COMMON FUND FOR COMMODITIES
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1 COMMON FUND FOR COMMODITIES Postal Address: Postbus Stadhouderskade BR Amsterdam 1072 AB Amsterdam The Netherlands The Netherlands Telephone: (31 20) Internet: Telefax: (31 20) COTTON PROJECTS SUPPORTED BY THE COMMON FUND FOR COMMODITIES (September 2006) 65 th Plenary Meeting International Cotton Advisory Committee Goiania - Brazil September 2006
2 Cotton Projects Supported by the Common Fund for Commodities Regular projects: 1. Cotton Prospects for the 1990s (CFC/ICAC/01) 2. Integrated Pest Management for Cotton (CFC/ICAC/03) 3. Integrated Pest Management of the Cotton Boll Weevil in Argentina, Brazil and Paraguay(CFC/ICAC/04) 4. Genome Characterisation of Whitefly-Transmitted Geminiviruses of Cotton and Development of Virus-Resistant Plants through Genetic Engineering and Conventional Breeding (CFC/ICAC/07) 5. Improvement of Marketability of Cotton Produced in Zones Affected by Stickiness (CFC/ICAC/11) 6. Improvement of Cotton Marketing and Trade System in Eastern and Southern Africa (CFC/ICAC/12) 7. Sustainable Control of the Cotton Bollworm Helicoverpa armigera in Small-Scale Production Systems (CFC/ICAC/14) 8. Pilot Project on Price-Risk Management for Cotton Farmers (CFC/ICAC/17) 9. Utilization of Cotton Plant By-produce for Value-added Products (CFC/ICAC/20) 10. Commercial Standardisation of Instrument Testing of Cotton for the Cotton Producing Developing Countries in Africa (CFC/ICAC/33) Fast Track projects: 11. Resistance Management of Helicoverpa armigera to Pyrethroids in West Africa (Survey) (CFC/ICAC/16FT) 12. Price Risk Management for Cotton Consultancy Study (CFC/ICAC/19FT) 13. Investigation of the Incidence, Epidemiology and Population Dynamics of Cotton Diseases in the Southern and Eastern Africa Region (CFC/ICAC/21FT) 14. Cotton Facts (CFC/ICAC/23FT) 15. Sustainable Cotton Production in West Africa (CFC/ICAC/25FT) 16. Cotton Stalks Study (CFC/ICAC/27FT) 17. Preparation for the Commercial Standardisation of Instrument Testing (CFC/ICAC/30FT) 18. Production and Marketing of Uncontaminated Cotton in Mali (CFC/ICAC/32FT) 19. Regional Consultation on Genetically Modified Cotton for Risk Assessment and Opportunities for Small-scale Cotton Growers (CFC/ICAC/34FT) under preparation
3 Regular Projects CFC/ICAC/01 - Cotton Prospects for the 1990s International Cotton Advisory Council (ICAC) Project Executing Agency: The World Bank Project Cost USD 1,182,405 Common Fund Grant USD 529,619 The project examined the strategic problems facing cotton-producers. Country studies have been undertaken by domestic research organisations with the assistance of international consultants. The study was launched in 1993 and completed in 1995, covering Brazil, China, India, Mali, Mexico, Pakistan, Tanzania and Uzbekistan. The project report was published in 1995 by the World Bank as Technical Paper No CFC/ICAC/03 - Integrated Pest Management for Cotton Project Executing Agency: Israel Cotton Production and Marketing Board Project Cost USD 5,390,270 Common Fund Grant USD 3,074,620 Counterpart Contribution USD 2,315,650 The project increased cotton farmers income by improving yields and quality of cotton, thereby reducing the cost of cotton processing by textile industries through the reduction of sticky cotton. In turn, this protected farmers and the environment from insecticide contamination. To achieve these objectives, the following activities were included in the project: The development of new, less toxic insecticides; The improvement of existing spraying equipment and the development of new spraying equipment; The development and utilisation of biological control methods; The establishment of a techno-economic threshold for pest control; The dissemination of technologies through staff and farmer training, publications, workshops and the distribution of guidelines for a control strategy. The project was completed operationally in An international workshop was held in Cairo in October The results of the project have been published in a comprehensive technical report (CFC Technical Paper No. 10, available in English and French) and in a separate technical guidelines manual (CFC Technical Paper No. 11, also available in English and French). CFC/ICAC/04 - Integrated Pest Management of the Cotton Boll Weevil in Argentina, Brazil and Paraguay Project Executing Agency: Servicio Nacional de Sanidad e Calidad Vegetal
4 Agroalimentaria (SENASA) Project Cost USD 8,213,170 Common Fund Grant USD 1,971,280 Counterpart Contribution USD 6,241,890 The project aimed to develop a low cost, socially acceptable and environmentally positive system of Integrated Pest Management which enabled control of the cotton boll weevil to be implemented effectively. The following activities were included in the project: a) The evaluation of existing knowledge and identification of functional elements useful for the development of location-specific control packages and the definition of specific regional strategic plans; b) The study of the cotton boll weevil and its associated agro-ecosystems and the development of standardised and systematic pesticide monitoring systems for three countries; c) The development of low-cost and acceptable Integrated Pest Management practices for different production systems; and, d) The transfer of tested technology and relevant information packages to