Original: English   

·        EGM- Final Report

·        EGM- Program

·        Annex-I               Participation List

·        Annex-II              Speech of H.E. Mehdi EKER

                                   Minister of Agriculture & Rural Affairs of the Republic of Turkey

·        Annex-IV            IDB Statement

·        Annex-V              Agenda

·        Annex-VIII          Action Plan

DRAFT REPORT

OF THE SECOND EXPERTS GROUP MEETING ON ENHANCING PRODUCTION EFFICIENCY AND INTERNATIONAL COMPETITIVENESS IN OIC COTTON PRODUCING COUNTRIES

IZMIR, REPUBLIC OF TURKEY

28-30 MARCH 2006

1.         The Second Experts Group Meeting (EGM) on Enhancing Production Efficiency and International Competitiveness in OIC Cotton Producing Countries was held in Izmir, Republic of Turkey, between 28-30 March 2006.

2.         The Meeting was attended by the representatives of the following Member States of the Organization of the Islamic Conference (OIC):

1. Republic of Azerbaijan
2. Islamic Republic of Pakistan
3. People’s Republic of Bangladesh
4. Republic of Benin
5. Republic of Chad
6. Burkina Faso
7. Republic of Turkey
8. Republic of the Sudan
9. Syrian Arab Republic
10. Republic of Ivory Coast
11. Republic of Mali
12. Arab Republic of Egypt
13. Federal Republic of Nigeria

3.         The Meeting was also attended by the OIC General Secretariat, the OIC Standing Committee for Economic and Commercial Cooperation (COMCEC) Coordination Office (CCO), and the Islamic Development Bank (IDB). A copy of the List of Participants is attached as Annex-I.

OPENING SESSION

4.          The meeting started with  recitation of verses from the Holy Qur’an.

5.         The Opening Session of the Meeting was held under the chairmanship of H. E Oğuz Kagan KÖKSAL, Governor of Izmir, Republic of Turkey.

6.         H.E Mehmet Mehdi EKER, Minister of Agriculture and Rural Affairs of the Republic of Turkey, addressed the meeting. In his inaugural statement, he welcomed the delegates and expressed his pleasure for hosting the Second Cotton Experts Group Meeting (EGM) on Enhancing Production Efficiency and International Competitiveness in OIC Cotton Producing Countries in Izmir. He stressed the importance of cotton production, industry and trade for these Islamic Nations and reiterated support of Turkey for the work of the EGM. In this regard, H.E EKER offered the experience and expertise of Turkey for the benefit of OIC countries. He drew attention to the role of government policies in enhancing production and trade in cotton sector and highlighted the increase in use of genetically modified organisms. H.E EKER emphasized that the results of the ongoing negotiations on agriculture under the WTO would greatly influence the future of the cotton sector. He stated that the EGM should meet regularly and proposed the inclusion of this subject into the agenda of the COMCEC with a view to developing appropriate policies and programmes to implement the recommendations of the EGM. H.E EKER requested the application of international standards in cotton classification, resolution of the problems of contamination and stickiness in cotton production, enhancement of the research and development studies, cooperation in seed improvement and technical and commercial matters. He also informed the delegates that 66th Plenary Meeting of the International Cotton Advisory Committee will be held in Izmir in October 2007 and invited them to attend it. Text of the speech of H.E Mehmet Mehdi EKER is attached as Annex-II.

7.        H.E Ambassador Nabika DIALLO, Adviser to H.E. Secretary General of the OIC read out the message of the H.E Prof. Dr. IHSANOGLU.  In his message, H.E Prof. Ekmeleddin IHSANOGLU expressed his profound gratitude to the Government of the Republic of the Turkey and particularly Ministry of Agriculture and Rural Affairs, for the organization of the EGM as well as for all the arrangements made for the success. He emphasized the significant role of cotton sector in many OIC Member States. He also pointed out that due to subsidies accorded by the USA and EU the price of cotton severely declined which has ruined the farmers particularly in the Sub-Saharan African Countries. He also underlined the need to adopt and implement urgent measures in the field of cotton. He also commended the Turkish Government for its initiative in having started the implementation of a program aimed at strengthening trade, investment and technology transfer in favour of Africa through the African Development Strategy (ADS). A copy of the Statement of H.E Prof. Ekmeleddin IHSANOĞLU, Secretary General of the OIC is attached as Annex-III.

