- EGIONAL FIE ER WEST AFRICA Volume I Summary and Conclusions
October 1908 REGIONAL FIBER STUDY w WEST AFRICA Volume I Summary and Conclusions
Case & Company Inc. Management Consultants 600 Fifth Avenue New York, New York 10020
Agency for InternationalDevelopment Washington, D.C 20523 1. INTRODUCTION
This report presents, findings and conclusions on the feasibility of expanding kenaf fiber production in the Ivory Coast, Niger, Togo, and Upper Volta. It was prepared in the interest of the West African Entente States and financed by the United States Agency for International Development (A.I.D.). The field investigations and much of the analysis were performed by Case and Company, New York, New York, under contract with A.I.D. The final report contains elaboration of data and conclusions by Mr. James N. Dempsey, A.I.D. Agronomy Advisor (Fibers).
The report focuses on the production potentials, mill processing requirements, and market demands related to the economics of the four Entente States -- the Ivory Coast, Niger, Togo, and Upper Volta. Because the mill and marketing aspects had direct revelance to certain other countries in the region, the study required investigation of these aspects in Ghana, Nigeria, and Dahomey, Mauritania, Gambia, Senegal, Mali, Guinea, Sierra Leone, and Liberia.
Agronomic aspects are covered only for the four primary states of the Ivory Coast, Niger, Togo, and Upper Volta. Analysis of the financial feasibility of investment in mills for fiber products was confined to the Ivory Coast, Niger, Togo, and Upper Volta.
Kenaf fiber is produced prinipally in India, Pakistan, and Thailand. The first two ate the largest exporters of manufactured items from this fiber, while Thailand is the principal exporter of the raw material. A kenaf industry in West Africa must compete with world prices for fiber and for bags. After technical questions were resolved, the path of the economic analysis was to start with the delivered price (and their projections) of imports, and then to work back through manufacturing, and down to the fiber producting level, to determine if the mill and farm production in West Africa could compete with the import prices. In this respect, "competing" at the farm level included comparison of the price the farmer would received for fiber against known cash receipts for other crops indigenous to the area. In this way, the economic evaluation has been the focal point the study seeks to establish in the realistic manner which any potential investor would face. TABLE OF CONTENTS
Volume I - Summary and Conclusions
Page
I. Introduction 1
II. Conclusions and Recommendations 2
III. General Background to the Study 4
A. Purpose and Scope 4
B. Research Team and General Procedure 5
C. Characteristics of the Study Area 7
IV. General Agronomic Considerations and Conclusions 9
A. Characteristics of Fibers 9
B. Conclusions - Agricultural and Agronomic Circumstances in the Study Area 11
C. Market for industrial Fibers and Fiber Crops 13
V. Fiber Production 16
A. *Kenaf and Factors Relating to Its Culture in West Africa 16 General Agronomic Conclusions 37 Economic Advantage of Growing Raw Fiber to the National Economy 38 Socio-Economic Merits of Raw Fiber Production 39
B. World Fiber Prices - Jute and Substitute Fibers 39
VI. Economics pf Fiber Mill Operation 44
A. Economies of Retted Fiber Compared to Unretted Fiber 50
B. Effect of Using Imported Fiber on Cost and Cash Flow of a West African Fiber Mill 51
C. Cash Flow'Analysis 53
D. Mill Operation and Balance of Payments 55 LIST OF EXHI-BITS
Volume I - Summary and Conclusions
Exhibit Number
1 Map of Potential Kenaf Producing Areas and Existing Bag Mills
]A Map of Rail Lines in Kenaf Study Area
2 Dollar Value Per Metric Ton of Selected Internati'onally Traded Agricultural Commodities
3 Price and Value Relationships of Selected Grades of Soft Industrial Fibers
4 Estimated Transportation Costs Likely to Affect Fiber Industry
5 Farm Price Per Ton for Retted Fiber to Compete for World Export Markets
6 Estimated Normal Annual Requirements for New Jute and Allied Fiber Products (inTons)
7 Product Price Implications of Transportation Costs Per Ton of Product for West African Mills Competing for World Markets
8 Pricing Implication of Transportation Costs for West African Fiber Mills Serving West African Markets
9 Examples of Minimum Cost Mixtures of Retted Fiber Suitable for One Ton of *"B Twill" Sacks for Mill Equipped to Process Low-Grade Fibers
-10 Comparison of Local Labor Costs for Mill Operation
11 Comparison of Operating Cost of Mills Using Retted Fiber
12 Fiber Mill Investment Factors
13 Comparison of Key Revenue and Cost Considerations Affected by Mill Size, Flat Loom Mills
14 Comparison of Cost and Revenue Possibilities for Flat Loom Mills at Locations Considered LIST OF EXHIBITS - Continued
Exhibit Number
15 Calculation of Maximum Enforceable Tariff Protection for Fiber Products in West African Countries
16 Effect of Maximum Enforceable Protective Tariff on Anticipated Cash Flow and Earnings Before Interest and Taxes of Fiber Mills
17 Comparison of Key Cost Factors in Using Retted Fiber Versus Decorticated Fiber
18 Effect of Raw Fiber Supply Source on Direct Cost Per Ton of Fiber Mill Operation
19 Effect of Source of Fiber on Cash Flow and E.B.I.T.
20 Cash Flow Analysis of Mill Operation (5,2 4 0-:Ton Flat Loon Mill)
21 Effect on Regional Balance of Payments of Development of 5,240-Ton Fiber Mill
22 Effect of 5,240 Ton Fiber Mill in Togo on Balance of Payments in Countries Served by the Mill
23 Investments and Expenses for a Fiber Development Program
24 Pakistan Jute and Thai "Kenaf" Quotations -- 1960-1965
25 Evolution of Jute Prices
VOLUME I
APPENDIX A Scope of Agronomic Research
APPENDIX B Outline of Marketing and Economic Information Obtained for Each Country
APPENDIX C Mill Cost: Outline of Information Compiled
APPENDIX D Partial List of Organizations and Officials Visited in West Africa
BI BLI OGRAPHY 1-2
The report is presented in five volumes. Volume I contains conclusions and recommendations with respect to the region as a whole, describes the general background of the study, and discusses agronomic conditions, economics of fiber mill operation, the feasibility of fiber production, and the market for fiber and fiber products. Volumes II, Ill, IV, and V present more detailed discussion of the study findings for the Ivory Coast, Niger, Togo, and Upper Volta, respectively.
II. CONCLUSIONS AND RECOMMENDATIONS
1. Kenaf can be grown on a small plot basis by farmers in suitable areas of the Ivory Coast, Niger, Togo, and Upper Volta. While the prfce advantage over other cash crops is considerable, this margin is subject to fluctuation characteristics of world markets for agricultural com modities. A substantial market (45,000 to 50,000 metric tons per year) in industrial fibers has developed in west Africa, and a market for good quality kenaf fiber may be found in Europe. Although the European market for west Africa kenaf is neither necessary nor likely in the near future. A metric ton of average grade kenaf fiber would be worth about $170 at west African ports and should provide an average net foreign exchange revenue of approx imately $130 per metric ton, after all foreign exchange expenses for fertilizers, fuel, and internal transportation costs have been deducted. These values can be increased.by as much as 5 to 15 percent when experience in processing and grading permit marketing of a higher grade of fiber.
2. Since the long-run advantage of a fiber industry can be * realized only if fiber can be grown for sale in world markets at prices competitive (for equal quality) with fiber exporting countries, the highest priority should be given to the agronomic effort required to raise a saleable commercial volume of fiber on the world market on a profitable basis. Section V of this volume and corresponding sections of the Volumes II, Ill, IV, and V describe the cost and results obtainable.
3. The fiber production program should be aimed at the profitable production of retted fiber, of the best possible quality, since such fiber offers the maximum value for improved foreign exchange earnings.
4. A program of basic agronomic research is needed to determine best varieties and cultural techniques which will provide optimum economic returns under west African climatic and environmental conditions. While variety trials and seed production can be more 1-3
expeditiously accomplished on seed farms in each area where fiber is to be grown on a commercial scale, significant economies in the development of commercial fiber production in the region as a whole could be accomplished by establishing a Central Regional Fiber Research Center to undertake basic research for development of plant varieties, and assist in the training of the technicians who will be needed to teach the farmers the most profitable techniques .of growing the plants, harvesting them, and retting the fibers, and train the personnel of the marketing organizations to grade and buy fiber on a uniform basis.
A Regional Fiber Research Center would require approximately $133,406 to establish and operate during the first three years of its operation, when expert foreign assistance would be required to train African agronomists and technicians. After initial capital expenses and training costs have been defrayed, it should be possible to continue the institute's essential functions within an operating budget of about $9,000 per year plus an average capital equipment budget of about $1,000 per year. This center would operate in one country in connection with the seed farm in that country, but would provide training and research results to all countries involved in the study area who would share in the operating costs.
5. Consumer fiber mills now in operation in or near the study area countries include:
Annual Capacity Retted Fiber (Metric Tons)
a) Filatures et Tissages de la Cote d'Ivorie, Abidjan, Ivory Coast 5,200
b) The Fibre Bag Manufacturing Corp., Kumasi, Ghana 13,000
c) Ste Dahomeenne du Kenaf, Bohicon, Dahomey 5,000
d) Nigeria Fibre Industries Co., Ltd., Badagri, Nigeria 11,000
e) Northern Nigeria Fibre Products, Ltd.., Jos, Nigeria 12,000 Total 46,200
The Ivory Coast, Dahomey, Ghana, and Nigeria planted approximately 5,000 hectares of kenaf in 1967 with an estimated production of 5,600 metric tons of retted fiber equivalent' therefore, it was necessary for the above mills to import considerable tonnages of raw fiber from Asia. The relative economic advantage of sales to specific west African mills are described for each producing area in Volumes 11, 111, IV, and V of this report. 1 -41
6. No single country of the principal four-nation study group (Ivory Coast, Niger, Togo, and Upper Volta) can support a new mill to manufacture products from natural fibers that will provide an attractive rate of return to private investors on a free market basis. Neither is this feasible on a multi-nation basis until and unless sufficient raw fiber is grown in the region to supply the raw material needs of the mill. Many factors contribute to this, chief among which are: (a) transportation costs within and among these countries, (b) new mills already established or under construction in the 14-nation area, and (c) prices and quality competition by present supplying nations.
7. After the fiber program is producing enough marketable fiber to meet the needs of existing mills ---which is likely to be some four or five years in the future -- the question of mill feasibility should be re-examined when the state of the art may advance enough to offer operating cost economies not yet available with present equipment.
8. Tariff protection for a new fiber mill can be of sufficient economic significance to assure acceptable profitability of the investment required to establish a fiber mill only in countries with sufficient internal demand for a new fiber products to support the major part of the output of a fiber mill. The realizable level of tariff pro tection is limited by the cost of smuggling, by the constraints of world market prices of agricultural products shipped in bags, and by the alternative of bulk shipment for agricultural commodities.
9. Each of the countries in which agronomic feasibility of fiber productions was studied (Ivory-Coast, Upper Volta, Togo, and Niger) already has one or more semi-public central purchasing authorities which could provide the nucleus of the organization required to establish grades and prices for raw fiber to be purchased from farmers. Also grade and sort fibers in local markets, bale it for shipment, and perform the necessary marketing functions for both the fiber crop and the seeds, fertilizers and supplies required to produce fiber crops. The importance of stringent grading standards in establishing an area's fiber prices on world markets is so great, and the importance of properly training raw fiber buyers in recogni tion and enforcement of quality standards is so crucial that the region might secure significant benefit from establishment 'of a regional marketing organization for the establishment of fiber quality standards and sale of west African fibers on advantageous markets.
Ill . GENERAL BACKGROUND TO THE STUDY
A. PURPOSE AND SCOPE
At the request of the Agency for International Development, the following study was made of a 14-country region of west Africa with the following two fold objective: (1) determine the economic feasibility of growing long fiber crops in selected west African countries, and (2) determine the economic feasi bility of establishing a textile mill to process such fiber into packaging materials or other fiber products. 1-5
Development of a fiber industry in this region is one of the alternatives being considered to assist these countries' economic development and to improve their international financial position by either developing additional sources of foreign exchange earnings, reducing costs of necessary imports, or both.
The region covered by this study is the fourteen-country area south of the Sahara, extending from Dakar on the west coast of Africa to Lake Chad in the east, north and west of the countries of Cameroons and Chad. Within this region the countries of the Ivory Coast, Upper Volta, Togo, and Niger were given intensive agronomic study to assess the feasibility of fiber pro duction on a commercial scale.
