The Cotton Sector in the

OIC Countries: Problems

and Possibilities of
Cooperation
Nabil DABOUR
SESRTCIC

Cotton Sector in the OIC

Countries
Cotton plays a major role in the
economies of a significant number
of OIC member countries,
particularly in some OIC leastdeveloped members in Africa, such
as Burkina Faso, Benin, Chad and
Mali, where the exports of this
primary commodity play a critical
role in the prospects of growth and
development in these countries.

Cotton Sector in the OIC

Countries

Production
Trade (Exports)
Processing (Imports)

Production of Cotton
(2005/2006)
Among the top 40 cotton-producing
countries in the world, 22 were OIC
members: Pakistan (4), Uzbekistan
(5), Turkey (7) and Syria (10).
Yet, their share in world total
production of cotton accounted for
26.2%, which was significantly less than
that of China and USA together (44%).

Major OIC Cotton Producing

Countries (2005/2006)
Production
(000 MT)

Share in
World (%)

Production
(000 MT)

Share in
World (%)

Pakistan

2145

8.6

Cameroon

90

0.4

Uzbekistan

1208

4.9

Nigeria

87

0.4

Turkey

773

3.1

Benin

82

0.3

Syria

327

1.3

Sudan

81

0.3

Burkina Faso

294

1.2

Azerbaijan

71

0.3

Mali

223

0.9

Chad

71

0.3

Turkmenistan

212

0.9

Kyrgyz Rep.

46

0.2

Egypt

201

0.8

Mozambique

36

0.1

Kazakhstan

147

0.6

Togo

30

0.1

Tajikistan

136

0.5

Senegal

20

0.1

Iran

115

0.5

Total

6504

26.2

Cote dIvoire

109

0.4

Top 10 OIC Cotton Producing

Countries (2005/2006)

Exports of Cotton (2005/2006)

Among the top 40 cotton-exporting
countries in the world, 23 were OIC
members: Uzbekistan (2), Burkina Faso
(7), Mali (8), Syria (9) and Kazakhstan
(10).
Yet, their share in world total exports
of cotton accounted for 31.3%, which
was quite less than that of the USA
alone (40.4%).

Major OIC Cotton Exporting

Countries (2005/2006)
Exports
(000 MT)

Share in
World (%)

Exports
(000 MT)

Share in
World (%)

Uzbekistan

1045

10.7

Chad

71

0.7

Burkina Faso

283

2.9

Pakistan

70

0.7

Mali

223

2.3

Azerbaijan

60

0.6

Syria

180

1.8

Kyrgyz Rep.

48

0.5

Kazakhstan

136

1.4

Togo

41

0.4

Turkmenistan

120

1.2

Mozambique

30

0.3

Cote dIvoire

114

1.2

Nigeria

27

0.3

Tajikistan

114

1.2

Turkey

27

0.3

Benin

103

1.1

Uganda

25

0.3

Egypt

103

1.1

Iran

20

0.2

Sudan

93

Senegal

15

0.2

Cameroon

91

0.9

3039

31.3

Total

Importance of Cotton Exports

As a group, the OIC countries are
considered as the second largest exporter
of cotton in the world after the USA.
The share of OIC members in Subsaharan Africa in world cotton exports is
11.3%.
The share of cotton in total merchandise
exports: Burkina Faso (43.9%), Benin
(39.1%), Chad (32.2%), Mali (29.5%).

Top 10 OIC Cotton Exporting

Countries (2005/2006)

Imports of Cotton (2005/2006)

Among the top 40 cotton-importing
countries in the world, only 11 were
OIC members: Turkey (2), Bangladesh
(3), Indonesia (4) and Pakistan (7).
Their share in world total imports of
cotton accounted for 24.3%, which
was significantly less than that of
China alone (43.8%).

Major OIC Cotton Importing

Countries (2005/2006)

Imports
(000 MT)

Share in
World (%)

Imports
(000 MT)

Share in
World (%)

Turkey

737

7.7

Morocco

37

0.4

Bangladesh

482

Tunisia

22

0.2

Indonesia

479

Bahrain

16

0.2

Pakistan

361

3.8

Iraq

15

0.2

Egypt

114

1.2

Nigeria

15

0.2

Malaysia

42

0.4

Total

2320

24.3

Top 10 OIC Cotton Importing

Countries (2005/2006)

Problems Facing OIC Cotton

Producing Countries
Low yield and subsidies levels
compared to other countries.
Volatility of cotton prices and the
shift to synthetic fibers.

