WT/CFMC/48

5 May 2014
(14-2727)

Page: 1/12
Original: French

DIRECTOR-GENERAL'S CONSULTATIVE FRAMEWORK MECHANISM ON COTTON

COMMUNICATION FROM MALI
The following communication, dated 25 April 2014, is being circulated at the request
of the delegation of Mali.
_______________
1 INFORMATION ON MALI'S COTTON SECTOR SUPPLIED BY THE MALI TEXTILE
DEVELOPMENT COMPANY (CMDT)
COTTON PRODUCTION IN MALI FROM 2003/2004 TO 2013/2014

620,665

589,751
534,122
445,314

414,965

449,661

440,574

243,589

242,238
201,462

229,018

2 BACKGROUND ON THE COTTON SECTOR

2.1. In Mali, cotton is a rainfed crop and is grown on a vast number of small-scale farms, chiefly
in the south of the country. These farms, of which there are 175,000 (2005/2006 season) for a
known population of around 3.8 million in a normal year, mostly operate without mechanized
equipment. Animal traction (87% of farms own at least one "full set of equipment"1) is used to
cultivate an average of 8 to 9 hectares, 2 or 3 of which are planted to cotton and the remainder to
dry grain (maize, millet, sorghum and rainfed rice) and diversified crops (cowpeas, groundnuts,
soybeans, sesame, etc.). These farms operate under 7,177 Cotton Producers' Cooperatives (SCPC)
grouped into 288 local unions (UC-SCPC), 41 sector unions (US-SCPC), four regional unions
(UR-SCPC) and one national union (UN-SCPC).

Meaning a pair of ploughing oxen, a plough, a multi-cultivator, a seed drill, and a cart.

WT/CFMC/48
-22.2. The cotton growing area covers 180,000 km, or 12% of the national territory. It is chiefly
located south and west of the River Niger. Total crop acreage is estimated at 9 million hectares,
of which 1.8 million (21%) are under production.
2.3. Producers are supported and seed cotton production is marketed by two operators, the
Malian Textile Development Company (CMDT) and the Office de la Haute Valle du Niger (OHVN),
working in tandem with village technical teams (ETV). The CMDT handles 95% of production
and the OHVN 5%.
2.4. The CMDT, which is the sector's main operator, has made the cotton industry the foundation
and the engine of rural development in the areas concerned, with the aim of improving people's
living environment and standards, ensuring food security, and promoting all agricultural, forestry
and livestock farming activities.
2.5. Established on 21 October 1974, the CMDT is a semi-public company with a capital
of CFAF 7,982,340 billion, of which 99.49% is in the hands of the State and 0.51% in those of the
company GEOCOTON. Since its strategic turn to the cotton production system in September 2002,
the CMDT has been performing the following main functions:
a. support, production and agricultural marketing;
b. transport, industrial production and track maintenance in cotton-growing areas;
c.

marketing of cotton lint and seed and transportation to the ports of shipment;

d. sale of cotton lint and seed;

e. supply of industrial inputs and provision of other supplies and equipment; and
f.

purchase and provision of agricultural inputs in the case of an economic interest group
(UNSPC/CMDT/OHVN).

2.6. The trend in cotton production over the past 14 years is as follows:
TREND IN SEED COTTON PRODUCTION
Season
2000/2001
2001/2002
2002/2003
2003/2004
2004/2005
2005/2006
2006/2007
2007/2008
2008/2009
2009/2010
2010/2011
2011/2012
2012/2013
2013/2014

Number
of farms
88,432
162,408
153,515
165,204
172,353
174,749
163,420
117,933
83,993
101,814
106,968
161,368
166,718
173,634

Area (ha)
227,912
538,665
449,293
548,895
565,141
550,532
480,474
283,927
197,096
250,465
285,985
477,817
521,436
480,541

Seed cotton
production (t)
242,726
570,989
439,729
620,665
589,751
534,128
414,984
242,238
201,462
229,019
243,589
445,314
449,661
440,574

Yield
(kg/ha)
1,065
1,060
979
1,131
1,044
970
864
853
1,022
914
852
932
862
917

2.7. The decline in production that followed the record performance in the 2003/2004 season
lasted until 2008/2009, with an output of 201,453 tonnes. As a result of the historic boom
in international cotton prices at the end of the 2010/2011 season, production showed signs
of recovery in 2011/2012.