Upper Volta, Togo, and Niger were also studied intensively to determine the .feasibility of establishing a mill to proc'ess either locally grown or imported fibers into packaging material and/or other fiber products. (A fiber mill is already operating in the Ivory Coast, and Mali has plans to develop a fiber production and mill combination for its needs and for export.) The other countries of the region were considered as part of the potential market, and the effect of present or anticipated developments in the fiber industries of Senegal, Dahomey, Ivory Coast, Ghana, and Nigeria were assessed insofar as such developments would affect the economic feasibility of growing fiber or establishing a fiber mill in the countries for which the feasibility of a mill was specifically examined.
B. RESEARCH TEAM AND GENERAL PROCEDURE
This report summarizes the conclusions of a team of investigators and qualified specialists including full-time participation by associates from Bureau Ingeco Gombert, a consulting firm in Brussels, Belgium, and from North Atlantic Kenaf, International ,pfWest Palm Beach, Florida. It included technical advice on the economics of fiber mill operation by M. Pierre Verbeke, President of Phormium (Belgium) and President of the Association of European Jute Industries. Observations on the problems of grading and on price trends were provided by Mr. Edward Boote, formerly of the Ludlow Corporation, USA, and by Mr. Alistair C. Fyfe of James Fyfe and Company, USA. M. Paul Tommy- Martin of the European Institute for the Study of Industrial Fibers (Paris) contributed technical information and comments on agricultural and agronomic aspects, as well as on world prices, markets, and demand. Dr. R. H. Kirby of the Tropical Products Institute (London) also contributed botanical and agronomic information.
Time and technical information on mill operations and costs were provided the research team by James Mackie and Sons (Belfast, Northern Ireland) and by Fairbairn, Lawson, Combe, Barbour, Ltd. (Leeds, England). Additional mill cost information and equipment specifications were provided by Andriano Gardella and Sons (Genoa, Italy).
Inasmuch as all of the countries for which intensive studies of economic feasibility were undertaken are in the area of Africa formerly under the French sphere of influence and where French is the principal commercial language, all field investigations to develop current agronomic and market data were con ducted by staff personnel who are fluent in the French language. Agronomic studies were conducted by two agronomists experienced with jute, kenaf, and allied fibers. Market research in the west African countries was conducted by gentlemen who are experienced through previous work there. 1-6
Initial research was devoted to the collection of secondary data in Europe and North America and preliminary consultations with international authorities on production and markets for industrial fiber. During this period,members of the field staff had an opportunity to contact, in Europe, many European technical advisors to west African countries who normally take their annual home leave during the summer.
Field investigation of agronomic conditions in the selected West African countries was accomplished next. During the same period, the team's market research investigators visited all of the principal countries in the west African region under study to obtain the latest available infor mation on these countries' requirements for industrial fiber products. They also consulted official and unofficial sources concerning future plans and prospects for production and processing of materials which may affect demand for industrial fiber products within the study area. A detailed list of the specific factors investigated to determine the agronomic feasibility of fiber production is shown in Appendix A. The marketing and economic factors on which data were sought in each country in the study region are detailed in Appendix B. The questions considered in determining the economic feasibility of installing an additional fiber-processing mill are outlined in Appendix C.
The different data collection- guide lines shown in Appendices A, B-, and C were used as indicated below:
Appendix A Appendix B Appendix C (Agronomic Marketing & Mill Cost Country Research) . Economic Data Data Ivory Coast X X * Upper Volta X X X Niger X X X Togo X X X Nigeria X Dahomey X Ghana * X * Liberia X Guinea X Siera Leone X Gambia X Mauritania X Senegal X Mali * X *
X Complete schedule of appropriate'information investigated. * Supplementary data obtained for special comparisons and analysis.
In each of the countries in the study area, the AID representative was appra 9.edof the nature and purpose of the present study and asked to provide assistance through information and by helping arrange appointments with appropriate government and private commercial organizations. 1-7
While much remains to be done in several of the countries in the study area to improve the depth of detail and general reliability of statistical information on production and marketing of products significant to the use of industrial fibers, the data obtained were ample to support the conclusions requested for this study.
C. CHARACTERISTICS OF THE STUDY AREA
The study area included countries which use the English measuring and monetary systems and the metric measuring system and francs related to the French currency system. For convenience in this report, financial data are expressed both in C.F.A. francs and U.S. dollars. Quantities are expressed in metric tons or direct physical units. Agricultural yields have been expressed in yield per hectare (the metric unit).
The total population of the 14 countries is approximately 94,000,000. Over half of this total population is in Nigeria, the country in the southeast corner of the study area, which covers roughly one-sixth of the region's total area. With the exception of Mali, Upper Volta, and Niger, all of the countries in the region have coastal ports on the Atlantic Ocean or the Gulf of Guinea. The major portion of the countries' agricultural products exported to world markets have traditionally been packaged in jute bags. These bags have been purchased in Europe and, to an increasing extent since these countries gained independence, directly from India and Pakistan, at lower prices than were formerly paid for jute bags manufactured in Europe.
While well over 100 languages and dialects are spoken by the rural populations in the interior of the region. The principal commercial languages are English and French. Although over two-thirds of the total population of the region has English as its principal commercial language, the use of the English language, monetary system, and commercial customs is arge-y confined to Nigeria, Ghana, -and,.thesmak-countr+es--f-Gambia, Sierra Leone, and Liberia. In the thirteen countries west and north of Nigeria, French is the commercial language used by 78 percent of the people, and the currency in these areas is basically related to the French franc. Liberia uses the U.S. dollar as its currency unit, but the other English-speaking countries make use of currency units related tb the pound sterling. Nigeria continues to use the word "pound" for its currency unit; Ghana has introduced a new unit called the Cedi with a par value of 9' U.S. Cents; Sierra Leone has established a currency unit called the Leone with a value of 140 U.S. Cents; and the Gambian pound is con vertible to the pound sterling. 1-8
Since the region as a whole is a net importer of industrial fiber products, in this report we have considered the actual usage of industrial fiber products and basic economic factors affecting market opportunity without undue regard for political limitations which may prove temporary, and are always subject to change.
With the exception of Ivory Coast, all of the countries in the region appear to suffer a normal balance of payments deficit insofar as the value of their commercial international exports and imports of normal trade pro ducts are concerned. Nigeria has a favorable balance of payments when the oil-producing areas are considered.
Differences in price levels between some of the countries of the region and occasional subsidized price levels for certain of their export commodity crops, as well as differences in tariffs on imported material and supplies, result in substantial clandestine traffic across the borders. This renders certain official statistics misleading in some cases. In this report, every effort has been made to identify market demand associated with the area in which the actual use of packaging materials or other fiber pro ducts is most likely to occur on the basis of the best information available.
A serious handicap of the entire region is the relatively high cost of transportation. In most cases, the least expensive form of transportation for heavy, bulky commodities is the railroad system. In general, the only railroads existing are those from coastal ports to inland points (see Map ]A). There is no comprehensive network of low-cost transportation between these countries. Even telephone and telegraph communication-between countries within the region is very limited and very costly.
Roads sufficiently well-paved to facilitate inexpensive movement of heavy, low-value, bulky commodities by motor transport are relatively rare, and the best roads also tend to go direct from the interior regions to coastal ports rather than to connect market centers and towns of the interior from one country to another.
Improvement of transportation facilities and reduction in shipping costs could improve the financial feasibility of industrial fiber production, and would simultaneously improve the financial feasibility of growing other cash crops and food crops in interior areas. Improved and lower cost transportation should:
1. Reduce direct expenses for fertilizers, phyto-sanitary supplies, and other direct expenses, by reducing the delivered cost of these items.
2. Reduce the cost of collecting raw fiber and delivering it to either a fiber mill or to a port for shipment to major international markets. 1-9
While a comprehensive study of transportation costs was beyond the scope-of this study, transportation charges per ton-kilometer quoted by transportation agencies in the West African study region ranged from two to three times as high in interior areas where roads are poor as in either coastal or interior areas where good roads were available.
IV. GENERAL AGRONOMIC CONSIDERATIONS AND CONCLUSIONS
A. CHARACTERISTICS OF FIBERS
Natural industrial fibers, other than cotton, (the commodities to which this study was directed) account for approximately one-third of one percent of the world's export trade. They -account for roughly one and one-half percent of the exports in world commerce from the developing countries of the world. Demand for such natural industrial fibers as a whole has been relatively stable, but their prices are characterized by an extreme range of fluctuation. Such fluctuations appear to be caused primarily by fluctu ations in the volume of production resulting from changes in weather con ditions in the areas where such fibers are grown, but their magnitude has also been augmented by speculation.
The two principal classes of natural industrial fibers are the "soft" fibers (jute and its substitutes) which are primarily fibers from the stems of plants and, "hard" fibers (sisal, Manila hemp, etc.) which are usually taken from the leaves of plants.
Most of the hard fibers are longer and stronger than the soft ones, but are thicker In cross section and cannot be spun into as fine yarn. The principal market for the hard fibers has always been cordage, although some use is made for the production of heavy duty drayage bags where strength and resistance to wear is a primary consideration.
- Jute is the standard for the soft fibers and the best grades of jute can be spun down to yarns of eight pounds per spyndle and less. While yarns of this weight do not compete with fine textiles generally (cotton, silk, wool, rayon, etc.) they provide strong, inexpensive yarns for such purposes as carpet backing, electrical cable insulations, and occasional novelty use in fashion fabrics. The coarser grades of the soft industrial fibers are used primarily for the manufacture of bags, sacks, and coarse packaging fabrics, and some use is made of them in the lighter weight grades of cordage.
The market value of the industrial fibers is derived from the fact that they are relaiively cheap compared to natural and synthetic fine fibers.
In recent years, the superior strength, lighter weight, resistance to moisture and rotting offered by such synthetic fibers as polypropylene have enabled them to make inroads on the cordage market for the hard fibers despite the higher cost of the synthetics.
The principal growth market for the soft fibers in recent years has been backing for tufted carpets. Production of such material, however, requires a higher proportion of the finer graded of jute than is needed for the less demanding applications. 1-10
Despite the many superior physical characteristics and resistance to decay, rotting,and bacterial attacks offered by many of the newer synthetic fibers, the natural industrial fibers have retained their significant market because they are cheap and possess a reuse value.
Because of the relatively low value of industrial fibers in relation to weight and -bulk, transportation costs can play a more significant role in determining the economic feasibility of commercial cultivation than is the case with products of higher value per unit of weight or bulk. Exhibit 2 compares the value per metric ton in major markets, of the principal fiber crops which appear feasible for commercial cultivation in the study area and the other principal agricultural exports of the area. It should be noted that even densely baled fiber occupies more volume per unit of weight than the other agricultural exports listed, with the exception of cotton.
Industrial fibers have a complex price and value structure. In the case of jute and jute substitutes, the value which the fiber can command in world markets depends on both the area in which the fiber is produced and the grade assigned to the fiber by graders in that area. As will be explained in this report, the soft fiber which would appear to have the best prospects for cultivation as a commercial crop, in the west African study area, is kenaf.
The soft fiber which has the best established world market from the kenaf species and which would be most comparable to any new commercial kenaf fiber offered on world market by west Africa is known as "Siam Jute". Exhibit 3 shows the value of selected grades of Siam Jute at major markets in Northern Europe, the delivered value such fi'ber would have at west African ports, and the value such raw fiber would have for shipment from west African ports for delivery in major European markets.
It should be noted that Siam Jute has had a significant place in world markets for only six years and has shown a trend of steadily increasing pro duction. When introduced to world markets, it was made available in three grades, A, B, and C, with a relatively modest price differential between them. Fiber grading is customarily based on the worst fiber in a particular bale or batch because the worst material is the best indication of the diff iculties spinners will have in processing the fiber into yarn. Fiber buyers are still critical of the uniformity of grading standards applied in many countries exporting jute and allied fibers, and the reliability of the grading finds expression in the differential between grades of fibers of different species from different countries of origin.
Over the past two years, Thailand has attempted with some success to obtain a premium for two new grades, a super "A" and a "Selected A" priced at roughly 10 percent and five percent above the prices currently quoted for the original A grade of Siam Jute. Only three out of eight jute brokerage firms offering a wide variety of soft industrial fibers in northern Europe markets were offering the new premium grades of Siam Jute to their customers in September 1966. It should also be noted that even the original A grade of Siam Jute is quoted at prices which amount to a discount of roughly a third from the secondary qualities of true jute from Pakistan. The best sample of retted fiber obtained by the study team was judged equal to "Mesta" (kenaf fiber) which commands prices of $28.00 to $42.00 per ton higher than Siam Jute. This price differential, which could be equal to at least 6,900 CFA at the farm level, should be considered in establishing grading standards. "Mesta" produced in Pakistan enjoys a part of its higher market value by reason.of the uniformly stringent grading standards applied there, but is less frequently offered on export markets than the true jutes, which command even higher prices for export.
