to that 
are registration fees and stamp duties amounting to CFAF  2 billion. T he CMDT 's most recent 
investments are considered upgrades and thus do not benefit from advantages in the 
Investment  Code. The CMDT is granted a grace period, however, for the payment of certain taxes 
under the government 's crisis recovery measures.  WT/CFMC/W/87  
- 23 - 
  3.33.   The imp act of the reform of the General Tax Code of 1  April 1999, the changes made to VAT 
and the special tax on certain products (ISCP), and the abolition of the contribution for providing a 
service (CPS), has been as follows:  
− The impact of the reform on inputs,  farming equipment and cottonseed for planting has been 
neutral, as these products remain exempt from VAT and the ISCP rate is equal to that of the 
discontinued CPS.  
− Agricultural credit transactions were exempt from the GST but are subject to the new  
15% FAT. 
− The situation for seed cotton is unchanged: the CMDT does not have to pay VAT or the ISCP.  
− For cottonseed sold locally, the 5% CPS (from which they were already exempt) has been 
abolished but VAT has increased from 15% to 18%.  
− Cotton is not subject to VAT, which is therefore not deductible for local sales or exports. This 
arrangement, which significantly affects the VAT tax credits the CMDT might wish to claim, 
was suspended for the duration of the interim framework contract signed in 1999.  
− For oil mill  products, the increase in VAT (from 15% to 18%) is what is most important, since 
these products were in any case exempt from the discontinued 5% CPS.  
− The situation is exactly the same  for textiles. However, the right to the deduction for exports, 
has been  maintained exceptionally, since textile products are subject to VAT when sold locally.  
− In all cases, exports continue to be exempt from VAT.  
3.1.1.2   Identification of stakeholders and roles i n activities following the harvesting of 
cotton crops  
3.34.   The activities that take place after cotton is harvested are largely performed by the CMDT 's 
logistical office. This office organizes the collection and transport of seed cotton from the producers ' 
villages to the ginneries, and then the transfer of the lint sold from the ginneries to various West 
African ports for shipment abroad.  
3.35.   The seed cotton is collected from producers and transported to the plants  by the OPs, for a 
price paid by the  CMDT, since the importance of O Ps and the legitimacy of the CMDT members have 
been recognized. This work also includes weighing and storing the cotton.  
3.36.   The CMDT pays the OPs CFAF  5,000/tonne for the work of collecting, weighing, storing and 
loading the co tton, plus an additional CFAF  500/tonne for OPs participating in the rural management 
programme (PGR), established by the CMDT and the State to strengthen OP managerial capacities. 
This brings the total to CFAF  5,500/tonne. In 2019, the cost of transportin g seed cotton was 
CFAF 105 x cotton tonnage x distance. Trucks carrying fertilizer on their way to pick up  the cotton 
are paid CFAF  32 x fertilizer tonnage x distance.  
3.37.   The seaports used to ship the lint are Abidjan (Côte d'Ivoire), Dakar (Senegal), Conakry  
(Guinea), Lomé (Togo) and Tema (Ghana). For each crop year, the CMDT signs a contract with a 
maritime transport group to receive the goods in its warehouses at different ports and load them for 
shipment to customers. Between 2008 and 2018 this function wa s performed by the Bolloré transport 
group operating out of various West African ports.  
3.38.   The transport of cotton lint from plants in the southern region to the port at Abidjan is 
performed entirely by private transporters. The transport of cottonseed purcha sed by crushing units 
is provided by the units themselves.  WT/CFMC/W/87  
- 24 - 
  3.1.1.3   State interventions and roles in and subsidies for the cotton sector  
3.39.   The development and use of subsidies for agricultural inputs occurred gradually. They were 
initially applied to rice in the 200 8-09 crop year and were then extended to other crops (wheat, 
maize, cotton and millet -sorghum) in the 2009 -10 crop year. National development policies have 
barely changed since then and remain marked by the Millennium Development Goals (MDGs) and 
the natio nal Strategic Framework for Growth and Poverty Reduction (CSCRP), Framework Law on 
Agriculture (LOA) and Economic and Social Development Programme (PDES).  
Security situation in Mali  
3.40.   The socio -political and security crisis that the country is going through has led to growing 
insecurity nationwide, although the cotton zone has not been particularly affected. On the contrary, 
producers in the central regions, and especially the Dogon country, who are known to be hard 
workers, are migrating southward, taking wo rk in the CMDT 's South (Sikasso and Bougouni) and 
West (Kita) subsidiaries. Production in those two subsidiaries has increased over the past five years.  
3.41.   However, t heir arrival has not been without incidence for the peace of mind of producers living 
in those areas, with conflicts arising between locals and newcomers, mainly over appropriated land.  
3.1.1.4    Seed cotton pricing: process and actors involved  
− Seed cotton pricing mechanism  
3.42.   As Mali 's institutional framework and socio -economic conditions have changed o ver the years, 
its cotton sector has seen several types of mechanism for setting producer prices.  
− 1974 to 1988  
3.43.   During this period, the tasks assigned to the CMDT were agribusiness -related, ranging from 
seed cotton production to its processing into lint (gi nning). Marketing of the lint was assigned to 
another state -owned company that had a monopoly over import and export activity (SOMIEX). The 
purchase price of seed cotton was fixed during this period by a Council of Ministers decree adopted 
just prior to ea ch marketing year (ODHD, 2009).  
− 1989 to 2000  
3.44.   During this period, three framework contracts were signed: (1) between the State and the 
CMDT covering 1989 -94; (2) between the State, the CMDT and producers (represented by their 
union, Syndicat des producteurs  de coton et de cultures vivrières  (SYCOV)) for the years 1994 -98; 
and (3) between the State, the CMDT and producers from 1999 to 2000.  
3.45.   In addition to the mechanism for setting the price of seed cotton, the framework contract 
monitoring committee would det ermine the cotton company 's objective costs. A floor price, set for 
the duration of the framework contract, was intended to cover the farmer 's production costs. A 
portion of the net profit (35%) was paid to the producers as a rebate for the following seaso n's 
production. The State received 30% and the CMDT 35%. Under the last framework contract, the 
rebate paid to producers was increased to 40% of the net margin.  
3.46.   The stabilization fund, replenished during surplus years, was meant to be used to cushion 
exoge nous shocks resulting from fluctuations in world prices (ODHD, 2009).  
− 2001 to 2004  
3.47.   The price setting mechanism used during the different framework contracts could not 
withstand the sudden drop in world prices during the 1999 -2000 crop year. That crisis was  
exacerbated by a producer boycott of cotton leading to a drop in production the following year 
(2000 -01). WT/CFMC/W/87  
- 25 - 
  3.48.   One of the important measures provided for in the action plan of the Cotton Sector 
Development Policy Paper (LPDSC) was to establish a mechanism for determining seed cotton 
producer prices that would factor in both world and subregional prices. In application of that 
measure, a mechanism, adopted by Interministerial Order No. 02 -1445/MDRE -MEF-MICT of 
5 July 2002, was applied for the 2002 -03 through 200 4-05 crop years. The mechanism for 
determining producer prices took into account the CMDT 's seed cotton production costs 
(ODHD,  2009).  
General principles  
3.49.   The mechanism for determining producer prices was based on eight principles:  
(a) the close connection between domestic and world prices;  
(b) the balanced, negotiated distribution of the sector 's economic surpluses (or deficits) between 
producers and cotton compan ies; 
(c) the precise definition of the sector 's price fluctuation risks and how they should be treated;  
(d) whether agricultural producers and cotton companies could bear the price fluctuation risk;  
(e) additional compensation for those actors willing to shoulder a g reater share of the risk;  
(f) the need to transmit international market signals to producers as early as possible;  
(g) the creation of a space for negotiations among the actors that should lead to the 
announcement of the cotton price for the crop year, prior to p lanting;  
(h) the creation of strong incentives for good management for both farmers and processors.  
3.50.   The mechanism set three types of price:  
− Guaranteed minimum price , or what producers were to receive irrespective of world prices. 
This price was set for three -year periods subject to annual adjustment based on changes in 
the cost of labour, farm equipment and inputs.  
− Initial price for the crop year , announced prior to planting. This was what producers 
received during the seed cotton marketing year. This price w as negotiated between producers 
and cotton company.  
− Final price for the crop year , determined in May -June of the following year, taking into 
account the world purchase prices for cotton lint in the light of the asking price. This price 
served as the basis for calculating any additional remuneration for producers.  
− 2005 to 2007  
3.51.   The difficulties encountered in implementing the mechanism led to its replacement by 
another, set out in a memorandum of understanding between the State, the CMDT and producers, 
signed  on 13  January  2005. The new agreement introduced a radical change, namely that the base 
price of Malian cotton would henceforth be linked to world prices (Cotlook A Index) instead of being 
based essentially on production costs (Nubukpo and others, 2005). This mechanism, which was 
applied from the 2005 -06 to the 2007 -08 crop years, was based on three principles:  
• The manner in which the purchase price paid to seed cotton producers was determined 
sought to foster the sustainable development of Mali 's cotton sector while balancing the 
interests of different actors, encouraging them to improve their performances and limiting 
budgetary risks.  
• The final price for the crop year was calculated on the basis that the sector 's gross income 
would be shared between the producers (60%) and the CMDT (40%).  
• The support fund was used to achieve relative flexibility in setting the initial price (and not 
as a prerequisite for applying the pricing mechanism).  The mechanism operated 
irrespective of the support fund's level of replenishment.  WT/CFMC/W/87  
- 26 - 
  3.52.   The memorandum expressly provided for:  
− The setting of a base purchase price each year prior to sowing and no later than 30  April 
of each year within a targeted price range. F or the first three crop years (2005 -06 through 
2007-08) the range extended from CFAF 160/kg to CFAF 175/kg for top -grade seed cotton, 
with discounts of CFAF 25/kg and CFAF 45/kg for second -grade and third -grade, 
respectively.  
− A situation assessment in August of each year: if the producers' projected final 
remuneration was below the base price set before 30  April year N, this price had to be 
reduced prior to the start of the procurement season and no later than August of that 
year. 
− The dist ribution of any surplus (where producers' final remuneration exceeded the base 
price) between replenishing the support fund and paying the price supplement; the 
producers, as the owners and managers of the support fund, determined how the surplus 
was distr ibuted.  
− The reimbursement of the CMDT from the support fund for any deficit (where final 
remuneration fell below the base price), with th at amount not to exceed the amount 
allocated to the fund.  
− The long -term sustainability of the country 's cotton sector, considered a key enabler in 
driving economic growth within the framework of the poverty reduction strategy, and 
which is the main rationale for a seed cotton price support mechanism.  
3.53.   The mechanism was intended to prevent falling lint prices from directly a ffecting seed cotton 
prices, to avoid destabilizing the sector during times of crisis and to limit the impact of crises on 
public finance.  
− 2008 -09 to 2019 -20 
3.54.   Since 2008, the purchase price of seed cotton has been fixed using the new mechanism.  
Base purcha se price of seed cotton  
3.55.   The base producer purchase price for seed cotton (PACG), fixed in accordance with the 
provisions of the current memorandum for the 2019 -20 crop year, is CFAF 275/kg for top -grade 
seed cotton, with discounts of CFAF 25/kg and CFAF 4 5/kg for second - and third -grade, respectively. 
The PACG was announced late in 2019 -20. 
3.56.   The PACG is announced prior to sowing each year, no later than 30 April.  
Distribution of sector revenues  
3.57.   Given its current cost structure, the sector 's gross income ha s been distributed between 
producers and the CMDT in the following proportions: for the producers, A  = 60%; for the CMDT,  
1-A = 40%.  
3.1.2   Ten-year performance assessment (2010 -18) 
3.1.2.1   Production of seed cotton, cotton lint and cottonseed  
3.58.   Table 3  provides information on cotton production in Mali from 2010 to 2018, a period marked 
by upward trends in various cotton production indicators in the country. For the last seven crop 
years, cotton production has grown steadily, from 449,646 tonnes in 2012 -13 to 728,606  tonnes in 
2017-18. The main reasons for this growth are the incentive prices adopted for seed cotton and the 
easy access to agricultural inputs and equipment. The cotton system 's cropping intensity has also 
been strengthened by about 170% for  seed cotton and 219% for cottonseed, the raw material for 
producing oil and meal. Seed cotton production for the 2019 -20 crop year is estimated at 
631,300  tonnes.  WT/CFMC/W/87  
- 27 - 
  Table 3: Production and prices of seed cotton, cotton lint and cot tonseed over the last 10 
crop years  
Crop year  
 Seed cotton  Lint Cottonseed/oil  
Production 
(tonnes)  Producer 
price 
(CFAF/kg)  Production 
(tonnes)  Sales price 
(CFAF/kg)  Production 
(tonnes)  Sales price 
(CFAF/tonne)  
2009 -10 228,999  184 96,488  740 109,175  100,300  
2010 -11 243,582  205 103,403  891 109,148  100,500  
2011 -12 445,314  275 186,750  1,251  219,850  101,000  
2012 -13 449,658  255 191,626  897 213,910  103,000  
2013 -14 440,027  255 184,189  930 212,852  101,000  
2014 -15 548,722  235 232,668  788 266,600  103,000  
2015 -16 513,536  243 215,447  853 243,930  103,000  
2016 -17 647,257  257 264,376  913 322,025  92,000*  
2017 -18 728,606  265 298,692  1,029  366,105  108,560  
2018 -19 656,531  265 275,758  1,030  311,600  106,200  
* Exempt from VAT.  
Source:  CMDT 2020.  
3.59.   Despite this growth in cotton production, however, the CMDT has not been able to meet the 
demand for cottonseed from oil and livestock feed production units. That is why, given these by -
products ' importance for job creation, the Government of Mali has adopted a protectionist policy 
permitting the sale of cottonseed to domestic companies only. For each crop year, the Ministry of 
Industry and Trade draws up a list of production units authorized to p urchase seeds at the level of 
the CMDT.  
3.60.   Cottonseed yields between 2010 and 2019 are shown in Chart  5. 
Chart  5: Average cottonseed yields , 2010 -19 (kg/ha)   
 