WT/CFMC/48
-3SEED COTTON PRODUCTION (T)

2.8. Mali's ginning capacity is 575,000 tonnes. The CMDT currently has 17 ginning plants,
a workshop producing ties, and a vehicle fleet comprising more than 150 vehicles and handling
and civil engineering devices. The fleet is supplemented by 250 private trucks to ensure that the
plants are properly supplied and agricultural inputs delivered to the villages. Private trucks also
transport all the products generated by the ginning process (lint and seed) to the various ports
and local industries.
2.9. Local industrial processing of lint production is mainly in the hands of four facilities
(COMATEX-SA, FITINA, BATEXCI-SAU, MASEDA) and other small linters processing units
(SUCOTEX, SOFACOH, NEW BRIDGE, etc.) Only about 1% to 3% of production is processed
locally.
2.10. Cotton seed is processed into oil, soap and animal feed by more than 52 officially accredited
industrial crushing units. Total installed capacity can now process more than one million tonnes
of cotton seed.
2.11. For the purposes of its crop activities, i.e., the marketing of seed cotton, the collection
of and payment for seed cotton, ginning, and FOB delivery of the lint, the CMDT uses a pool
of national and foreign banks to finance its seasonal loans.
2.12. The amounts of the seasonal loans negotiated with the banking pool over the past
ten seasons are listed in the Table below:
SEASONAL LOANS OBTAINED OVER THE PAST TEN YEARS
Season
2003/2004
2004/2005
2005/2006
2006/2007
2007/2008
2008/2009
2009/2010

Arrangement
(CFAF)
140,000,000,000
130,000,000,000
115,000,000,000
75,000,000,000
50,000,000,000
63,000,000,000
45,000,000,000

Amount drawn
(CFAF)
127,899,999,868
98,871,819,091
107,000,000,000
61,276,859,531
19,000,000,000
52,346,000,000
45,000,000,000

Amount drawn
%
91.36
76.06
93.04
81.70
38.00
83.09
100.00

Seed cotton
output
620,665
589,751
534,128
414,984
242,238
201,462
229,019

WT/CFMC/48
-4Season
2010/2011
2011/2012
2012/2013
2013/2014

Arrangement
(CFAF)
56,000,000,000
120,000,000,000
110,000,000,000
100,000,000,000

Amount drawn
(CFAF)
56,000,000,000
112,800,000,000
100,000,000,000
100,000,000,000

Amount drawn
%
100.00
94.00
90.91
100.00

Seed cotton
output
243,589
445,314
449,661
440,574

2.13. The amount agreed in the arrangement depends on the season's output of seed cotton.
Each amount drawn is 125% covered by the lint sales contracts. The amount drawn depends on
purchases of seed cotton and the pace of ginning, transportation and shipping.
3 PRODUCER PRICE-SETTING SYSTEM
3.1. The following producer price-setting mechanisms for seed cotton have been used since the
creation of the CMDT:
a. administered price method (1974-1989);
b. price-setting under a framework agreement (1989-2002);
c.

negotiated price method (2002-2004).

3.2. Over the decade 1995-2004, the producer purchase price of prime quality seed cotton
fluctuated between 150 CFAF/kg and 210 CFAF/kg.
Season

1995/
1996

1996/
1997

1997/
1998

1998/
1999

1999/
2000

2000/
2001

2001/
2002

2002/
2003

2003/
2004

2004/
2005

Purchase
price
(CFAF/kg)

155

155

170

185

150

170

200

180

200

210

3.3. In view of the problems that arose in applying the negotiated price, the cotton sector reform
process led to the signing, on 13 January 2005, of a memorandum of understanding between the
State, the CMDT and the producers on the price-setting mechanism for seed cotton.
3.1 Memorandum of Understanding of 13 January 2005 (2005-2008)
3.4. This Memorandum of Understanding was based on the following principles:
a. a base price for the purchase of seed cotton is notified prior to sowing but at the latest
on 30 April of each year, and ranges between CFAF 160 and 175/kg (top grade) for the
2005/2006, 2006/2007 and 2007/2008 seasons;
b. the Support Fund is an instrument offering relative flexibility in setting the initial price
and not a prerequisite for applying the pricing mechanism; the Support Fund is wholly
owned by the producers;
c.