As transportation costs from point of production to northern European markets depend on weight and bulk for any grade of jute or jute substitute, the lower grade fiber suffers a much more severe penalty than would a higher grade fiber. The higher grade fiber, however, requires a combination of agronomic circumstances not available in areas of West Africa considered in this study.
In the case of sisal, the hard fiber considered agronomically suitable for cultivation in the Ivory Coast which has processing facilities, we note that the price of this fiber has declined by roughly one-half from the peak prices reached and maintained for a relatively long period some two to three years ago. It is believed that the temporary high price of sisal in 1963 and early 1964 helped encourage the penetration of the hard fiber cordage market by synthetics (particularly nylon) and that this penetration will continue. While it is possible to mix hard fibers such as sisal with soft -fibers such as jute or kenaf in the coarser yarns for jute fabrics and shipping sacks, the sisal used in this application-would probably command prices no better than those of Siam Jute.
B. CONCLUSIONS - AGRICULTURAL AND AGRONOMIC CIRCUMSTANCES IN THE STUDY AREA
Agricultural conditions for possible development of commercial production of fiber crops are suitable for production of kenaf fiber on a commercial scale in all four of the principal countries studied. But the economic feasibility of such production is limited by: (a) the subsistence psychology of the agricultural population in coastal rain forest areas (where two crops 'per year could be obtained if farmers were willing to work as hard as the rural'popula tion of the Far East) and (b) the inadequate transportation facilities and consequent high cost of bringing the industrial fiber crops to market from those areas in which the farm population would be willing to put in the necessary labor to develop such crops (or of transporting finished product if the fiber mill were to be located in such areas).
Development of a fiber crop or crops to compete in world markets and thus deversify these countries' foreign exchange earnings is also limited from the standpoint of economic feasibility by high local shipping costs. As a result, the shipping costs are frequently higher between west Africa and European or North American markets than shipping costs from established industrial fiber producers in Asia. The limited technical efficiency of the existing railroad systems in the region, the relatively small mileage of well paved highway routes as distinguished from rough rural roads, and the high cost of fuel for use on either the railroad system or for highway transport result in internal transportation costs which are excessively high by North American or western European standards. The amount of transportation costs which would have to be considered in setting farm prices or prices for manu factured fiber products for shipment to other countries in the region on a basis competitive with delivered costs from Asia is shown in Exhibit 4. 1-12
The effect of these high transportation costs on the prices which farmers in various countries of the study area (in regions both agronom ically and psychologically suitable for kenaf cultivation) could be paid for the fiber, after allowing for the costs of grading, sorting, baling, and shipment to the port, if it is to be exported at competitive'prices on world markets, is shown in Exhibit 5.
Insofar as the production of retted soft fiber is concerned, the added cost of collecting fiber over a relatively large area might be unavoidable in any event. This procedure will be necessary to avoid problems of stream pollution which would be likely to result if it were necessary to ret large quantities of kenaf fiber in the shrinking streams which follow the end of the growing season.
In the case of sisal, however, the small farm approach to commercial ization inevitably leads to loss of control of fiber quality which can be obtained on large plantations. Fiber produced locally, in excess of local manufacturing requirements, would suffer a relatively severe price penalty in comparison with the plantation sisal offered on world markets by coun tries in east Africa.
Of the major soft fibers considered by the economic survey team (jute, Urena lobata, kenaf, and punga) , only kenaf was found suitable for cultiva tion in areas where the population would be willing to undertake the labor involved in the cultivation of jute type industrial fiber crops on a com mercial scale. Both jute and Urena lobata require more-humidity and more regular rainfall, with a more nearly constant temperature, than does kenaf. Punga is a weed vegetation which springs up spontaneously in rain forest areas which have been cleared of virgin timber. Since punga requires strong sunlight, it dies as soon as normal forest trees reach sufficient height to shade the punga growth. For this reason, this plant cannot be considered a dependable source of fiber on a commercial scale.
Kenaf, being less demanding of soil and rainfall than the other fibers mentioned, has been found suitable for cultivation in one or more parts of each of -thecountries included in the agronomic portion of the current study. A species of kenaf known locally as "Dah" is indigenous to the northern savanna areas of Ivory Coast and Togo and the southern-quarter of Upper Volta. The Sudan climate encountered throughout the northern portions of Upper Volta and throughout virtually all of Niger and Mali would make cultivation of a fiber crop in these areas impractical except where the natural rainfall can be supplemented by irrigation.
The hard, or leaf, fibers studied included sisal and the doum palm. Sisal,. a perennial plant, will grow in all of the savanna areas considered suitable for the growth of kenaf. However, this crop is recommended only for the Ivory Coast, the only country in the study group with mill facilities for commercial use of the fiber. In view of the decline in sisal prices caused by overproduction and inroads made by synthetics in recent years, sisal production is not recommended for the other countries because they do not have mill facilities and the fiber-offers little promise as an export commodity. 1-13
While the doum palm is now providing the sum of the fiber raw material for a bag mill in Ethiopia, the remaining stands of doum palm in the study area are generally too widely scattered and too small to serve as a depen dable source on a commercial scale. Study trials in other countries have indicated that other fibers such as kenaf show far greater economic possi bilities than doum palm fiber. Under the prevailing price structure in Togo, for example, a hectare of land devoted to cocoa beans yields 0.401 ton for an annual revenue of 26,075 CFA ($105.60) while a hectare devoted to coffee provides a yield of 0.351 ton for an annual revenue of 22,848 CFA ($92.53) . Even if a kenaf crop produced only the minimum anticipated net revenue of 25,500 CFA ($103.28) per hectare and the suggested rotation rice crop produced only 0.61 ton yields per hectare, for a revenue of 12,240 CFA ($49.57) the annual net revenue per hectare would be 44 percent greater than for cocoa and 65 percent greater than for coffee. The labor involved in the two crop per year cultivation program would probably involve at least twice as much labor than does the harvesting of cocoa or coffee. As long as the African farmer values both his labor and his l&.sure more than he values the productivity of his land, it appears unlikely that a two crop system can be introduced in the coastal areas while the alternative of harvesting cocoa or coffee are available.
One of the unfortunate results of this situation is that economic possibilities are often restricted by the customs and outlook of rural populations not truly oriented to a money economy. (For example, agronomic conditions in the rain forest area would permit production of both fiber and food crops in the same year, as two full growing seasons would be supplied under the existing climatic conditions. The farm pop ulations in these areas, however, prefer to harvest perennial tree crops, such as cocoa and coffee, rather than undertake the more intensive labor required for a two-crop per year agricultural economy.)
C'. MARKET FOR INDUSTRIAL FIBERS AND FIBER CROPS In studying the economic feasibility of developing a raw fiber industry or considering the feasibility of an industrial fiber process industry, it is important to consider the countries' require ments of both new and used fiber. The principal market for new fiber products is confined largely to products which are prepared for export or which have already been subjected to such preliminary processing operations as the ginning of cotton or the cleaning, sorting, and grading of coffee or cocoa beans. Substantial tonnages of used fiber in the form of sacks or baling cloth are used to collect agricultural crops and to transport them to local collection-marketing centers, but most of the bags and packaging materials required for these operations are obtained from imports of used bags and jute cloth and by re-using bags used to import commodities into the countries of the region.
These used jute bags and cloth can usually be obtained from India and Pakistan at prices no higher than the approximate cost of production, collection, baling, and transportation of new jute fiber produced in the study area to a mill location or to an export area. 1-14
There is also a small but reasonably steady supply of hand-woven baskets made from leaves of the doum palm and other non-industrial local fibers by shepherds and other practitioners of unpaid cottage industry. As such baskets or netting usually can be obtained in small quantities at prices lower than new bags of jute and sisal, they-limit the prices farmers will pay for simple packaging material required to move crops from the farm to the village.
For these reasons, we centered our attention on the demand for new fiber in the countries of the region as the most important index of demand to con sider for the purpose of this study. Exhibit 6 summarizes, in metric tons, the present and anticipated future (1970) normal demand for new industrial fiber products in west Africa south of the Sahara. It will be noted that none of the countries T'n the region which does not already have one or more fiber spinning mills has a requirement for as much as 2,500 metric tons of new fiber products at the present time or is expected to need as much as 2,500 metric tons of new fiber products by 1970.
Statistical procedures in some countries did not separate imports of new fibers from imports of used fibers, and there is known to be a certain amount of unregulated traffic in all commodities across the borders of contiguous countries. The survey team made estimates where necessary with the assistance of the best informed local authorities. In addition to these problems, the principal demand for these fiber products arises from the production of agricultural commodities for which the size of the crop in any given year may be sharply higher or lower than the preceding year's because of weather condi tions or fluctuations in world market prices during the preceding year. For all of these reasons, we consider the subtotals for groups of countries within areas of the overall study region to have a higher degree of reliability than the figure for any given country. Notwithstanding these reservations, data in Exhibit 6 provide a serviceable measure of relative differences in demand for new fiber products (bags of all sizes and types and burlap and baling material) between countries in the study area.
Nature df thi market for industrial fiber products in the study area:
The primary market for fiber products in the study area is for packaging. The principal elements of demand, in order of magnitude, are bags for coffee beans, bags for cocoa beans, bags for shipment of shelled peanuts, drayage bags for transport of unshelled peanuts to processing centers, bags for a variety of relatively low-volume products, baling material for ginned and raw cotton, and cordage products (rope, twine, and thread). The coastal countries bordering the Gulf of Guinea have a sufficiently damp climate to permit production of such tree crops as coffee and cocoa beans, while the countries situated north of the coastal rain forest are limited by climate, soil and limited availability of water to production of peanuts, grains, legumes, cotton, and other crops which can thrive under semi-arid conditions.
In terms of national boundaries, this means that the demand for bags for coffee and cocoa comes from Ghana, the Ivory Coast, Tog6, and Dahomey, and to a more limited extent from Sierra Leone, Guinea, and Liberia. The three countries in the western coastal area, Senegal, the Gambia, and Mauritania are limited by climate almost exclusively to production and shipment of peanuts insofar as demand for fiber products is concerned. Since 1964, Senegal, the largest shipper of the group, has converted its peanut handling largely to bulk handling. In 1966, with a peanut production nearly ten times that of neighboring Gambia, Senegal imported only about twice as many jute bags as Gambia. Senegal's 1-15 conversion to bulk handling of peanuts also sharply reduced its demand for sisal drayage bags manufactured by the sisal fiber mill in Dakar. The interior countries, Mali, Upper Volta,and Niger,use industrial fibers pri marily in the form of bags for packaging of shelled peanuts, and as drayage bags for transport of unshelled peanuts from farms to collection and pro cessing centers. These countries are also developing cotton production and use jute fiber cloth as baling material for packaging of cotton. Nigeria, the easternmost country of the study area, uses jute fiber bags and jute baling material. All of the countries make use of both jute and sisal cordage in varying quantities, but the importance of cordage is very small relative to the tonnage of fiber used in the form of bags and baling cloth.
As will be observed in the subsequent section on the economics of fiber mill operation, a soft fiber mill requires a designed capacity, on the basis of two-shift operation, of more than 4,000 metric tons per year of output to achieve optimum operating costs. The combined requirements of Upper Volta, Togo, Niger, and Dahomey total roughly 3,350 metric tons of new fiber pro ducts annually at present, and should increase to more than 5,000 metric tons by 1970, even if the bulk handling system for peanuts shipped via Nigeria. permits some economies in bag usage in Niger.
If the new fiber product needs of Mali are included, these five countries have a current demand for new fiber products of about 4,200 metric tons, and this demand is likely to increase to more than 6,500 metric tons by 1970.
The coastal countries of Guinea, Sierra Leone, and Liberia now import a total of roughly 2,400 metric tons of new fiber products annually, and their requirements are expected to increase to more than 2,500 metric tons by 1970.
Mauritania, Senegal, and the Gambia on the western coast of the study region import slightly more than 1,800 metric tons of new jute products. This demand is not likely to change significantly by 1970, because bulk handling of peanuts has already sharply reduced bag requirements in relation to production volume, and bags are now used primarily in the more remote producing areas where transportation facilities are not adequate to permit bulk handling. The spread of bulk handling of peanuts also reduced the local demand for the sisal drayage bags produced by the sisal mill at Dakar, and any further increase in peanut production in remote regions may be expected to encourage sales effort by the Dakar sisal interests.
The total current demand for new jute products in these 11 countries which have no integrated jute mills is about 7,600 metric tons, and this total is likely to increase to more than 10,000 metric tons by 1970.
