Stakeholder perceptions of the outcomes of reforms on the performance and sustainability of the cotton sector in Ghana and Burkina Faso: A tale of two countries

Figures & data

Table 1. Timeline of major events related to cotton sector reforms in Ghana and Burkina Faso

Year	Reform actions
Ghana
1985–1986	Deregulation of the cotton sector. CDB transformed into GCCL, with the government retaining 30% of shares. Supply of free inputs to farmers is maintained, but compensated by lower cottonseed prices.
1989	Proliferation of companies participating in the cotton industry.
1995	Government sells its 30% share in GCCL. Free agricultural input supply to farmers changes into input credit. Price-setting mechanism put in place. Diversion of inputs becomes a big problem.
1997–1998	Cotton Development Project 1 (CDP 1) is launched with financial support from AFD. Evolution of the Cotton Growers’ Association.
1999–2000	Unprecedented malpractices in the cotton sector, including poaching of farmers and adulteration of product.
2000	ADB ceases financing of cotton companies, due to their high accumulated debt. Several companies begin to exit the cotton sector.
2000–2002	MOFA introduces a zoning policy to address malpractices in the cotton industry.
2004–2005	ADB takes control of GCCL through a debt-equity swap. GCCL is liquidated and ceases its operation.
2010–2011	Launch of cotton sector revival policy (“White Gold” campaign).
2016	Formal inauguration of the board of Cotton Development Authority to carefully examine the challenges of the cotton sector.
Burkina Faso
1992–1993	SOFITEX (the national cotton parastatal company) commits formally to allow representatives of cotton producers participate in the reform debate. The government commits not to interfere with the management of SOFITEX and establishes a plan (Contrat-Plan) to streamline the accumulated debts of cotton producers and the parastatal.
1994	Amendment of laws pertaining to the establishment of farmer groups.
1996–1999	Free membership is introduced in the formation of local cotton farmer groups. The groupements villageois (village groupings) are replaced by market-oriented organizations (groupements de producteurs de coton) at the subvillage level, through the implementation of new local governance rules.
1996–2001	Establishment of the national cotton union (National Union of Cotton Producers of Burkina Faso, UNPCB) with support of the AFD, the Burkinabé government, and SOFITEX. UNPCB is based on membership of local groups and their integration into regional unions.
1998	Signing of the Accord interprofessionnel between SOFITEX, the government, UNPCB, donors, and a financial consortium (Caisse Nationale du Crédit Agricole; Banque Internationale pour le Commerce, l’Industrie, et l’Agriculture; Banque Internationale du Burkina). This replaces the Contrat-Plan and defines the reallocation of responsibilities within the cotton sector.
1999	Partial withdrawal of the government from the sector through the partial privatization of SOFITEX. Half of the government’s share in SOFITEX is transferred to UNPCB.
2000–2006	UNPCB progressively assumed responsibilities from SOFITEX and the government. This includes economic activities such as provision of input credit, management assistance to cotton grower groups, participation in quality grading, financial management and price bargaining. Downsizes of government support to research and extension services.
2002–2006	New players enter the cotton sector. These include private input providers, new regional private cotton monopsonies (e.g. SOCOMA, Faso Coton), and private transport providers.
2004–2006	Establishment of interprofessional association (AICB) through the cooperation of cotton farmers, banks, private stakeholders, the government, and research institutes. Establishment of the association of cotton firms (APROCOB) to interact with UNPCB.
2006–2008	Changes in the price-setting mechanism to reflect better world prices. Development of new smoothing fund managed by an independent organization in 2008.
2008	Total cultivated area under Bt cotton reaches 8000 ha.
2009	Total cultivated area under Bt cotton increases to nearly 120,000 ha.
2016	Burkina Faso decides to halt the production of Bt cotton because its short fiber hurts its reputation and reduces revenue. AICB (ANPROCOB and UNPCB) instructs farmers to cultivate only conventional cottonseeds from July 2016 onward.

Source: Ghana (Ministry of Food and Agriculture and Ministry of Trade and Industry, 2011), Burkina Faso (Kaminski et al., 2009).

Figure 1. Key cotton production trends for Ghana and Burkina Faso: (a) area harvested, (b) production quantity, (c) yield. Sources: FAOSTAT (2016), ICAC (2016).

Figure 2. Market share of cotton production in Ghana and Burkina Faso: (a) percentage share of production in SSA; (b) percentage share of production in West Africa. Sources: FAOSTAT (2016), ICAC (2016).

Figure 3. Map of Western Africa showing Ghana and Burkina Faso and cotton production zones, prepared by authors.

