Causes of Declination in Cotton Production in Northern Ghana

Introduction

Cotton production, in many countries, became part of their culture. The cotton prices became the navigator of the farmers’ future in the production for it affects the income, development of the entire production, and the society. There are socio-cultural events, consumption and investment that might be affected if there are any drastic changes in the production of cotton.

Background of the Study and Problem Statement

Cotton production helps to alleviate the poverty in the country where there are countries that specializes in growing it like the Northern Ghana. It is not only economically interesting (Argo Eco, 2004). But still, the silent industry was plagued with many uncertainties. A report of declining production outputs is very alarming in the country. In this study, the causes of the declination and its effects in Ghana would be the main concern.

Research Objectives

The research emphasizes the two main objectives. First is to help the other farmers to recover their competency in the cotton production. And second, to call other reforms and governmental or agricultural organizations to set a reform where the cotton production will gain its strong status.

Research Questions

The study is entirely guided by the following questions in attempting to discover the causes of the declination in cotton production especially in Ghana.

1. What is the current status of Ghana’s cotton industry in the international market?

2. Are there any implications that might affect the cotton production?

3. What are the effects of prices such as seed cotton, fertilizers, insecticides, etc. in the cotton production?

Literature Review

The cotton production is reportedly declined slightly due to the lower yield. The country has been facing irrigation water shortages owing to drought and smaller than expected chances of monsoon rains. The cotton production in the country is also affected by the other production and industry such as the crop and sugarcane. Cotton planted in a vast area is expected to decrease in million hectares of production if the weather became unpredictable and uncooperative to the growers. The farmers are now pushed to limit the area where they cultivate and sown the cotton, another reason why there is a decreasing trend of production. In contrast, there are also implications that the cotton production will be stable because the farmers who were not engaged in cotton production will have to switch in the principle of rotation. But the greatest threat came from the projection of the business analysts that will lint the production in the coming years (ICAC, 2002).

In addition, there is a declination of the cotton production is the growing rate of unsatisfied farmers because of the low international prices. The actual losses create a great impact in the industry because cotton is the only cash crop with a guaranteed market at fixed price, and farmers are hoping to continue growing cotton as long as they can recover and cover the cash expenses. Moreover, the fertilizers and insecticides are supplied to producer are based on the principle of credit and liabilities where farmers can only pay if there is a healthy production of cotton (ICAC, 2002; Goreux and Macrae, 2003; Agro Eco, 2004). With these agricultural challenges, the cotton productions that the analysts predicted are expected to decline.

There are many reforms that attempt to answer the low production of cotton. The marketing reforms are focused on the channels of selling the cotton such as the net prices, credit prices, and inputs like seeds, fertilizers, pesticides, technical advice, equipment support, and the efficiency of the input combination. The reforms are timely in the drastic changes in market conditions in a situation of very low performing yields of cotton, and they are anticipated by the farmers (Brambilla and Porto, 2007).

Methodology

The applied method of the study is the comparative case study method. The method is very advisable because, there are other reviews and studies related to the main topic and there are available suggestions that should be analyzed to help achieve the objectives of the paper. Through this method, there are chances to create a qualitative reasoning regarding to the cotton industry.

Conclusion

Cotton production is more that producing cotton because many lives are depends on it. The revenues or income that a family can gain can help them to buy food, improve their living conditions, and invest in other productive activities. When the production of the cotton continues to decrease, the people who entirely live in the production will expect a drastic situation. And because of this future, there should be an effective support from the people in the government.

References:

Agro Eco, 2004. Benin Organic Cotton Project. [Online] Available at: http://www.agroeco.nl/publications/cotton_brochure_sept_2004.pdf. [Accessed 29 Jan 2010].

Brambilla, I., & Porto, G., 2007. Market Structure, Outgrower Contracts and Farm Output: Evidence from Cotton Reforms in Zambia. [Online] Available at: http://www.econ.yale.edu/~ib55/papers/cotton_zambia.pdf. [Accessed 29 Jan 2010].

Goreux, L., & Macrae, J., 2003. Reforming the Cotton Sector in Sub-Saharan Africa (SSA). Africa Region Working Paper Series No. 47. [Online] Available at: http://www.unctad.org/infocomm/anglais/cotton/Doc/wp47.pdf. [Accessed 29 Jan 2010].

ICAC, 2002. Cotton: Review of the World Situation. International Cotton Advisory Committee, Vol. 55, No. 4. [Online] Available at: http://www.infarmation.com.au/common/pdf/cotton_ERev2_web.pdf. [Accessed 29 Jan 2010].