FAO.org

15 Nov 2016

MAFAP will in the coming months conduct an analysis of the regional and global competitiveness of the Mozambican cotton sector. This study, undertaken at the request of the Instituto do Algodão de Moçambique (IAM), takes place in the context of important reforms being considered by IAM, including their cotton price setting mechanism at farm gate level and considerations around the adoption of a price stabilization fund.

 

More specifically, the studywill assess the domestic comparative advantage of growing and marketing cotton vis-a-vis other cash crops, as well as the sector’s regional and international comparative advantage and competitiveness given the existing cost structures and pricing policy relative to those in other key African cotton-producing nations. The analysis will inform reform options that will enhance productivity in the Mozambican cotton sector and reduce its exposure to international market instability.

In Mozambique, MAFAP formally partners with the Ministry of Agriculture and Food Security and the Research Centre for Agricultural and Food Policies and Programmes (CEPPAG) since 2013, to strengthen capacities to monitor and analyse effects of policies and public expenditure on the most relevant commodity markets. On demand, MAFAP assists the Government and sector institutions, such as the Cotton and Cashew Nut Institutes, in the formulation of suitable reforms by offering expertise to assess costs and benefits of policy options.