8.         The representative of the Islamic Development Bank (IDB), Dr Nosratollah Nafar, in his speech, appreciated the Turkish Ministry of Agriculture and Rural Affairs for organizing the meeting in collaboration with IDB. He wished that the EGM, like the first one which was organized by the IDB on 22-23 March 2005 in Jeddah, Saudi Arabia, provides an opportunity to the participating member countries to exchange views on related issues, to develop a mechanism of regularly exchanging information, and to facilitate communication among themselves. He also suggested that the EGM identifies practical ways and means to make cotton producing member countries ready to meet the challenges of globalization and take advantage of the opportunities. In this context, He recommended that the meeting should focus more on developing a cotton strategy on a national and – where possible – regional basis. He said that these strategies should have at least three elements: (i) an enabling environment; (ii) the supply of support services; and (iii) rural financial facilities. He concluded that the IDB looks forward to a successful meeting which would yield valuable outcomes and recommendations on developing a suitable framework for enhancing cooperation among cotton-producing member countries. A copy of the IDB statement is attached as Annex-IV.

WORKING SESSION

Election of the Bureau and adoption of the Agenda

9.         Under Agenda item 2, the Meeting elected the Bureau as follows:

- Chairman                  : Republic of Turkey    

- Vice Chairman          : Burkina Faso

- Vice Chairman         : Arab Republic of Egypt

- Rapporteur               : People’s Republic of Bangladesh         

10.       The Working Session of the Meeting was held under the Chairmanship of Dr. Sebahattin GAZANFER, Director General of Agricultural Sales Cooperatives Unions (TARIS).

11.       Under Agenda item 3, the Meeting adopted the Draft Agenda and the Draft Work Programme of the Meeting. A copy of the Agenda as adopted by the Meeting is attached as Annex-V.

Background Report by the OIC General Secretariat

12.       Under Agenda item 4, Mr. Oker Gurler, Director of Economic Affairs Department of the OIC General Secretariat presented the Background Report prepared by the OIC General Secretariat. The Report provided information on the role of the cotton production in the West and Central African countries (WCA), and the adverse effects of the declining prices of cotton on the sustainable growth and development in these countries. The Report also included detailed information on OIC activities in the field of cotton, inter alia, (i) a meeting on the problems of cotton, held in Istanbul on the sidelines of the 31^st ICFM, (ii) the First “Expert Group Meeting on Enhancing Production Efficiency and International Competitiveness in Cotton Producing Member States” held in the IDB Headquarters in Jeddah, on 22-23 March 2005, (iii) a Forum on “Energizing Trade and Investment in the Cotton Sector of OIC Member States” held in Ouagadougou, Burkina Faso on 18-19 April 2005. The Report concluded by emphasizing the importance of the rapid implementation of the OIC Ten-Year Programme of Action for enhancing cooperation among the OIC member States and alleviating poverty in the least developed OIC Member States. A copy of the text of the Background Report of the General Secretariat is attached as Annex-VI.

13.       The representative of Burkina Faso presented a progress report for the implementation of the Ouagadougou Cotton Forum (OCF) in his presentation he stated that OCF was organized by a committee chaired by Burkina Faso. OCF recommended the appointment of a coordinator by the OIC General Secretariat. The Coordinator will be mandated to implement all the recommendations adopted by the OCF and the EGM for promoting trade and investment cotton sector. The OCF also proposed that the IDB will be requested to undertake the salary set coordinator. He further stated that the present EGM being held in Izmir expected to create concrete projects and joint ventures bringing together:

a)      Cotton producers,

b)      Manufacturers specialized in textile industry,

c)      Regional finance institutions (Islamic Development Bank, African Development Bank),

d)      Investors from the OIC member states, and

e)      OIC subsidiary organs, specialized and affiliated institutions working in the commercial cooperation. 

