Beyond the Fibre Capturing cotton's full value in Africa - A presentation to WTO members - WTO Cotton Days By Matthias Knappe and Gérald Estur ...

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Beyond the Fibre Capturing cotton's full value in Africa - A presentation to WTO members - WTO Cotton Days By Matthias Knappe and Gérald Estur ...
Beyond the Fibre
Capturing cotton’s
full value in Africa

A presentation to WTO members – WTO Cotton Days
By Matthias Knappe and Gérald Estur
Date: 28 May 2021
Beyond the Fibre Capturing cotton's full value in Africa - A presentation to WTO members - WTO Cotton Days By Matthias Knappe and Gérald Estur ...
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Cotton By-Products (CBPs) in Africa: What is Covered

Chapter 1: Markets for cottonseed oil and cakes
• Cotton by-products – such as cottonseed oil and oilcakes – can contribute meaningfully to
  reducing poverty, creating jobs and increasing economic growth in Africa.
• These derivatives can represent up to 30% of the value of seed cotton.

Chapter 2: How does Africa use cotton by-products?
• Oil and cakes have not been fully exploited, despite a potential of 400,000 tons of oil and
  500,000 tons of protein – vital for the growing livestock industry.
• Stalks and other by-products have also been neglected.

Chapter 3: Challenges and opportunities to develop cotton by-products

Chapter 4: Recommendations
Beyond the Fibre Capturing cotton's full value in Africa - A presentation to WTO members - WTO Cotton Days By Matthias Knappe and Gérald Estur ...
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Major CBPs with potential to create additional income & jobs
• Cottonseed oil, which competes with other vegetable
  oils, is typically used for human consumption
  (sometimes for soap manufacturing, plastics and
  pharmaceuticals);
• Cottonseed hulls are used either to generate energy
  for the processing facility or are blended with meal for
  animal feed and, less often, as fertiliser;
• Cottonseed cake, which competes with other meals, is
  used as animal feed;
• Linters are a source of cellulose used in goods such
  as yarn, plastics and filling material;
• Unprocessed cottonseed is sometimes used for
  animal feed;
• Cotton stalks can be used for compost, boiler fuel
  (briquettes, pellets) or particle boards, or to prepare
  pulp and craft paper.
• Edible mushrooms can be grown on cotton stalks.
Beyond the Fibre Capturing cotton's full value in Africa - A presentation to WTO members - WTO Cotton Days By Matthias Knappe and Gérald Estur ...
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  Cottonseed
                                                         COTTONSEED AVERAGE COMPOSITION
• Cotton is mainly cultivated for its fibre and                           Waste
                                                             Linter
  is often considered to be synonymous with                   8%
                                                                           3%
  cotton lint, a raw material for cotton
  textiles.
• The ginning process of seed cotton
  separates the cotton lint from cottonseeds
  (about 40% & 55% resp.).
                                                                                                     Meal
                                                  Hull
• As cottonseed is an oilseed, cotton is both     27%
                                                                                                     46%
  a fibre crop and a food crop.
• Africa produces about 2 millions t lint and
  2.75 million t cottonseeds (from 5 million t
  seedcotton on 5 million ha).

                                                                    Oil
                                                                   16%            Source: ICAC
Beyond the Fibre Capturing cotton's full value in Africa - A presentation to WTO members - WTO Cotton Days By Matthias Knappe and Gérald Estur ...
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Fuzzy Seeds

• The primary use of cottonseeds is for
  plantings. In Africa, an estimated
  150,000 tons are treated to be used as
  planting seeds.
• Fuzzy seed, or whole cottonseed
  (WCS), is a valuable feedstuff for beef
  cattle, particularly for dairy cows (high
  content of protein, energy & fibre).
• WCSs are increasingly used as cattle
  feed in landlocked Sahelian countries.
• Cottonseed is further processed to
  produce linters, hulls, oil and meal.
Beyond the Fibre Capturing cotton's full value in Africa - A presentation to WTO members - WTO Cotton Days By Matthias Knappe and Gérald Estur ...
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Linters and Gin Waste
• Linters are the residual short fibres which adhere to the fuzzy
  seed after ginning (4-8 % of seed weight). The process of
  removing fuzz from seed is called delinting (mechanical or acid).
  Estimated production in Africa: 150,000 t.
• Linters are not suitable for spinning but, being 75-80% cellulose,
  can be used to produce absorbent cotton, which has medical,
  cosmetic, dental and many other practical uses.
• In Africa, Linters are generally exported due to the absence of
  local value-added industries.