Table 2. Details of the stakeholders interviewed for the study

Stakeholder category	Country	Organisation	Abbreviation	Number of interviewees	Role in cotton sector
Cotton companies	Ghana	Plantation Development Ltd.	PDL	3	Private cotton company with over 25 years of experience in cotton production in the Upper West region of Ghana. Works with rural cotton farmers through contracts (outgrower model).
		Intercontinental Farms Ltd.	IFL	3	Private cotton company operating in the Northern region of Ghana. Provides inputs to cotton outgrowers.
		Wienco Ghana (Ghana Cotton Company Ltd.)*	WC/GCCL	2	Private company that specializes in importing and distributing fertilizers and agrochemicals. Took over the facilities and management of Ghana Cotton Company Ltd (GCCL) following its liquidation from the government.
	Burkina Faso	Burkinabe Textile Fibers Company	SOFITEX	1	Private cotton company that originates from CFDT, a French company that developed textile fibers. CFDT’s mission was to promote the development of cotton production in French-speaking Africa and Madagascar through Purchase, transport, and gin seed cotton; Market cotton fiber and seed; Supply agricultural inputs to farmers; Promote the production of cotton and other associated crops through technical support, services, and financing of research and development; Promote directly textile fibers.
		Faso Coton	FC	1	Private cotton company that focuses its operations in central Burkina Faso under the zoning agreement. Supplies inputs and advice to producers, and purchases, collects, and gins seed cotton.
Government ministries and agencies	Ghana	Ministry of Food and Agriculture	MOFA	6	Lead agency and focal point for the government of Ghana, responsible for developing and executing policies and strategies for the agriculture sector within the context of a coordinated national socio-economic growth and development agenda.
		Ministry of Trade and Industry	MTI	2	Lead policy advisor to Ghana’s government on trade, industrial, and private sector development, with responsibility for the formulation and implementation of policies for the promotion, growth, and development of domestic and international trade.
		Sissala West District Assembly	SWDA	1	Second-level administrative subdivision in Ghana. Oversees social, economic, political, environmental, and cultural issues for communities within its specified region.
		Sissala East District Assembly	SEDA	2
	Burkina Faso	Ministry of Agriculture and Water Management	MAAH	4	A main government body that defines agricultural policies and develops the necessary infrastructure to support the agriculture sector.
		Ministry of Commerce and Industry [Permanent Secretary for monitoring the liberalized cotton sector (SP/SFCL)]	MCIA (SP/SFCL)	1	Lead advisor to the Burkinabe government on trade and industrial development. Guarantor of the regulatory framework, legislative, and fiscal.
		Ministry of Environment, Green Economy and Climate Change (Department of Legal Affairs and Litigation)	MEEVCC (DLAL)	1	Technical structure whose essential role is to enlighten the decision makers. Responsible for legal aspects. Develops laws and environmental regulations
		Ministry of Education and Scientific Research (National Biosafety Agency)	ANB	1	Regulatory structure on the safe use of modern biotechnology (GMOs and their by-products). Evaluates whether GMOs should be approved for commercialization or experimentation at research institutions. Examines safety measures and conducts inspections.
Research institutions and NGOs	Ghana	CSIR-Savanna Agriculture Research Institute	SARI	2	One of the 13 research institutes of the Council for Scientific and Industrial Research (CSIR). Mandated to provide small-scale farmers of northern Ghana (Northern, Upper West, and Upper East regions) with appropriate innovation and technology to increase their food production base with a sustainable production system. Also, charged with the development of appropriate cropping systems and varieties of crops such as maize, groundnut, bambara, cotton, and vegetable crops, with a focus on northern Ghana.
		German International Cooperation	GIZ	2	Closely cooperating with the Aid by Trade Foundation under the “Cotton Made in Africa” initiative, which helps people to help themselves through trade, improving the social, economic, and ecological living conditions of smallholder cotton farmers and their families in SSA.
	Burkina Faso	National Institute of Environment and Agricultural Research	INERA	2	Main institute in charge of agricultural and environmental research. Focuses on varietal improvement, farming techniques, and management of natural resources, as well as making recommendations in agro-socio-economics
Farmers and Farmers Association	Ghana	Lead cotton farmers in Bullu and Gwollu villages	Farmers	10	Rural smallholder households in the Sissala East and Sissala West Districts of Upper West region of Ghana.
	Burkina Faso	Inter-professional Cotton Association of Burkina	AICB	1	Sets purchase price of seed cotton and input selling price. Approves programs and budget for cotton research. Manages smoothing fund, cotton inputs funds, etc.
		National Union of Cotton Producers in Burkina	UNPCB	1	Distribution of inputs. Management of short- and medium-term loans. Marketing of seed cotton. Other related activities such as management of membership fees and social activities.

Figure 4. Stakeholder perceptions of reform outcomes on input credit systems.

Figure 5. Stakeholder perceptions of reform outcomes on price determination and profit distribution.

Figure 6. Stakeholder perceptions of reform outcomes on extension services.

Figure 7. Stakeholder perceptions of reform outcomes on research and development.

Figure 8. Stakeholder perceptions of reform outcomes on institutional and regulatory systems.

Figure 9. Stakeholder perceptions of reformoutcomes on food security.

Kaminski, J. (2009). Cotton dependence in Burkina Faso: constraints and opportunities for balanced growth. Yes, Africa Can: Success Stories from a Dynamic Continent, 107–124.

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FAOSTAT. (2016). Food and agriculture organization statistical database. United Nations Food and Agriculture Organization, Rome. Retrieved December, 2016 http://faostat.fao.org/

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ICAC. (2016). Cotton: World statistics: 2015/2016 Supply and use of cotton. Retrieved August 15, 2017, from https://www.icac.org/cotton_info/publications/miscellaneous/statistics_contents.pdf

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