Logistics operators cotton on to new opportunities

Market conditions are “ripe” for a resurgence in African cotton farming, according to delegates at the Pan-African Cotton Meeting held in Cotonou, Benin, at the end of June. A revival in cotton production and manufacturing will allow shipping and logistics companies to reopen traditional trading routes, which have been largely dormant due to a drop in African cotton production. Global prices are more than double their average for the past 20 years. Prospects for sustained demand appear good, as economic growth in a number of developing countries is increasing demand for cloth and clothing, according to delegates. Some 27 of Africa’s 53 countries produce cotton. It is estimated that the sector employs directly or indirectly 15 million people in the West and Central African subregion. According to the All ACP Commodities Programme, production is also increasing in Southern African states, with Mozambique expected to produce 70 000 tons of raw cotton this year, most of which will be exported. Speaking at the conference, UN Conference on Trade and Development Secretary-General, Supachai Panitchpakdi, said the failure to add value was one of several trends that needed to be reversed. A revival in the African cotton industry will have the knock-on effect of increasing the demand for transport and forwarding services to carry fertilisers, seed, implements, machinery, the ripe crop and cloth and garments.