The Ivory Coast, Ghana, Dahomey, and Nigeria each have one or more jute product mills. These countries have a total annual demand for roughly 40,800 metric tons of new jute products at present, and this demand is expected to grow to more than 46,400'metric tons by 1970. Present local mill'capacity is 46,200 metric tons, including the new Dahomey mill.,u This capacity is not yet fully utilized, for both technical and non-technical reasons, and imports of jute products are greater than the difference between planned mill capacity and actual demand for the new jute products. In addition to the Ivory Coast FILTISAC mill , construction of the proposed SIVAK mill in the Ivory Coast could provide an anticipated total capacity of about 54,000 metric tons by 1970. 1-16
V. FIBER PRODUCTION
A. KENAF AND FACTORS RELATING TO ITS CULTURE IN WEST AFRICA
1. General
Kenaf, comprising the two species, Hibiscus cannabinus L. and Hibiscus sabdariffa L. var. altissima are members of the family Malvaceae and are closely related to cotton (Gossvolum). Kenaf is the third largest fiber crop of economic importance after cotton and jute. The soft stem fibers of kenaf are used principally for sacking and other packaging materials, being spun alone or mixed with jute by virtually every existing gunny mill in the world.
Kenaf is indigenous to Africa where it is found growing widely in a wild state. The species Hibiscus cannabinus most likely originated in Sudan; although it is quite common in west Africa, where it is cultivated in small plots, being used for both food and fiber. In most west African countries,the leaves are utilized for food, and the fiber used for cordage in both the raw ribbon and retted form. The exact origin of Hibiscus sabdariffa var. altissima is not known although the first seed of this species came from the Gold Coast and were later commercialized in Java and India.
Kenaf is variously known in most west African countries as "Dah", but is called "Rama" in Nigeria, "Teal" in Egypt, "Mesta" in India and Pakistan,.and "Slam Jute" in Thailand.
. Kenaf is a relatively new industrial crop. World production in 1951 was 300,000 metric tons which increased to 1,300,000 metric tons in 1967. Kenaf is rapidly replacing jute as a packaging fiber because the crop can be grown on a wider range of soils, it is less labor intensive, requiring little or no cultivation and thinning, or special equipment, and produces high yields of fiber with a corres pondingly higher income per hectare as compared with most field crops. There is little estates production of kenaf, the crop being grown mostly by small farmers and processed entirely by hand.
At present,the principal production of kenaf is in Asia, principally India and Thailand, but is rapidly becoming an important fiber crop in Africa. The principal countries in Africa producing kenaf include Angola, Dahomey, Egypt, Ethiopia, Ghana, the Ivory Coast, Kenya, Morocco, Mozambique, and Nigeria. Their estimated total production in 1967 was 11,700 metric tons, while an estimated 2,000 metric tons were produced by small growers for artisan use.
Within the next seven years,it is anticipated that the development of African soft fiber production (principally kenaf), now in its early stages, will be greatly increased with the simultaneous establishment of numerous new fiber mills. African soft fiber mill production in 1966 was estimated at 16,179 metric tons which should increase to between 67,860 metric tons and 102,210 metric tons in 1975.*
* Prospects for Jute, Kenaf, and Allied Fibers in African Countries, FA0 Working Paper 1, August 1968. 1-17
2. Climatic Requirements
a) Rainfall - Kenaf requires a uniformly distributed rainfall over the growing season from planting to flowering over a period of 120 to 160 days, depending upon the variety planted. The crop may also be grown under complete or partial irrigation with high yields. The optimum monthly rainfall should average or exceed 100 millimeters although kenaf is grown in some humid areas with half this amount of rain. If the crop is grown under irrigation, either flood or in beds, it is usually irrigated at 10 to 12 day intervals with the equivalent of 750 cubic meters of water per hectare, which is a slightly higher water requirement than required for cotton.
b) Temperature and Relative Humidity - Kenaf prefers a moderately warm and uniform temperature. The optimum range is about 250C. to 300C., although-under desert conditions the plant will tolerate temperatures up to 500C. Kenaf also prefers-a fairly high relative humidity during the growing season. The optimum is about 80 percent which curtails high plant transpiration. 3. Soils Kenaf is not exacting as regards soils. The crop may be grown successfully in widely diverse soil types with a pH range from 4.0 to 8.0. But like almost all crops, it requires ample fertility to produce heavily. Kenaf may be grown on rather sandy loams, clay loams, alluvials, pumaceous earths, peats, and basalts. It does prefer a well drained soil. The plant has a rather high tolerance to salt and alkaline soils. 4. Nutritional Requirements Kenaf is a soil depleting crop. It is a gross feeder especially as regards nitrogen, potassium, and calcium. The phosphorus require ment is low. For example, a good kenef crop yielding 50 metric tons of green plants per hectare (2,000 to 2,500 kilograms of retted fiber) will have the following nutrient uptake:
N = 170 kilograms P205= 30 kilograms K20 = 85 kilograms CaO - 200 kilograms Mg0 = 35 kilograms Since kenaf has such high nutritional requirements, it is seldom planted on the same land two years in succession, not only because this results in diminished yields, but because rotation decreases the build-up of harmful fungi. The leaves of kenaf comprise about 30 percent of the total plant weight and should always be left on the cropped land since they will return to the soil about 68 percent of the nitrogen and calcium,30 percent of the phosphorus, and 20 percent of the potassium. 1-18
Kenaf will seldom produce high fiber yields without some fertilization, either general or corrective. Thus,the success of any commercial kenaf program will depend largely upon an adequate supply of correctly proportioned fertilizer which should be made available to the grower. A general all-around fertilizer for kenaf is the rate of 60-30-60 as kilograms of N-P205 -K20 per hectare. The nitrogen is usually always in demand and can increase crop yields up to 300 percent on poorer soils. One of the best forms of nitrogen is ammonium sulphate (20-21 percent N and 23 percent S) because of its ready availability to the plant, and in many cases it corrects sulphur deficiencies. Phosphorus is also an extremely important element and can double kenaf yields in deficient soils. Many of the west African soils are highly deficient in phosphorus. Potassium may increase yields of kenaf up to 50 percent and this element is helpful in suppressing plant diseases. Most of the west African soils contain relatively high amounts of potasstum.
5. Varieties
The species Hibiscus cannabinus is comprised of numerous varieties that have been developed over the past 25 years by research stations in a number of countries including the U.S.A., U.S.S.R., India, East Pakistan, Taiwan, Cuba, and Guatemala, the latter two under the direction of AIDt-echnl:cl~as.. The better Hibiscus sabdariffa var. altissima varieties have been developed in Indonesia, East Pakistan, and India.
Hibiscus cannabinus may be roughly classified into very early, early, and medium maturing varieties. The very early (80-100 days) and early (110-120 days) maturing varieties are invaribly highly sensitive to photoperiod. The critical daylight period for the very early varieties is about 13 hours and these varieties do not grow well below 350 latitude north. The early maturing varieties will usually flower when the daylight period approaches 12 hours and 30 minutes regardless of planting date. When flowering occurs, the plant growth ceases.
Medium maturing kenaf varieties may be either photosensitive (140 days) and flower when the daylight period approaches 12 hours and 45 minutes, or they may be insensitive. By insensitive, we mean that under normal conditions of early planting they will mature in 140 days. When planted later they will usually flower earlier, possibly in 120 days, but the plant continues to grow and may add another meter in height while flowering, regardless of daylength.
All of the Hibiscus sabdariffa var. altissima varieties are late maturing and are roughly sensitive to a critical day length of 12 hours. The normal growthcycle is 160 days. This species is tro pical in nature and does not perform well above latitude 200 north or south, whereas Hibiscus cannabinus, depending upon the variety used may be planted as far as latitude 450 north. 1-19
Some of the better known kenaf varieties are listed as follows:
Hibiscus cannabinus
Light Sensitive Days to Flower Variety Origin at 70 to 150 lat. N. Kuban U.S.S.R. 80-90 U-1574 U.S.S.R. 80-90 U-3876 U.S.S.R. 80-90 HC-583 India 110-120 HC-584 India 110-120 Everglades 41 U.S.A. 120 Everglades 71 U.S.A. 120 Purja South Africa 110 C-108 Cuba 120 Cubano Cuba 120 C-2032 Cuba 140 Sudan Early Angola 120 Sudan Late Angola 140
Light Insensitive
Guatemala 4 Guatemala 140 Guatemala 45 Guatemala 140 Guatemala 51 Guatemala 140
Hibiscus sabdariffa var. altissima
HS-4281 (Greeni Stem) India 160 HS-4288 -(reen Stem) India 160 THS-12' (Green Stem) Indonesia 160 THS-24 (GreenI Stem) Indonesia 160 THS-30 (GreenI Stem) Indonesia 160 THS-44 (Green Stem) Indonesia 160 THS -53 (GreenI Stem) Indonesia 160 THS-2 (Red Stem) Indonesia 160 THS-8 (Red Stem) Indonesia 160 THS-17 (Red Stem) Indonesia 160 THS-22 (Red Stem) Indonesia 160 THS-35 (Red Stem) Indonesia 160 1-20
The principal differences between the H. cannabinus and H. sabdariffa var. altissima species are:
Characteristics H. cannabinus H. sabdariffa
Flower Cream with red throat Cream with red or yellow Large throat - Small
Pollination Method Self and by insects Autopollinated
No. seed per kilogram 36,000-40,000 60,000
Planting Rate (kg./ha.) 25 15
Stem color Red, pink, or green Red or green
Leaf Shape Simple or palmate Palmate
Resistance to fungi Good to poor Poor
Resistance to nematodes Poor Good
Resistance to drought Poor Good
Dry retted fiber in green plant (percent) 4-5 5-7
Retted fiber yields (kg./ha.) 1,000-2,000 1,000-3,000
6. Kenaf Fiber Production Methods
The techniques involved in producing a good kenaf crop, including the major operations of planting, harvesting, retting, and stripping are not beyond the skills of the average west African farmer. In the areas where Hibiscus species are already utilized for fiber, the growers have a good knowledge of the crop. Those that have never grown kenaf may be readily taught the procedures without too much difficulty.
A bare minimum of tools are required to produce the crop provided there is no land clearing. These include a hoe for the actual initial land preparation, a wooden rake which is used both in land preparation and planting,and a knife for harvesting.
The fundamental rules that should be observed and the techniques that should be employed in order to obtain good yields of high quality fiber include the following:
a) Time of Planting - Timing the planting is one of the most important factors in producing a good kenaf crop. Delayed plantings of even one week in some cases will result in sharply diminished yields. If plantings are to be made in 1-21
a split rainfall area, they should be made in early March, but only after seasonal rains have started and there is sufficient soil moisture to insure good germination. In areas where the rains start later, early May is the general planting time or even mid to late April if there is ample soil moisture. b) Land Selection - The area selected for planting should be fertile, preferably a sandy loam of good depth, free from rocks and hardpan. It should be well drained and prefer ably flat, although gentle slopes are also suitable. Low areas or pockets where water might stand after heavy rains should be avoided. It is very important to select planting areas as close to retting facilities as possible to make the transport distance as short as possible. c) Land Preparation - This may be carried out with rough breaking with a hoe after removal of all surface trash such as weeds and grass. The soil should be fairly well pulverized and level. The use of the wooden rake after breaking to level the soil and break up lumps with the toothed side, followed by leveling with the back of the rake is comparatively simple. This wooden rake may be homemade and consists of a supporting member about 10 centimeters square and one meter in width with six blunt pointed teeth spaced 20 centimeters apart and a suitable handle. d) Seeding Rate - The optimum seeding rate for Hibiscus cannabinus is 25 kilograms per hectare regardless of planting methods used, provided the seed have a germination rate of 85 percent or better. This will produce approximately 200,000 plants yielding approximately 1,500 kilograms of retted fiber per hectare on soils of moderate fertility. Higher seeding rates result in smaller diameter and shorter plants with less fiber yield.
The optimum seeding rate for Hibiscus sabdariffa var. altissima, which has a smaller seed, is 10 to 15 kilograms per hectare 'ifthe germination is 85 percent or better. This will produce approximately 330,000 plants yielding up to 2,000 kilograms of retted fiber per hectare on soils of moderate fertility. Higher seeding rates also result in small plants and decreasing fiber yields. e) Fertilizing and Planting - This involves three general methods including traditional broadcast fertilization and broadcast seeding, broadcast fertilization and row seeding which will give higher yields, and last of all, row fertilization and row planting which is by far superior to the first two methods. 1-22
If the land is to be broadcast fertilized and seeded, the fertilizer should be applied to the soil surface one or two days before planting, followed by lightly raking the fertilizer into the top two or three centimeters of the soil, and leveling the soil with the back of the rake. This is followed by broadcast seeding one-half of the seed in a north-south direction over the area to be planted, followed by broadcasting the remaining half of the seed in an east-west direction to give more uniform distribution. The seed should then be carefully raked into the upper sur face of the soil with the rake.