Providing better coordination among all players is the best way to realize the objectives of the EGM and OCF.  

14.       Under Agenda item 5, on cotton production and production policies in Member States, Dr. Nosratollah NAFAR, Representative of IDB made a presentation on IDB’s initiative related to Cotton Sector.  Dr. Huseyin VELIOGLU, Director General of Agricultural Production and Development of Turkey, Mr. Aliyev ROVSHAN, Expert of Ministry of Agriculture of Azerbaijan, Md. Farid UDDIN, Deputy Director of Cotton Development Board of Bangladesh, Mr Bado Jean BABOU, Head of Division in Permanent Secretariat of Coordination for Agricultural Policies of Burkina Faso, Dr. Mamadou COULIBALY, Deputy Director of Textile Company of Ivory Coast, Prof. Elfadil Abdelrahman BABIKER, Coordinator for Cotton Research Program of Sudan made presentations on cotton production consumption and production policies of their respective countries.

15.       Under Agenda item 6, on enhancing cotton production efficiency, Mr. Tugrul YEMISCI, from Turkish Union of Chambers and Stock Exchanges, Mr. Tuncay SONMEZ from Ministry of Industry and Trade, Mr. Ali OZBUGDAY, Vice President of Association of Turkish Seed Industry, Dr. Isa OZKAN, from Nazilli Cotton Research Institute, Dr. Sebahattin GAZANFER, Director General of Agricultural Sales Cooperatives Unions (TARIS)  made presentations on enhancing cotton production efficiency; cotton industry and trade; areas of cooperation among OIC Member States; cotton seed industry, cotton research and development in Turkey.

16.       Under Agenda item 7, on enhancing international competitiveness Ms. Aylin BEBEKOGLU, Head of Department at the Turkish Undersecretariat for Foreign Trade, made a presentation on WTO policies on cotton and cotton products. Mr. Adama TRAORE, General Manager of Industrial Development of Burkina Faso made a presentation on the “Cotton Initiative” by Benin, Burkina Faso, Chad and Mali to WTO. Prof. Dr. Unal EVCIM and Prof. Dr. Adnan DEGIRMENCIOGLU, Ege University Faculty of Agriculture, made a joint presentation on “World Cotton Trends and Opportunities for Production Efficiency in OIC Countries”. Mr. Usman M. D.  GWANDU, Federal Ministry of Commerce of Nigeria, made a presentation on cotton production, industry and trade in Nigeria. Mr. Masood ALAM RIZVI, Secretary of Ministry of Textile Industry of Pakistan and Prof. Dr. Monir Gad SEIF, Deputy Director of Cotton Research Institute of Egypt, presented papers about the cotton production, industry and trade of their countries. The summary of the presentation papers with the proposals is attached as Annex-VII. Copies of the full presentations will be provided on CD.

GENERAL DEBATE

17.       During the general debate, the EGM decided to review the Action Plan adopted at its first Meeting (Jeddah, 22-23 March 2005). The purposed of the Revised Action Plan is to give a better and comprehensive understanding about the challenges and opportunities of the cotton producing OIC countries. It should develop more practical ways and means to enhance cooperation among member countries in the area of cotton production and trade. The meeting agreed, based on the Revised Action Plan, to provide a five year programme to be implemented. Participants agreed to form a Steering Committee (SC) to collect necessary information from the OIC Cotton Producing Countries and evaluate this information with a view to updating the Action Plan. The composition of the SC will be as follows;

Chair: Turkey

Vice Chair: Burkina Faso

African Group: Mali, Nigeria

Asian Group: Pakistan, Azerbaijan

Arab Group: Egypt, Sudan

The Revised Action Plan will be finalized by the Third EGM to be held in Turkey in September or October 2006 and submitted to the 22^nd Session of the COMCEC (Istanbul, 22-25 November 2006) for consideration. The EGM has decided to appeal to IDB to provide necessary financial assistance for the preparation of the five year programme of action for energizing of trade and investment in cotton sector in OIC. It was also proposed that Turkey as chairman of the SC will submit an official request to IDB through the proper channel in this regard. A timetable for preparing the Revised Action Plan is attached as Annex-VIII.