the gross income earned by the sector is shared between the producers and the CMDT
on a 60%/40% basis, respectively;

d. the gross income generated from cotton lint is assessed on the basis of the "April n" to
"March n+1" Cotlook A Index arithmetic average;
e. in a favourable market context, that is, when the final remuneration to be paid to the
producers exceeds the base purchase price of cotton, a remuneration supplement is
added to the base purchase price of seed cotton; 50% of this addition is paid to the
producers as a price supplement, and 50% is set aside for the Support Fund; and
f.

in an unfavourable market context, resources are drawn from the Support Fund, to the
extent that it is sufficiently endowed and the amount of contributions allow.

WT/CFMC/48
-53.5. Two further memoranda were signed under the same terms on 30 April 2008 for the
2008/2009 season, with a base price of CFAF 200/kg, and on 13 April 2009 for the 2009/2010
season, with a base price of CFAF 170/kg. For 2009/2010, the amount of CFAF 1,093,210,000 was
withheld from the remuneration supplement, at the producers' request and with the agreement of
the State and the CMDT, to ensure the operation of the UN-SCPC and its network of cooperatives.
3.2 Memorandum of Understanding for the 2010/2011 season
3.6. The MOU for the 2010/2011 season was signed between the State, the producers and the
CMDT on 30 April 2010, with a base price of CFAF 185/kg and containing the following
amendments:
a. the scale of apportionment of gross income is reduced to 55/45 in favour of the
producers, the CMDT no longer being in a position to sustain the former
60/40 percentage as a result of the successive deficits in former seasons;
b. the reference index for calculating the income from cotton lint is no longer the Cotlook A
Index but the Africa Index, that is, the average of the four African quotations
(Burkina Faso, Benin, Cte d'Ivoire, Mali) used by Cotlook;
c.

the simple average over one year is replaced by the weighted average during the
CMDT's sales periods.

3.7. Evaluation of the season led the producers to request that CFAF 1,786,188,111,
or CFAF 7,333/kg of seed cotton, be withheld for the operation of the UN-SCPC.
3.3 Memorandum of Understanding for the 2011/2012 season
3.8. The 2011/2012 season was somewhat unique in that it followed the historic boom in
international cotton prices (over US$ cents 200/lb) and a substantial rise in domestic production
(more than 83% compared to the previous season) was forecast. This was the background against
which the MOU for the 2011/2012 season was signed on 12 February 2011, for the first time
within the framework of the Cotton Trade Association (IPC), with an unprecedented base price of
CFAF 255/kg.
3.9. The scale of apportionment ultimately adopted for the remuneration supplement was as
follows: Price supplement: 40%, Support Fund (to be established): 30%, UN-SCPC: 15%, Inputs
Fund (to be established): 15%. For the first time, this MOU provided for certain charges common
to the sector, amounting to CFAF 5.343 billion (CFAF 12/kg), to be withheld from gross earnings.
Despite the amount withheld, the season ended with a supplement of CFAF 63.764/kg,
or CFAF 28.395 billion, in favour of the producers.
3.4 Memorandum of Understanding for the 2012/2013 season
3.10. In order to sustain the recovery of production that began during the 2011/2012 season,
and given the level of replenishment of the Support Fund, a base price of CFAF 255/kg was
adopted for the 2012/2013 season, despite the fact that such a price was not in line with world
cotton prices. The season ultimately ended with CFAF 8.447 billion in overpayment to be drawn
from the Support Fund.
3.11. An important point: In view of the State's difficulties in paying the input subsidy, in 2012
CFAF 10.151 billion was drawn from the Support Fund to reimburse the State for the advance
payment it had made to enable the producers to acquire 20% of the capital of the four CMDT
subsidiaries.
3.5 Memorandum of Understanding for the 2013/2014 season
3.12. The 2013/2014 MOU was signed under these terms, with a price of CFAF 250/kg. This price
level was not sustainable in the light of world cotton prices, and the Support Fund would not be
sufficient to cover the impending overpayment.