Source:  CMDT, 2020.  
984   
932   
853   900   1,007   
926   916   1,035   
940   936   
 - 200 400 600 800 1,000 1,200YIELD (KG/HA)WT/CFMC/W/87  
- 28 - 
  3.61.   More than half of the firms surveyed said that their raw material needs of cottonseed are not 
being met ( Chart  6). The number of plants far exceeds the CMDT 's current capacity to supply 
cottonseed. Meanwhile, 50% of firms report that they are satisfied with the quality of the raw 
material ( Chart  7). 
Chart 6: Degree to which industrial units are satisfied that their raw material 
(cottonseed)needs are being met 
 
Source:  Field survey data, October 2019.  
Chart  7: Degree to which industrial units are satisfied with the quality of the raw 
material (cottonseed)  
 
Source:  Field survey data, October 2019.  
52.1%
29.2%
18.8%
0.0%
Not satisfied Somewhat satisfied Satisfied Very satisfied
4.2%37.5%50.0%
8.3%
Not satisfied Somewhat satisfied Satisfied Very satisfiedWT/CFMC/W/87  
- 29 - 
  3.62.   During the 2008 -09 crop year, the price of cottonseed reached the record level of CFAF 
101,000/tonne, irrespective of the quantity purchased. Prior to that crop year, prices had been set 
according to the quantity purchased – the larger the quantity, the more attractive the price. The 
price therefore rose from CFAF 38/kg in 2001 -02 to CFAF 103/kg  in 2012 -13, an increase of 276% 
(Chart  8). 
3.63.   Between 2005 and  2007, following a rise in the selling price per kilogram of seed cotton, the 
government provided support for oil processors by exempting the CMDT from VAT, which effectively 
lowered the price considerably: from CFAF 54/kg in 2004 -05 to CFAF 36/kg and CFAF  30/kg in the 
following two crop years ( Chart  9). Since the 2007 -08 crop year, however, the price has been rising 
steadily every year, explained to a lesser extent by the end of the CMDT 's VAT exemption but mainly 
by the limited supply relative to ever -growing demand from domestic seed crushing plants.  
Chart  8: Price of cottonseed sold to processing units, 2009 -19 (CFAF/kg)  
 
Source:  CMDT, 2020.  
Chart  9: Quantities and average prices for cottonseed supplied to crushing units as a 
function of availability  
 
Source:  Field survey data, October 2019.  
 80.0 85.0 90.0 95.0 100.0 105.0 110.0Price (CFAF/kg)
Crop year
 50,000 60,000 70,000 80,000 90,000 100,000 110,000 120,000
 - 1,000 2,000 3,000 4,000 5,000 6,000 7,000 8,000 9,000
Abundance Average availability Scarcity
Average purchase price (CFAF/tonne)Average quantity supplied (tonnes)
Average quantity supplied Average purchase priceWT/CFMC/W/87  
- 30 - 
  3.64.   The CMDT is currently the main source of cottonseed for the country 's crushing units. 
However, to meet their needs, 77% of the units surveyed obtain additional supplies from Benin and 
Côte d 'Ivoire ( Chart  10). 
Chart  10: Sources of cottonseed supplied to crushing units (%)  
 
Source:  Field survey data, October 2019.  
3.1.2.2   Estimated availability of cottonseed oil  
3.65.   The availability of cottonseed oil has be  estimated to determine domestic production potential, 
based on data collected from a sample of production plants . Table  4 contains information on 
indicators for these production plants . The plants  surveyed have been in operation for an average 
of nine yea rs with average daily production capacity of 84 tonnes of cottonseed. More than a quarter 
of these plants  have an average daily production of more than 100 tonnes. The plants  contribute to 
job creation by recruiting an average of 12 permanent and 73 casual  workers.  
Table 4: Characteristics of the 47 processing plants  surveyed  
Variables  Avg. Min. Max.  
Average number of years in operation  9 3 21 
Daily production capacity (tonnes)  84 10 640 
Total work force  85 7 310 
Number of casual workers  73 7 260 
Number of permanent workers  12 0 90 
Source:  Field survey data, October 2019.  
3.66.   In 2018, the average quantity of cottonseed supplied to the plants  per year was  10,484 
tonnes, equivalent to around 49% of average estimated annual needs (21,439 tonnes) ( Table  5). 
Table 5: Average supply of cottonseed per processing plant  and their average estimated 
annual needs in 2018 (tonnes)  
Cottonseed  Year No. of plants  Average  Minimum  Maximum  Total  
Quantity supplied  2018 47  10,484  1,000  40,000  492,747  
Estimated need  2018 47  21,439  2,000  80,000  1,007,640  
Source:  Field survey data, October 2019.  
100
77 77
842
CMDT Benin Côte d'Ivoire Togo Burkina Faso GuineaWT/CFMC/W/87  
- 31 - 
  3.67.   The data collected permitted the annual quantity of oil produced by the processing plants  to 
be determined ( Table  6). The results show an upward trend in oil production.  
Table 6: Quantities of oil produced per processing plant  surveyed over the last three 
crop years (litres)  
Year No. of  
plants  Average  Minimum  Maximum  Total  
2018 47 933,469  720 4,550,000  43,873,040  
2017 47 837,890  720 3,700,000  39,380,830  
2016 46 731,933  688 3,000,000  33,668,923  
Source:  Field survey data, October 2019.  
3.68.   The evolution of the average sales price of oil is shown in Chart  11. After long remaining at 
CFAF 800/litre, it rose sharply in 2007 and 2008 to CFAF 1,020/litre, before falling to CFAF 890/litre 
in 2015.  
Chart  11: Average sales price of oil (CFAF/litre)  
 
Source:  Data obtained from "mali.countrystat".  
3.1.2.3   Estimated availability of cottonseed meal  
3.69.   The meal obtained from crushing cottonseed provides a very good feed supplement for 
ruminants. Three types of meal are produced, each corresponding to a different method of 
cottonseed oil extraction:  
− Batch processing, using a hydraulic press at low temperatures (60 -80°C), yields meal but in 
small q uantities: between 8% and 12% of the ginned cottonseed by weight. Manufacturers 
have virtually abandoned this technique today (Rivière,  1991).  
− Continuous processing using an oil expeller, whereby seeds are crushed and passed through 
a perforated cylindrica l tube heated to 90°C. A set screw allows the oil to be expelled from 
the cylinder. The cylinder temperature can reach as high as 120°C, which can alter the quality 
of the meal produced.  
− Solvent extraction yields meal with a relatively low fat content. Thi s method uses an inert 
volatile liquid that is able to dissolve the seeds effectively.  
 - 200 400 600 800 1,000 1,200
2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015CFAF/LITRE
YEARWT/CFMC/W/87  
- 32 - 
  3.70.   The quality of meal varies considerably depending on whether it is produced through industrial 
or small -scale processing. Average protein content is 42%, but can vary b etween 28% and 58%, 
fibre content ranges between 8% and 23% and fat, between 0.5% and 15% (dry -matter content). 
Meal produced by small -scale processing contains varying amounts of oil and is more likely to contain 
traces of gossypol, a pigment present in l arge quantities in cottonseed kernels that is potentially 
dangerous for animals, so the use of such meal for livestock feed can be problematic.  
3.71.   Average meal production by the processing plants  surveyed is shown in Table  7. 
Table 7: Estimated meal production by the plants  surveyed (tonnes)  
Year No. of plants  Average per plant  Minimum  Maximum  Total  
2018 47 8,374  800 30,000  401,943  
2017 47 7,696  600 28,000  369,394  
2016 46 6,579  400 26,000  309,191  
Source:  Field survey data, October 2019.  
3.72.   The average sales price of livestock feed has evolved as shown in Chart  12. Starting at 
CFAF 3,000/tonne in 2000, the average price doubled in less than 7 years and tripled in nearly 
15 years. That alone suffices to demonstrate the importance  of using feed supplements for livestock 
in the Sahel.  
Chart  12: Average livestock feed prices (CFAF)  
 