18.       The EGM also decided to meet regularly to review the developments relating to the implementation of the Action Plan. In this regard, the meeting welcomed the offer made by the Republic of Turkey (Ministry of Industry and Trade) to hold its next meeting in Turkey. The exact dates and venue of the meeting will be decided later by Turkey. The EGM appealed to the other member states to offer to host the subsequent meetings.

19.       The EGM emphasized the importance of the exchange of knowledge, experience and know-how. It agreed to enhance technical cooperation among their respective institutions, particularly in the fields of training, research and development in cotton sector.

20.       The EGM reaffirmed its solidarity with the “Cotton Initiative” and requested the OIC Member States to take all necessary actions in this regard.  

21.       The EGM requested from the participating member states to provide a summary of possible areas of cooperation and project proposals. The submissions received are attached as Annex-IX.    

CLOSING

22.       The Meeting adopted its Report and Recommendations together with Annexes and requested the OIC General Secretariat to circulate it to all Member States.

23.       The EGM expressed its thanks and appreciation to the Republic of Turkey for hosting the meeting and provision for all facilities accorded to the Delegates, which greatly contributed to the success of the Meeting.

24.       The EGM also expressed its thanks and appreciation to the OIC General Secretariat for its continued political support to cotton producing member countries.

25.       The EGM further expressed its thanks and appreciation to IDB for its continued technical and financial support.            

26.       The EGM requested the Chair to send a cable of thanks to the H.E Mehmet Mehdi EKER, Minister of Agriculture and Rural Affairs of the Republic of Turkey, for his supports and attendance to the meeting.   

27.       The participants expressed their appreciation and thanks to the Chair for the efficient conduct of the Meeting.

Second Expert Group Meeting on

Enhancing Production Efficiency and International Competitiveness in the

Organization of Islamic Conference (OIC) Cotton Producing Countries

28-30 MARCH, 2006 / IZMIR – TURKEY

DRAFT PROGRAMME

Tuesday, 28 March 2006

08.30 – 09.30                         Registration

09.30 – 10.00                         Opening Session

                                               Recitation of verses from the Holy Quran

                                               Oğuz Kağan Köksal, Governor of Izmir,

                                               M. Mehdi EKER, Minister of Agriculture & Rural Affairs, Turkey

                                               H. E. Ambassador Nabika DIALLO, Adviser to H.E. Secretary General of OIC

Dr. Nosratollah NAFAR, Economic Policy & Strategic Planning, Representative of IDB

10.00 – 10.15                         Break

10.15 – 10.45                Election of the Chairman and Election of Drafting Committee

Adoption of the Agenda

Background Report by the OIC General Secretariat

Mr. H.Oker GURLER, Acting Director General of Economic Affairs Department of the OIC

Progress Report for the Implementation of the Forum of the Ouagadougou on Energizing

Trade & Investment in Cotton in OIC African Member States, by H.E Oumar DIAWARA, Ambassador of Burkina Faso to Saudi Arabia

                                    Briefing on the First Experts Group Meeting Report and Action Plan

                                    Dr. Talat Şentürk, Deputy General Director, Ministry of Agriculture & Rural Affairs

SESSION ONE                    Cotton Production & Production Policies in Member States

10.45 – 12.30        

I.                   Presentation on IDB’s Initiatives Related to Cotton Sector,

Dr. Nosratollah NAFAR, Representative of IDB

II.                   Presentation of Cotton Production in Turkey,

Dr. Hüseyin VELİOĞLU, General Director of Agricultural Production & Development  

III.                   Presentation by the Representative of Azerbaijan

IV.                  Presentation on Cotton Production, Industry and Trade in Bangladesh

Md.Farid UDDIN, Min. of Agr. Deputy Director of Cotton Development Board,

V.                   Presentation by the Representative of Ivory Coast

VI.           Other Delegations

(Each Presentation to be approximately 15mins)

12.30 – 14.00                         Lunch

SESSION TWO                  Enhancing Cotton Production Efficiency (Cotton Industry & Trade)

