Identifier
Created
Classification
Origin
06COTONOU937
2006-09-26 10:40:00
UNCLASSIFIED
Embassy Cotonou
Cable title:  

BENIN: UPDATE ON 2006-2007 COTTON SEASON

Tags:  EAGR ECON ETRD EINV PGOV BN 
pdf how-to read a cable
VZCZCXRO0475
RR RUEHMA RUEHPA
DE RUEHCO #0937 2691040
ZNR UUUUU ZZH
R 261040Z SEP 06
FM AMEMBASSY COTONOU
TO RUEHC/SECSTATE WASHDC 8814
INFO RUEHZK/ECOWAS COLLECTIVE
RUEHFR/AMEMBASSY PARIS 0982
UNCLAS COTONOU 000937 

SIPDIS

SIPDIS

DEPT FOR AF/W (DBANKS)
DEPT PLEASE PASS TO USTR (AGAMA)
PARIS FOR D'ELIA

E.O. 12958: N/A
TAGS: EAGR ECON ETRD EINV PGOV BN
SUBJECT: BENIN: UPDATE ON 2006-2007 COTTON SEASON

REF: A) COTONOU 363; B) COTONOU 156; C) COTONOU 752 and

previous

UNCLAS COTONOU 000937

SIPDIS

SIPDIS

DEPT FOR AF/W (DBANKS)
DEPT PLEASE PASS TO USTR (AGAMA)
PARIS FOR D'ELIA

E.O. 12958: N/A
TAGS: EAGR ECON ETRD EINV PGOV BN
SUBJECT: BENIN: UPDATE ON 2006-2007 COTTON SEASON

REF: A) COTONOU 363; B) COTONOU 156; C) COTONOU 752 and

previous


1. SUMMARY: On September 6-7, 2006, President Boni Yayi and
his Minister of Agriculture toured cotton producing zones
in northern Benin to assess the status of this year's
cotton crop. Continued financial pressures in the sector
and tardy rains have depressed forecasts for the harvest.
Benin's Cotton Stakeholders' Association (AIC) predicts a
350,000 metric tons yield from the current campaign, nearly
twice last season's harvest but well under President Yayi's
target of 500,000 tons. END SUMMARY

TARDY RAINFALL DEPRESSES 2006-2007 COTTON PRODUCTION
-------------- --------------


2. Several cotton growers visited by the President thanked
the new government for settling arrears from the last two
seasons (reftels). However, they regretted that lingering
uncertainty through the spring about whether they would
receive the arrears had delayed sowing of this year's crop.
Tardy, yet torrential, rains will also depress the harvest,
which is unlikely to hit President Yayi's target of 500,000
metric tons. Mr. Barthelemy Gagnon of the AIC has noted
that cotton seedlings started to rot when heavy rains
poured on some areas. Some farmers affected by this
unexpected situation had no option but to sow new
seedlings. While overall acreage in cotton has increased by
up to 50,000 hectares this season, Mr. Gagnon predicted a
harvest of 350,000 metric tons as the best to be expected.

OTHER COTTON GROWERS STILL WAITING ON ARREARS
--------------


3. In another cotton producing town President Yayi visited,
growers said they are unmotivated and planted only limited
acreage of cotton. They said they were still owed arrears
from previous harvests by the local ginning factory,
Marlan's Cotton Industries (MCI). Agriculture Minister
Gaston Dossouhoui told the farmers that the GOB had not yet
covered those arrears, because Mr. Martin Rodriguez, the
CEO of MCI, has refused to sign an IOU with the government
for the debts. The Minister emphasized that with such an
IOU the government would then pay the debts and pursue
reimbursement from the ginners. According to the AIC's
Gagnon, Rodriguez and MCI still owe farmers USD 7,647,058
(3,900,000,000 CFA).


4. COMMENT: The Yayi government's efforts to clear debts to
cotton farmers and boost production have had some impact on
productivity, even if somewhat less than hoped. The
current projection of 350,000 metric tons is a significant
increase over last year's dismal crop of just under 200,000
tons and is in line with other recent year's crops of
between 300,000 and 400,000 metric tons. END COMMENT.

BROWN