Source:  Data obtained from "mali.countrystat".  
3.1.2.4   Estimated availability of other products (black cake and soap)  
3.73.   Derivatives of cottonseed oil production are the black and white cake used by women to make 
soap. Many women have therefore set up their soap production enterprises around the country 's 
industrial seed processing plants. On average, these enterprises have been operating for an 
estimated 14 years, employ 5 workers and have a daily processing capacity of 495  litres 
(roughly  two 200 -litre drums) of black cake ( Table 8 ). 
WT/CFMC/W/87  
- 33 - 
  Table 8: Characteristics of local small -scale soap production units  
Variables  No. of  
units  Average  
per unit  Minimum  Maximum  
Time in operation (years)  44 14 1 41 
Production capacity per day (litres)  44 495 60 4000 
Total number of workers  44 5 2 10 
Number of casual workers  44 1 1 6 
Number of permanent workers  44 3 1 10 
Source:  Field survey data, October 2019.  
3.74.   The average quantities of black cake derived from refining oil over the last three years are 
shown in Table 9 . 
Table 9: Estimated quantities of black cake produced by processing plants  (litres)  
Year No. of  
plants  Average  
per plant  Minimum  Maximum  Total  
2018 47 477,747  3,600  4,500,000  22,454,130  
2017 45 420,585  3,600  4,500,000  19,346,904  
2016 46 437,256  2,600  4,500,000  20,113,790  
Source:  Field survey data, October 2019.  
3.75.   With regard to the extent that their raw material (black cake) needs are met, 50% of the local 
soap production enterprises said they were somewhat satisfied ( Chart  13). Some of the processing 
plants sell black cake to women at very low prices, affording them a better living in recognition of 
the social benefits they contribute to their communities. In response to the question on the quality 
of the raw material, nearly 57% of the enterprises said  they were somewhat satisfied ( Chart  14). 
Chart  13: Degree to which the raw material needs of small -scale soap production units 
(black cake) are satisfied  
 
Source:  Field survey data, October 2019.  
15.9%50.0%
29.5%
4.5%
Not satisfied Somewhat satisfied Satisfied Very satisfiedWT/CFMC/W/87  
- 34 - 
  Chart  14: Degree to which small -scale soap production units are satisfied with the 
quality of the raw material  
 
Source:  Field survey data, October 2019.  
3.76.   Among the industrial processing plants surveyed, two had invested in soap production to 
diversify their output. Production figures for average -sized bars of soap are given in Table  10. 
Table 10: Estimated number of bars of soap pr oduced by type of processing unit  
Type of unit  Variables  2018  2017  2016  
Industrial  Number of units  2 2 2 
Average per unit  863,400  715,000  58,000  
Minimum  46,800  30,000  25,000  
Maximum  1,680,000  1,400,000  91,000  
Total  1,726,800  1,430,000  116,000  
Small -scale Number of units  44 40 40 
Average per unit  797,197  978,100  586,925  
Minimum  12,000  10,000  10,000  
Maximum  9,540,000  8,000,000  5,000,000  
Total  35,076,680  39,123,980  23,477,010  
Source:  Field survey data, October 2019.  
Photo 1: Soap produced by industrial processing plants  
 
   
0.0%56.8%
25.0%
18.2%
Not satisfied Somewhat satisfied Satisfied Very satisfied
WT/CFMC/W/87  
- 35 - 
  Photo 2: Soap produced by small -scale processing units  
 
  
  
 
 
3.2  Impact of cotton farming  
3.2.1   On food crops  
3.77.   Trends in cereal production have closely tracked those of planted areas. This is explained by 
the essentially extensive character of agriculture in Mali. The increasingly visible impact of the 
government 's proactive policy to boost agricultural production is also worthy of note. In cotton -
growing areas, cotton sector contributions are also benefitting maize production.  
3.78.   The inputs used to produce maize are effectively bankrolled by the cotton sector, which 
underwrites loans to producers. This has led large cotton producers to become large cereal producers 
as well. In addition to the subs idies provided for maize, cereal crops also benefit from being rotated 
with cotton. Cereal production has trended generally upward since the 1980s. Between 1976 and 
2012, it increased 13 -fold, from 146,000 tonnes to more than 1.9 million tonnes, with avera ge 
annual growth of 8.9%. While cotton production has fluctuated sharply, cereal crop yields have 
tended to be much higher, even though there have been some difficult periods, as in 2002 -03 for 
maize, millet and sorghum , and again in 2008 -09 for maize.  
3.79.   From 2008 to 2018, cereal production increased by 60%, from 1.2 million to 
2.1 million  tonnes . Overall, the main cereal crops have grown significantly over the last 10 years. 
Maize performed the best, with production multiplied by a factor of 2.3 over 11 year s, up from 
486,000  tonnes to 1.14 million tonnes. Maize now accounts for more than half of total cereal 
production, its share having increased from 37% in 2008 to 54% in 2018. Production of sorghum, 
the second most important food crop, has increased by a f actor of 1.2 over the same period, to 
account for 32% of total production.  
3.80.   The substantial growth in cereal production in cotton -growing areas is mainly attributable to 
maize ( Table  11), which benefits from subsidized fertilizer. Food self -sufficiency is largely assured 
in the cotton zone and a significant cereal surplus is produced for the rest of the country.  
Table 11: Cereal production (maize, millet and sorghum) over seven years  
Crop year  Maize*  Millet*  Sorghum*  Total (tonnes)  
2012 -13 837,374  366,218  570,196  1,773,788  
2013 -14 822,845  333,658  541,413  1,697,916  
2014 -15 996,644  379,351  592,704  1,968,699  
2015 -16 1,055,848  377,507  593,079  2,026,433  
2016 -17 1,128,644  394,148  620,404  2,143,195  
2017 -18 1,147,633  377,745  586,653  2,112,031  
2018 -19 1,394,955  426,872  618,509  2,440,336  
* FAOSTAT, 2019.  
Source:  CMDT, 2018.  
WT/CFMC/W/87  
- 36 - 
  3.2.2   Impact of cotton farming on farm/household income  
3.81.   The cotton sector plays a crucial role for rural households. Income from cotton covers a large 
part of their consumption and equipment needs, including food, housing, health care, children's 
schooling and drinking water supply.  
3.82.   The CMDT 's contributions to building health and social welfare infrastructure have helped to 
raise the country 's stan dard of public health. Health is crucial to building human capital, as a factor 
of endogenous growth : a person in good health is able to work and produce wealth. Considerable 
collective investments have been possible thanks to the efforts of all cotton sta keholders (the CMDT, 
the community, OPs and the State), who have channelled cotton income to finance increasingly 
productive infrastructure projects that are undertaken and managed collectively. Agricultural 
improvements, water and telecommunications infra structure (access to mobile telephony), and 
cooperative stores are among the results of such collective projects. These activities are vital to 
endogenous but also territorialized growth, since growth in Mali depends largely on agricultural 
resources that have yet to be fully tapped.  
3.3  Cotton producers' organizational structures and their relations with the country 's 
cotton companies  
3.83.   The cotton zone in Mali covers an area of 134,518 km2, including 3,153 villages spread across 
288 different communes, with a p opulation totalling 4,026,000. Cotton -system crops are grown on 
204,089 family farms. These are grouped in 7,766 cooperatives organized into 41 sector unions, 
4 regional unions and a confederation of cotton producer cooperatives (pursuant to OHADA 
provisio ns, the National Union became what is known today as the Confédération des Sociétés 
Coopératives de Producteurs de Coton  (C-SCPC); the regional unions have become Regional 
Federations and the communal unions have been eliminated).  
3.84.   Producers in the villages  are grouped together in cotton producers' cooperatives (SCPCs). 
Depending on the number of producers and/or the degree of social cohesion, a village may have up 
to three cooperatives. The number of member farms per cooperative varies between 10 and 100. 
While the law on establishing SCPCs stipulates a minimum of five producers to create a cooperative, 
it says nothing about minimum production, which can result in poor performing cooperatives in some 
areas.  
✓ Management committees  
3.85.   The cooperatives' managemen t committees are composed of between 5 and 15 members per 
village. Members are appointed at each cooperative 's general meeting and are selected on the basis 
of criteria rooted in trust and ability. The chair is chosen by acclamation by the cooperative memb ers 
at the annual meeting, again based on trust and ability.  
3.86.   In the South and Central regions (Koutiala, Bougouni and Fana), the role of women in cotton 
cultivation is essentially limited to one of supporting men, particularly with crop maintenance and at  
harvest time. Unlike those regions, in the CMDT 's Kita region, women undertake traditional cotton 
farming  and are SCPC members , participat ing to some extent in decision -making.  
✓ The role of SCPCs in village development activities  
3.87.   SCPCs play a major role in their villages, and particularly in:  
− building classrooms;  
− supplying schools with teaching materials;  
− paying teacher salaries;  
− maintaining health and social welfare infrastructure (roads, meeting facilities, 
water  standpipes, wells); and 
− promoting women 's literacy.  WT/CFMC/W/87  
- 37 - 
  3.88.   These various interventions in villages' development give a predominantly social quality to 
SCPCs.  
✓ Cotton Industry Association (IPC)  
3.89.   Following the adoption of the privatization plan (SOP), four CMDT subsidiaries were created:  
− CMDT North -East SA (Koutiala – San);  
− CMDT South SA (Sikasso – Bougouni);  
− CMDT Centr al SA (Fana – OHVN);  
− CMDT West SA (Kita).  
3.90.   In addition to these four subsidiarie s, the CMDT 's central Cotton Grading Board (OCC) and 
CMDT Holding SA were set up.  
3.91.   The Cotton Industry Association was established in February 2009 to perform the following 
critical functions:  
• drafting and monitoring inter -trade agreements (on pricing mechanisms for seed cotton and 
inputs);  
• formulating and monitoring crop year plans;  
• ordering and distributing inputs;  
• grading seed cotton and cotton lint based on OCC and CERFITEX criteria;  
• contributing to the maintenance of rural roads;  
• undertakin g cotton research and seed multiplication in consultation with the IER, CERFITEX, 
the SCPC Regional Unions (UR -SCPC) and CMDT technical services.  
3.92.   The IPC still needs to be supported and strengthened to perform its functions properly.  
✓ Establishment of the s upport fund (FdS)  
3.93.   Article 4  of the cotton pricing mechanism statute stipulates that the cotton sector's gross 
income be distributed between producers and the CMDT as follows:  
• the producers ' share: A = 60%  
• the CMDT 's share: 1 -A = 40%.  
3.94.   Article 5  addresses the final remuneration of producers:  
• the final seed cotton purchase price is a function of the base price and the potential price ; 
• the final remuneration of seed cotton producers is calculated at the end of the seed cotton 
marketing year, using the following formula:  
RFP CG= A * [[IC WAF-FOB-(1-y)*Z]* RD Fi + PV Gr * RD Gr * PCO Gr – CHFiI]. 
 