If broadcast fertilization is to be employed followed by row planting, the former is applied as described above. This is followed by row opening using the rake to open six small furrows 20 centimeters apart simultaneously to a depth of two to three centimeters. The rake may be weighted if the soil is dense. This is followed by carefully dropping the seed into the row about five centimeters apart. The rows are closed by turning the rake over and pulling the smooth, back side over the rows.
The preferred method of planting, and one which produces .the highest fiber yields, is row fertilization followed by row planting. In this case, rows are first opened with the rake. The fertilizer Is then uniformly applied in the row. The rake is again drawn through the fertilized rows to mix the soil with the fertilizer, thus preventing direct contact of the seed with the fertilizer. The seeds are then carefully dropped into the rows using the five centimeter spacing, and the rows closed with the back of the rake as previously described. f) Cultivation and Weeding - Properly planted kenaf requires no cultivation and rarely requires weeding unless the soils are infested with bindweeds such as morning glory (Convolvulaceae) or spiny mimosa (Mimosa pudica). These climbing weeds should be removed from the field when they are young by hoeing or hand pulling. g) Harvesting - Kenaf harvest usually takes place during'the week after first flowering occurs when plant growth practically ceases. While the harvest of a single variety may be carried out over a period of several weeks, the earlier the harvest, the easier the stalks are to ret and sttip. Prompt harvest also produces the highest quality of fiber.
Harvesting is accomplished by cutting the plants, several at a time, as close to the soil surface as possible with a sharp knife. Sometimes in light sandy soil the plants are pulled, but the root ends have to be removed before retting. The harvested plants are left spread out in the field in an orderly fashion for two or three days to allow the leaves to dry and defoliate, and to facilitate retting. As the plants are gathered for bundling, they are shaken to remove leaves and made into bundles weighing about 10 to 20 kilograms. The bundles 1-23
are tied in three places - the middle and towards the butt and tip ends using raw stripped bast. The top 20 centimeters are sometimes topped off as this gives a more uniform bundle. There is little loss of fiber by topping since the top one fourth of the plant contains very little fiber. This method of partial field drying and defoliation results in a weight loss of about 40 percent which greatly facilitates the trans port of bundled stems to the retting pools. In addition, leaves and tops left in the field return a high percentage of the nutrients removed from the soils, especially nitrogen and calcium and lesser amounts of phosphorus and potassium. h) Retting - The selection of proper retting facilities is very important. This may be a small stream, dammed to form a pool where there is little water movement, by providing a by-pass, or any area of standing water having a depth of at least one meter and not over two meters. Shallow water with little movement produces the best quality fiber. Retting pits are not used unless there is a water shortage, since preparation of the pits is laborious, and repeated retting in the same water results in poorer quality fiber. Since retting is always carried out during a period of high rainfall, streams are not absolutely necessary for retting, since at this time there are usually low areas where water stands, and these may be used.
The retting procedure consists of completely submerging the bundles of stems in a compact manner by alternating the tip and butt ends side by side in one or more layers. If a second layer of bundles is placed 6n-the first, it should be placed at right angles to the first layer, etc. The bundles will tend to rise after several days as fermentation takes place, therefore, it will be necessary to keep the bundles submerged by weighting them with logs or stones. Equally important to produce a uniformly retted fiber is to walk upon the bundles once each day in order to move them slightly and release gas pockets.
The retting period usually requires from 10 to 14 days or longer If stems are used. Retting time depends upon tempera ture, water movement, stem size, and age. The optimum retting temperature is 30oC. Variations in temperature of the retting water will prolong the retting period.
Retting may be considered as complete when the fiber from the middle portion of the stem may be easily removed from the woody core and the outer layer of bark is easily removed. The bundles should then be opened and stripping started at once, either in the pool or on the edge of the pool so that the fiber may be washed. In some cases,the stripping of the fiber from the woody stems is preceded by a light pounding of the butt ends of the stems, several at a time to loosen the fiber from the wood, or if this is unnecessary, the fiber is removed from eight to 10 or more stems at the butt end first to form a handful and then stripped from the remainder of the stems by a jirk. The handful 1-24
of fiber is then held at the butt end with one hand while the entire length of the strands are pulled between the thumb and fingers of the other hand in the water to remove the outer bark and plant gums. After this washing procedure, the fiber is hand-squeezed to remove excess water and spread over poles or lines to dry. In all cases of handling, from stripping on, the fiber must be straight without tangling and all of the butt ends of the fiber in the same position. An average stripper can produce about 20 kilograms of dried fiber per day,but a skilled worker can strip, wash, and dry twice this amount.
i) Balin'- Dried kenaf fiber is never tied into bundles as this interferes with mill processing. It is customary to make the fiber into hanks, each weighing about one kilogram. The hanks are made by twisting a large handful of fiber several times and doubling it in the middle. These hands are then made into small bales weighing from 50 to 100 kilograms by placing the hanks in alternate layers andtightly tying them in several places with a small rope made from the same fiber. This final farm bale is the finished fiber that is sold to the purchasing agency.
7. Regional Fiber Research Center
Of utmost importance to the success of this program is the establishment of a Regional Fiber Research Center whose functions are listed below. Only one Regional Fiber Research Center would be required to serve all of the countries within the study group. The Center, in effect, would not only carry out essential research for the fiber production program but would also provide training to key agricultural and marketing personnel. Thus,a single research and training center could provide these essential services to all countries and the expenses of its operation could be shared equitably by all users of its facilities. Regardless of the country selected for the Regional Fiber Research Center, the institution should pre ferably be located in conjunction with the seed farm in that respec tive country. This would lower the operating costs.
The nature and type of research effort applied to cultivation and processing of industrial fiber in west Africa in the past is described in detail in the agronomic reports in Volumes [I, Ill, IV, and V. For the most part, this work has been a relatively minor activity of the organizations which performed it, and results can not yet be considered definitive. The estimated cost of establishing and operating an indus trial Fiber Research Center which could serve the entire West African Region would be little more than the expense which any one of the coun tries would incur as a research expense if It were to undertake a com plete fiber development program independently. 1-25
The study team's estimate of the cost involved is:
Estimated Investment and Expenses for a Regional Research Center* (InThousands of CFA Francs) (1,000 CFA Francs = $4.05)
Fi rst Second Third Fourth Fifth Sixth Seventh Ei'ghth Total Year Year Year Year Year Year Year Year
Office - Warehouse 1,000 1,000 One Foreign Agronomist 8,650 8,650 8,650 25,950 Vehicle for the Agronomist 750 750 Vehicle Operating Costs 135 150 165 450 One African Agronomist - 1,500 1,500 1,500 1,500 1,500 1,500 9,000 Vehicle for the Agronomist 750 750 1,500 Vehicle Operating Costs - 135 150 165 180 135 150 915 Handwork Station: 8 Workers 288 288 288 288 288 288 1,728 Handwork Station: 10 Workers - 360 360 720 Tools, Equipment, Fertilizer 150 130 110 100 100 100 100 100 890 Seed 100 80 60 240 Laboratory Analyses 100 100 100 80 60 40 40 20 540 Office Costs 150 150 150 150 150 150 150 150 1,200 TOTAL 11,323 9,548 11,980 2,340 2,263 2,258 2.963, 2,208 44,883
0- All expenses to be divi-ded evenly between study countries participating in the fiber program.
The key element of expense in such an undertaking is the cost of acquiring the knowledge and techniques needed to do this essential job. Once these skills are widely disseminated in west Africa, this function becomes-a relatively minor cost of the fiber program.
The functions of a Regional Fiber Research Center would be:
a) Obtain and test fiber plant varieties to determine:,
1) Optimum varieties for cultivation under west African climatic and soil conditions.
b) Supply seeds of tested plant varieties to seed farms for field trials to determine:
1) Optimum dates for planting and harvesting. 2) Optimum fertili'zer formulations and application rates. 1-26
c) Provide technical advice and assistance to seed farms on conduct of field trials of plant varieties and pest control.
d) Test and evaluate field trials in terms of:
1) Seed yields. 2) Fiber quantity yields. 3) Fiber quality yields.
e) Provide training to seed farm and marketing service personnel responsible for:
1) Soil preparation and seed farm operation. 2) Instructing farmers in soil preparation, planting, cultivation, harvesting, and retting. 3) Grading and buying retted fiber.
8. Seed Production
A mechanized agricultural station should be established in each country for the production of seed, as cleaning, disinfecting, and good preservation of the seed are very important. It is also of the utmost importance that, at the time of sowing, farmers should be certain of having seed of perfect quality. This centralization of seed production allows ready replacement of a seed variety with another which demonstrates superior productivity. While such centralization makes seed distribution more difficult than would be the case if each village or farmer attempted to devote a nominal portion of the kenaf cultivation to seed production. Distribution of seed can be combined with distribution of fertilizers and continuing instruction on best methods of planting and fertilizer application. As broadcast sowing one hectare with kenaf requires 25 kilograms of seed, and production of one hectare of seed fields may be estimated at 500 to 600 kilograms of seed, it is easy to cal culate the area necessary to satisfy the needs in seed for the following year. The center should be equipped for cleaning, treating, packaging, and storage of the seed.
Possibly the most important reason for centralizing seed production is the simple fact that growers in most countries have little concern for seed production for the facilities for producing, treating, and storing good quality seed. If a farmer has a good crop of kenaf, he will invariably harvest the entire crop for fiber and will not have seed for the following year. Then too, seed pests are beyond the control of the average farmer. Seed storage under controlled conditions is necessary to provide planting material having high germination.
During the early years of its operation, the seed farm would find it necessary to plant a portion of its fields at fiber densities in order to have sufficient fiber plants available to demonstrate and train farmers in harvesting and retting techniques. As the program progresses, the proportion of the fields devoted to production of seed, using the wider spacings appropriate to seed production could be increased, with the result that average seed yields would also increase. The variety trial program should also permit selection of plants which should provide a better yield of both fiber and seed than the first var ieties used. 1-27
To allow for demonstration of crop rotation practice, necessary variety trials, and permit occasional fallow periods in seed fields, a seed farm should be allowed about 235 hectares of available land close to the center of the region it will serve. The time table of land clearance and utilization, in hectares, would be as follows:
Open Land Land Devoted to Uncleared Land Planted For Rotation Crops, Test Reserve Year Cleared Commercial Seed Plantings, or Fallow Land Total 1 3 3 232 235 2 10 10 3 222 235 3 25 30 8 197 235 4 45 65 22 152 235 5 65 100 48 87 235 6 85 140 93 2 235 7 140 93 2 235 8 140 93 2 235
While plants raised for seed generally produce inferior quality fiber when retted after the seed has been harvested, retting the stalks of the plants grown for seed should produce an additional gross revenue of 4,444,380 CFA ($18,000) per year in the Ivory Coast, of 4,481,415 CFA ($18,150) per year in Upper Volta, of 4,691,290 CFA ($19,500) per year in Togo, of 2,388,855 CFA ($9,675) per year in Niger, based on average fiber quality no better than Siam C, by the time the seed farm is in full scale operation.
The relatively low quality of fiber likely to be produced on seed farms could be marketed profitably only to mills located in the west African region.
The combined revenues from sales of seed and sales of fiber should be sufficient to place seed farm operations on an approximately self sustaining basis after about seven years.
When extracting fiber from plants grown primarily for seed, it is desirable to harvest the entire stalk, remove the upper quarter of the stalk which bears the seed pods, and thoroughly dry the lower-stem before retting.
The functions of a seed farm would include:
1. Variety trials, under supervision and instructions from the Research Center. 2. Seed production. 3. Supply center for fertilizers, phyto-sanitary supplies. 4. Local tralming center to teach area farmers proper techniques of: a) Land preparation and fertilizer applications. b) Seeding. c) Cultivation (and phyto-sanitary protection when required). d) Harvesting. e) Retting. f) Crop rotation and land management. 5. Fiber production (as a secondary source of revenue and for demonstration purposes). 6. Demonstration center for fiber grading standards. 7; Fiber market center for its immediate area. 8. Center for extension of credit to area farmers for seed, ferti l izers, and supplies.
Note: One seed farm will produce sufficient seed for 2,800 hectares of commercial fiber production if the seed are planted at the rate of 25 kilograms per hectare for Hibiscus cannabinus or 15 kilograms per hectare for Hibiscus sabdariffa var. altissima. Seed yield of the former is estimated at 500 kilograms per hectare and 300 kilograms per hectare for the latter. 1-28
9. 'Farmer Earnings Farmers earnings on kenaf cultivation are dependent on six inter related factors: a) Proper soil preparation.
b) Accurate and timely seeding to produce optimum plant densities. c) Adequate fertilizer application. d) Proper timing of the harvest.
e) Skillful retting. f) Optimum choice of plant varieties. The first three factors determine the number of plants which will be produced on a given area of land, and the proportion of total plant growth which goes into fiber as opposed to leaf, bark, and pith.. The next two factors affect the value of fiber which can be obtained from the plants harvested.
