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Name
Cotton exporter's guide and Promoting West-African cotton to
Asia
Objectives
The first and major objective of this project is to provide to
African cotton growers and traders a practical and down-to-earth
guidebook on how to find new business partners on world markets.
The "Cotton Exporter's Guide" will be a reference guide for cotton
exporters, and especially smallholders and traders, on how to
export cotton to the world. It will address practical trade-related
concerns of cotton-producing SMEs. A major part of the guide will
focus on new cotton markets in Asia and how best to penetrate them.
Moreover, the Cotton Exporter's Guide will be also be developed as
an on-line Guide in 2009.The second objective of this project is to
assist selected African cotton growers and traders to find new
markets in Asia and particularly in China.
Activities and outcomes
The Cotton Exporter's Guide was printed in English French and
Spanish. It was successfully used as supporting material for the
EU-ACP All Commodities Programme Kick-off workshops. One result of
these workshops was the strong request from African countries to
use the guide as the major reference material for the development
of a cotton school in Africa. This idea was welcomed and approved,
in principle, by the International Cotton Advisory Committee.
Discussions are on-going with the EC for developing such a school
within the larger context of "Université du Coton).
The Cotton Exporter's Guide will be made available on-line in all
three languages (English, French and Spanish) by the end of
2009.
South-South Cooperation activities were undertaken in Turkey for
one week in October 2008. 14 participants from 6 African countries
learned from Turkey on a) cotton production, including seed
development, planting, harvesting and ginning; b) fibre
transformation and how to develop a textile and clothing industry;
c) sourcing of cotton inputs from Turkey. Moreover, they
experienced Turkey as an important cotton market and established
first hand contacts with the market (follow-up is ongoing).
Finally, a closer network among the participating African countries
was established.
The Africa Cotton Association recommended the repetition of this
programme in 2009 with other African countries.
A cotton trade promotion and TCDC approach was developed and
implemented to improve African cotton for exports to Asia and
utilized under additional funding. South-south cooperation
activities were implemented under the AAACP, including in countries
such as Bangladesh and China (for East and Southern Africa) as well
as Thailand and Turkey in 2009.
In addition, new opportunities for promoting south-south
cooperation and promotion of African cotton were identified in
India, Brazil as well as Vietnam and Indonesia/Thailand. The latter
will be further developed with the ASEAN Federation of Textile
Industries (AFTEX).
The International Cotton School of the University of Memphis and
the American Cotton Shippers Association uses the Cotton Exporter's
Guide as its official textbook for its annually 9-week training
curse on cotton and cotton trade. The fact that the most advanced
cotton school in the world and the American cotton farmers and
traders use this guide is a clear indication of its high quality
and standard.
Name
Cotton Sector Strategy Implementation
Objectives
Implementation of product and market development activities of
cotton strategies developed together with COMESA (incl. EAC and
SADC) as well as UEOMA and CEMAC
Activities
ITC supports cotton associations to identify and evaluate
specific markets (e.g. in Asia), build capacity through training
and counseling of country counterparts to support African countries
to understand and apply quality requirements and address other
supply impediments e.g. reduction in contamination, improved cotton
consistency and delivery.
ITC can also support training and counseling of counterparts in
marketing for selected importing countries such as Asian and other
emerging markets. In addition, and subject to confirmation at
stakeholder consultations and briefing meetings, training by
textiles production buyers is foreseen for developing country
producers with emphasis on markets, logistics, quality and
preparation for enterprise matchmaking activities.
A 6-day cotton market familiarisation and marketing programme was
successfully implemented in Bangladesh from 29 January to 5
February 2009, which is the world third largest cotton importer.
The programme was jointly organised with the Ministry of Textiles,
Bangladesh Textile Mills Association, and the Bangladesh Cotton
Association. The meeting attracted lots of interest in the media
and the Bangladesh textile industry.