14.00 - 15.30     I.             Presentation on Recommendations on Areas of Cooperation amongst OIC Member States,

Mr. Tuğrul Yemişci, Chairman of Agricultural Sector Turkish Union of Chambers & Stock Exchange and Izmir Trade Exchange,

II.                   Presentation on Cotton Trade & Licensed Warehousing System in Turkey,

Mr. Tuncay Sönmez, Chief Inspector, Ministry of Industry & Trade, Turkey

III.                 Presentation on Developments in the Cotton Seed Industry,

Mr. Ali Özbuğdaycı, Board Chairman, TÜRK-TED Private Sector

15.30 - 15.45                          Break

15.45 - 18.00

IV.                 Presentation on Cotton Research & Development in Turkey

Dr. İsa Özkan, Researcher, Nazilli Cotton Research Institute, Turkey

V.                   Presentation on the History and Organization of the Cotton Sector in Turkey,

Dr.Sebahattin GAZANFER, General Director of Agricultural Sales Cooperatives Unions (TARIŞ)

VI.                 Other Delegations

(Each Presentation to be approximately 15mins)

Discussion

18.00                                 End of Session

19.30                                      Dinner

Wednesday, 29 March 2006

SESSION THREE               Enhancing International Competitiveness

(Marketing, Export Promotion, Financing & WTO Policies on Cotton) 

09.00 – 10.30    I.             Presentation on World Trade Organization Policies on Cotton & Cotton Products

                                               Aylin Bebekoğlu, Department Director, Undersecretariat of Foreign Trade, Turkey

II.                   Presentation on World Trade Organization Policies on Cotton, Representative of Nigeria  

III.                 “Cotton Initiative” Proposal to WTO by Benin, Burkina Faso, Chad & Mali

Ambassador M. Oumar DIAWARA, President of Cotton Committee of OIC Members

10.30 – 10.45                         Break

10.45 – 12.30   IV.           Presentation on World Cotton Trends and Opportunities for Production Efficiency in OIC Countries

                Prof Dr. Ünal EVCIM, Faculty of Agriculture, AEGEAN University, Turkey

Prof. Dr. Adnan DEĞIRMENCIOĞLU, Faculty of Agriculture, AEGEAN University, Turkey

VI.                 Presentation on Cotton Industry & Trade, Presentation by the Representative of Nigeria

VII.         Other Delegations

12.30 – 14.00                         Lunch

SESSION FOUR                 General Debate

14.00 – 15.45                                                       

Discussions

·         Production Practices on Cotton among Cotton Producing Countries

·         Establishing Working Groups to Determine Priority Areas for Cooperation

·         Cotton Standardization among Cotton Producing Countries

·         Network of Cotton Researchers to start Newsletter on Cotton Production

·         The Role of the Private Sector in Cotton Initiative     

·         Establishment of International & Regional Organizations (Cotton Research Centers)

·         Recommendations & Action Plan

Any Other Business

15.45 – 16.00                         Break

16.00 – 18.00                         Drafting Committee

19.30                                      Dinner

Thursday, 30 March 2006

09.00 – 11.00                         Adoption of the Report and Recommendations

11.30                                      Departure for Field trip to TARİŞ (Agricultural Sales Cooperatives Unions) and Establishment Facilities in Soke / AYDIN

13.00 – 14.00                        Lunch

14.00 – 17.30                         Izmir City Tour

18.00                                      Transfer to the Hotel

ANNEX 1

Second Experts Group Meeting on Production Efficiency and Competitiveness in

OIC Cotton-Producing Countries

28-30 MART 2006 / İZMİR

LIST OF PARTICIPANTS

THE SPEECH OF H.E.MEHDI EKER,

MINISTER OF AGRICULTURE AND RURAL AFFAIRS OF THE REPUBLIC OF THE TURKEY AT THE SECOND EXPERT GROUP MEETING ON ENHANCING PRODUCTION EFFIENCY AND INTERNATIONAL COMPETITIVENESS IN THE ORGANISATION OF ISLAMIC CONFERENCE COTTON PRODUCING COUNTRIES

28-30 MARCH, 2006 / IZMIR, TURKEY

Dear participants, I would like to extend my sincere greetings and welcome you all to my country and this important meeting.