3.95.   Article 6 contains provisions for producers in the event of a favourable market 
performance . 
If the final producer remuneration calculated using the formula set out in Article  5 is greater than 
the base purchase price for seed cotton, the surplus, calculated by multiplying the differential by the 
marketed quantity of seed cotton (in kg), will be distributed after deducting expenses already 
incurred (de termined at the end of the crop year) as follows:  
➢ Portion A1 = 45% of the surplus is used to add a premium to the seed cotton purchase 
price. Once it can be determined exactly (in July or August), this premium is paid by the 
CMDT on a pro rata  basis accor ding to the cotton marketed.  
➢ Portion A2 = 40% of the surplus is paid into the support fund by the CMDT.  
➢ Portion A3 = 15% is paid by the CMDT to the C -SCPC, for operational expenses.  WT/CFMC/W/87  
- 38 - 
  3.96.   Article 7 contains provisions for producers in the event of an unfavourabl e market 
performance.  
➢ In the event of an unfavourable market performance, that is if producers' final 
remuneration is lower than the cotton purchase price an amount, calculated by multiplying 
the differential by the marketed quantity of seed cotton (in kg) , will be withdrawn from 
the support fund, provided that there are sufficient reserves in the fund.  
➢ This withdrawal from the support fund, which belongs exclusively to the producers, will be 
paid to the CMDT on a pro rata  basis according to the cotton marketed, as compensation 
for losses incurred owing to a fall in prices on the international markets.  
3.4  National strategy/policy for value -added cotton products and by -products  
3.97.   Any development strategy must focus on mobilizing the efforts of all actors involved in 
economic life – companies as well as public and private institutions. Growth that is sustained and 
sustainable over time requires the creation of integrated, competitive units. The quality of economic 
infrastructure (h uman resources, access to capital and technology, the regulatory and legal 
environment, physical infrastructure, etc.) is a key element to the competitiveness of these units. 
In Mali, proactive efforts are essential to facilitate the acquisition of modern means of production to 
improve the productivity of farmers in general, and cotton farmers in particular, taking into account 
this product 's importance in terms of generating monetary income for farmers.  
3.98.   In view of the role played by arable and pastoral far ming in the country 's economy, products 
derived from seed cotton are a promising market, with enormous development potential. Since 2006, 
the CMDT has seen an unprecedented boom in the market for these by -products in Mali, with the 
proliferation of cottons eed processing plants. The main products manufactured by these plants, 
using cottonseed as raw material, are cottonseed oil, meal and livestock feed. Economic activity is 
diversifying around these by -products, directly and indirectly creating thousands of jobs, including 
in the transport sector (moving cottonseed from ginneries to the various processing plants, and then 
from those plants to  traders, etc.).  
4  SURVEY OF THE COTTON -FARMING SYSTEM  
4.1.  The survey was conducted in six villages in the cercles  of Bougoun i (Coordination Bougouni), 
Koutiala ( North-East subsidiary ) and Sikasso ( South subsidiary ). In view of the time allotted for the 
activity, 90  producers were surveyed ( Table  12). Moreover, producers were in the middle of the 
harvest, which meant that availa bility was an issue in some places. The survey supports the study 
findings reported in Kpadé and others (2019) of 183  stakeholders including 120  cotton producers.  
Table  12: Producers surveyed in various villages in December  2019  
Cercle  Village  Number  
Bougouni  Diambala  15 
Toula  15 
Total  30 
Koutiala  Namposséla  15 
Sincina  15 
Total  30 
Sikasso  Siramana  15 
Zoumana  Diassa  15 
Total  30 
Total  90 
Source:  Field survey data, October 2019.  WT/CFMC/W/87  
- 39 - 
  4.1  General characteristics of the producers surveyed  
4.2.  All the surveyed producers were men, and most were the heads of farming households 
(Table  13). In Sikasso, 70% of the producers surveyed were migrants and, across all six villages, 
74% of survey participants had received no formal education at all. The literacy level is low: 52% 
are illiterate. It is therefore clear that the producers in the surveyed villages did not attend school 
regularly.  
Table  13: General characterist ics of producers surveyed in the various areas in 2019  
Variables  Bougouni  Koutiala  Sikasso  Overall average  
Head of household (%)      
No - 20 - 6.7 
Yes 100 80 100 93.3 
Sex (%)      
Male 100 100 100 100 
Marital status (%)      
Married  86.7 100 100 95.6 
Widowed  13.3 - - 4.4 
Residence status (%)      
Migrant  - - 70 23.3 
Local 100 100 30 76.7 
Formal education (%)      
No/none  63.3 86.7 73.3 74.4 
Basic educ. Stage 1  36.7 3.3 13.3 17.8 
Basic educ. State 2  - 6.7 - 2.2 
Secondary schooling  - 3.3 3.3 2.2 
Higher educ./University  - - 3.3 1.1 
Koranic education  - - 6.7 2.2 
Literacy (%)      
No/none  66.7 56.7 33.3 52.2 
Can read  20.0 13.3 16.7 16.7 
Can read and write  13.3 30.0 50.0 31.1 
Source:  Field survey data, October 2019.  
− Stakeholders' experience in agriculture and cotton farming  
4.3.  On average, the farms surveyed had more than 20 years' experience in cotton -farming 
(Table  14). However, some farms in the various areas have less than 10  years' experience of 
farming cotton.  
Table  14: Number of years spent in agriculture and in cotton farming  
Variables  Average  Standard deviation  Minimum  Maximum  
Bougouni      
Number of years' experience in agriculture 
(full years)  34 18 6 60 
Number of years' experience in cotton farming 
(full years)  25 14 6 50 
Koutiala  
Number of years' experience in agriculture 
(full years)  34 12 10 65 
Number of years' experience in cotton farming 
(full years)  31 13 4 55 
Sikasso  
Number of years' experience in agriculture 
(full years)  25 11 10 50 
Number of years' experience in cotton farming 
(full years)  24 10 8 40 
Source:  Field survey data, October 2019.  WT/CFMC/W/87  
- 40 - 
  − Size of farming households and number of farm workers per household  
4.4.  All the farms surveyed are home to more than 20  people and more than 12  farm workers 
(Chart  15). The average across all locations was 27  people, including 14  farm workers, per 
household.  
Chart  15: Size of farming households and number of workers  in the villages surveyed in 
the three areas  
 
Source:  Field survey data, October 2019.  
− Producers' age and experience in farming and cotton farming  
4.5.  Across all three locations, the average age of producers was 51. They were very often head 
farmers, with an average of 31  years' experience in farming in general and 27  years in cotton 
farming ( Chart  16). As a general rule, their experience of cotton farming had been good.  
Chart  16: Producers' age and experience in farming and cotton farming  
 
Source:  Field survey data, October 2019.  
232532
27
16141314
Bougouni Koutiala Sikasso Average for all locations
Size of farming household Number of farm workers
5453
4651
34 34
2531
2531
2427
Bougouni Koutiala Sikasso Average for all locations
Producer's age
Years of farming experience
Years of cotton farming experienceWT/CFMC/W/87  
- 41 - 
  4.2  Farmland and main crops  
4.6.  The average area available measures 20.5  ha, and the average cultivated area 15.5  ha 
(Table  15), implying that on average 5  ha of land per farm are uncultivated. However, that figure 
obscures land issues in Bougouni , where farms have less than 1 ha of uncultivated land.  
Table  15: Available area and cultivated area at the v arious locations  
Locations surveyed    Available land area  
(ha) Cultivated farmland  
(ha) 
Bougouni  Average  11.37  10.70  
  No. of farms  30 30 
  Standard deviation  4.93 5.05 
  Minimum  6 6 
  Maximum  30 30 
Koutiala  Average  20.90  14.00  
  No. of farms  30 30 
  Standard deviation  10.80  7.01 
  Minimum  5 4 
  Maximum  40 27 
Sikasso  Average  29.20  21.95  
  No. of farms  30 30 
  Standard deviation  23.79  20.35  
  Minimum  7 4 
  Maximum  100 100 
All locations  Average  20.49  15.55  
  No. of farms  90 90 
  Standard deviation  16.85  13.49  
  Minimum  5 4 
  Maximum  100 100 
Source:  Field survey data, October 2019.  
− Main crops farmed  
4.7.  The main crop farmed varies by area ( Chart  17). Cotton is the main crop in Sikasso, 
accounting for 97% of production, compared to 47% in Bougouni and 40% in Koutiala. Maize is the 
leading crop in Bougouni and Koutiala. Very little sorghum and millet are grown in the various 
villages surveyed.  
Chart  17: Main export crops in the various areas in 2019  
 
Source:  Field survey data, October 2019.  
47%
40%97%
50%
43%
3% 3% 3%13%
Bougouni Koutiala SikassoCotton Maize Sorghum MilletWT/CFMC/W/87  
- 42 - 
  4.3  Producers' total annual income, annual farming income and annual income from 
cotton  
4.8.  Chart  18 shows farm incomes in the three cercles , revealing that incomes are low in Bougouni 
cercle  and that cotton is the source of almost all farm income. Income levels are much higher in 
Sikasso, which can be explained by the greater crop diversification in Sik asso cercle  and a number 
of low -lying areas where vegetables can be grown. It also shows that farms in Koutiala have sources 
of income other than cotton.  
Chart  18: Farm incomes in the three cercles  
 
Source:  Field survey data, October 2019.  
− Main crops by income generated  
4.9.  Cotton is a major crop in terms of the income generated for farmers in all three cercles  
(Table  16). Meanwhile, sorghum generates only a very small share of farm incomes.  
Table  16: Importance of crops for farm income  by location  
Crop Ranking as source of 
income  Bougouni  Koutiala  Sikasso  Overall average  
Cotton  1st 46.7 40.0 96.7 61.1 
  2nd 40.0 36.7 3.3 26.7 
  3rd 10.0 16.7 - 9.6 
Maize  1st 50.0 43.3 - 31.1 
  2nd 50.0 33.3 96.7 60.0 
  3rd - 3.3 4.3 2.4 
Sorghum  1st - 3.3 3.3 2.2 
  2nd 3.3 16.7 - 6.7 
  3rd 56.7 50.0 65.2 56.6 
Source:  Field survey data, October 2019.  
1,513,567 2,781,833 5,178,667 
3,158,022 
1,454,983 1,605,333 4,389,333 
2,483,217 
1,206,137 
496,348 2,412,050 
1,371,512 
Bougouni Koutiala Sikasso Average for all locations
Total annual income(CFAF)
Annual farming income(CFAF)
Total income from cotton(CFAF)WT/CFMC/W/87  
- 43 - 
  − Quantifying cotton stalk production  
4.10.   With regard to  estimates of the amount of cotton stalks obtained from the farms, the survey 
results show that producers are unable to estimate that figure ( Table  17). This is because cotton 
stalks are not marketed.  
Table  17 Estimated amount of cotton stalks obtained per farm  
Amount of cotton stalks 
obtained  Cercle  surveyed  
Bougouni  Koutiala  Sikasso  
Do not know  100%  100%  100%  
Source:  Field survey data, October 2019.  
4.11.   Kpadé  and others (2019) estimated that the average annual production of cotton stalks in 
Mali was 724,270  tonnes (see Table  18 in Chapter  5). 
− Use of cotton stalks by producers  
4.12.   Use of cotton stalks varies from one area to another depending on how long cotton has  been 
grown there and the level of soil fertility. Cotton stalks are more often worked into the soil in Koutiala 
than in the other areas ( Chart  19). Koutiala is in the old cotton basin where cotton farming has 
been practised on the same land for more than 40 years. In Sikasso, a significant share of cotton 
stalks is still burned. The same is true in Bougouni, where the quantities of cotton stalks that are 
burned and unused are fairly high. There is no legal requirement for producers to burn the cotton 
stalks; the only reason why this practice is adopted is to make farming operations easier (ploughing, 
sowing, weeding).  
Chart  19: Use of cotton stalks by farms in the various areas (percentages)  
 
