Markets for Cotton By-Products [electronic resource] : Global Trends and Implications for African Cotton Producers / Baffes, John

By: Baffes, JohnContributor(s): Baffes, JohnMaterial type: TextTextPublication details: Washington, D.C., The World Bank, 2010Description: 1 online resource (68 p.)Subject(s): Agricultural commodities | Agricultural Industry | Agriculture | Animal feed | By-products | Commodity | Cotton | Cotton production | Cotton sector | Cotton yields | Cottonseed | Crop | Crops & Crop Management Systems | Dairy industry | Energy | Energy Production and Transportation | Farm | Farmers | Fertilizer | Fibres textiles | Industry | Livestock & Animal Husbandry | Macroeconomics and Economic Growth | Markets and Market Access | Meal | Oilseeds | Produce | Seed cotton | Vegetable oilsAdditional physical formats: Baffes, John.: Markets for Cotton By-Products.Online resources: Click here to access online Abstract: This paper analyzes and compares the structure of cotton by-products industries in se-lected countries (Uganda, Tanzania, Benin, and Burkina Faso) in the context of the global vegetable oil market. It reaches several conclusions. First, because the markets for various edible oils are highly integrated with each other, examination of each oil market should be done in conjunction with all other (relevant) edible oil markets. Second, the recent surge in demand for commodities used as feedstocks for biofuels is unlikely to become a new source of growth for the cotton oil market. Third, within the context of deepening the on-going reform efforts in West and Central African countries, cotton by-products should be taken into consideration, both in terms of the cotton price setting mechanism and the size of the organization of the cotton by-products industry. Fourth, trade policies including export bans or import tariffs to protect the domestic crushing industries, and policies that favor crude over refined oils, should be rationalized. Fifth, large cottonseed processing operations using advanced technology, while efficient from a technological perspective, tend not to be economically profitable in the African context. Last, research efforts for new cotton varieties should consider the value of by-products, not just lint.
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This paper analyzes and compares the structure of cotton by-products industries in se-lected countries (Uganda, Tanzania, Benin, and Burkina Faso) in the context of the global vegetable oil market. It reaches several conclusions. First, because the markets for various edible oils are highly integrated with each other, examination of each oil market should be done in conjunction with all other (relevant) edible oil markets. Second, the recent surge in demand for commodities used as feedstocks for biofuels is unlikely to become a new source of growth for the cotton oil market. Third, within the context of deepening the on-going reform efforts in West and Central African countries, cotton by-products should be taken into consideration, both in terms of the cotton price setting mechanism and the size of the organization of the cotton by-products industry. Fourth, trade policies including export bans or import tariffs to protect the domestic crushing industries, and policies that favor crude over refined oils, should be rationalized. Fifth, large cottonseed processing operations using advanced technology, while efficient from a technological perspective, tend not to be economically profitable in the African context. Last, research efforts for new cotton varieties should consider the value of by-products, not just lint.

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