                                       • Gin waste or gin motes (small/broken/immature seeds with attached
                                         fibres) - about 3% of ginned seed cotton weight - can be used to
                                         produce nonwoven products, to feed livestock or as soil amendment.
                                       • In Africa, gin motes (est. production: 150,000 t) are mostly treated as
                                         waste products; some ginners sell lint-cleaner waste. Processing gin
                                         waste into fuel pellets could provide a renewable source of energy
                                         that could potentially be a viable source of revenue for cotton gins.
Beyond the Fibre Capturing cotton's full value in Africa - A presentation to WTO members - WTO Cotton Days By Matthias Knappe and Gérald Estur ...
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Cotton Hulls

• Hulls are the outer covering (seedcoat) of
  the cottonseed and a direct by-product of
  the dehulling process to expose the kernel;
  recovery of hulls from cottonseed ranges
  from 20 to 30% of the seed weight.
• Main uses of hulls are in livestock feed,
  fertiliser and soil conditioner industries, oil-
  well packing material, furfural production
  and raw material for various chemical
  industries.
• In Africa, the most important uses of hulls
  (estimated production: 700,000 t) are
  livestock feed (often blended with CSM) and
  gasification for power generation at the
  processing facility.
Beyond the Fibre Capturing cotton's full value in Africa - A presentation to WTO members - WTO Cotton Days By Matthias Knappe and Gérald Estur ...
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Cottonseed Oil
• Oil is the cottonseed’s most valuable by-
  product, which is obtained by crushing
  the cottonseed kernel.
• Oil content of the whole seed ranges
  from 5-22% (28-35% of kernel). Oil can
  be extracted either mechanically or
  chemically. The solvent-extraction
  method is much more efficient but the
  technology is more sophisticated, more
  capital intensive, and only suitable for
  large processing capacities.
• Refined cotton oil is used for cooking
  and salad dressing.
• Cotton oil is healthier than palm oil:
  cholesterol-free, low levels of saturated
  fats, 70% unsaturated fatty acids, no
  trans fatty acids, high and rich in
  vitamins (notably vitamin E).
Beyond the Fibre Capturing cotton's full value in Africa - A presentation to WTO members - WTO Cotton Days By Matthias Knappe and Gérald Estur ...
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Cottonseed Oil

