Make Trade Fair Cotton Campaign

Mali is one of the world’s biggest cotton producers. Approximately three million people - or a quarter of the Malian population - live directly from cotton production in the regions of Sikasso, Koutiala, Segou and Kita.

In these areas, cotton production provides up to 75 per cent household income and provides revenue for local cereal production. Incomes from cotton also contribute to local investment in health, education and water supplies, to 25 per cent of government export revenues, and to overall economic growth at six per cent of GDP.

US subsidies destroy livelihoods

However, the livelihoods of Mali’s cotton farmers and a further seven million others across West Africa are being destroyed by the large subsidies that the United States and other rich countries provide to their cotton farmers.

Subsidies lead to the overproduction of cotton. This surplus is then dumped onto world markets at rock bottom prices forcing down world cotton market prices. US cotton dumping is estimated to have reduced world cotton prices by 15 per cent. For the Malian cotton industry, this translates as a $43m loss in cotton revenues in 2001 – 02, and $14.7m in 2002 – 03. These losses completely wipe out the benefits of US development aid to Mali over these 2 years.

In the face of rising deficits suffered by the Malian national cotton company, and pressure from the World Bank, the Malian government recently agreed to change its national price policy on cotton.

The price paid to farmers was reduced by 25 per cent, forcing them even further into poverty and debt. If a minimum cotton price cannot be guaranteed and the price continues to fall even further, many farmers may be forced out of cotton production without any other viable means of livelihoods.

Lobbying against subsidies

In 2003, Mali, Benin, Burkina Faso and Chad called for the elimination of cotton subsidies in industrialised countries during the trade negotiations at the World Trade Organisation Ministerial Summit in Cancun, Mexico.

This launched a global movement against cotton subsidies that continues to gain momentum, and which is very slowly resulting in reform.

A small victory was achieved recently following the WTO Ministerial held in Hong Kong last December, when the US Congress passed a law outlawing export subsidies on cotton in the United States, which account for 10 per cent of total US cotton subsidies. Continued pressure is needed for reduction and the eventual elimination of domestic subsidies on cotton.

Oxfam's support

Oxfam has supported advocacy and campaigning in the Malian cotton sector since 2003, notably via the Malian Professional Producers Association (AOPP), a national farmer’s federation.

Our overall aim is to strengthen the voice of producer organisations in both national and international policies impacting the cotton sector, with a view to ensuring sustainable livelihoods in cotton growing areas.

Cotton farmers have ensured that the issue of cotton subsidies remains on the Malian government agenda. Over 831,836 farmers and their families in Mali signed a petition demanding the end of subsidies that was presented along with another 18 million signatures from around the world at Hong Kong as part of the Oxfam International make Trade Fair campaign.

Communities get involved

With plans to privatise the Malian cotton company in place for 2008, farmer’s leaders have successfully advocated to ensure that their interests are taken into account, especially with regards to the new pricing system and for farmer participation as shareholders in the capital of the new private companies.

Grassroots communications via rural radios and local forums has been an important part of the advocacy process, to ensure that local level farmers are informed and can express positions, not just national leaders.

Farmer cooperatives

With Oxfam support, cotton farmer cooperatives are currently being formalised from village level upwards, which will lead to the establishment of a national cooperative federation.

AOPP is working to strengthen the capacity of village level cooperatives through a training programme, to ensure that they are effective in delivering services and accountable to their members.

The future

In 2006-2008, Oxfam will continue to support training to strengthen up to 600 cooperatives and cooperative unions, as well as producer led advocacy on the privatisation process.

Specific training is also envisaged to ensure that producers can effectively participate in management of the privatized cotton sector, and that they increase their bargaining and negotiating skills vis a vis cotton companies.

Back to Mali in depth overview

Last updated: March 06