WT/CFMC/48
-63.13. A return to the initial 60/40 allocation key was considered by the sector's two main
stakeholders, the UN-SCPC and the CMDT. This will make it possible to raise the level of the final
purchase price above the base price already paid.
3.14. The trend in the base purchase price and the final price of seed cotton since the
establishment of a mechanism based on the sharing of the gross income earned by the sector
between the producers and the CMDT has been as follows:
Season

Final price

Base price

CFAF/kg

CFAF/kg

Supplement

2005/2006

168,994

160

2006/2007

165,883

165

0,883

366,430,872

2007/2008

181,889

160

21,889

5,302,347,582

2008/2009

180,720

200

19,280

3,884,187,360

2009/2010

197,620

170

27,620

6,325,504,780

2010/2011

232,333

185

47,333

11,529,798,137

2011/2012

318,764

255

63,764

28,395,001,896

2012/2013

236,214

255

18,786

8,447,331,546

2013/2014*

260,483

250

10,483

4,618,537,242

CFAF/kg
8,994

CFAF
4,803,947,232

*provisional

350
300
255

255

250

250
200
200
160

165

160

170

185

150
100
50
0

BasepriceCFAF/kg

FinalpriceCFAF/kg

*provisional

4 SUPPLY OF AGRICULTURAL INPUTS AND PRODUCER INDEBTEDNESS

4.1. From the time of its creation in 1974 until 2002, the CMDT supplied the producers with inputs
(seeds, fertilizers, insecticides, herbicides).
4.2. In 2001/2002, it entrusted the supply of cereal inputs, cotton herbicides and treatment
apparatus in two regions (Koutiala and San) to the Group of Cotton and Food Producers' Unions
on a trial basis. The trial was extended to all regions in 2002/2003 following the summit meeting
of the cotton industry in Mali.

WT/CFMC/48
-74.3. After its creation in May 2007, the National Union of Cotton Producers' Cooperatives
(UN-SCPC) requested overall responsibility for supplying cotton and cereal inputs to the producers.
Following this request, an interministerial commission was set up to handle tenders for the supply
of producers during the 2008/2009 season.
4.4. Despite the uneven trend in the buying price of inputs, the credit sale prices charged to
producers have remained relatively stable, mainly because of the CFAF 12,500 per bag fertilizer
subsidy granted by the State since the 2009/2010 season.
SELLING PRICE OF AGRICULTURAL INPUTS (CFAF/KG, /HA, /L) (CREDIT PRICE)
Season

2001/2002
2002/2003
2003/2004
2004/2005
2005/2006
2006/2007
2007/2008
2008/2009
2009/2010
2010/2011
2011/2012
2012/2013
2013/2014

NPK
50-kg bag

Urea
50-kg bag

12,740
11,054
13,775
14,365
13,275
13,275
12,995
18,467
13,413
13,413
13,413
13,413
13,413

8,260
9,934
12,100
11,550
11,125
11,125
11,125
18,982
13,413
13,413
13,413
13,413
13,413

Delinted
cotton
seed
15 kg

Insecticides

Pre-emerge
nt cotton
herbicides

Post-emergent
cotton
herbicides

3,317
4,313
4,770
4,770
4,560
4,560
4,550
4,507
4,507
4,566
4,566
4,566
4,566

3,506
4,600
4,646
4,646
4,646
4,646
4,550
4,507
4,507
4,614
4,614
4,614
4,614

7,610
12,850
12,979
12,979
12,979
12,979
13,975
14,813
14,813
14,813
14,813
14,813
14,813

1,294
1,294
1,294
1,294
1,294
1,294
1,294

Non-selective
herbicides

4,550
4,507
4,507
4,507
4,507
4,507
4,507

4.5. The amount of this subsidy by season and cotton and cereal production are shown in the
Table below:
Season
Seed cotton
production (t)
Cereal
production (t)
Quantity of
fertilizer used (t)
Fertilizer subsidy
(CFAF billion)