Source:  Field survey data, October 2019.  
4.4  Environmental impact  
✓ Cotton farming gives rise to pollution through the use of fertilizers and pesticides  
 
4.13.   Although low quantities of inputs (herbicides, fungicides, fertilizers and pesticides) are used 
in Mali, it should be noted that in th e cotton zone they are used primarily on cotton and maize.  
3
0 03 36
47
4
Bougouni Koutiala SikassoStalks not used Stalks burned Stalks dug into soilWT/CFMC/W/87  
- 44 - 
  Cotton herbicides are much more hazardous than is often thought. Their spread is not without risk. 
None of the herbicides currently in use is harmless to people, animals or the environment. Even 
minor contamination during treatments can have a serious adverse effect on human and animal 
health. However, at the CMDT level, a gradual reduction in doses of phytosanitary products is 
planned for imminent implementation ( Chart  20). 
Chart  20: Future development of farm areas and of phytosanitary products' dosages 
over the next five years  
 
Source:  CMDT, 2020.  
✓ Cotton lint processing causes chemical pollution  
 
4.14.   Textile manufacturing releases a shocking quantity of toxic products into the environment. In 
2012, Greenpeace raised questions about the chemicals used to make clothes. The pollutants were 
found to be present in the environment, especially in water: according to the World Bank, they are 
probably responsible for 17 -20% of w ater pollution worldwide.  
4.15.   To make a cotton T -shirt, the cotton must be cleaned to remove debris, carded and smoothed 
to form threads. Once woven, it is enriched using chemical treatments. It is bleached using soap, 
hydrochloric acid and trichloroethylene. To bleach the cotton completely oxygenated water, 
hydrogen peroxide or bleaching chlorides are used. As a result, the water around workshops and 
factories is highly polluted; it is obviously no longer safe to dr ink or to be used for bathing or farming. 
The cotton is then dyed using heavy metals such as lead and chromium, which are highly toxic.  
 3,200,000 3,300,000 3,400,000 3,500,000 3,600,000 3,700,000 3,800,000 3,900,000
 - 200,000 400,000 600,000 800,000 1,000,000
Insecticide dosesArea (ha) and fungicides
Sowing area (ha)
Cotton fungicides (180 g sachets)
Insecticides (doses)WT/CFMC/W/87  
- 45 - 
  5  MARKET ANALYSIS OF COTTON CO -PRODUCTS, BY -PRODUCTS  AND COTTON -DERIVED 
PRODUCTS IN MALI (COUNTRY AND BY -PRODUCT MATCHING)  
5.1  Supply and demand for cotton co -products, by -products and cotton -derived products 
in Mali  
5.1.1   Analysis of (current and future) potential: availability and accessibility of cotton co -
product s, by -products and cotton -derived products  
5.1.  By-products (oil and meal) have markets that are open to competition, both within Mali and in 
the subregion, and are subject to regional trade regulations, such as taxes and duties established 
by the West African Economic and Monetary Union (WAEMU). One indicator of market buoyancy in 
the sector is that prices are not the same in all regions of the country: a barrel of oil is not sold for 
the same price in the cotton -growing regions of Sikasso, Koutiala, Ségou or K ita. The associated 
positive externalities have a considerable impact on the people living in the country's cotton -growing 
areas. Take just one aspect - the unloading of seed transported from CMDT ginneries to privately -
owned processing plants, workers are  paid a considerable amount to do this, allowing them to 
provide a decent life for their households, and to build up savings that could finance an income -
generating activity (opening a shop, investing in transport, etc.).  
5.2.  Also worthy of note is the busines s SUCOTEX in Kignan (Sikasso) , which adds value to the 
production of linters by manufacturing floorcloths and packaging for the cotton bales produced by 
CMDT. Its daily production capacity is 6  tonnes.  
5.3.  Developing value added products from cotton stalks als o provides opportunities for small cotton 
producers to earn extra income by marketing stalks without compromising their use as a soil 
nutrient. The additional income would be useful to small cotton farmers, particularly as they are 
already facing a drop in  cotton yields per hectare owing to several factors (Floquet and Gbedomon, 
2014). Unlocking the value of cotton stalks in this way could help to develop the value chain for 
particle board production. A recent paper by Kpadé  and others  (2019) estimated aver age annual 
cotton stalk production in Mali at 724,270  tonnes ( Table  18). The authors showed that 49% of 
producers in Mali use cotton stalks as organic fertilizer, 28% as animal feed, 20% for potash 
production and 3% as building material.  
Table  18: Estimated production of cotton stalks ('000  tonnes)  
Stalk 
production  2006 -
07 2007 -
08 2008 -
09 2009 -
10 2010 -
11 2011 -
12 2012 -
13 2013 -
14 2014 -
15 Average  
Thousand 
tonnes  844.8  484.8  408 475.2  494.4  897.6  907.2  888 1118.4  724.27  
Source:  Kpadé and others (2019).  
5.4.  Cotton hulls are relatively palatable (53% cellulose) and can stimulate dairy cows' intake of 
feed rations that are low in fibre.  
5.5.  Seizing the economic opportunity created by adding value to these by -products could revitalize 
the cotton sector in Mali, where productivity is falling ever lower.  
5.1.2    Evaluation of available markets for the consumption of cotton co -products, by -
products and cotton -derived products in Mali  
5.6.  The market supply situation in Mali means that seed cotton by-products have a promising 
future, given the steady rise in national demand and the market's potential for growth. There are 
potentially more substitutes for oilseed product (soya -bean, groundnut, sunflower -seed, rapeseed 
oil etc.) than for animal  feed and meal.  
5.7.  Meal is one of the two flagship products obtained from cottonseed besides oil. National 
requirements are estimated at over 280,000  tonnes a year. Owing to its protein content, cottonseed 
meal is used to make feed for ruminants (cows, sheep etc.) and intensively farmed poultry.  WT/CFMC/W/87  
- 46 - 
  5.1.2.1   Imports of cotton co -products, by -products and cotton -derived products  
5.8.  Data obtained from the National Directorate of Trade and Competition (DNCC) on imports of 
cotton co -products, by -products and cotton -derived produc ts are set out in Table  19. 
Table  19: Quantities and values of imports of cotton co -products and cotton -derived 
products  
Year Cottonseed oil  Cottonseed meal / animal 
feed Soap  
Quantity 
(kg) Value  
(CFAF)  Quantity  
(kg) Value  
(CFAF)  Quantity 
(kg) Value  
(CFAF)  
2007  5,120,602  2,317,600,492  1,125,000  50,545,912  10,099,889  3,338,883,005  
2008  261,414  203,858,498  1,095,000  106,794,100  16,848,549  6,894,661,541  
2009  230 177,391  1,414,200  92,046,779  16,295,106  5,962,885,948  
2010  1,525,900  597,130,630  878,200  44,942,975  15,967,542  9,276,388,373  
2011  530 784,559  945,000  55,316,046  13,492,602  4,957,090,845  
2012  2,025  596,658  1,499,600  75,000,000  12,524,472  5,054,155,508  
2013  336,950  34,398,618  3,191,500  165,955,350  15,998,403  5,912,310,767  
2014  139,200  40,683,550  6,844,000  378,025,902  17,007,030  7,138,885,773  
2015  945,600  297,495,808  13,211,174  728,160,022  25,637,482  9,437,699,418  
2016  382,134  82,254,141  9,948,000  539,783,825  21,740,034  6,919,800,177  
Source:  National Directorate of Trade and Competition (DNCC).  
5.1.2.2   Exports of cotton co -products, by -products and cotton -derived products  
5.9.  Data obtained from the DNCC on exports of cotton co -products, by -products and cotton -derived 
products are set out in Table  20. 
Table  20: Quantities and values of exports of cotton by-products and cotton -derived 
products  
Year Cottonseed oil  Cottonseed meal/ animal 
feed Soap  
Quantity  
(kg) Value  
(CFAF)  Quantity  
(kg) Value  
(CFAF)  Quantity  
(kg) Value  
(CFAF)  
2007    
2,449,370  99,427,530  280,000  26,250,000  
2008    
699,000  61,370,000  194,940  17,685,847  
2009      
597,563  139,560,468  
2010      
246,000  37,955,000  
2011    
220,000  16,900,000  4,554,974  2,240,677,582  
2012    
1,629,000  129,900,000  202,815  23,376,500  
2013  2,240  1,311,914  7,366,250  378,228,000  1,886,222  864,778,715  
2014      
26,556,110  3,463,132,670  
2015    
24,129,800  2,411,670,000  2,509,534  1,334,952,683  
2016  17,000  13,175,000  160,000  15,000,000  520,436  444,958,634  
Source:  National Directorate of Trade and Competition (DNCC).  
5.1.2.3   Analysis of current and future demand for cotton co -products, by -products and 
cotton -derived products  
5.10.   The rapid proliferation of processing plants had the mechanical effect of increasing demand 
for cottonseed nationwide, leading to a persistent shortfall i n the supply of cottonseed at the CMDT 
level that began in 2003. As a result and in order to prevent lengthy spells of technical 
unemployment in their factories, a number of processing plants are increasingly sourcing their 
supplies from neighbouring count ries such as Côte  d'Ivoire, Benin and Burkina  Faso, despite the 
extra transportation costs involved. According to the General Secretary of FENAPHB, at least WT/CFMC/W/87  
- 47 - 
  2 million  tonnes of cottonseed are required to meet the processing plants' needs. Unfortunately, 
demand remains far greater than the country is currently capable of supplying.  
5.11.   In addition to the processing plants, two agrifood companies ( Grands Moulins de Bamako 
(GMB) and Grands Distributeurs de Céréales du Mali  (GDCM)) have started to produce livestock  feed 
in light of this market's potential for growth and the paucity of supply. Demand for plant protein will 
undoubtedly increase significantly in the future as the fish -farming sector grows and livestock and 
poultry farms continue to open in city suburbs . 
5.12.   Despite encouraging results, the national market's needs for cottonseed meal have not been 
met. Significant quantities are imported each year from neighbouring countries such as Benin, 
Burkina  Faso and Côte d'Ivoire. Unfortunately, we do not have years a nd years of annual statistics 
detailing the quantities in question.  
5.13.   The market supply situation in Mali is such that seed cotton by-products definitely have a 
future: national demand is rising steadily and the market has potential for growth ( Tables  21, 22 , 
23 and 24 ). 
Table  21: Industrial crushing facilities' demand for cottonseed (tonnes)  
Year No. of crushing  
plants  Average  Minimum  Maximum  Total  
2018 47 21,439  2,000  80,000  1,007,640  
2017 47 17,709  1,300  80,000  832,300  
2016 45 17,013  1,000  80,000  765,600  
Source:  Field survey data, October 2019.  
Table  22: Customer demand for cottonseed oil (litres) from crushing facilities  
Year No. of 
crushing  
plants  Average  Minimum  Maximum  Total  
2018 47 1,393,115  100,000  11,000,000  65,476,400  
2017 47 1,335,000  98,400  11,000,000  62,745,000  
2016 46 1,244,029  4,000  11,000,000  57,225,320  
Source:  Field survey data, October 2019.  
Table  23: Customer demand for cottonseed meal (tonnes) from crushing facilities  
Year No. of 
crushing  
plants  Average  Minimum  Maximum  Total  
2018 47 65,905  100 2,000,000  3,097,546  