Implementing
testing/classification
procedures
and developing textile sector.

Low Yield Levels

The world average yield rose from
230 kg/hec in the 1950s to above
700 kg/hec in 2005.
The average yield is higher than
that of the world in only 4 OIC cotton
producing countries. In contrast, it
was lower in many members,
particularly in Sub-saharan Africa.

Cotton Yields (Kg/Hec)

(2005/2006)

Improving Cotton Yield

Such countries with insufficient yield
suffer
the
decrease
of
both
international market share and prices.
The large variation in cotton yield
among the OIC members and the
need for improving the productivity
create a wide margin for cooperation
in this sector.

Cotton Subsidies and Prices

High levels of production and/or export
subsidies provided by the USA and China
to their domestic producers lead to
serious distortions in international cotton
markets.
As a result, the increase in world cotton
production (supply) reduces its price and
this, in turn, reduces the revenues that
could be obtained by the cotton exporting
countries in the developing regions,
including the OIC members.

Cotton Subsidies and Prices

Annual government transfers to
cotton farmers in the OECD countries
constitute 60-80% of their revenues.
75% of the total cotton production in
the USA benefits from government
subsidies
where
the
annula
government
subsidies
to
cotton
farmers are more than the total GDP of
Burkina Faso and three times more
than the USAID budget for Africa.

Cotton Subsidies and Prices

According to several simulation
studies,
elimination
of
cotton
subsidies in the USA would:
increase the world cotton price by
3-11%
increase African cotton export
revenue by $35-$100 million
reduce USA exports by 43%.

Shift to Synthetic Fibre

The share of cotton in world textile fibre
declined from 70% in the 1950s to below
40% in 2002. This shift in demand reduces
the world price of cotton.
So, any benefits from improving cotton
yield
worldwide
will
be
dispersed
unequally among all the producers.
The USA and China have more
incentives, being both the world major
exporters and users of cotton.

Cotton Testing and

Classification
Demand for cotton is highly affected by its
quality and consistency. So, to maximize
revenue, producers must properly classify
their product.
USA cotton is promoted by claims that it is
less contaminated and better classified.
Manual classification in most African
countries reduces the value of their cotton.

Developing Textile Sector

The lack of skilled labour and capital
and high cost of energy and
transportation are among the factors
that still impeding the development
of
sustainable
textile
industry
(processing the raw cotton) in most
OIC West African cotton producing
countries where these factors raise
the cost of textile production.

Possibilities of Cooperation
The OIC cotton producing countries,
combined together, are net exporters of
cotton, but many of them, particularly
those in West Africa, are among the
poorest in the world lacking the capacities
for developing textile industries.
Yet, sustainable and modern textile
sectors have already been developed by
some of the OIC countries who are also
among the major importers of cotton in
the world.

Possibilities of Cooperation
Cotton producers, exporters and
industrialists in the OIC countries
should, therefore, lead the way of
cooperation in the cotton sector.
They can facilitate cooperation
among themselves by initiating
an OIC Cotton Alliance.

OIC Cotton Alliance

The member countries of the OIC Cotton
Alliance should benefit from their experience
as members of some international and
regional cotton association such as:
International
(ICAC)

Cotton

Advisory

Committee

Committee for International Cooperation

between Cotton Associations (CICCA)
Association
(AProCA)

of

African

African Cotton Association

Cotton

Producers

OIC Cotton Alliance

They should also benefit from their
experience as members of cotton
association in their own countries such
as:
Pakistan Cotton Ginners Association
Cotton Cooperatives and Unions in
Turkey
(Tari
Cotton
Union-zmir,

ukobirlik-Adana,
zmir
Exchange, Antbirlik-Antalya)

Mercantile

Alexandria
Cotton
Association in Egypt

Exporters

OIC Cotton Alliance

Establishing an OIC Cotton Alliance among
cotton
producers,
exporters
and
industrialists should aim at coordinating
cooperation in various areas related to the
cotton sector such as:
Improving the productivity and yield levels.
improving testing and classification of cotton.
Promoting investment opportunities in cotton sector.
Organic cotton production: Turkey is the first OIC
country with certification.
Low pesticide use: Syria produces 99% of its cotton
without pesticides.
Biotech varieties.
Other issues that could be determined by the
member countries.

Thank You