21 African participants i) had direct business negotiations with
more than 10 local cotton merchants and an equal number of
cotton-importing spinning mills; ii) understood and learned the
specific requirements of the Bangladeshi cotton market, received
insider information that international merchants would never share,
including all tricks and issues that need to be addressed to
successfully penetrate the market - special attention was given to
issue of extraneous contamination of cotton and its effect on
textile production and trade; iii) witnessed the development of the
entire textiles and clothing industry through factory visits and
got a firm understanding on how Bangladesh was able to develop the
flourishing industry so successfully.
While ITC sponsored 14 African participants (representing the farm,
ginning and public sector), 7 Tanzanian ginners and bankers joined
the mission on their own full cost. This is an indication of the
importance and usefulness of such missions.
A 5-day cotton market familiarisation and marketing programme was
successfully implemented in Thailand from 18 - 26 June 2009, which
is the world fifth largest cotton importer. The programme was
jointly organised with the Federation of Thai Industries and the
Thai Textile Manufacturers Association. The Department of Export
Promotion, Ministry of Commerce was also involved in organising
interested Thai companies. The meeting attracted lots of interest
in the industry and was officially opened by the Vice Minister,
Ministry of Commerce. 24 African participants i) had direct
business negotiations with more than 15 local cotton merchants and
an cotton-importing spinning mills; ii) understood and learned the
specific requirements of the Thai cotton market, received insider
information that international merchants would never share, special
attention was given to issue of extraneous contamination of cotton
and its effect on textile production and trade; iii) witnessed the
development of the entire textiles and clothing industry through
factory visits and got a firm understanding on how Thailand was
able to develop a flourishing T&C industry.
A 10-day cotton value chain training and marketing of east African
cotton to China programme was successfully implemented in China
from 15 - 25 September 2009, which is the world largest cotton
producer, consumer, transformer and importer. The programme was
jointly organised with the Ministry of Commerce (MOFCOM), the China
National Textiles and Apparel Council (CNTAC - the former Ministry
of Textiles) and the China Cotton Association (CCA). 31 African
participants (5 out of which financed their complete participation)
went through an intensive training on all aspects on the cotton to
textiles value chain, including cotton research, seed development,
production, harvest, ginning and s well as spinning and weaving
operations. An intensive training in Beijing followed field visits
in Zhengzhou. The event culminated in a business networking
(buyers-sellers meeting) that brought Chinese cotton traders and
spinning mills together with African cotton fibre exporters.
Moreover, African participated had the opportunity to interact with
Chinese farm-input suppliers, ginning and textile technology
manufacturers as well as the Zhengzhou Commodity (incl. Cotton)
Exchange and cotton and textile research institutions. Participants
had direct business negotiations with 50 cotton merchants and
cotton-importing spinning mills; ii) understood and learned the
specific requirements of the Chinese cotton market, received
insider information that international merchants would never share;
iii) witnessed the development of the entire textiles and clothing
industry through factory visits and got a firm understanding on how
China is managing its cotton as well as textiles and clothing
growth.
10-day will be implemented in from 27 September to 4 October 2009.
The programme is jointly organized with the Aegean Raw Material
Exporters association. 25 participants from the farm, cotton
companies as well inter-professional organizations will go through
an intensive training on all aspects on the cotton to textiles
value chain, including cotton research, seed development,
production, harvest, ginning and s well as spinning and weaving
operations. The event will culminate in a business networking event
between Turkish cotton merchants and African cotton
companies.