2017 47 23,428  90 200,000  1,101,134  
2016 46 22,463  80 200,000  1,033,315  
Source:  Field survey data, October 2019.  
Table  24: Customer demand for black cake (kg) from crushing facilities  
Year No. of 
crushing  
plants  Average  Minimum  Maximum  Total  
2018 46 2,043,667  25,200  60,000,000  94,008,700  
2017 46 1,889,565  15,000  60,000,000  86,920,000  
2016 45 2,431,856  20,000  60,000,000  109,433,500  
Source:  Field survey data, October 2019.  WT/CFMC/W/87  
- 48 - 
  5.1.2.4   Analysis of market opportunities for priority by -products by country  
− Local markets: size and outlook  
5.14.   Projected consumption of oilseed products in Mali is rising continuously, a trend that can be 
explained by high demographic growth on the one hand and improvements in peoples' living 
conditions on the other. Therefore the cottonseed oil market has signific ant potential for strong 
growth in Mali and other WAEMU countries, given that they share virtually the same demographic 
and economic characteristics.  
5.15.   In view of the role played by arable and pastoral farming in the country's economy, products 
derived from seed cotton are a promising market with enormous development potential. Since 2006, 
the CMDT has seen an unprecedented boom in the market for these by-products in Mali, with the 
proliferation of cottonseed processing plants. The main products manufactured by these plants, 
using cottonseeds as raw material, are cottonseed oil, meal and livestock feed. Economic activity is 
diversifying around these by-products, directly and indirectly creating thousands of jobs, including 
in the transport sector (moving cottonseed from ginneries to the various processing plants, and then 
from the facilities to traders, etc.).  
5.16.   The demand for edible oil (excluding shea butter) in Mali was projected to rise by 15% 
between 2010 and 2015 (Diakité 2010).  
5.17.   There are not many women entrepreneurs in the cotton sector. They are primarily to be found 
in soap manufacturing.  
5.1.2.5   Analysis of strengths, weaknesses, opportunities and threats (SWOT) of 
developing each product  
Seed cotton production  
✓ Strengths  
• Good level of technical  skill among farmers and fairly high level of mechanization.  Farmers in the 
cotton zone have long benefitted from agricultural advice and outreach programmes, which have 
not only enabled them to become familiar with the use of fertilizers, insecticides and  herbicides, 
and to increase the productivity of various crops, but have also helped them to become receptive 
to innovation and to be able to develop new technical proposals quickly.  
• A more structured rural world.  There are now management centres in Mali t o provide support and 
advice to OPs, with a view to greater transparency in the management of resources.  
• Good integration of research and outreach.  The improvements in production system productivity 
are the result of proposals that were developed by resear ch in the areas of agronomy, varieties, 
plant protection and production systems, financed in the main by the cotton sector.  
• Consultation frameworks in place.  Consultation frameworks have been put in place between the 
partners (through the framework contra cts, trade associations, etc.) in almost all areas of the 
sector: research, input supply, credit, seasonal plans, marketing and sector management to 
achieve a better division of responsibilities and a greater synergy among all stakeholders.  
• Well-establishe d mechanisms for input supply and credit management.  These mechanisms ensure 
the supply of agricultural inputs and equipment that are inspected for quality in a timely fashion. 
Furthermore, they allow cotton companies to achieve economies of scale and prod ucers to enjoy 
greater cost -effectiveness.  
• Pricing mechanisms.  The mechanisms for setting and announcing a guaranteed price before 
sowing allows producers to manage risk better; small -holders tend to be risk -averse. Meanwhile, 
the rebate system links farme rs' incomes to the international market. The fact that stabilization 
mechanisms are in place allows sectors to cope, to a certain extent, with crises without 
jeopardizing production in the long term.  
• Careful harvesting.  The current manual harvesting system  results in good quality, highly 
competitive cotton.  WT/CFMC/W/87  
- 49 - 
  • Repairs to unpaved roads used by the cotton industry.  Work undertaken as a matter of urgency 
to repair unpaved roads allows cotton purchasing to begin at an early stage.  
• The active involvement of OPs in marketing cotton.  The involvement of OPs means that 
subsidiaries do not need to set up special primary marketing teams, leading to savings for society.  
• The good reputation of Malian cotton.  Mali as a point of origin has a good reputation because it 
meets i ts contractual commitments on quality, shipment deadlines and quantities. For the 
2018-19 season, 99.97% of the crop was classed as first grade by the mixed teams, although 
under the industrial classification 80.09% was. For 2017 -18, those figures were 99. 97% and 
95.08%, respectively. With regard to lint quality, 70.46%. of Malian lint was ranked as top grade.  
✓ Weaknesses  
• Extensive farming practices and failure to take sufficient account of soil degradation issues. 
Despite mentoring advice, farmers' production strategies tend to have a short -term outlook, 
thus reducing investment in fertilizer.  
• There has also been a failure to properly develop local resources to the point that the cost of 
imported inputs can be cut (e.g. Tilemsi natural phosphate ).  
• Mentoring is a small part of providing support and advice, and awareness -raising activities are 
weak. Poor information -sharing among stakeholders.  
• Lack of resources allocated for research and development.  
• Lack of information and knowledge about the potentia l of cotton by -products.  
• It is difficult to obtain statistics on the distribution of cottonseed among users and therefore 
to get an idea of the quantities produced. To estimate the quantity of seed cotton in Mali, the 
seed yield for the 2018 -19 crop year ( 53.10%)  can be used . 
• Manufacturers' problems accessing finance. As the socio -political context is not very stable, 
banks are reluctant to provide development credit. Interest rates are very high.  
✓ Opportunities  
• The good reputation of Malian cotton  
• Outlets for cotton in place  
• Creation of value added from local processing  
• Development of cotton co -products and by -products  
✓ Threats  
• Vagaries of the weather and heavy reliance on the rainy season  
• Volatility in world prices  
• Soil depletion  
• Soil pollution  
• Parasites 
Cottonseed oil  
✓ Strengths  
• Availability of the raw material (cottonseed)  
• Consumer demand for vegetable oil  
• Processing plants in place  
✓ Weaknesses  
• Low oil content of seed  
• Issues with the quality of the oil produced  
• High production costs because of energy costs  WT/CFMC/W/87  
- 50 - 
  ✓ Opportunities  
• National industrialization policy  
• National investment policy  
• Diversification of income  
• Job creation  
• Poverty reduction  
✓ Threats  
• Competition from substitute products  
• Non-compliance with quality standards  
Cottonseed meal  
✓ Strengths  
• High demand for animal feed reflecting the country's livestock potential (use in feed for cattle, 
sheep, poultry, etc.).  
✓ Weaknesses  
5.18.   The use of cottonseed meal in animal feed is limited by its gossypol content. Gossypol is a 
polyphenolic yellow pigment found in free form in small glands located in particular in the kernel and 
seedcoat. The gossypol issue can be mitigated in several ways . First, there are "glandless" cotton 
varieties, i.e. varieties with no gossypol glands. Heat treatment can be used to detoxify seed and 
meal. Gossypol can also be removed chemically using a solvent; free gossypol can be deactivated 
by adding a metallic sa lt: incorporating iron in the form of iron sulphate improves pig and poultry 
tolerance to gossypol.  
✓ Opportunities  
• National industrialization policy  
• National investment policy  
• PPP (public -private partnership) in place  
• Diversification of income  
• Job creation  
✓ Threats  
• Competition from substitute products  
Cotton stalks  
✓ Strengths  
• National production potential  
• Opportunities to unlock value exist  
• Processing technology is available  
• Diversification of cotton farmers' incomes  
✓ Weaknesses  
• Lack of information on existing opportunities  
• Low level at which organic matter is replaced  
✓ Opportunities  
• Market niches exist  
• Job creation  
• Diversification of income  
✓ Threats  
• Competition from imported products  WT/CFMC/W/87  
- 51 - 
  Soap made from cottonseed oil  
✓ Strengths  
• Know -how exists  
• Demand exists  
• Creation of value added  
• Reduction of seed processing waste  
• Diversification of income, primarily for women  
✓ Weaknesses  
• Lack of training  
• Lack of finance  
• Lack of knowledge of quality standards  
✓ Opportunities  
• Market niches exist  
• Job creation  
• Development of wome n entrepreneurs  
✓ Threats  
• - Competition from substitute products  
5.2  Economic returns  
5.2.1   Economic calculations  
5.19.   Having established 96  production plants, cottonseed now provides 10% of the CMDT's capital, 
or revenue of around CFAF  37 billion. Currently, 90% of the CMDT's cotton seed production, 
estimated at 300,000  tonnes, is purchased by FENAPHB production plants. I n addition to that, the 
federation imports over 200,000  tonnes of cottonseed from countries in the subregion, including 
Guinea, Côte d'Ivoire, Togo and Benin, according to the General Secretary of FENAPHB. The average 
cost of a tonne of cottonseed is CFAF  106,200. The purchase price is set by the CMDT in consultation 
with the Federation or unilaterally if no consensus can be reached.  
5.20.   With a supply of 500,000  tonnes of cottonseed, production units operate for between 2  and 
6 months in every 12 and produce ar ound 350,000  tonnes of animal feed, 150,000,000  litres of 
edible oil and 150,000  tonnes of black cake used by women to produce soap. One tonne of animal 
feed sells for CFAF  125,000, the oil sells in 20  litre drums for CFAF  11,500 and a 200  litre drum of 
black cake sells for CFAF  50,000. Tables  25 and 26 set out the average income and turnover for 
processing units and women's soap -production EIGs.  
Table  25: Estimated annual average income and turnover generated from by -products by 
industrial plants (CFAF)  
By-products  No. Average  Minimum  Maximum  Total turnover  
CFAF  EUR 
Oil 47 458,194,579  360,000  2,340,000,000  21,535,145,200  32,830,217  
Meal  46 1,035,514,672  11,875,000  3,750,000,000  47,633,674,922  72,617,291  
Black cake  46 45,959,180  225,000  337,500,000  2,114,122,257  3,222,968  
Soap  2 52,340,000  4,680,000  100,000,000  104,680,000  159,584  
Source:  Field survey data, October 2019.  WT/CFMC/W/87  
- 52 - 
  Table  26: Estimated annual income and turnover of small -scale soap -making units 
(CFAF)  
By-products  No. Average  Minimum  Maximum  Total turnover  
CFAF  EUR 
Soap  44 158,773,523  1,200,000  1,250,000,000  6,986,035,000  10,650,174.2  
Source:  Field survey data, October 2019.  
 