extension workers and farmers. The project has resulted in the development of scientific and practical data on the presence and behaviour of a major cotton pest prevalent in Latin America. A range of studies were undertaken by the collaborators in the participating institutes of the three countries involved. Field experiments and training activities were undertaken involving both trainers and extension agents as well as farmers directly. International workshops were held and the proceedings were published. A final workshop was held in Fortaleza, Brazil in June The Final Technical Report (in English and Spanish) was published in 2002 as CFC Technical Paper No. 16. CFC/ICAC/07 - Genome Characterisation of Whitefly-Transmitted Geminiviruses of Cotton and Development of Virus-Resistant Plants through Genetic Engineering and Conventional Breeding Project Executing Agency: Project Cost USD 3,926,518 Common Fund Grant USD 1,549,770 Counterpart Contribution USD 2,376,748 National Institute for Biotechnology and Genetic Engineering (Pakistan) The objective of the project was to reduce the losses suffered by cotton growers from whitefly-transmitted (WFT) geminivirus. The project had three major components : a) Biological and genetic characterisation of WFT geminiviruses of cotton; b) Development of in-vitro transformation systems for cotton; and, c) Development of geminivirus-resistant genotypes of cotton and implementation of field trials. The project focused on two major cotton diseases, Cotton Leaf Curl Virus and the Cotton Leaf Crumple Virus. Activities in all three research centres involved in the project (based in Pakistan, UK and USA) have led to promising prospects of identifying the sole causal agent of the Leaf Curl Virus. Applied research in other fields has resulted in the development of important information related to the behaviour of the disease. Breeding of varieties showing resistance to the Leaf Curl
5 Virus has led to approval in Pakistan for general cultivation, and the initial performance seems excellent. The project has resulted in a broad range of scientific publications. The project results were presented at an international conference held in Dubai in September The final technical report on the project has been published as CFC Technical Paper No. 22. CFC/ICAC/11 - Improvement of Marketability of Cotton Produced in Zones Affected by Stickiness Project Executing Agency: Sudan Cotton Company (SCC) Project Cost USD 2,059,988 Common Fund Grant USD 1,101,093 Counterpart Contributions: SCC USD 310,298 Agric. Research Corp. USD 67,499 CIRAD USD 358,787 Institute Textile de France USD 207,026 ICAC USD 15,285 The project, based in Sudan and France, was designed to contribute to a potential increase in the returns on cotton to producers through the development of reliable methods to establish the level of stickiness in cotton bales. These methods were supplemented by the determination of operational thresholds for processing contaminated, sticky cotton. The establishment of procedures to successfully deal with problems of stickiness in cotton did not only raise producer prices of cotton in regions currently affected, but also increased the quantity of marketable cotton. The successful implementation of the tests led to the establishment of reliable and accepted methods of determining the level of stickiness in individual cotton bales, which helped to curtail the current practice of indiscriminate price discounts. The project comprised the following three substantive components: a) The testing and evaluation of the process for classifying sticky cotton; b) The establishment of processability thresholds for sticky cotton; and c) The evaluation of the financial viability of the processes. The project was completed operationally in 2000, but the final workshop had to be postponed to June The main achievements of the project were presented to an international audience of experts. The final technical report of the project has been published as CFC Technical Paper No. 17. The proceedings of the workshop as well as a detailed technical overview on the various experiments and tests undertaken are published separately and are available on CD Rom or accessible through the ICAC web site. A short brochure, highlighting the main project elements and the achievements, has also been published by the project. CFC/ICAC/12 - Improvement of Cotton Marketing and Trade System in Eastern and Southern Africa Project Executing Agency: United Nations Office for Project Services (UNOPS) Project Cost USD 24,811,060 Common Fund Grant USD 3,609,586
6 Common Fund Loan USD 5,717,250 Counterpart Contributions Uganda USD 729,519 Tanzania USD 382,200 Co-financing Regional Banks USD 13,726,755 Local Banks USD 630,000 ICAC USD 15,750 The central objective of the project is to increase the benefits to Eastern and Southern African countries from cotton production and marketing, through the establishment of a transparent and efficient marketing system within the framework of a liberalised market. The project efforts will lead to better access to the international market; reduced technical and price risks associated with cotton marketing and trade; and increased earnings for smallholder cotton producers, small-scale traders and cotton exporters. In addition, it will strengthen public and private institutions operating in a free market environment. The project