Cotton is very important crop in agriculture, industry and commerce in the world.  The rapid increase of the world population and the trend to natural products due to improvement of the life standards in developed and industrialized societies increased the demand to cotton and cotton products.

The cotton production became 25 million tons with the increase % 60 within last 25 year.  The usage of cotton as row material in oil, feed and other branches of industry, besides the use in the textile sector and clothing industry as a main input shows that cotton takes very important place in the economies of countries.

Cotton is called as “White Gold” in Turkey.  Cotton sector includes 125,000 farmers, several farmer unions (Tariş, Antbirlik, Çukobirlik and Güneydogu Birlik), well developed factories of ginning, textile, confection, oil and feed.  It is also related to seed industry, licensed Warehouse, Commodity exchange. Moreover, it affects 2 million people’s life indirectly and its export value is about 20 billion $.

Dear participants,

20-24 million tones cotton fiber is produced yearly in 34 million ha area all over the world.  Five to seven million tons cotton is exported while 20-23 million tons is consumed internally.  The important producer and consumer countries are China, USA, India, Pakistan, Brazil, Uzbekistan, Turkey and Australia which fulfill the 80 % of the world production and consume the equivalent.

The main exporter countries are USA, Uzbekistan, Brazil, Australia and Greece. Main importers are China, Far East Countries, Turkey, EU and South America. Brazil, China and Turkey seem to increase their production in future.

Turkey, with approximately 700,000 ha acreage and 2 million 450 thousand ton production is seventh biggest producer in the world. The yield is 3860 kg/ha which is over world average.  The fiber yield is 1450 kg/ha which is third highest in the world.  Our country is fifth in consumption with 1 million 400 thousand tons and third in import with 500,000 tons.  It is ninth in textile export with 3 % share and third in confection export with 5 % share of the market.

The huge amount of seed oil has been produced from this crop. On the other hand, the certified seed production is 20,000 tons which meets 100 % of our need. Farmers that use certified seed get 20 % more premium. Turkey will meet the international rules of classification soon and produce its needs mostly internally.

Dear Participants,

Governments’ policies have a great role in the increasing production and commerce of the cotton.  The 75 % of cotton production in the world is subsidized.  Most of the countries support the cotton production either directly or indirectly.  On the other hand, the use of Genetically Modified (GM) Cotton Varieties increased dramatically. In the USA the 80 % of production is GM cotton varieties. The production of GM cotton has been increased in countries such as Australia, China, India, Brazil, Argentina and South Africa.  GM crops are not produced in Turkey and EU countries at this moment.

When we look at the factors that affect the demand for cotton and cotton produced goods;

These are:

The increase of consumption of synthetic fiber,

Contamination and stickiness,

The crop support of developed countries,

The production cost, price fluctuations and promotional activities,

The improvement of technologies on fiber production, weaving and knitting,

There are also the international factors affecting the textile and clothing business in the world. 

These are:

WTO Agreements (the textile, confection and agricultural),

GATT Agreements (limiting of the textile and confection),

Uruguay Agreement,

Dubai Agreement,

Dear Guests,

There are many beneficiaries of this crop because cotton is industrial raw material with very high added value. The decision taken related to cotton affects one side positively while it may affect other side negatively.  That’s why it is important to produce solutions that satisfy every party. The result of agricultural negotiations in WTO will determine the future of cotton.

In this framework, the agricultural subsidy policies are to be reviewed in Turkey.  In this regard, supporting models are developed with the Agricultural Strategy Document for 2006-2010. With this model, sustainable production could be achieved by means of the establishment of farmer unions and cooperatives, increase of quality production, and research activities, improvement of mechanization and decrease of production costs

RESULTS AND SUGGESTIONS

Turkey would be honored to share its knowledge and experiences with brotherly Islamic Nations. I think that this meeting will be a starting point for a lasting cooperation and assistance among our countries.