2013/2014
440,574

2012/2013
449,661

2011/2012
445,314

2010/2011
243,89

2009/2010
229,019

1,659,300

1,773,788

1,503,850

1,275,900

1,263,835

168,631

166,659

144,182

108,250

81,607

19,326

25,178

18,403

10,005

10,449

4.6. The overall debt ratio of farmers' associations in the CMDT area fluctuated between 29%
in 2003/2004 and 68% in 2006/2007. It was 48% in 2013/2014. The Table below shows the debt
ratio in the CMDT area over the past ten seasons:
Season

Seed cotton
production (t)

2003/2004
2004/2005
2005/2006
2006/2007
2007/2008
2008/2009
2009/2010
2010/2011
2011/2012
2012/2013
2013/2014*

620,665
589,751
534,128
414,984
242,238
201,462
229,019
243,589
445,314
449,661
440,574

Gross income
cotton
(CFAF)
124,133,000,000
123,847,710,000
85,460,480,000
68,472,360,000
41,428,718,360
40,292,400,000
41,597,553,200
45,063,965,000
122,461,351,320
114,663,555,000
112,346,370,000

Total credit
Debt ratio (%)
owing
(CFAF)
36,435,188,413
29
48,168,084,265
39
43,360,857,104
51
46,731,330,184
68
26,563,995,131
64
23,368,289,743
58
25,588,268,729
62
29,000,627,364
64
49,952,308,005
41
56,419,393,955
49
54,053,245,443
48

%
repaid
97
97
96
93
82
93
93
96
99
99
99

*provisional

4.7. The agricultural loan repayment rate has been of the order of 99% over the last
three seasons.

WT/CFMC/48
-85 LINT AND SEED MARKETING
5.1. The CMDT sells all of its production (lint, seed, short lint, etc.) through its Trade Directorate.
Lint is the CMDT's leading product and Mali's second export product. Malian cotton has the
following characteristics:
a. average fibre length = 1 1/8; (95.6%);
b. micronaire = 3.7 to 4.2;
c.

strength, between 28 and 30g/tex, is satisfactory.

5.2. The following ten types of Malian cotton are on the market:
a. upper grades: SARAMA, JULI/S, NERE, JULI, KATI;
b. middle grades: KATI/C, LIBA, LIBA/C;
c.

lower grades: KOLA, BATA.

5.3. Since 2003/2004, a number of successful measures have been taken to enhance quality, as
illustrated in the Table below:
Quality
SARAMA
JULI/S
NERE
JULI
KATI
Upper
grades
KATI/C
LIBA
LIBA/C
Middle
grades
KOLA
BATA
Lower
grades

2004
%
0.80
3.50
2.10
13.20
24
43.60

2005
%
1.40
6.40
3.40
19.40
29.90
60.50

2006
%
1.20
7.20
0.40
22.70
31.70
63.20

2007
%
2
7
0.40
28
33.80
71.20

2008
%
3.70
16.30
0.30
44.20
27.30
91.80

2009
%
4.70
22.80
0.60
41
24.10
93.20

2010
%
1.51
10.36
1.83
38.30
33.62
85.62

2011
%
0.38
5.04
1.19
31.94
38.09
76.64

2012
%
1.84
13.61
1.76
37.95
31.29
86.44

2013
%
0.35
5.41
1.07
29.48
40.88
77.18

2014
%
0.60
6.04
2.06
32.16
36.38
77.25

12.90
22.60
15.90
51.40

6.50
20.20
10.40
37.10

7.90
18.20
9
35.10

9.70
13
5.10
27.80

5.20
2.60
0.10
7.90

3.10
3
0.40
6.50

6.38
5.66
1.45
13.50

9.82
9.95
2.08
21.85

7.80
4.37
0.86
13.02

11.11
8.41
2.50
22.02

15.27
5.51
1.54
22.31

0.70
4.20
4.90

0.40
2.10
2.50

0.90
0.80
1.70

0.60
0.50
1.10

0.10
0
0.10

0.10
0.10
0.20

0.43
0.38
0.80

1.04
0.39
1.43

0.21
0.11
0.32

0.47
0.18
0.65

0.20
0.08
0.28

5.4. Only 2 to 3% of cotton lint production is processed by the local textile industries, i.e. an
average of 3,450 tonnes over the past ten years.
5.5. As regards Malian cotton for export, the Trade Directorate offers its customers a range of
cotton lint of various grades and fibre length.
5.6. Sale is f.o.b., West Africa port. The price of cotton is set according to the market on the basis
of the New York and Liverpool indices. Cotton is bought by tender.
5.7. Payment is made by confirmed letter of credit or documentary remittance by a top-tier bank,
and contracts may serve as a pledge.
5.8. The main destinations of Mali's cotton over the past ten years have been China (30%),
Viet Nam (10%), Malaysia (9%), Thailand and Indonesia (8%), Pakistan and Bangladesh (6%),
etc.