comprises the following components: a) Promotion of a privately run warehousing system and establishment of a warehouse inventory credit/receipt system to provide collateral; b) Development of an information system for cotton production and marketing; c) Development of a cotton quality assurance and certification system; d) Development of a system of cotton trade financing based on warehouse inventory credit and testing of the system through pilot trade financing; and, e) Staff training in Uganda and Tanzania and dissemination of project results among Eastern and Southern African countries. Following a mid-term evaluation in 2003, which recommended an extension of two years, a new sub-contractor had been appointed in October 2004 for the implementation of the trade finance component of the project. In Tanzania the project activities have proceeded well and in sync with the "sister project" on coffee marketing. In Uganda, however, the implementation of the project with new contractor experienced difficulties due to the presence of two competing concepts of warehouse inventory credit in the cotton sector. While warehouse inventory credit operations are taking place under both approaches and the warehouse receipts bill had been enacted by the Parliament, the project continues to experience difficulties in finding the right balance between the concepts. In view of the urgent need to address these difficulties, the Fund had appointed a consultant to analyse the current situation and to recommend the way forward for this project. CFC/ICAC/14 - Sustainable Control of the Cotton Bollworm Helicoverpa armigera in Small-Scale Production Systems Project Executing Agency: Natural Resources International Ltd. (UK) Project Cost USD 4,493,445 Common Fund Grant USD 2,258,503 Co-financing USD 1,087,594 Counterpart Contribution USD 1,147,348 The overall objective of the project was to develop, apply and disseminate cropping systems and pest management practices for a cost-effective and sustainable control of the cotton bollworm. The project has built on existing knowledge and experiences for
7 the further development of efficient methods. This should result in substantially reduced uses of hazardous pesticides and increased profitability for cotton producers. Project activities were located in China, India and Pakistan, with supporting research in the United Kingdom. The project has resulted in major new insights in resistance development in the bollworm based on laboratory and field experiments/trials as well as in the efficacy of applying major types of pesticides, leading to new recommendations for appropriate spraying packages. The project has also led to the development of a very low cost but highly effective testing kit to measure the level of active ingredients in a product and to a kit to identify resistant insects (and their mechanism of resistance). These kits are currently being patented by the Central Institute for Cotton Research in India and consultations are ongoing how the kits can be made available to farmers and researchers in India and other countries. The project has been operationally concluded. Three national workshops have been held in each of the Asian countries. In West Africa results were presented at a workshop organized jointly with CIRAD, France, working on resistance problems in the West African cotton production systems. Apart from a range of scientific publications, the project has also resulted in the publication of a manual on monitoring, mechanisms and management of insecticide resistance (written by Dr K.R. Kranthi of CICR). A final publication, a Handbook on Cotton Bollworm Control, has recently been published as a final output of the project (CFC Technical Paper Nr. 45). CFC/ICAC/17 - Pilot Project on Price Risk Management for Cotton Farmers Project Executing Agency: To be determined Project Cost USD 1,698,501 Common Fund Grant USD 1,514,751 Co-financing USD 183,750 The overall objective of the project is to reduce the exposure of smallholder cotton farmers to short-term fluctuations in world market prices, thus better securing more predictable incomes from cotton-growing. The practical aim of the project is to test the feasibility of the use of various price-risk management instruments by groups of farmers in developing cotton-producing countries, whereby a key feature should be that the instruments are market-based and function without subsidy. The CFC noted the work of the Task Force of the World Bank in mobilising donor support for price risk management in Africa. Subsequent to the discussions on modalities of implementation of the project in co-operation with the Commodity Risk Management Group of the World Bank (CRMG), the 38th Meeting of the CFC Executive Board in October 2004 approved the appointment of CRMG as Executing Agency for the cotton price risk management project, to be implemented jointly with the coffee price risk management project. However, little progress had been achieved in starting the project operations due to the difficulties encountered by CRMG in finalizing and signing the project agreements required by CFC. In response to the delay, the CFC had initiated the review of implementation arrangements for the project, requesting CRMG to provide a plan of actions to open the project. Should the negotiations with CRMG fail, the CFC would consider alternative implementation arrangements.