I believe that the Second Expert Group Meeting (EGM) on Enhancing Production Efficiency and International Competitiveness in the Organization of Islamic Conference (OIC) Cotton Producing Countries should meet regularly find out ways and means to improve productivity and competitiveness. In this regard I would like to include this subject into the agenda of the COMCEC with a view to developing appropriate policies and programmes to implement the recommendations of the EGM.

I propose to apply international standards in cotton classifications, resolve the problems of the contaminations and stickiness, intensify research and development studies, improve seed production and commercial and technological cooperation and also establish a network among our countries.

I would like to inform you that the plenary meeting of 66^th International Cotton Advisory Committee will be held in October 2007 Izmir, Turkey. We would like to see you in that meeting again.

Before I conclude my speech, I would like to thank General Secretariat of the OIC, Islamic Development Bank, the delegates of brotherly countries, the officials of governmental institutions and NGOs from Turkey and the press for their support to the meeting.

I hope that this meeting will produce good results and contribute existing cooperation among OIC nations.             

ISLAMIC DEVELOPMENT BANK

SECOND EXPERTS GROUP MEETING ON

ENHANCING PRODUCTION EFFICIENCY

AND INTERNATIONAL COMPETITIVENESS

IN IDB’S COTTON-PRODUCING MEMBER COUNTRIES

    (28-30 March 2006)

    IZMIR, TURKEY

In the name of Allah,  the Most Gracious, the Most Merciful

Distinguished Delegates

Brothers and Sisters

It is my pleasure to be here today at this very important meeting on “Enhancing Production Efficiency and International Competitiveness in IDB Cotton-Producing Member Countries”.

On behalf of the Islamic Development Bank (IDB), I would like to extend my sincere appreciation to the Turkish Ministry of Agriculture and Rural Affairs for organizing this meeting in collaboration with IDB which brings together leading experts to brainstorm on practical ways and means to enhance cotton production efficiency and international competitiveness in IDB cotton producing member countries as well as cooperation among them in this crucial area.

Let me share a few thoughts with you answering three basic questions:

(i)                  Why cotton?;

(ii)                Why cooperation is necessary? and

(iii)                What is the IDB’s role in this regard?

First, why  cotton?

Out of the total 56 IDB member countries, 29 countries produce cotton. These countries share about 30% of world cotton area and 28% of world cotton production. Cotton is a cash crop and plays a vital role in the life of millions of farmers in our cotton producing member countries.  The dominance of cotton in some IDB member countries is so strong that success or failure of the cotton crop in a single year may have an adverse effect on their GDP growth rates. At the macro level, cotton production can influence the balance of payments in several IDB cotton-producing member countries.

Cotton cultivation also provides the principal source of raw materials for the textile and clothing industries and makes a significant contribution to the public exchequer in the form of taxes and duties. At the micro level, cotton is the primary source of income of farmers. Cotton production is a major source of rural employment, especially during weeding and harvesting seasons.

Fortunately subsidies and other supports by the developed countries to their cotton farmers are being phased out. These subsidies have been detrimental to the poor farmers in developing countries and advantageous to industrial producers in developed countries. During the 6th WTO Ministerial Conference in Hong Kong, there was a debate on agricultural subsidies in general and cotton in particular. The meeting agreed that (i) all forms of export subsidies for cotton will be eliminated by developed countries in 2006; and (ii) on market access, developed countries will give duty and quota free access for cotton exports from least-developed countries. If the decision stands, it could give cotton producers in developing countries, most notably IDB cotton producing member countries, an incentive to increase cotton production and get a fair price for it.

However, there are a variety of challenges facing the IDB cotton producing member countries, and the elimination of agricultural subsidies and the phasing out the textile quotas will bring new opportunities for which these countries should be ready.

This brings me to my second question: Why cooperation?

Brothers and Sisters

It is our belief that member countries can further enhance their production efficiency and international competitiveness through mutual cooperation as compared to what they would be able to do individually. With this view, we are glad that the Turkish Ministry of Agriculture and Rural Affairs is organizing the second EGM following the first EGM which was organized by the IDB on 22-23 March 2005 in Jeddah, Saudi Arabia

As you are aware, IDB organized the first  Expert Group Meeting on "Enhancing Production Efficiency and International Competitiveness in IDB Cotton-Producing Countries" last year with the objective of discussing the main issues and challenges faced by the IDB cotton-producing member countries, proposing concrete actions to tackle these issues and laying down a framework for enhancing cooperation among concerned member countries.

