Identifier
Created
Classification
Origin
06COTONOU1167
2006-11-29 09:35:00
UNCLASSIFIED//FOR OFFICIAL USE ONLY
Embassy Cotonou
Cable title:  

BENIN: 2006-2007 COTTON HARVEST IN JEOPARDY

Tags:  ECON EAGR EINV PGOV BN 
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VZCZCXRO1171
RR RUEHMA RUEHPA
DE RUEHCO #1167 3330935
ZNR UUUUU ZZH
R 290935Z NOV 06
FM AMEMBASSY COTONOU
TO RUEHC/SECSTATE WASHDC 9042
INFO RUEHZK/ECOWAS COLLECTIVE
RUEHLMC/MILLENNIUM CHALLENGE CORP
RUEHFR/AMEMBASSY PARIS 1015
RUEHDK/AMEMBASSY DAKAR 1296
UNCLAS COTONOU 001167 

SIPDIS

SENSITIVE

SIPDIS

DEPT FOR AF/EPS:KRZYWDA, AF/W:BANKS, EB/TPP/ABT:LERSTEN
DEPT PASS TO COMMERCE:MD'ANDREA AND USTR:AHEYLIGER/LAGAMA
PARIS FOR D'ELIA
DAKAR FOR FAS (RHANSON)

E.O. 12958: N/A
TAGS: ECON EAGR EINV PGOV BN
SUBJECT: BENIN: 2006-2007 COTTON HARVEST IN JEOPARDY

REF: A) COTONOU 752, B) COTONOU 937 AND PREVIOUS

UNCLAS COTONOU 001167

SIPDIS

SENSITIVE

SIPDIS

DEPT FOR AF/EPS:KRZYWDA, AF/W:BANKS, EB/TPP/ABT:LERSTEN
DEPT PASS TO COMMERCE:MD'ANDREA AND USTR:AHEYLIGER/LAGAMA
PARIS FOR D'ELIA
DAKAR FOR FAS (RHANSON)

E.O. 12958: N/A
TAGS: ECON EAGR EINV PGOV BN
SUBJECT: BENIN: 2006-2007 COTTON HARVEST IN JEOPARDY

REF: A) COTONOU 752, B) COTONOU 937 AND PREVIOUS


1. (SBU) SUMMARY: Late rains had compelled Benin's cotton experts to
revise their 2006-2007 harvest estimates from 500,000 tons (the
GOB's official target) to 350,000 tons, and the crop now faces
damage by insects. Comment: A poor 2006-2007 cotton harvest will
not necessarily lead to economic collapse. Another bad season,
however, would be an important symbolic defeat for newly elected
President Yayi and constrain his efforts to reinvigorate Benin's
economic growth. END SUMMARY.


2. (U) In late October 2006, local media and cotton producers
reported that the cotton pest, "Helico Verpa," had attacked farms in
the country's largest cotton-producing zone around Banikoara in
northern Benin. According to news reports, the 100,000-ton harvest
originally expected from that region will now be less than 40,000
tons. Other regions also have reported some pest damage.


3. (SBU) Many farmers have blamed importer/distributors of
agricultural inputs for a tardy and insufficient supply of
pesticide. The main importer/distributor, however, maintains that
the current situation is the result of the refusal of cotton farmers
in the affected region to use a substitute pesticide that was
available in the face of insufficient quantities of the farmers'
preferred pesticide. The Interprofessional Cotton Association (AIC),
Benin's national association for cotton stakeholders, and Ministry
of Agriculture officials have publicly supported the distributor's
claims.


4. (SBU) The Ministry of Agriculture's Chief of Staff told post that
an unhealthy rivalry among competing vendors of agricultural inputs
had caused some farmers to use little or no pesticide for the
recommended "second treatment" of their cotton plants, thus leaving
the plants vulnerable to insects. The same official claimed that
unsuccessful public tenders for these inputs during the initial
phase of the 2006-2007 cotton campaign led gullible farmers to use
little or no pesticide for fear it would hurt their productivity.
Though he acknowledged that President Boni Yayi's national
production target of 500,000 tons would not be met (Ref B),the GOB
official still expected a harvest of between 300,000 and 350,000
tons.


5. (SBU) An expatriate businessman close to the embassy, however,
told Econoff he does not expect Benin's 2006-2007 cotton harvest to
exceed 250,000 tons. While still an improvement on the dismal
2005-2006 figure of 180,00 tons, this falls well short of Benin's
annual production of just a few years ago (350,000 - 400,000 tons
annually).


6. (SBU) COMMENT: Since his inauguration in April (reftels),
President Yayi has made recovery of the cotton sector one of the top
priorities for his first year in office. Unfortunately, while the
government made some progress in clearing arrears and encouraging
farmers to plant, the agricultural calendar left the new government
little time to implement reforms or improve management in the
sector. Disorganization, confusion and delays over inputs, pricing
and other issues have hampered recovery in a year when neither the
rains nor the insects are cooperating.


7. (SBU) A disappointing 2006-2007 cotton harvest will not
necessarily lead to economic collapse. Benin's economy weathered
the dismal 2005-2006 cotton season relatively well. However,
another bad season will be an important symbolic defeat for Yayi and
hamstring his efforts to reinvigorate Benin's economic growth. END
COMMENT.

BROWN