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Business News of Thursday, 22 March 2007

Source: GNA

Veep decries low production of cotton in Africa

Accra, March 22, GNA- Vice President Alhaji Aliu Mahama on Wednesday expressed dissatisfaction about the low production of cotton in Africa, although the cash crop accounts for 60 per cent of export revenue of a number of countries globally.

" Of the 25 million tons of cotton expected to be produced globally in 2006-2007 African contribution is expected to be a mere one million tons or 4.4 per cent," he said.

Vice President Mahama was speaking at the Fifth Annual Conference of the African Cotton Association (ACA) in Accra, where the participants would use the next two days to discuss the theme: " Competitiveness and Sustainability of Cotton Production in Africa."

He said the estimated subsidies of 25 billion dollars provided to farmers in the developed countries had left African cotton producers gasping for breath and unable to compete.

Vice President Mahama said Ghana had initiated the Presidents' Special Initiative on Cotton to reverse the low level of the crop production in the country.

"Let me assure you that Government notes with admiration the significant strides made in cotton production by sister countries in the Sub-Region, such as Mali, Burkina Faso, Benin, Cote d' Ivoire and Togo." Mr Ibrahim Malloum, Chairman of the ACA said the provision of subsidy by the US and Europe to their farmers had led to over production of the crop thus pushing down prices.

He said there was the need for ACA to strategize to meet the challenges of reducing the cost of production and also ensuring quality of products.

Mr George Osieku, Chairman of the organising committee of the ACA meeting in Ghana, said the 10,000 metric tons Ghana was currently producing accounted for 0.2 per cent of the cotton produced in Africa in 2006. 22 March 07