MAIN DESTINATIONS OF MALIAN COTTON (TONNES) FROM 2004 TO 2013

2005
76,157
27,467
21,700
9,615
9,032
21,144
13,423
10,479
11,527
2,273
6,113
2,085

785
1,204
1,995

8,945
1,361
7,617
1,849
1,006
1,629

2,455
5,823
5,290
2,222
370
12,563
3,041
9,934

637
639
66
1,747
3,559

2006
74,195
31,563
25,244
2,195
18,983
9,852
16,144
4,516
1,648
6,965
2,556
1,348
500
1,740
1,416
2,390
1,164
1,014
1,293

2007
36,149
18,967
21,061
25,260
21,022
9,117
4,237
5,540
4,560
5,801
2,490
2,247

2008
21,509
15,966
16,687
10,484
8,582
3,663
1,440
1,333
2,278
4,809
856
6,478

2009
16,901
11,384
10,617
1,825
8,838
1,107
599
368
19,275
4,195
2,164
1,464

2010
20,208
6,367
5,970
13,403
7,973
10,421
3,400
2,593
16,067
1,359
600
174

890
2,336
359
2,488
2,104

1,088
2,345
140
346
281

3,935
2,097
9,497
200
894
1,269

952
2,894
4,106
20
3,298

2011
39,025
5,954
9,070
3,608
21,878
5,489
1,683
197
9,483
661

147

197

724
950

3,491
80
287
245
588
79
1,066

2,105
587
504
317
1,600
437
823

3,030
119
1,103
100
742
131

1,590

436

1,051

746

2012
92,664
6,299
2,987
200
4,243
5,071
828
517
57,586
959
1,005
6,347
1,125
197
4,762
497
361
280

2013
61,495
20,015
9,009
3,015
19,495
18,092
2,309
1,022
22,908
703
417
23,599
1,900
1,249
739
4,418
679
679

218

679

718

679

Total
500,495
163,298
139,605
97,487
132,778
97,190
55,579
41,802
154,928
33,591
26,132
51,949
2,400
14,188
6,895
34,489
4,795
10,243
12,751
8,220
10,014
8,839
13,603
12,849
5,682
23,280
1,663,083

%
30%
10%
8%
6%
8%
6%
3%
3%
9%
2%
2%
3%
0%
1%
0%
2%
0%
1%
1%
0%
1%
1%
1%
1%
0%
1%
100%

WT/CFMC/48

2004
62,193
19,316
17,259
27,882
12,733
13,234
11,516
15,237
9,597
5,866
9,932
8,207

-9-

DESTINATION
China
Viet Nam
Thailand
Pakistan
Indonesia
Bangladesh
Taiwan
Italy
Malaysia
Morocco
Germany
India
Hong Kong, China
Bahrain
Tunisia
Mali
Turkey
France
Belgium
Dubai
Portugal
Mauritius
Brazil
Latvia
Philippines
Other
TOTAL

WT/CFMC/48
- 10 5.9. The income generated on the sale of cotton lint accounts for more than 90% of the CMDT's
turnover.
5.10. Previously regarded as a byproduct, cotton seed has increased in value, and its selling price
has been rising gradually since the 2003/2004 season. It is exclusively reserved for the local
crushing plants.
LINT PRODUCTION AND TURNOVER OVER THE PAST TEN SEASONS
Season
2003/2004
2004/2005
2005/2006
2006/2007
2007/2008
2008/2009
2009/2010
2010/2011
2011/2012
2012/2013

Volume
(t)
259,644
239,631
223,388
175,755
100,939
85,147
96,488
103,403
186,743
191,626