An extensive 7-day programme on cotton value chain training and
marketing of West and Central African cotton to Turkey was
successfully implemented in Turkey, which is the world 7th largest
cotton producer and the 4th largest cotton importer. While Turkey
produces around 400,000 tons of cotton its requirements are around
1 million ton p.a. The programme was jointly organised with the
Aegean Exporters Association, the Denizli T&C Exporters
Association as well as the Mediterranean Exporters Association. 19
African participants went through an intensive training on all
aspects of the cotton to textiles value chain, including cotton
research, seed development, production, harvest (hand and machine
picking), ginning as well as spinning, weaving, knitting and
garment operations. A one day conference in Izmir followed field
visits in Izmir, Menemen, Ayden, Denizli, Adana, Mersin and
Antakya. The event also included a visit to the Izmir Mercantile
Exchange and a business networking (buyers-sellers meeting) that
brought Turkish cotton traders and spinning mills together with
African cotton companies. Participants had direct business
negotiations with cotton merchants and cotton-importing spinning
mills. Moreover, African participants interacted with Turkish
farm-input suppliers as well as cotton research institutions.
African cotton producers and ginners understood the specific
requirements of the Turkish cotton market. Three main lessons are
to be retained, i.e. the import market is dominated by US cotton;
b) African cotton has a bad image including on contamination,
stickiness (sugar content) and unreliable supply in terms of
punctuality and fasts delivery as well as c) African suppliers need
to ensure continuity of supply throughout the year. Participants
received insider information and got a firm understanding on how
Turkey is managing its cotton as well as textiles and clothing
growth.
Achievements & Results so far:
Due to ITC's facilitation a Tanzanian cotton ginners sold 800 tons
of lint to a Thai spinning factory between December 2008 and May
2009. The spinning mill is now engaging to directly work with
the ginner to tackle this problem and will send staff from Thailand
to Tanzania in autumn this year. This shows that it is possible to
directly link cotton producers with consumers without engaging
international merchants. However, this example remains an exception
until cotton suppliers fully understand international trading and
its service dimension.
As a result, On 26 September a first ever direct shipment from
Tanzania to Bangladesh of a first order of 1000 bales (1 bale @ 200
kg) will be shipped. This is a direct result of the event organised
in Bangladesh in February 2009. In fact, several Tanzanian ginning
companies had follow-up visits to Dhaka, supported by the local
CRDB bank. As a result this first shipment was negotiated and the
deal completed. After a first-ever direct shipment to Thailand,
this is the second example that direct sales of a commodity such as
cotton is possible if a close collaboration of important value
chain players at national level is secured.
The concept of sub-regional cotton cooperation between Mozambique,
Zambia, Zimbabwe and Malawi (MoZaZiMa) was developed by the various
cotton stakeholders of the countries concerned. As the 4 countries
face similar challenges, need to follow similar practices and have
small cotton crops for marketing purposes, a closer collaboration
was agreed upon. It will be further expanded in 2010 and 2011.
Name
Cotton exporter's guide and Promoting West-African cotton to
Asia
Objective
Provide to African cotton growers and traders a practical and
down-to-earth guidebook on how to find new business partners on
world markets. Assist selected West-African cotton growers and
traders to find new markets in Asia and particularly in China.
Background
Thirty-three African countries (out of a total of fifty-three)
are producers and net exporters of cotton. In these countries,
cotton plays an essential role in economic and social development,
contributing to poverty reduction. Africa represents 14% of world
cotton area and 18% of world exports for this product. Over the
last 2 decades, worldwide cotton consumption has accelerated. After
growing only 0.3 percent per year during the 1990s, cotton
consumption increased by 3% annually during 2000-2004. Production
is falling behind mill use in China, Pakistan, India and Turkey.
These 4 countries alone accounted for 15% of world imports in
2000/01 and are expected to reach 49% in 2005/06.
Activities
● Publish The Cotton Exporter's Guide.
● Identify quantitative and qualitative cotton
demand of China (Asia) from the participating countries.
● Develop African cotton producers and exporters
knowledge of export procedures as well as Chinese (Asian) import
requirements, distribution channels and the Chinese (Asian) cotton
market.
● Develop and implement a cotton trade promotion
and TCDC approach to improve African cotton for exports to China
(Asia).
Name
Cotton exporter's guide and Promoting West-African cotton to
Asia
Objective
Provide to African cotton growers and traders a practical and
down-to-earth guidebook on how to find new business partners on
world markets. Assist selected West-African cotton growers and
traders to find new markets in Asia and particularly in China.
