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Press release

United States provides $2.5 million to improve cotton products and exports from Senegal

DAKAR, January 24, 2007 -- The United States of America through the United States Agency for International Development (USAID) is providing $2.5 million to increase the export value cotton products and other agricultural commodities in Senegal. Activities will focus on diversifying agricultural production in cotton growing regions in the south of the country and building capacity to add value to and export cotton products.

Cotton production accounted for less than 3% of total exports in Senegal – about $30 million over the 2001-2005 period. Cotton is grown in areas where the rainfall is between 800 and 1,200 mm, and approximately 50,000 hectares of cultivated lands. Production is concentrated in the southeastern part of the country.

Senegal currently transforms 3% of its cotton production, but the goal is to reach at least 25% transformation by taking advantage of high quality, locally-produced cotton, excess milling capacity, and reasonable port access and export facilities. Present seed cotton production in Senegal is about 45,000 to 50,000 tons. Fiber cotton production is 16,000 to 20,000 tons. Cotton production provides income for up to 70,000 small farmers, and supplies Senegalese mills and artisan weavers.

Under this assistance package, USAID will help promote the local cotton market, increase the contribution of the textile industry to economic growth and revamp the Textile Promotion Center. It will also support Senegal’s efforts to diversify to other profitable crops to protect farmers and industry from cotton price volatility. These crops could include bananas, gum Arabic, fonio, bissap and dairy.

USAID/Senegal, for example, has examined markets and encourages farmers to invest in non-traditional products such as bissap, karaya gum, fonio, beeswax and honey, jujube, baobab fruit, palm oil, maad, and bamboo.

This assistance from the American people to Senegal is for the West African Cotton Improvement Program (WACIP). USAID has an agreement with the International Center for Soil Fertility and Agricultural Development (IFDC) to implement this program in Benin, Burkina Faso, Chad, and Mali, known as the C-4. WACIP in Senegal will be implemented by the International Resources Group as part of USAID’s Economic Growth Program.

The WACIP, along with other agriculture and trade-related programs funded by the U.S Government and the Millennium Challenge Corporation in the C-4, reflect the substantial commitment of the U.S. Government to address trade and development aspects of cotton in response to concerns raised by the C-4 in the World Trade Organization Doha Round. The program also receives support from aU.S. Department of Agriculture (USDA) training program as well as technical and commercial expertise.

Activities funded under this agreement will promote a better supporting environment and improve the efficiency of the entire cotton value chain in West Africa. This is intended to increase income of small farmers and contribute materially to the Millennium Development Goals of reducing hunger and poverty.

Farm-level activities will focus on increasing the productivity of cotton. WACIP will improve farmer access to inputs and credit, strengthen farmer organizations, promote higher quality handling and processing, help to establish and strengthen value-adding enterprises including those producing artisan products, and develop improved and better targeted marketing strategies. Senegal based-activities, separately managed, will focus on diversifying agricultural production in cotton growing regions and building capacity to add value to and export cotton products.

The activities under this agreement will be implemented through a partnership with U.S. agriculture universities, numerous regional organizations, government agencies, farmer organizations, and private businesses. This activity is funded through the US Government agreement with the Permanent Interstate Committee for Drought Control in the Sahel.

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