The sixth factor - the selection of optimum varieties - plays a vital role in determining the effectiveness of the farmer's effort with respect to the first three factors, the timing of the harvest and the ease with which fiber production can be integrated with production of other crops. The value of the yield in fiber production depends on the six factors previously described. When the farmer has acquired all of the necessary skills, and is supplied with the best possible varieties, he will obtain, on the average twice as much fiber, of much higher value for the same input of effort than the average farmer is likely to get from his first crop. Farm family earnings per ton of fiber produced will also be affected by transportation costs which must be incurred to move the fiber to market. Assuming the same average mix of fiber quality and minimum anticipated yields, the relative earning power from kenaf cultivation would be:
Minimum Estimated Average Farm Net Returns Per Country Ton of Retted Kenaf Fiber
Ivory Coast 25,440 CFA = $103.03 Niger 13,370 CFA = $ 54.14 Togo 25,500 CFA = $103.28 Upper Volta 21,370 CFA = $ 86.55
Volumes 11, III, IV, and V provide detailed comparisons of probable farm family earnings from fiber production with earnings obtainable from other crops in the areas considered most suitable for kenaf cultivation. In general, initial earnings from fiber production should equal or exceed earnings from crops now produced in these areas, and could show a distinct advantage as the farmers acquire skill in cultivation and retting. 1-29
While it might appear financially advantagebus to.operate a combination centralized seed farm and experimental station specialized in fiber crops to serve the entire region, this would not be practical for the following reasons:
I. Growth characteristics of kenaf varieties are sensitive to differences in light periodicity, (determined by latitude) rainfall distribution, soil characteristics,and temperature. Areas considered most suitable for fiber crops in the study area range from 70 20' north latitude in Togo to 140 42' north latitude in Niger, and moisture conditions range from ample natural -rainfall in the recommended areas of Togo, Ivory Coast, and Upper Volta to areas in which supplemental irrigation will be required, as in Niger. In view of these diverse conditions, a centralized farm will not match them nor produce good seed crops of varieties that are most compatible under such conditions.
2. Technical assistance will be required to instruct African planters in optimum techniques of soil preparation, seeding, cultivation, and crop maintenance, harvesting, and fiber separation if optimum commercial quantities and quality are to be obtained. A seed farm would be a logical focal plant for such activities,but a centralized location would be distant from most production farms and hamper such a program.
3. A seed farm and central station can provide safe storage for fertilizers and phyto-sanitary supplies, and provide the necessary fiber quality samples to demonstrate price differences for farmers in relation to fiber quality. As explained in the previous point, a centralized farm would be distant from most production areas and reduce the purpose and advantage of such a program.
For these reasons, the study team recommends the establishment of a seed farm in each of the areas selected for fiber production. The seed farm's activities in such functions as variety trials, training of technicians, and enforcement of grading standards could be effectively coordinated by a centralized basic research Institute which could undertake such functions as the selection and development of plant varieties, and scientific evaluation of the results of variety trials.
10. Organizational Aspects of Fiber Production
While this report has emphasized the technical and financial aspects 6f fiber production, the success of a fiber production program will depend on the organization and staffing of the organization responsible for the program's execution. The ultimate functional responsibilities of the three key elements of a fiber program -- the marketing organization, the seed farm operation, and the Basic Research and Training Center must be coor dinated by the marketing organization. The full range of functions and responsibilities of the fiber marketing organization are:
1. Operation of seed farm-demonstration center.
2. Establish fiber prices, by grade, before planting season begins, and maintain announced price throughout the crop season. 1-30
THE MARKETING ORGANIZATION MUST ASSUME THE RISKS OF FIBER MARKET PRICE FLUCTUATION ... AND THE REWARDS FOR ASSUMPTION OF THIS RISK.
3. Purchase and distribute seeds, fertilizers, and other necessary supplies to seed farm and rural market centers. 4. Provide credit to farmers, where necessary, for seed, fertilizers, and supplies.
5. Provide personnel to operate seed farm and to train and supervise farmers in techniques of raising and retting fiber. 6. Provide trained personnel for grading and buying fiber at seed farm and local market centers.
7. Negotiate fiber prices with mills and fiber brokers. 8. Arrange transportation of retted fiber to customers or to world market centers. 9. Operate Basic Fiber Research and Training Center, if such services can not be secured on an adequate basis from a Regional Institution. 10. Ultimate responsibility for profitable utilization of the nation's resources devoted to fiber production.
In each of the study countries considered for fiber production, existing climatic records were examined to identify areas which met the necessary rainfall, temperature,and photo-periodicity requirements to permit successful kenaf cultivation in each of the last six years. Such areas were then examined for soil.characteristics and drainage. After these botanical factors were established, the farming habits of the resident populations were studied to be sure the work involved in kenaf cultivation (which is heavily concentrated in the harvesting and retting season) would be acceptable in comparison to the work required for crops now cultivated. The results of these studies are discussed in detail in the separate sections of the report dealing with each of the countries in which an agronomic investigation was conducted. The major conclusions concerning each of the countries studied are as follows: 1-3t
IVORY COAST
Suggested Areas for Kenaf Cultivation:
1. Korhogo, Ferkessedougou, and Boundialai 2. Bouake, Boundoukou, and Bouna
Recommended Rotation:
1st year - Kenaf 2nd year - Peanuts, peas,or beans 3rd year - Uplant rice, maize, millet,or'yams 4th year - Kenaf
Comments:
1. Kenaf and sisal are both suitable for cultivation, but kenaf appears to have greater overall prospects for commercial use and export, whereas sisal would be limited to local use by the existing Bouake mill.
2. Both Hibiscus cannabinus and Hibiscus sabdariffa var. altissima are indigenous to the northern areas of the Ivory Coast.
3. Farmers in the northern areas cultivate kenaf ("Dah") using the leaves for food and retted fiber for handmade cordage, but farm plots are small, averaging from 100 to 200 square meters in size.
4. The quality of local retted fiber is excellent, being judged comparable to Pakistan mesta B grade.
5. The local populations most likely to be interested in cash crops would be the Dioula Branch of the Malenke.
6. The preference of the farm population for working small individually operated plots suggests that the most practical program for sisal would be to develop it as a hedgerow or border crop, and depend on small portable decorticators to' strip the leaves. Such machines would cost aboUt 250,000 CFA each and can produce about 100 kilograms of dry sisal fiber per day, at a cost ranging from 10 to 13 CFA per kilogram.
Those detailed agronomic data for the Ivory Coast is presented in Section II of this report. I-32 Ivorytoast Continued
Comparison of Cotton, Peanuts, and Kenaf Earnings: PER HECTARE Average Yield Average Yield Minimum Yield Maximum Yield Seed Cotton Peanuts Kenaf Kenaf Man days labor 170 220 1 2 179 Cash expenses (seed, fertilizer, spray, etc.) CFA , 11 ,960 1,000 8,460 8,460 Yield (kg.) 1,000 750 1,000 1,500 Crop Value (CFA/kg.) 33 25 33.9 35 Gross Income (CFA/ha.) 33,000 18,750 33,900 52,500 Net Income (CFA/ha.) 21,040 17,750 225,440 44,040 Income per Man day (CFA) 123.7 80 208 246 1-33 1UGER Suggested Areas for Kenaf Cultivation:
1. Irrigated lands in the'Niger Valley including, Niamey and Tillaberi, and the Maradi area.
2. Irrigated lands in the Doanndoutchl area if Irrigation is available.
Recommended Rotations:
May Kenaf Plantings July Kenaf Plantings 1st year - Kenaf followed by rice Ist year - Maize followed by kenaf 2nd year - Rice or sugarcane 2nd year - Rice or small grains 3rd year - Rice or sugarcane ratoon 3rd year - Legumes or small grains 4th year - Kenaf or sugarcane ratoon 4th year - Kenaf
Comments:
1. Kenaf should develop significantly more revenue per hectare of irrigated land than any other cash crops planned for exploitation in the irrigated areas.
2. Time required to reach a production of 1,500 metric tons of retted fiber is six years as per the following schedule:
PRODUCTION FORECASTS
1969 Research work by IRAT, introduction of varieties - studying the date and the density of sawings - studying the fertilizers to be used. Multiplication of sowings on three hectares. Prospecting and preparing the basin-sites for cultivating 50 hectares in 1970.
1970 Continuation of work by IRAT, repetition of preceding trials variety trials. Multiplication of sowings on 15 hectares. Cultivation of 50 hectares. Prospecting and preparing of 150 hectares.
1971 Continuation of work by IRAT. Multiplication of sowings on 35 hectares. Cultivation of 200 hectares. Prospecting and preparing 300 hectares.
1972 Continuation of work by IRAT. Multiplication of sowings on 60 hectares. Cultivation of 500 hectares. Prospecting and preparing 300 hectares.
1973 Reducing IRAT trials to variety trials only. Multiplication of sowings on 100 hectares. Cultivation of 800 hectares, Prospecting and preparing 300 hectares.
1974 Small scale continuation of IRAT variety trials. Multiplication of sowings on 100 hectares. Cultivation of 1,200 hectares.
A more detailed discussion of the study team's agronomic findings in Niger is presented in Section III of this report. 1-34 Niger Continued
Comparison of Kenaf with Other Commodities:
PER HECTARE Minimum Yield Millet Sorghum Peanuts Cotton Kenaf
Man days labor 46.66 67.66 119 98.7 122 Cash expenses (CFA) 21 36 516 1,220 12,630 Yield (kg.) 116 184 290 189 1,000 Crop Value (CFA/kg.) 9 9 15.25 34 26 Gross Income (CFA/ha.) 1,044 1,656 4,423 6,426 26,000 Net Income (CFA/ha.) 1,023 1,620 3,907 5,206 13,370 Income/man day (CFA) 22 24 33 53 109 1-35
TO GO
Suggested Areas for Kenaf Cultivation:
1. Atakpame to Sokode (Centrally located with better soils4
2. Lama Kara to Dapongo (Less productive, higher fertilizer costs).
Recommended Rotations:
1st year - Kenaf 2nd year - Peanuts, peas,or beans 3rd year - Upland rice, maize, millet,or yams 4th year - Kenaf
Comments:
1. Kenaf ("Dah") is widely grown in the interior of Togo in small farm plots. Farmers produce both raw bast ribbons and retted fiber. The latter is made into rope by hand. Both products are found in all village markets.
2'. Initial yields arbitrarily estimated at 1,000 kilograms of dry retted fiber per hectare, gradually increasing to 1,500 kilograms per hectare.
3. Estimate seven years required to reach an annual production of 1,000 metric tons of retted fiber with 5,000 planters cultivating 0.2 hectare each.
Comparison of Cotton, Peanuts, and Kenaf Earnings: PER HECTARE Average Yield Average Yield Minimum Yield Maximum Yield Seed Cotton Peanuts Kenaf Kenaf
Man days labor 170 220 f22 179 Cash expenses (CFA) 11,960 1,000 10,500 10,500 Yield (kg.) 1,000 750 1,000 1,500 Crop value (CFA/kg.) 33 25 36 37.3 Gross Income (CFA/ha.) 33,000 18,750 36,000 55,950 Net Income (CFA/ha.) 21,040 17,750 25,500 45,450 Income/Man day (CFA) 123.7 80 209 254
More detailed agronomic data for Togo is presented in Section IV of this report. 1-36
UPPER VOLTA
Suggested Areas for Kenaf Cultivation:
1. Banfora, Bobo-Dioulasso, and Diebougou (Best location and soils).
2. Ouagadougou, Leo, and Fada N'Gourma (Higher transport costs).
Recommended Rotations:
1st year - Kenaf 2nd year - Peanuts, peas ,or beans 3rd year - Upland rice, maize, millet ,or yams 4th year - Kenaf
Comments:
1. Typical "Dah" plantings larger (0.2 hectare.) than other countries in the study group.
2. Farmers well acquainted with kenaf culture and retting.
3. Kenaf culture must be restricted to areas where cotton is not grown to avoid contamination of mutual pests and diseases.
Comparison of Kenaf and Other Commodities:
Cash Return per 0.2 hectare ( CFA)
Cotton Ist choice 1,740 Cotton 2nd choice 1,534 Peanuts 2,165 Sorghum 1,360 Millet 1,070 Maize 1,655 White Rice 3,660 Red Rice 3,080 Kenaf (minimum) 3,817 Kenaf (maximum) 8,543
More detailed agronomic data for Upper Volta is-presented in Section V of this report. 1-3,
GENERAL AGRONOMIC CONCLUSIONS
It appears impractical to anticipate any extensive development of export markets for fiber grown in the more remote areas of Upper Volta or Niger. The transportation cost penalties involved with a bulky, relatively low value crop such as kenaf or similar fibers effectively bar these areas from world markets. The areas identified in this .study, however, might be developed for fiber production on a profitable basis, and such production could make at least a limited contribution to alleviating the region's overall balance of payments deficit.
