Economic Analysis and Competitiveness of Cotton Farms in Mali, the Case of Founia District of Kita Province

Abstract

In this research, it is aimed to investigate the economic performance of cotton farms and to reveal the profitability and competitiveness of cotton production in Founia district of Kita province. The research data were obtained from the questionnaires conducted with 55 farms determined according to the stratified random sampling method. Policy Analysis Matrix was used to determine profitability and competitiveness in cotton production. The results of the research showed that the farms in Founia county have an average of 10.44 da farm land. Gross production value per farm is $3519.89, agricultural income is $2197.42. According to the result obtained from PAM, private profit of cotton production in Founia district was 58.97 $/ton social profit was 1017.38 $/ton. Within the scope of the research, Specific Cost Ratio (PCR) coefficients of 0.77 and Cost Ratio of Domestic Resources (DRC) of 0.19 obtained from PAM were found. However, according to the Nominal Protection Coefficient on Output (NPCO) (0.30), Nominal Protection Coefficient on Tradable Inputs (NPCI) (0.87) and Effective Protection Coefficient (EPC) (0.20) coefficients, it is seen that the cotton price is lower than the comparable world prices and the producer earns less profit from free trade. Therefore, in the short term, incentive premiums, direct financial support, protection of cotton prices, good communication with farms and extension policies should be implemented. The increase in yield with the introduction of irrigation systems will increase competitiveness.The government and the Compagnie Malienne pour le Développement des Textiles (CMDT) should assist in the leasing and long-term purchase of modern farm machinery, which is one of the fixed capitals, in order to increase productivity.