8 CFC/ICAC/20 Utilization of Cotton Plant By-produce for Value-added Products Project Executing Agency: Project Cost USD 2,190,486 Common Fund Grant USD 918,886 Counterpart Contribution USD 1,271,600 Central Institute for Research on Cotton Technology (CIRCOT) This project aims at the value addition for cotton farming by demonstrating the utility of cotton stalk residues in commercial fibre board production. Utilisation of this renewable lignocellulosic material in particle board or binderless board industries as an alternative to forest-based wood will be a significant contribution to arrest deforestation in India, which is posing a considerable environmental threat. The project aims to evaluate the organisation of collection, storage and pre-processing of cotton stalk for industrial use as well as to demonstrate the techno-economic feasibility to board manufacturers and investors. The project has started in October Trials with different collection systems, stalk cleaning processes and storage modalities are ongoing. Residu analysis and related tests are taking place on a continuous basis. A pilot particle board making facility has recently been commissioned. Activities focus on developing the optimum process parameters for different qualities particle board. Binderless board trials are ongoing at the facilities of a collaborating commercial operator. CFC/ICAC/33 Commercial Standardisation of Instrument Testing of Cotton for Cotton Producing Developing Countries in Africa Project Executing Agency: Faserinstitut Bremen e. V. (FIBRE) Project Cost USD 7,788,052 Common Fund Grant USD 2,034,697 Co-financing USD 3,000,000 Counterpart Contribution USD 2,753,355 The ultimate objective of the project is to improve the integrity of world wide cotton trade by establishing a reliable system of instrumental cotton characterisation, adopted by all cotton producing countries, including developing countries. The project specifically aims to contribute to the introduction of a global quality assessment system with standardised controlled testing procedures, standardised calibration methods and standardised assurance checks. In addition it will strengthening the participation therein by developing countries, especially those in Africa, by enabling and implementing the international cotton quality assessment in their countries and for the benefit of their cotton. Tanzania and Mali/Burkina Faso will be the target locations for the African activities. The project has been approved by the Common Fund. Upon formal confirmation of the availability of the co-financing contribution from the European Commission, the project is expected to effectively start early 2007.
9 Fast Track Projects CFC/ICAC16FT - Resistance Management of Helicoverpa armigera to Pyrethroids in West Africa (Survey) Project Executing Agency: Project Cost USD 30,000 Common Fund Grant USD 30,000 Institute Nacional de Recherche Agricole (INERA), Burkina Faso The regional project was designed to provide a quantitative and qualitative analysis of the impact of the cotton pest Helicoverpa armigera s resistance against presently used control techniques, and to devise a strategy leading to the development of mechanisms and techniques for cost-efficient crop protection. Analyses were conducted on the basis of national surveys and existing and newly found data, and the results discussed in a regional workshop in Ouagadougou in November CFC/ICAC/19FT - Price Risk Management for Cotton Consultancy Study Project Executing Agencies: CPM Group, NY. Project Cost USD 60,000 Common Fund Grant USD 60,000 The objective of the above study was to prepare a framework for assessment of the pre-conditions for the successful implementation of the price-risk management instruments covering the three countries targeted by the project (Tanzania, Uganda, and Zimbabwe) as well as to assess the most promising market instruments that could be piloted in the main project. The cotton study was commissioned early in The final draft report by the consultant has been received and commented upon. The final report has been received and shared with the ICAC. The findings of the report have been taken into account for the final design of the main project (CFC/ICAC/17). CFC/ICAC/21FT - Investigation of the Incidence, Epidemiology and Population Dynamics of Cotton Diseases in the Southern and Eastern African Region Project Executing Agency: Southern and Eastern African Cotton Forum (SEACF) Project Cost: USD 70,000 Common Fund Grant: USD 57,500 Counterpart Contribution: USD 12,500 The project was to provide practical information on the status of knowledge and impact of main cotton diseases prevalent in the region (e.g. bacterial blight, Fusariumand Verticillium wilt and Alternaria leaf spot). Surveys have been developed and information about national disease control programmes collected. A workshop was held in Kampala on 10/11 September The outcome of the meeting was agreement on the need to strengthen disease management with the aim to reduce production losses currently encountered by mainly small-scale cotton producers.