Background
Thirty-three African countries (out of a total of fifty-three)
are producers and net exporters of cotton. In these countries,
cotton plays an essential role in economic and social development,
contributing to poverty reduction. Africa represents 14% of world
cotton area and 18% of world exports for this product. Over the
last 2 decades, worldwide cotton consumption has accelerated. After
growing only 0.3 percent per year during the 1990s, cotton
consumption increased by 3% annually during 2000-2004. Production
is falling behind mill use in China, Pakistan, India and Turkey.
These 4 countries alone accounted for 15% of world imports in
2000/01 and are expected to reach 49% in 2005/06.
Achievements
2007 - The Cotton Exporter's Guide was finalized and an advance
copy introduced to the cotton world during the annual meeting of
the International Cotton Advisory Committee in Izmir, Turkey in
October 2007. The feedback from all parts of the cotton community
was very positive and discussions were initialized to establish a
"moving" cotton school based on the Guide. In addition, a technical
paper "Organic Cotton: An Opportunity for Trade" was elaborated and
presented to the cotton community during the China International
Cotton Conference. Moreover, four South-south cooperation
activities were carried out to create market transparency and to
expose African cotton producers and exporters to Know How,
technologies and market opportunities in Asia. These were
implemented in India, China, Republic of Korea and Turkey. African
exporters form the East and West Africa learned farming, breeding
and production technologies in India and China and how to adapt it
to the African situation. Furthermore, the entire value chain of
cotton transformation was addressed and exporters gained a clear
insight into how to transform cotton in China, India, Republic of
Korea and Turkey. Finally, in all four markets African cotton
exporters met cotton importers and users (spinning mills), gaining
a full understanding on how to promote their cotton and how to
conclude export orders with these markets.
Name
Cotton exporter's guide and Promoting West-African cotton to
Asia
Objective
Provide to African cotton growers and traders a practical and
down-to-earth guidebook on how to find new business partners on
world markets. Assist selected West-African cotton growers and
traders to find new markets in Asia and particularly in China.
Background
Thirty-three African countries (out of a total of fifty-three)
are producers and net exporters of cotton. In these countries,
cotton plays an essential role in economic and social development,
contributing to poverty reduction. Africa represents 14% of world
cotton area and 18% of world exports for this product. Over the
last 2 decades, worldwide cotton consumption has accelerated. After
growing only 0.3 percent per year during the 1990s, cotton
consumption increased by 3% annually during 2000-2004. Production
is falling behind mill use in China, Pakistan, India and Turkey.
These 4 countries alone accounted for 15% of world imports in
2000/01 and are expected to reach 49% in 2005/06.
Achievements
2006 - The development of the cotton exporters guide was under
progress. Most of the text for the guide was available with
contributions from important international cotton players,
including ICAC, universities, international trading houses,
exporters, WTO and others. In November ITC, together with the South
Indian Textiles Research Association, Ministry of Textiles, with
co-finance form the Ministry of External Affairs, Government of
India, held a Cotton Training Programme for 22 participants from
four East African countries (namely Ethiopia, Tanzania, Uganda and
Zambia) in Coimbatore. The training encompassed a series of
lectures focusing on cotton production management, processing and
value addition as well as international cotton trade combined with
study visits to cotton fields, research institutes, spinning and
weaving mills and cotton machinery producers. Participants acquired
a sound insight of the Indian cotton sector and the success factors
behind India's cotton boom. Moreover, they understood the market
requirements to comply with in order to enter this market. This
experience demonstrated that South-South cooperation is a key area
to help African cotton producers address quality requirements and
increase exports. According to the WTO Secretariat, this was a
"welcome opportunity to show how trade could work for development
in the context of the DDA". Participants commended ITC for a
"pragmatic and result-oriented programme in an area of importance
for Africa" and suggested continuing this kind of support
project.