While many west African farmers have been made aware of the advantages of using fertilizers by demonstrations sponsored by the F.A.0. and other organizations, adequate stocks of fertilizer are seldom available in rural areas. The development of an industrial cash crop like kenaf, which requires intensive and sustained use of fertilizers, will both improve the availability of fertilizers and accustom farmers to their regular use.
In all of the countries studied, substantial effort and investment will be required to develop a sufficient volume of fiber production to make a significant contribution to foreign exchange earnings, or to equal the raw material equivalent of the industrial fiber products presently imported. A typical example of the investment program required to develop 1,000 metric tons of retted fiber production is shown in Exhibit 23.
The proposed production schedule and estimated operating expense budget presented in Exhibit 23 makes provision for all four of the functions necessary to develop industrial fiber production on a profitable commercial scale:
1. Basic research and development of plant varieties. 2. Field trials to select best varieties for each locality, and determine optimum fertilizers and cultivating techniques. 3. Production of seed for use by planters in the area. 4. Training farmers to plant, cultivate, harvest, and ret the crop.
There are opportunities to reduce the cost of developing a commercial fiber program for any single country in the West African Region if basic research and training of African personnel in the techniques of seed farm operation, fiber production, and grading and sorting of fiber sale to users is handled on a centralized regional basis.
Full production would not be anticipated before the end of seven years.
We are aware that fiber production programs in other parts of the world have been organized and brought to production levels of 1,000 metric tons per year or more in as short a time as three years. The experience of the survey team with African developments, :however, and our observations in the region concerning the relative success of relatively ambitious "revolutionary" programs aimed at drastic production increases and requiring drastic changes in agricultural practices, leads us to recommend the seven year program, as outlined.
A program to increase commercial production of fiber at a more rapid rate would require:
1. Much more extensive and successful test results with different seed varieties than those observed in the course of this study. 1-33
2. Availability of exceptional agronomic engineering talent and experience, both at the expatriate consulting and training level and on the part of the African agronomic technicians who would be responsible for training the farm population in use of the most productive techniques and monitoring their progress in the
development of the necessary skills.
3. More rapid development of the fiber grading, buying, collecting, and marketing organization than would be consistent with the objective of securing maximum fiber quality (and highest obtainable prices) f6r world markets and the West African Regional Market.
In the study area, the availability of skilled personnel for agronomic and marketing activities is limited. Devoting sufficient trained personnel to more rapid development of a fiber program than would be required for the schedule suggested would be likely to retard development of other agricultural programs, particularly in food production, which may have even higher national priority.
The maximum benefit to the region's balance of payments position would be realized when total fiber production reaches two to three times the tonnage of fiber production consumption. When this level of production is reached, all or most of the production of low grade fiber could be sold to West African mills for use in production of packaging material, while the major portion of the higher grades could be sold on the world market, thus bringing a higher average price per ton in foreign currency.
ECONOMIC ADVANTAGE OF GROWING RAW FIBER TO THE NATIONAL ECONOMY:
The economic merit of an industrial fiber program is reflected in both its impact on balance of payments in foreign trade and in its contribution to the national income and gross hational product.
In each of the countries in which agronomic feasibility of fiber production was studied (Ivory Coast, Niger, Togo, and Upper Volta),an industrial fiber crop could make a positive contribution to the country'-s balance of payments situation. The relative value of the contribution of industrial fiber production to the national income and gross national product varied from country to country, depending on the values which might be generated by application of comparable investments of funds, land, and effort on other cash crops. These alternatives are discussed in detail in the sections of this report dealing with each country.
The investment feasibility of a raw fiber development program is different in each country, and depends in large measure on the opportunity to sell the raw fiber produced to existing West African mills. Since none of the existing mills in the study region is receiving sufficient raw fiber from its own country to permit capacity operation, all currently import most of their raw fiber requirements from the Orient. The Ivory Coast, Upper Volta, Togo, and Niger can deliver raw fiber to these West African mills with a lower expense for freight than would be required to deliver fiber to Europe or North America. Since existing mills are finding it necessary to pay world market prices for their new raw fiber, plus the costs of transportation to the mill, the saving in transportation cost which can be obtained by selling the fiber to west African mills provides an additional source of revenue to defray the start-up expenses of the raw fiber production program. 1-39
This relative shipping cost advantage varies for each west African mill which might be served because of differences in transportation cost from recommended raw fiber producing areas to the several different west African mill locations.
SOCIO-ECONOMIC MERITS OF RAW FIBER PRODUCTION
The areas selected as most suitable for kenaf cultivation are currently characterized as sources of migrant unskilled labor, because of social custom and the generally low economic returns of the subsistence agriculture now practiced in these areas.
Each ton of kenaf fiber produced will provide sufficient supplemental cash income to make continued farm operation economically satisfactory for four to six farm families who might otherwise be tempted to migrate to coastal areas and swell the ranks of the already under-employed unskilled labor pools in these areas. Thus, each 1,000 tons of kenaf fiber produced lhvthe:areas recommended for kenaf cultivation may be considered an economically stabilizing force on 10,000 to 15,000 of the rural population, who might otherwise migrate to the principal cities and add to the cost of social services in urban centers.
Optimum production of kenaf fiber requires rotation with leguminous food crops. Improvement in farming skills acquired in the cultivation of fiber (i.e., better soil preparation, use of fertilizers, etc.) should tend to raise the overall agricultural productivity of the farm population in areas where commercial fiber crops are produced.
B. WORLD FIBER PRICES - JUTE AND SUBSTITUTE FIBERS
Eight major factors combine to determine world prices for jute and its major substitutes on world markets. They are:
1. SUPPLY: Weather has the most important effect, i.e., rain, or the lack of it,during the sowing and early growing seasons; normal river rise depends most importantly on the rainfall and temperature in the foothills and snow areas of the Himalayas. Given intermittent rains and sunshine during February-June, no more than normal river rise in May-July, and no drastic crop acreage restriction by Government, an adequate crop for world needs is usually assured. There are seldom serious enough seed supply pr pest problems to affect crop quantity appreciably.
2. DEMAND: The world demand for the fiber has not declined to the full extent one might have expected from the competition of paper and synthetic fibers. Jute is still the cheapest satisfactorily spinnable textile fiber available in very large quantities. Trendwise, it would not be too risky to predict that as time passes a slowly declining world demand for jute will occur, which would likely be more rapid if it were not for increases in population bringing into being larger demands for textile products for which jute could be used.
I 1-40
3. SPECULATION: The primary jute export market - Pakistan - is highly speculative and when world events occur (such as the Suez Canal closure) wide fluctuations in market prices are the rule.
4. MINIMUM PRICES: The Pakistan (Export Price Check) is intended to assure remittance of full sales price to Pakistan by foreign buyers. In a falling market, minimum prices set above the then current market levels will, of course, halt the decline or stagnate business. The timing and extent of these price controls cannot be predicted. A schedule of such price controls during 1964-1966 is included in Exhibit 24.
5. EXPORT DUTY: This can be altered by the Pakistan Government. There have been both decreases and increased in this tax with a preponderance of the latter. The present export duty is Rupees 10 and five per bale of 182 kilograms, respectively, for jute and cuttings equivalent to slightly over one cent per kilogram and one-half cent per kilogram respectively.
6. OCEAN FREIGHT RATES: These have been on the increase since World War 11 with few exceptions and are largely unpredictable. The present freight cost Pakistan-USA is slightly over four cents per kilogram on jute, an increase of about 35 percent since 1958.
7. PAKISTAN EXCHANGE RATE: The effect of devaluation on jute prices outside of Pakistan is also unpredictable because, if the government does not change control prices to reduce or eliminate lower prices abroad, the sellers within a short period generally take care of the matter, except where at the time of devaluation there is a recognized surplus of available fiber.
8. UNIFORMITY AND RELIABILITY OF GRADING IN COUNTRY OF ORIGIN: We suggest that the simplified retted kenaf grading, i.e., "Good", "Medium", and "Poor" or "A", "B", and "C" will amply suffice. The elements of strength, fineness or coarseness, color, cleanliness, and length, so important in the grading, are determined by appearance, feel, and resistance when the fiber is broken by hand. The skills to be acquired by the graders, if this labor be of average intelligence, should pre sent no problem. With adequate inspection to safeguard regularity, a piece rate basis for grading in the jute industry is generally considered most satisfactory. A fiber grader should be able to examine at least 50 kilograms per hour.
Prices from 1960 to 1965 for representative grades of Pakistan and Siam fiber are shown on attached Exhibit 24. These prices are given for Pakistan Export Lightnings, Export Hearts, Pakistan NC and SNC Cuttings, and Siam (Thai) A & B. The cuttings quoted are the two higher qualities of the three grades produced. The NC Cuttings are usually in adequate supply, but the SNC, the highest grade, are relatively .scarce and more expensive. 1-41
Siam Super A and Select A prices have not been shown for the reason that the quantities available of honestly graded fibers are very small; in other words, the quotations are very apt to be misleading when available.
The price basis used on both Pakistan and Thai fiber is-"landed East Coast U.S.A." These prices can be safely assumed to be approx imately equivalent to a C.I.F. West African port basis but including there, no landing charges or import duties. They are cited to demonstrate the history of price fluctuations.
Although there is some regularity between price differential for the several grades within one class or kind of fiber, these differentials are apt to change without warning depending upon supply and demand or Government control prices.
A somewhat simplified price history of price fluctuation for some of the more important grades for purposes of this study is shown in the chart. (Exhibit 25)
The price movements shown can only be described as random. If the period from August 1960 to September 1961 is excluded, a case could be made for a modest trend toward higher prices over the period. This modest rate of increase (in the range of three to four percent per year) is better than the average price performance of export commodities shipped from less developed areas and "raw material countries" as shown by the price indices published by the International Monetary Fund.
Again, excluding the unsettled period from August 1960 to September 1961, a rough class interval analysis of price movements shows:
Price Compared to Current Level Percent of Months
Prices Significantly Higher 43 Prices Approximately Equal 19 Prices Significantly Lower 35
On this basis, we consider the price levels used for demonstrational purposes in this report to be as realistic as any which might be adduced in view of the wide range of uncertainties which govern agricultural commodity markets.
Possible price effect on Thai kenaf and Pakistan jute if polypropylene makes serious inroads: The uncontrolled That market price would decline more than the controlled Pakistan price, at the outset. In both cases, however, the eventuality would likely be a reduction in quantity pro duced, for without subsidy, there is a consistent history of production reduction and firming prices on the smaller quantities, if producers do not secure an adequately compensating price. In rice eating countries such as East Pakistan and Thailand, where many fiber producers are also rice planters, there is an important and closely watched relationship between jute and rice prices with very prompt effect on relative acreages to be planted of these two basic commodities. 1-42
Effect of Synthetic Fiber Developments on Markets and Prices for Natural Industrial Fibers I
The past decade had witnessed a substantial loss of the "hard" industrial fiber market for cordage to synthetics. This has caused a substantial deter ioration in price levels of natural "hard" industrial fibers (e.g.,sisal). Sisal products must now compete for markets previously dominated by the "soft" industrial fibers (e.g.,jute, kenaf, and allied fibers) and raw fiber pri-ces.
In the west African region studied, the consequence of sisal's price deterioration has been to restrict the economic feasibility of sisal pro duction to areas within countries having a sisal products mill (i.e., the Ivory Coast), and countries without mills should not attempt to cultivate sisal for export.
Kenaf, which is the major substitute for jute, may well be faced with a similar price "ceiling" because of the development of polypropylene fibers. The general pattern of market penetration anticipated by manufacturers of equipment used in manufacture of products from either polypropylene or jute type fibers is:
1. Polypropylene fibers will first supplant jute-type fibers in premium product applications requiring the highest grades of fiber --- and will make additional penetrations of such markets whenever short supplies drive up prices of the finer grades of jute.
2. Reduced prices for the higher grades of jute (by reason of the effective "ceiling" imposed by synthetics) will make relatively more of the finer grades available for low value products (i.e., cheap bags and baling material) thus reducing price differentials between grades and severly limiting demand and even market acceptance of the lowest grades.
3. The use of low quality fiber in the manufacture of industrial fiber products calls for higher application of capital and labor in the softening and carding operations which precede spinning, and con sequent higher raw material waste, than does the use of higher grade fiber. Therefore, there is a measurable economic trade-off between fiber quality and price differentials. (Such a trade-off is reflected in the mixture of fiber grades shown in this report.) As the prices of the better grades of fiber stabilize at lower levels, prices of the lowest grades will be forced still lower.