10 Follow-up in the form of an integrated regional disease management programme is currently under consideration by interested countries in the region. CFC/ICAC/23FT - Cotton Facts Project Executing Agency: ICAC Project Cost USD 40,000 Common Fund Grant USD 20,000 Counterpart Contribution USD 20,000 The project aimed at producing a publication entitled Cotton Facts, a comprehensive and easy to read handbook containing fundamental, common, specific facts about cotton, focusing on all aspects of cotton production, marketing and use. The publication was prepared by ICAC staff and the handbook has published in March 2004 (CFC Technical Paper No. 25). CFC/ICAC/25FT Sustainable Cotton Production in West Africa Project Executing Agency: UNCTAD Project Cost USD 180,000 Common Fund Grant USD 75,000 Counterpart Contribution USD 105,000 The project aimed to provide a thorough analysis of current cotton production systems in the region, with a specific focus on the following: 1. Functioning of input supply systems in the reformed cotton structure; 2. Effectiveness and efficiency of transfer of knowledge to farmers; 3. Environmental impact of cotton production; 4. Credit supply system; and 5. Changes in the production practices. A consultancy study was commissioned and the report of the consultant was discussed during a regional workshop in Bamako (28 February, 1 March 2005), hosted by the government of Mali. The proceedings of the workshop (including the consultant s report) have been published by UNCTAD and distributed to the participants in the workshop. The report is published as a CFC Technical Paper Nr 41. CFC/ICAC/27FT Cotton Stalks - Study Project Executing Agency: Project Cost: USD 120,000 Common Fund Grant: USD 120,000 Central Institute for Research on Cotton Technology (CIRCOT) The project was to provide practical information on availability of cotton stalks that can be collected and processed as an input for cotton stalk board production as envisaged by the main project CFC/ICAC/20. The study not only included the assessment of available quantities but also most efficient collection modalities. Furthermore a market study/assessment was included. The findings of the two studies
11 were presented and discussed at a stakeholder workshop held in Mumbai, India in May The outcome thereof has been reflected in the final design of the main project, which has become operational as at 1 October CFC/ICAC/30FT Preparation for the Commercial Standardisation of Instrument Testing of Cotton for Cotton Producing Developing Countries in Africa Project Executing Agency: Faserinstitut Bremen e. V. (FIBRE) Project Cost USD 142,415 Common Fund Grant USD 101,138 Counterpart Contribution USD 41,277 The Fast Track project had the dual objective to facilitate ongoing consultations on outlining the core elements/requirements of a global system of quality control based on instrument testing of cotton and on defining the parameters which determine the involvement and actual participation of African cotton producing countries in such a global system. The project has resulted in the formulation of a full-scale project with envisaged operational activities in two African regions where two regional technical centres will be established. The main project has meanwhile been approved by the Common Fund and awaits confirmation of co-financing (expected towards December 2006). CFC/ICAC/32FT Production and Marketing of Uncontaminated Cotton in Mali Project Executing Agency: Institut d Economie Rurale (IER), Mali Project Cost USD 90,000 Common Fund Grant USD 50,000 Counterpart Contribution USD 40,000 The project aims to address core issues related to the scale and causes of contamination in seed cotton, and to determine the relative importance thereof in the overall cotton production/value chain, in particular with regard to the impact it has on the income generating capacity of small cotton producers. The studies will be undertaken with a focus on Mali, but adequate attention will be given to relevant international experiences in dealing with contaminated cotton. The project will also result in formulating development actions that could be undertaken to address the contamination problem in West Africa. The project has started in July 2006 and has a duration of one year. CFC/ICAC/34FT Regional Consultation on Genetically Modified Cotton for Risk Assessment and Opportunities for Small-scale Cotton Growers Project Executing Agency: International Service for the Acquisition of Agri-Biotech Applications (ISAAA) Project Cost USD 160,000
12 Common Fund Grant USD 120,000 Counterpart Contribution USD 40,000 The project has been approved for sharing scientific information and actual experiences related to the advantages and disadvantages of the introduction of genetically modified cotton. The focus will be on the Asian experiences with adequate attention for Eastern African interests (and participation). The meeting is envisaged to be in Pakistan, and will be held in the 4 th quarter of 2006.
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