5.2.2   Impact on poverty reduction and gender equality  
5.21.   One of the main prospects for the cotton industry is stakeholders' universal acknowledgement 
of its considerable impact on combatting insecurity and extreme poverty: as a product cotton 
generates income despite the fact that (a)  the country is a p rice taker and (b)  its production level is 
affected by the various hazards that may arise. The major aim of cotton production in Mali is to 
combat social exclusion by reducing poverty.  
5.22.   According to INSTAT -Mali (2013 -15), cottonseed oil is sold on local mar kets by more than 
70,000  retailers. The sales are a source of stable jobs that enable sellers to meet their daily needs 
and perform other activities that generate income for some.  
5.23.   The processing units employ more women in their operations than men. All by -products from 
the processing plants are recycled by women into other useful products that diversify their income 
streams. The advent of oil mills in Koutiala has created more than 20,000  indirect jobs, more than 
85% of them for women, according to the Gene ral Secretary of FENAPHB.  
5.24.   By-products resulting from the process of refining edible oils at crushing facilities (white and 
black cake) are sold locally and used to make soap. This activity is an opportunity for thousands of 
women from disadvantaged backgro unds to perform a job that can bring them a return that protects 
them from insecurity and extreme poverty. The soap they produce is sold locally at a price that is 
affordable to modest households, and generates income that enables the women to play an acti ve 
role in combatting poverty and social exclusion.  
5.25.   Consequently, the cotton sector plays a crucial role for rural households. Income from cotton 
covers a large part of their consumption and equipment needs, including food, housing, healthcare 
and children 's schooling. One of the aims of cotton farming is to bring about a considerable reduction 
in poverty, indeed to end poverty altogether, all the while prioritizing the empowerment of women 
in the process.  
5.2.3   Establishing businesses producing cotton by -product s: challenges and issues  
5.26.   Business creation should focus on cotton by-products other than oil and meal. That focus 
should be mainly on cotton stalks, which can be used to make particle board, paper pulp and 
medium -density fibreboard (MDF). The businesses could also add value to seed hulls, which are 
usually burned at the moment. Factories could be set up to use lint cleaner waste to make floorcloths. 
However, further research is required in order to better assess th e profitability of businesses of this 
nature.  WT/CFMC/W/87  
- 53 - 
  Table  27: SWOT analysis of the cotton by -products to be promoted  
By-
products  Strengths  Weaknesses  Opportunities  Threats  
Cotton 
stalks  ✓ National 
production potential  
✓ Outlets in place  
✓ Additional income 
for producers  
✓ Increase in 
production  ✓ Lack of 
appropriate 
equipment  
✓ Lack of 
information on 
opportunities  
✓ Lower soil 
fertility  
✓ Difficulties in 
accessing finance  ✓ National and 
regional markets exist  
✓ Job creation  
✓ Diversification of 
income streams  
✓ Creation of value 
added  ✓ Competition 
from imported 
products  
✓ Lack of pricing 
mechanism  
✓ Lack of 
regulations  
✓ Vagaries of the 
weather  
Seed hulls  ✓ National 
production potential  
✓ Processing plants 
in place  ✓ Poor access to 
finance  
✓ Absence of 
marketing  
✓ High production 
costs ✓ Outlets to the 
national and regional 
market available  
✓ Product 
diversification  
✓ Alternative energy 
source   
Meal/  
animal 
feed ✓ Processing plants 
in place  
✓ High demand 
nationally  
✓ Use of glandless 
varieties  ✓ Inadequate 
supply of 
cottonseed  
✓ Gossypol 
content  
✓ High production 
costs ✓ National and 
regional market  
✓ Potential for 
livestock and poultry 
farming  
✓ Development of 
fish farming  ✓ Competi tion 
from substitute 
products  
✓ Poor 
competitiveness of 
products  
Cottonseed 
oil ✓ Processing plants 
in place  
✓ Potential for 
cottonseed 
production  
✓ High national 
demand for vegetable 
oil ✓ Inadequate 
supply of 
cottonseed  
✓ Fluctuation in 
cottonseed prices  
✓ High production 
costs 
✓ Poor quality of 
the oil produced  
✓ Absence of 
production 
standards  ✓ National and 
regional market  
✓ Product 
diversification  
✓ Creation of value 
added  ✓ Competition 
from imported 
products  
✓ Poor 
competitiveness of 
local products  
 
  WT/CFMC/W/87  
- 54 - 
  6  CONCLUSION AND RECOMMENDATIONS  
6.1.  Mali has genuine agricultural potential, half of which has not yet been exploited, according to 
the Ministry of Agriculture. In order to develop activities in key productive sectors of the economy, 
such as cotton, all stakeho lders (the State, the CMDT, OPs), must take tough measures that are in 
keeping with the realities of their situation.  
6.2.  As things stand, two cottonseed by-products are sufficiently developed in Mali, namely 
cottonseed oil and meal. Cottonseed oil is used in food for human consumption and meal in animal 
feed supplements (it should be noted that Mali is a prime example of a livestock -farming country). 
Current national production of cottonseed does not meet oil mills' needs. The cakes formed after the 
cottonseed  has been crushed for oil are used as a raw material by women to make soap and help 
boost their incomes. The linters are also utilized by SUCOTEX to make floorcloths and packaging for 
cotton lint for export.  
6.3.  The value of other by-products is underexploited . Cotton stalks are often worked into the soil 
as an organic fertilizer in some areas of production, but are still burned in many others.  
6.4.  Moreover, Mali could gain many comparative advantages by unlocking the value of the following 
by-products:  
− Cotton stal ks: their national production potential could be developed by the timber industry 
through the manufacture of particle board for use in furniture and housing. This would help to 
create jobs and additional income opportunities for cotton farmers despite fluc tuations in world 
cotton lint prices.  
− The seed hulls could be utilized in the manufacture of fuel briquettes, thus helping to reduce 
the use of timber.  
− Lastly, the value of meal could also be unlocked by developing various animal feed products 
for cattle, sheep and goats, as well as the burgeoning poultry - and fish -farming sectors.  
6.5.  To boost producers' incomes further, cotton -producing countries should prioritize the 
development of by-products. Cotton by-products are therefore an opportunity for producer countries 
to increase the benefits they derive from their cotton production. These benefits can include:  
− new income streams for farmers and processors;  
− increased resilience of farmers to external shocks thanks to new income streams;  
− greater domest ic value added;  
− access to new markets;  
− an improvement in the trade balance through increased exports or import substitution; and  
− less waste in the cotton value chain.  
6.6.  Given its cotton producing potential, Mali could gain major advantages from developing t he 
value chains for by-products obtained from cotton stalks and cottonseed. The development of these 
value chains could help to boost national output of seed cotton, improving the performance of the 
cotton sector and thereby contributing to poverty reducti on, food security, job creation, income 
diversification, improvements in women's standards of living and the national economy.  
Recommendations for an investment promotion policy to unlock the value of cotton 
by-products  
❑ State  
✓ Facilitate access to finance a nd investment funds;  
✓ Encourage access to modern processing equipment;  
✓ Ensure and monitor compliance with standards and regulations;  
✓ Promote business competitiveness by regulating import flows to prevent unfair competition.  
❑ CMDT  
✓ Provide support, advice and guidance to producers;  
✓ Promote the supply of good -quality inputs to producers;  
✓ Ensure prompt payment to producers;  
✓ Promote a mechanism to set seed prices in conjunction with stakeholders.  WT/CFMC/W/87  
- 55 - 
  ❑ Producers  and C -SCPC  
✓ Improve seed cotton productivity by adopting good farming practices;  
✓ Promote good governance within cooperatives.  
❑ Research into cotton and training  
✓ Develop technology packages that are resilient to climate change (varieties, integrated soil 
fertility manag ement, integrated pest management, etc.);  
✓ CERTIFEX expertise as a technical support and research centre for the development of cotton 
co-products, by -products and cotton -derived products.  
 