Production
value
(CFAF)
207,549,943,469
132,384,173,450
145,408,705,055
108,309,841,078
69,924,170,710
67,153,742,525
71,475,865,369
92,932,154,432
234,343,450,900
170,921,182,462

Unit price
CFAF/kg
799
552
651
616
693
789
741
899
1.255
892

Turnover
Amount
Unit price
(CFAF)
CFAF/kg
190,930,477,087
735
130,938,964,634
546
142,908,192,437
640
107,631,564,762
612
69,506,983,335
689
62,427,859,873
733
71,835,284,717
744
92,822,514,524
898
231,760,151,350
1,241
170,156,524,130
888

COTTON SEED PRODUCTION OVER THE PAST TEN SEASONS

Season
2003/2004
2004/2005
2005/2006
2006/2007
2007/2008
2008/2009
2009/2010
2010/2011
2011/2012
2012/2013

Production (t)
Total
326,044
313,717
275,149
212,264
128,781
105,813
118,907
126,179
237,839
235,308

Seed
26,084
24,077
26,246
20,669
13,738
9,253
8,645
17,031
19,483
25,056

Oil
299,960
289,640
248,903
191,595
115,043
96,560
110,262
109,148
218,356
210,252

Oil production
Value
CFAF
10,048,660,000
13,033,800,000
7,382,711,883
4,789,875,000
5,752,150,000
7,724,800,000
9,372,270,000
9,296,026,012
18,689,745,108
18,352,476,576

Unit price
CFAF/T
(net of taxes)
33,500
45,000
29,661
25,000
50,000
80,000
85,000
85,169
85,593
87,288

5.11. The fall in world lint prices over several past seasons has had a highly negative impact on
the sector as a whole: drop in the producer purchase price, deepening of the CMDT's deficit year
by year, problems with the supply of agricultural and industrial inputs, increase in the selling price
of cotton seed, etc. This prompted the Mali Government to undertake structural reforms in order to
revitalize cotton farming and hence the cotton industry as a whole.
6 RESTRUCTURING OF THE COTTON SECTOR
6.1. The severe crisis that had been affecting the cotton sector since 1999, induced by the steep
drop in world lint prices that weakened the CMDT, and aggravated by the consequences of the
farmers' boycott of cotton production, led to a process aimed at reforming the sector, which began
in late 2000.
6.2. This is the context in which the Mission for Reorganization of the Cotton Sector (MRSC) was
established by the Government in order to steer this process.
6.3. The Policy Letter on Development of the Cotton Sector (LPDSC), adopted on 6 June 2001,
lays down a plan of action based on the following three-pronged strategy: re-focusing of the work
of the CMDT on the cotton sector, closer involvement of producers in cotton sector management,
and liberalization of the sector.
6.4. The LPDSC plan of action, updated in 2003 and 2005, led to the following, inter alia:
a. the organization of producers in cotton producers' cooperatives (CPC) at the local,
regional, (UR-SCPC) and national (UN-SCPC) levels;

WT/CFMC/48
- 11 b. establishment of a framework for regulation of the cotton sector, including the Cotton
Trade Association (IPC), which is a formal consultation forum for all stakeholders to
obtain information and take decisions concerning the sector, and the Cotton Grading
Board (OCC);
c.

establishment of a mechanism for setting the purchase price of seed cotton and the
attendant Support Fund;

d. privatization of the CMDT by 2009, to be replaced by four private cotton companies.