• In Africa, cottonseed oil produced with
  varying mixes of the three types of
  processing (artisanal, semi-industrial and
  industrial) competes on the domestic
  market with imports of edible oil (mostly
  palm oil). Total production of cottonseed is
  equivalent to about 425,000 tons of oil.
• Cotton oil is the main source of edible oil
  for the population in the cotton areas in
  WCA.
• The use of cotton oil for producing biofuel
  is unlikely to be economically viable as
  long as African countries are not self-
  sufficient in edible oil.
Beyond the Fibre Capturing cotton's full value in Africa - A presentation to WTO members - WTO Cotton Days By Matthias Knappe and Gérald Estur ...
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Cottonseed Cakes and Meals
• Cottonseed cake and cottonseed meal are joint-
  products of the oil extraction process that can be used
  to feed livestock, as well as natural fertilizer.
• Cottonseed meal (CSM) has a protein content of
  about 40%. Meals obtained from undecorticated or
  partially dehulled cottonseeds meals are rich in fibre
  (up to more than 20%); mechanically-extracted
  cottonseed cakes and meals are richer in oil.
• Historically, cotton seed has not been a viable source
  of protein for humans due to gossypol, which is toxic
  to monogastric non-ruminants. Ultra-low gossypol
  cottonseed bioengineered by research in the USA has
  a huge potential as human protein source.
• In Africa, total production of cottonseed is equivalent
  to about 1.2 million tons of CSM, which is competing
  on the domestic market with imported meal (mostly
  soybean). CSM cheaper than SBM with a similar
  nutritional value.
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Cotton Stalks and Biomass Use
• Apart from cottonseeds, stalks are the only by-product of the
  cotton cultivation, which generates 2-3 tons of stalks per
  hectare.
• As their fibrous structure is comparable to hard wood, cotton
  stalks can be used as a source of fuel, an alternative raw
  material for the manufacture of particle boards, preparation of
  pulp and paper, hard or corrugated boards and boxes,
  cellulose or cellulose derivatives and as a substrate for
  growing edible mushrooms.
                                         • In Africa, there are no commercial uses for cotton stalks.
                                           Farmers usually cut and dry the stalks before burning them.
                                           Stalks are sometimes used as fuel, as cattle feed or to make
                                           manure. About 12.5 million tons of biomass could be produced
                                           from cotton stalks.
                                         • Cotton stalk-based products can provide opportunities to
                                           create new sources of incomes for small-scale farmers,
                                           including women, and improve nutrition.
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Cotton Value Chain in Africa
                        Volume (est.)    Market price (per t)   Value (est.)
       Cotton area       5 million ha
       Biomass          12.5 million t
       Seed cotton        5 million t            $50              $2.5bn
       Lint               2 million t          $1,750             $3.5bn
       Gin waste          150,000 t
       Cottonseeds      2.75 million t
       Planting seeds     150,000 t
       Oilseeds          2.6 million t          $175             $450mn
       Linters            150,000 t              $50               $8mn
       Hulls              700,000 t              $40              $28 mn
       Oil                425,000 t            $1,000            $425mn
       Cake/meal         1.2 million t          $275             $330 mn
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Potential Benefits from CBPs
• CBPs have the potential to compete with lint as sources of
  income to numerous stakeholders and to significantly
  contribute to the overall cotton subsector profitability and
  contribution to income generation, employment, poverty
  reduction and better nutrition (for both human and livestock).
• Significant room for improvement both in extraction rate and
  quality of cotton oil.
• High potential for value addition from removing gossypol from
  meal.
• Development of CBPs can improve balance of payments by
  import-substitution of edible oil and animal feed and can
  increase intra-regional trade.
• BPs made from cotton stalks have the potential to respond
  well to policy priorities in many African countries: creating
  income opportunities for farmers, small-scale business in rural
  areas (including for women), and for entrepreneurs; improving
  nutrition (mushrooms).
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Major recommendations

• Identify and assess value addition
  activities (processing and marketing) in
  the national context;
• Raise awareness among private and
  public stakeholders on the potential of
  CBPs for value addition;
• Increase transparency in the cotton
  sector, including on the full value of seed
  cotton, lint and seeds, and the
  opportunities and cost-benefit analysis to
  add further value;
• Promote financial and/or technical
  assistance from government or funders to
  add value to CBPs;
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Major recommendations
• Ensure government support for the
  establishment of CBPs processing businesses,
  for example by:
  • including by-products in national cotton
     sector development strategies;
  • implementing clear national policy guidance
     on the development of the edible oil and meal
     production industries, with favorable tax
     regimes;
  • putting in place policy incentives to
     encourage investment in or adoption of
     technologies to add value;
  • enforcing tariffs and taxes on imported oils
     and meals.
• Build capacity to establish well-organised
  industry groups;
• Promote South-South cooperation, including
  with countries such as Brazil, China, Egypt,
  India or Turkey.
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In Summary
• Cotton is both a fibre crop and a food crop. The
  relative value of cotton by-products to the price of
  lint has increased, and the upward trend is likely to
  continue as demand for edible oil and livestock
  and poultry feeds is growing in Africa, exceeding
  domestic production.
• CBPs have a growing market in Africa and are
  potentially an important complementary source of
  revenue for the cotton sector. However, as CBPs
  have not received much attention so far, their
  potential is far from being fully exploited and local
  markets for CBPs other than oil and meal are
  underdeveloped. Cottonseed oil and meal
  domestic markets suffer from unfair import
  competition (tax regime, smuggling).
• Technologies for processing by-products to add
  value to cotton exist but they are not known and
  not readily available.The lack of linkage between
  the cotton sector, the oil sector and the livestock
  sector is an obstacle to a wider use of CBPs.
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Thank you
Thank you to the WTO Secretariat for translating the
publication into French and Spanish

The documents is available in:

Français: Au-delà de la fibre: Valoriser pleinement le coton en
Afrique (FR) (intracen.org)

Español: Más allá de la fibra: Aprovechar plenamente el valor
del algodón en África (intracen.org)

English: Beyond the fibre: Capturing cotton's full value in
Africa (intracen.org)
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