  WT/CFMC/W/87  
- 56 - 
  REFERENCES  
Berthé B. (2019), "Préface", in Soumaré M. (ed), Atlas des zones cotonnières du Mali , 2nd edition, 
IER-CIRAD, p. 2.  
Camara M. (2015), Atouts et limites de la filière coton au Mali. Economies et finances. Université de 
Toulon.  
CMDT (2019), Déroulement de la campagne 2018/2019. 12ème Réunion Bilan PR -PICA, Cotonou, 10 -
12 April 2019.  
CMDT (2014), website of the Société Malienne de Développement du Textile. Available at: 
https://www.cmdt.ml . Accessed October 2019.  
Diakité L. (2010), La prise en compt e des co -produits du coton dans le mécanisme de fixation du 
prix de coton graine au Mali, Rapport Final, USAID, WACIP, Bamako.  
Floquet A. and Gbedomon R.C. (2014), La réorientation économique des exploitations familiales des 
zones cotonnières, un phénomène  transitoire ? Une situation de référence des exploitations 
familiales des producteurs de coton (EPPC), CEBEDES, SNV and ANPC -Bénin, Cotonou.  
Hugon P. (2005), "Les réformes de la filière coton au Mali et les négociations internationales", Afrique 
contempor aine, 2005/4 (No. 216), pp. 203 -225.  
Kpadé C.P., Hougni A. and Sanogo O. (2019), "Valorisation des tiges de cotonnier dans la chaîne de 
valeur de panneaux de particules en Afrique de l'Ouest", Tropicultura , Vol. 37, No. 1. Available at:  
https://popups.uliege.be:443/2295 -8010/index.php?id=254 . 
Mali MEF (Ministry of Economy and Finance) (2016), Cadre stratégique pour la relance économique 
et le développement durable du Ma li (CREDD) 2016 -2018, Bamako.  
Nubukpo K. and Kéita M. (2005), L'impact sur l'économie malienne du nouveau mécanisme de 
fixation du prix du coton graine, CIRAD -IER. 
ODHD (2009), Contribution du coton à la croissance économique au Mali. Rapport d'étude.  
Rivière R. (1991), "Les aliments du bétail", Manuel d'alimentation des ruminants domestiques en 
milieu tropical , IEMVT, Collection Manuel et Précis d'Élevage, La Documentation Française, Paris, pp. 
203-265. 
Tran G. (1994), "Le coton et ses co -produits en alime ntation animale", La Revue de l'Alimentation 
Animale  No. 482, November 1994, Association Française de Zootechnie.  
  WT/CFMC/W/87  
- 57 - 
  ANNEX  
List of FENAPHB plants producing oil and animal feed  
No. Oil mills  Promoters  Sites  Contact  
01 Société Africaine de Transformation du 
Mali (SATMA)  Almamy BOCOUM  Bamako  76 40 26 30 
02 Société Malienne des Produits 
Oléagineux (SOMAPO)  Mamadou  NIANGADOU  Bamako  66 74 03 16  
03 Huilerie Abdramane NIMAGA  Abdramane NIMAGA  Bamako  66 73 76 44  
04 Société Industrielle pour la 
Transformation Agricole au Mali 
(SITAMA)  Alfousseyni SIMPARA  Bamako  66 73 24 33  
05 Société Malienne SYLLA et Frère 
(SOMASYF)  Soumaila SYLLA  Bamako  76 47 91 36  
06 Unité de Traitement de Graine de Coton 
(UTRAG)  Mahamadou DIAKITE  Bamako  66 71 21 79  
07 Huilerie KOMAFA  Bassidy HAIDARA  Bamako  76 39 08 31  
08 Huilerie CICO  Ibrim SIMPARA  Bamako  76 23 36 29  
09 Huilerie ATA INDUSTRIE  Alima THERA  Bamako  66 73 35 64  
10 Huilerie DOUSSEY SARL  Seydou DIALLO  Bamako  76 47 55 11  
11 Huilerie EL HILAL  Boubacar HAIDARA  Bamako  75 29 95 03  
12 Huilerie SOKARIMA  Hadja MOYE SANOGO  Bamako  77 07 06 07  
13 Huilerie SOCIMEX  Bakary DOUMBIA  Bamako  76 15 55 97  
14 Huilerie Cotonnière CISSE de Bougouni 
(HUICOCIB)  Mohamed  Hama  CISSE  Bamako  66 76 34 40  
15 Bama Industrie  Mamadou DIABY  Bamako  79 27 18 48  
16 Industrie Dramane KOUMA  Makan BERTHE  Bamako  66 06 15 30  
17 Industrie Oléagineuse DIARRA  SEKOU DIARRA  Bamako  66 79 69 48  
18 Huilerie Faso  Mamadou BOCOUM  Bamako  74 74 14 01  
19 Huilerie Kané  Oumar DAFFE  Bamako  70 91 19 17  
20 Huilerie IEBANE AGRO -INDUST.  Ogobara Moussa 
GUINDO  Bamako  71 44 44 04  
21 Huilerie ODK  Ousmane KEÏTA  Sanakoroba  76 46 34 29  
22 Huilerie MEDINE  Sidy HAIDARA  Sanakoroba  66 68 24 80  
23 Huilerie SAHELIENNE des HUILES  Isselmou MAHMOUD  Sanakoroba  70 38 63 03  
24 Huilerie SATCOMA  Samba BOCOUM  Sanakoroba  94 14 81 50  
25 Huilerie ZAM -ZAM Boubacar HAÏDARA  Sanakoroba  69 33 65 65  
26 Huilerie WALY  Alpha Cherif HAÏDARA  Sanakoroba  74 00 94 00  
27 Huilerie GARNA Service  Issa NIANGADOU  Oueléssebougou  73 10 66 48  
28 Huilerie Sosso  Soumaïla SOUMAORO  Oueléssebougou  76 16 56 28  
29 Société des Oléagineux du Mali (SOM)  Abdoulaye DAOU  Sikasso  66 00 32 37  
30 Société de Transformation des Graines 
de Coton de Sikasso (STGCS)  Mamadou OUATTARA  Sikasso  66 72 51 76  
31 Huilerie Cotonnière de Sikasso 
(HUICOSI)  Abdoulaye DIAWARA  Sikasso  66 72 48 85  
32 Huilerie Abou Woro Yacouba (HAWYT)  Abou YACOUBA  TRAORE  Sikasso  65 94 06 19  
33 Action pour la Transformation des 
Produits Oléagineux (ATPO)  Mamadou DIARRA  Sikasso  66 71 68 03  
34 Huilerie Aboubacar BAGAYOKO B&B  Aboubacar BAGAYOKO  Sikasso  76 18 09 23  WT/CFMC/W/87  
- 58 - 
  No. Oil mills  Promoters  Sites  Contact  
35 Huilerie Moctar KONE  Moctar KONE  Sikasso  66 72 55 17  
36 Huico T.S.  Ibrahim TRAORE  Sikasso  66 72 89 31  
37 Huilerie KONE & Frères  Yacouba Farci KONE  Sikasso  66 72 53 29  
38 Huilerie GAVI SARL  Ousmane SOW  Sikasso  66 72 54 17  
39 Huilerie Tigana DALIBA  Ousmane TIGANA  Sikasso  79 19 79 90  
40 Huilerie KONIMBA  Djeneba  BAGAYOKO  Sikasso  76 44 68 90  
41 Huilerie Cotonnière Fanta Mady KEÏTA 
(HUIKOFAK)  Fanta Mady KEÏTA  Koutiala  76 36 97 54  
42 Unité Djéna de Koutiala (UDK)  Idrissa OUATTARA  Koutiala  76 37 61 03  
43 Huilerie Cotonnière Nour (HUICONOUR)  Namakan KEITA  Koutiala  66 85 87 96  
44 Huilerie Yaya KONE (HYK)  Moustapha KONE  Koutiala  76 36 96 30  
45 Huilerie Cotonnière TRAORE et 
Compagnie (HUICOTRAC)  Madoudian TRAORE  Koutiala  76 36 90 40  
46 Coopérative des Pressoirs et Aliment 
Bétail (CPAB)  Mamadou  Vieux  TRAORE  Koutiala  64 79 61 57  
47 Huilerie Tara d'Or  Mamadou T. TRAORE  Koutiala  76 14 43 25  
48 Huilerie Cotonnière Touré et Frère 
(HUICOTF)  Moussa TOURE  Koutiala  76 37 62 47  
49 Huilerie SK d'OR  Sidiki KANTAKO  Koutiala  76 37 63 64  
50 Huilerie Cotonnière SANOGO et frère 
(HUICOSAF)  Drissa SANOGO  Koutiala  76 37 50 66  
51 Huilerie KOUMARE  Oumar KOUMARE  Koutiala  76 01 98 70  
52 Huilerie Cotonnière BA Awa de Koutiala 
(HUICOBAK)  Adama DEMBELE  Koutiala  76 36 92 88  
53 Huilerie Cotonnière Maman Zanfigué de 
Mamoutou TOURE  Mamoutou TOURE  Koutiala  66 36 99 14  
54 Huilerie Cotonnière Bawa OUATTARA 
HUI.CO.BO  Boubacar OUATTARA  Koutiala  76 02 41 31  
55 Huilerie E.M.D.D.  Mohamed D. DIARRA  Koutiala  76 30 63 50  
56 Huilerie Mema Badjeneba  Mema DEMBELE  Koutiala  62 44 28 48  
57 Huilerie Mande  Kassim SIDIBE  Koutiala  76 37 63 62  
58 Huilerie HUIMOUTKOUL  Abdou MAÏGA  Koutiala  77 87 86 31 
59 Huilerie HUIMOKA  Anfa COULIBALY  Koutiala  66 89 81 03  
60 Huilerie Moussa Balla FOFANA  Balla FOFANA  Koutiala  76 37 52 15  
61 Huilerie DOUNAMBA  Tidiane TRAORE  Koutiala  76 36 55 51  
62 Huilerie Bakadia  Moctar GOÏTA  Koutiala  79 04 41 53  
63 Huilerie Yaye Multi. Service  Moussa OUATTARA  Koutiala  76 37 52 20  
64 Huilerie Sountoura  Issa SOUNTOURA  Koutiala  76 12 51 78  
65 Huilerie Mountaga Keïta  Abdoul Karim KEÏTA  Koutiala  76 36 9602  
66 Huilerie Diallo et Fils  Amadou Dembrou 
DIALLO  Koutiala  76 64 54 76  
67 Huilerie Mamadou DEMBELE Huico -MDK Mamadou DEMBELE  Koutiala  76 02 42 61  
68 Huilerie Nouhoum OUOLOGUEM  Mamoud OUOLOGUEM  Koutiala  70 34 97 08  
69 Huilerie Ousmane DIARRA  Ousmane DIARRA  Koutiala  70 34 91 89  
70 Huilerie Sekouba COULIBALY  Sékouba COULIBALY  Koutiala  76 27 86 00  
71 Huilerie Pierre SAADE  Pierre SAADE  Koutiala  76 24 88 98  WT/CFMC/W/87  
- 59 - 
  No. Oil mills  Promoters  Sites  Contact  
72 Huilerie BARIKA  Kassim DIARRA  Koutiala  79 04 27 47  
73 Huilerie ALCOMA SARL  Rakheich AGHARWAL  Bougouni  76 37 18 41  
74 Huilerie  Ba Mariama (HBM)  Abdoulaye COULIBALY  Ségou  66 79 60 43  
75 Huilerie Alimata KONE (HAK)  Bssirou COULIBALY  Ségou  66 66 78 12  
76 Sahélienne des Huileries et Savons 
(SHS)  HABIB  Ségou  74 11 12 13  
77 Huilerie du SAHEL Ségou  Abdoulaye DIAWARA  Ségou  79 09 05 01  
78 Huilerie KAMALA  Aboubacar S. DAGNON  Ségou  66 76 70 56  
79 Rizerie et Fabrique d'Aliment Bétail 
(RIFAB)  Sékou BOCOUM  Mopti  66 75 98 55  
80 Huilerie Mamadou CISSE (GICEM)  Mamadou CISSE  Fana 79 02 45 69  
81 Huilerie Chérifoula  Modibo  HAIDARA  Fana 76 26 38 89  
82 Huilerie BAGAYOKO et Frère  Mahamadou BAGAYOKO  Fana 76 30 04 66  
83 Huilerie HUIFAMA SARL FANA  Abdoul HAMEED  Fana 71 11 42 43  
84 Huilerie GRAFAX FANA  Rakesh MACHANDA  Fana 70 61 00 81  
85 Huilerie HIBAT SAN  Moussa TRAORE  San 66 79 38 97  
86 Huilerie Aïssata SEREME  Hassane SEREME  San 66 16 85 72  
87 AGROMA SA  RAKECH AGARWAL  Kita 66 97 56 55  
 
List of people we met  
Given name  Family 
name  Organization  Role/Organization  
Diarrah Assa  SYLLA  Ministry of Industry  Technical Advisor to the Minister  
Monzon  DIARRA  Ministry of Industry  DGCC  
Oumar  SYLLA  Ministry of Industry  DGCC  
Issoufi Halassi  MAÏGA  Ministry of Industry  IF-PIU 
Cheick Omar 
Tidiane  DOUCOURE  Ministry of Agriculture  Deputy DG, CMDT  
Abdoulaye  DIARRA  Ministry of Agriculture  AG Southern branch  
Founéké  SISSOKO  Ministry of Agriculture  AG Central branch  
Ousmane N  TRAORE  Ministry of Agriculture  Technical Director  
Ousmane  CISSE  Ministry of Agriculture  Environment Directorate  
Vamara  SANOGO  APCAM  Technical Council, Confederation of Producers  
Sidiki  DIABATE  FENAPHB  General Secretary, FENAPHB  
 
__________