The capital of these four companies will be held as follows: 61% by a private operator,
20% by the producers through the UN-SCPC, 17% by the State, and 2% by the workers;
and
e. creation of the four production subsidiaries and launching of the CMDT privatization
process as the final stage in the reform.
6.2 Privatization process
6.5. Le CMDT Privatization Plan, adopted by the Council of Ministers on 4 October 2006, provides
for the division of the CMDT into four subsidiaries, of which CMDT Holding will own 100% of the
shares. The privatization of the CMDT subsidiaries will be the final stage in the restructuring of the
cotton sector, and will involve selling 20% of the shares of each subsidiary to the producers, 2% to
the workers, 17% to the State, and 61% to the recognized private investors.
6.6. The transfer of 20% of the shares, worth CFAF 10,151,730,000, to the producers became
effective on 10 June 2010.
6.7. The workers are still in the process of setting up the mutual structure that will represent
them in the capital of the subsidiaries. The State has yet to come forward.
6.8. The MRSC, which was entrusted with the sale of 61% of the shares to the recognized private
investors, issued an international call for tenders on 22 February 2010. On 25 February 2011, the
Chief of the MRSC announced the YUEMEI Group as the provisional successful bidder for the
western subsidiary (Kita) and the northeastern (Koutiala-San) or southern (Sikasso-Bougouni)
subsidiary.
6.9. Negotiations with the YUEMEI Group regarding the southern and western subsidiaries began
on 23 March. Although several meetings took place between the two parties, none of the
documents in the negotiation dossier was formally adopted. Moreover, the negotiations concerning
the selling price, based on the reference prices defined and adopted by the Malian party, could not
take place.
6.10. In the face of these failures, on 18 June 2012 the call for tenders for the sale of 61% of the
capital of the CMDT subsidiaries was declared unsuccessful by the MRSC.
6.11. These were the circumstances in which the Prime Minister sent the MRSC and the other
stakeholders in the cotton sector the engagement letter dated 5 March 2013. Implementation of
this letter was centred on the following six activities:
1.

finalize the implementation of the Cotton Trade Association (IPC);

2. clarify the relationship between the CMDT and the UN-SCPC as a shareholder in the
four subsidiaries;
3.

review the CMDT Privatization Plan (SOP);

4.

analyse the different reform experiences in the countries of the subregion so as to learn
from them;

5.

improve the accounting and management of the CMDT subsidiaries; and

6.

monitor developments in the cotton sector.

WT/CFMC/48
- 12 6.12. Apart from the review of the Privatization Plan, most of the above activities have been
implemented under the direction of the MRSC, whose mandate has been extended until June 2014.
AGRICULTURAL PRODUCTION STATISTICS 2003-2014
Crop
Cotton
Number of farms
Area (ha)
Yield (kg/ha)
CMDT
production (t)
OHVN
production (t)
Production
Bafoulab area (t)
TOTAL MALI (t)
Maize
Area (ha)
Yield (kg/ha)
CMDT
Maize
production (t)
Millet
Sorghum
Area (ha)
Yield (kg/ha)
CMDT
Millet - sorghum
prod. (t)
CMDT
Forage crops
Area (ha)

Crop
Cotton
Number of farms
Area (ha)
Yield (kg/ha)
CMDT
Production (t)
OHVN
Production (t)
Production
Bafoulab area (t)
TOTAL MALI (t)
Maize
Area (ha)
Yield (kg/ha)
CMDT
Maize
production (t)
Millet - sorghum
production
Area (ha)

2002/
2003

2003/
2004

2004/
2005

2005/
2006

2006/
2007

2007/
2008

2008/
2009

154,411
420,034
994
417,493

165,204
515,943
1,150
593,126

172,353
533,223
1,047
558,034

174,749
521,029
976
508,396

163,420
459,265
868
398,501

117,933
269,145
861
231,797

83,993
189,684
1,036
196,600

22,229

27,539

31,548

25,607

16,403

10,393

4,849

169

119

61

48

13

439,722

620,665

589,751

534,122

414,965

242,238

201,462

207,714
1,558
323,618

249,213
2,033
506,662

267,898
1,817
486,660

279,460
2,089
583,789

288,724
2,140
617,860

251,144
1,937
486,443

207,509
1,935
401,459

731,670
768
561,941

761,936
1,043
794,630

775,169
909
704,496

815,229
1,043
850,328

833,134
1,013
844,102

806,705
987
796,522

839,318
976
819,587

18,503

19,351

21,714

25,183

28,093

27,197

26,325

2009/2010

2010/2011

2011/2012

2012/2013

2013/2014

101,814
240,083
926
222,269

106,968
277,286
857
237,717

161,368
458,622
940
431,114

166,718
502,032
871
437,300

173,634
465,364
919
427,674

6,750

5,872

14,200

12,361

12,900

229,019

243,589

445,314

449,661

440,574

215,744
2,129
459,281

222,439
2,187
486,522

336,429
2,033
683,897

367,963
2,276
837,374

375,727
2,139
803,563

805,466

789,550

911,805

921,082

922,187

__________