We hope that this EGM, like the first one, provides an opportunity to the participating member countries to exchange views on related issues, to develop a mechanism of regularly exchanging information, and to facilitate communication among themselves. We also expect that the EGM identifies practical ways and means to make cotton producing member countries ready to meet the challenges of globalization and take advantage of the opportunities.

In this context, we would like to suggest that the meeting focuses more on developing a cotton strategy on a national and – where possible – regional basis. We know some cotton producing member countries have already drawn up strategies to enhance production efficiency and productivity in cotton sector. We feel others should follow their example. In my view, these strategies should have at least three elements: (i) an enabling environment; (ii) the supply of support services; and (iii) rural financial facilities.

Brothers and Sisters

Let me  elaborate on this briefly.

An enabling environment is necessary to increase private investments and to help cotton companies cope with international competition. It requires a shared responsibility between producers, ginners, input providers and local banks to organize the sector and safeguard their common interests.

The second element of a sector-wide strategy is the organization of support services forprivate-sectoroperators.The government should provide quality control systems and the necessary infrastructure, and create an environment that stimulates technological innovation. The private sector should be responsible for developing credit facilities, supplying inputs and adopting technological innovations.

The final element is rural financial facilities. Lack of sufficient short term credit often prevents farmers to react to the unexpected events on the right time. Cotton producers and traders in member countries can reduce their vulnerability by receiving sufficient credit from government financing institutions and/or private development companies in the right time to enhance the capability of production and undertake productive investments and employing proper technology in the cotton sector.

This brings me to my last question: What is the IDB’s role in this regard?

According to the IDB's new strategic framework, Bank is committed to paying more attention to the development of agricultural sector since this has direct impact on poverty alleviation in the member countries. The share of agricultural sector in the IDB financing has been increasing significantly during the past few years and stood at 6.2 per cent in 1426H (2004-2005). However, IDB still feels that there is a need to put in more efforts to assist its member countries, some of these need technical assistance to address key issues related to production efficiency and productivity, while others need help to access the key industrialized markets.

The Bank, on its part, will continue to support all initiatives of the cotton producing member countries aimed at enhancing: (i) their cotton production efficiency and productivity; (ii) the capacity of their textile industry; (iii) quality of farm and ginning machinery manufacturing; and (iv) the level of intra-trade in cotton.

The IDB looks forward to a successful meeting which would yield valuable outcomes and recommendations on developing a suitable framework for enhancing cooperation among cotton-producing member countries.

Wassalamu Alikum Warahmatullah Wabarakatohu

Second Experts Group Meeting (EGM) on

Enhancing Production Efficiency and International Competitiveness in

OIC Cotton Producing Countries

28-30 MARCH, 2006 / IZMIR – TURKEY

AGENDA

1. Opening Session

·        Recitation of Verses From Holy Qur’an

·        Statement by Oğuz Kağan KÖKSAL, Governor of Izmir

·        Statement by M. Mehdi EKER, Minister of agriculture and rural Affairs of Turkey

·        Message of  H. E. Prof. Ekmeleddin IHSANOĞLU, Secretary General of the Organization Of the Islamic Countries

·        Statement by Dr. Nosrotollah NAFAR, Representative of IDB

2. Election of the Bureau 

3. Adoption of the Agenda and Work Programme

4. Background Reports

·      Background Report by the OIC General Secretariat

·      Progress Report on the Implementation of the Ouagadougou Forum

·      Briefing on the First Experts Group Meeting

 5. Cotton Production & Production Policies in Member States

 6. Enhancing Cotton Production Efficiency

7. Enhancing International Competitiveness

8. General Debate

9. Any Other Business

10.Adoption of the Report and Recommendations

11. Closing of the Meeting

TIME TABLE FOR PREPARING THE ACTION PLAN

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