4. Since costs of sorting, grading, and transporting low quality fiber from the area of cultivation to the point of consumption is as high as transportation cost for low quality fiber, the full impact of reduced'value for raw fiber at fiber mills is reflected in the prices which can be offered farmers for each grade of fiber.
The anticipated results in terms of our projections of demand and prices for natural industrial fibers, are:
1. The previously noted trend toward higher prices for natural industrial fibers has not been projected into the future. 1-43
2. Estimates of farm revenue for fiber production have been made on the basis of conservative estimates of yields which might be anticipated on initial commercial plantings, before optimum selec tion of varieties and before the farmers attain maximum cultivating and retting skills.
Throughout this report ,the techniques and procedures required to produce fibers of the best possible quality have been emphasized. It is anticipated that development and selection of improved plant varieties, and rising levels of cultivating and retting skill by west African farmers will be sufficient to offset possible declines in market prices for raw industrial fibers which may result from substitution of synthetic fibers in the higher price segments of the industrial fiber market.
Marketing of Fiber Crops: Each of the countries in which the agronomic feasibility of fiber production was studied has one or more central purchasing authorities for industrial cash crops (e.g., C.O.T.O.A. and C.F.D.T. in the Ivory Coast, C.F.D.T. in Upper Volta, S.O.R.A.D. and C.F.D.T. in Togo, and C.F.D.T. in Niger). These organizations haveipersonnel familiar with local markets, and could perform the necessary distribution services for seed, fertilizers,and supplies necessary to enable the farmers in their respective countries to grow and harvest a fiber crop. These organizations could then provide the personnel necessary to sort farmers' fiber production by grade and purchase it at prices appropriate to its quality, bale it for shipment, arrange for transportation, and sell the crop to customers at delivered prices comparable to prices offered by other suppliers for fiber of equal quality.
It would be desirable to have each national marketing organization cooperate closely with the central regional fiber research organization in the establishment of grading standards, and in training local personnel to sort and grade fiber accurately.
Since the rural areas suggested for cultivation of fiber crops are not well served with farm credit institutions or farm supply retailing facilities, the marketing organizations will have to extend credit to farmers for seed, fertilizer,and other supplies, and deduct payment for them from the farmers' proceeds from the sale of their fiber crops.
Since prices for industrial fibers fluctuate widely on world markets, the marketing organizations must bear the risk of price fluctuation by establishing a firm price for fiber, by grade, before the planting season begins, and purchase fiber at the established price when the harvest season arrives, regardless of changes in world market prices which might occur during the course of the growing season.
As will be noted in the detailed data for each of the countries studied for agronomic feasibility of fiber production, sale of the earlier fiber crops to west African mills will provide a marginal price advantage because of transportation costs which should be sufficient to'both defray a portion of the costs of establishing seed farms and cover normal risks of price fluctuation during the growing season. VI. ECONOMICS OF FIBER MILL OPERATION
The opportunities for profitable operation of a fiber mill depend on the prices which can be obtained for the mill's output, as compared to the costs of production which will be incurred. Transportation costs are a significant factor in determining the net prices which a mill can charge for its output in order-to be competitive with the delivered prices pro spective customers would have to pay for goods of equal quality offered by other suppliers. The cost of transporting the raw fiber from the farm areas to the fiber mill become a part of the inventory cost of the raw material. The transportation costs likely to affect profitability of mill operations in each of the countries for which mill feasibility was examined from the standpoint of both few material inventory cost and the net price which might be obtained for finished products is shown in Exhibit 4.
The net price per ton of finished product which fiber mills in the countries considered for mill feasibility might obtain in competition with mills in India or Pakistan, (i.e., quoting whatever price-is necessary to make the purchaser's delivered cost the same from either supplier) is shown in Exhibits 7 and 8. Exhibit 7 shows the delivered price of standard jute type packaging (Standard B twill sacks) manufactured in India or Pakistan at major northern European ports, and derives their value at West African ports and at mill locations considered in the study area by deducting the appropriate transportation costs. Exhibit 8 shows the result of applying the same procedure (i.e., competitors' quoted prices, less appropriate transportation charges) to calculate the net price which mills in the study area might obtain in competing on an equal pri.ce basis in each of the countries in the west African study region.
While some advantage would be realized in all cases by trading with other west African countries as compared to competing in other world markets, the advantage ranges from about $18.00 per metric ton in the case of a coastal region to well over $53.00 per metric ton in the case of remote locations in the interior. Some interior locations (viz. Segou, in Mali) would be under almost as severe a freight cost penalty in trading with other remote west African countries as they would in shipping to Europe.
The exact prices will, of course, fluctuate with changes in world market prices, but the differentials will remain approximately the same until trans portation costs are significantly changed.
In fiber exporting countries, the most significant economic contribution made by a fiber mill is the "upgrading" of low-grade fiber, which would other wise command a very low value in relation to weight and cost of production, through value added by manufacture. Mills designed primarily for production of low cost, low price packaging material are particularly representative of this function.
A major factor in a profitable mill operation is skill in purchasing the minimum cost blend of fibers which will permit production of an acceptable end product. The bag mills in India or Pakistan use a large proportion of the lower grade jute type fibers produced in those countries, thus permitting max imum export of the better grades of jute which have higher value in relation to the cost of shipping them to export markets. . 1-45
While the ideal mix of fibers will fluctuate from day to day in relation to changes in the offering prices of the various grades of fiber, Exhibit 9 shows a reasonably typical example of such a fiber mix at cur rent price levels. Roughly 53 percent of the total fiber input is of the lowest grade, while only 47 percent is of higher grade.
The manufacturing efficiency of a fiber mill is also affected by the degree to which its equipment is tin balance for the mix of products produced. ("Unbalanced" capacity is equipment which cannot be used all of the time because equipment required for preceding or subsequent operations does not match it in output.) The following table shows the flexibility of balanced equipment with respect to product mix:
TOTAL PRODUCTION:
In thousands of metric tons 2,620 5,260 In percent 100% 100%
PRODUCT:
Bags: 44" x 26-1/2 Dcc 655 TC 58% 53% 44" x 26-1/2" DCC 588 TC 12% 24%/ 38" x 26-1/2" DCC 588 TC 27% 10%
CLOTH (Hesiian or Burlap):
cs 307, 1,07 oz/ft2 - 55" wide 1% 9% 71" wide - 1%
Twisted Cordage (Twine) 2% '3%
Suggested mill locations were made on the basis of:
1. Minimizing anticipated transportation costs for raw fiber from farm to mill and for finished products to anticipated markets.
2. Where transportation costs permitted consideration of more than one mill location, costs of direct labor and electricity were compared for each location, and the location offering the lowest combination of costs for freight, labor, and purchased power was selected as the base for cost computations for each of the countries studied for mill location.
As in many other manufacturing operations, minimum labor costs are-a key factor in assuring profitable operation. The cost of labor at mill locations considered for each of the principal countries in the study area is shown in Exhibit 10. It will be noted that for locations considered most suitable, labor costs (when computed on the basis of current official wage rates for comparable skills in the proportions required to staff a fiber mill) should be lowest in Togo; next lowest in Upper Volta, sharply higher in Niger, and highest in Abidjan, in the Ivory Coast. IJ+6
The cost of electricity, and the other elements of cost, are compared, for mills using retted fiber, in Exhibit 11 for mills of different size and different loom systems.
Exhibit 11 demonstrates the total out-of-pocket expenses, both direct and indirect, per ton of fiber products produced, at 100 percent of a two shift capacity, and at 90 percent of two-shift capacity, for six different combinations of equipment, ranging from a circular loom mill of 1,600 metric tons annual capacity, to a flat loom mill of 5,240 metric tons annual capact-ty, and includes a mill of 4,350 metric tons capactty, using both flat and cir cular loom systems. The exhibit clearly demonstrates the economies of scale in out-of-pocket expense per ton of production.
In this exhibit ,the wages and payroll taxes, fringe benefits, etc. which would be paid to employeed below the rank of foreman, are shown as direct labor costs. The cost of electricity, and the cost of water for humidification, are also considered direct costs, as is the cost of raw fiber. The cost of raw fiber shown in the exhibit is the cost of fiber delivered at the mill. This delivered cost assumes the farmers would be paid world market prices and the fiber requirements would be purchased primarily from producing areas located close to the mill. The entire cost of fiber is treated as an expense in local currency, as the fiber mill would undoubtedly purchase its fiber with local currency, even though from a national economy standpoint, some of the cost incurred in production and transport of fiber (fertilizer, fuel, vehicles, and spare parts for same) might involve outlays in foreign currencies.
Other expenses of mill operation which would tend to vary directly with production include lubricants, oils, and emulsions to treat the fiber, and the replacement parts and mill supplies. Most of these items have to be purchased with foreign currency, as they are not manufactured in the west African countries studied for mill feasibility.
The other expenses of mill operation would occur over time, and would not be affected by the level of operation. These expenses include salaries of foreman, technicians and mechanics, required to maintain the equipment, supervision of operations, and the expense of insurance, miscellaneous office supplies, communications expense, a nominal allowance for local taxes, and compensation for expatriate technical personnel. Inasmuch as it is normally necessary to guarantee payment of salaries, vacation allowances, and other perquisites, of expatriate technical personnel in convertible foreigh cur rency, these annual fixed expenses are shown as a foreign currency expense.
These fixed expenses continue, regardless of the level of mill operation. The mill's output would be sold for use as packaging material, for agricultural products, the demand for which is necessarily subject to fluctuations because of crop failure induced by drought, insect attack, etc. that cannot be foreseen. If mill output were to be reduced whenever a slump occurred in local demand for fiber products, these indirect expenses per ton generated by mill operation would Increase, as indicated in Exhibit 11.
For this reason fiber mills are usually operated as close to capacity as possible, even if it is necessary to sell the output in remote markets at less favorable prices. 1-47
Total out-of-pocket expense per ton of output, for a mill of only 1,600 metric tons of annual capacity on a two-shift basis, would approx imately equal the prices which would be obtained for the mills' output, thus permittlng no contribution to the coverage of depreciation expense, interest or similar financial charges, or a profit return on the investment.
For this reason,no further consideration has been given to mills of such small size.
It will be noted that direct expenses per ton differ very little for either loom system, with an apparent slight advantage for the flat loom system in the capacity ranges considered. The indirect labor, technical, and supervisory personnel considered necessary for efficient operation by manufacturers of the two weaving systems shows a distinct advantage for the circular loom system. With either system, virtually all of the economies of scale obtained by operating with an annual two-shift capacity of 5,000 metric tons or more as compared to 2,500 metric tons is obtained by reason of the fact that indirect costs would increase by only 13 percent in the case of the circular loom system, and 37 percent in the case of the flat loom system, while capacity is doubled.
Salaries and benefits for expatriate supervisory and technical personnel, and the numbers of such personnel considered necessary by the manufacturer of the equipment, are lower in the case of the circular loom system than the flat loom system, despite the fact that the circular looms are more complicated in design, and have in the past been considered more suitable for use with the finer, more expensive grades of fiber than with the cheaper, coarser grades. The number of local technical and indirect personnel (and the salaries budgeted for them) considered necessary by the circular loom manufacturer was also lower than the estimate suggested by the manufacturer of flat looms.
On the basis of staffing requirements suggested by the loom manufacturers, the circular loom system appears to have an overall out-of-pocket cost advan tage of about 1,955 CFA ($7.92) per ton of output at the 5,000 metric ton level of capacity.
Investment cost factors for mills of different size, and using different loom designs, are shown in Ekhibit 12.
The exhibit shows the amount of money required for investment in such fixed capital items as the equipment and construction of the mill buildings, warehouses, and housing for expatriate personnel. These fixed investment costs are separated into the amounts which would have to be paid in foreign currency for such items as the mill equipment, freight to the nearest west African port, and supplier's charges for supervision of erection, and fixed capital -expenses which might be met with local currency, such as the cost of shipping, mill equipment from the port to a reasonably nearby mill location, such as Sokode in Togo, and other fixed capital investment factors such as the construction of the buillding, warehouse, ahd housing, and an allowance for contingencies, which might be met with west African currency. 1-48
The items of equipment recommended by the mill equipment manufacturers were reviewed by the technical consultants on fiber mill operation, and were considered appropriate and economical for use under west African conditions, within the limitations of current fiber mill technology as applied to industrial fibers.
The exhibit also shows the investment which would be required for working capital, and segregates the investment in working capital items into those items such as the 6t-li supply inventory (lubricants, treating oIls, etc.) and miscellaneous spare parts for equipment, which would involve an investment in foreign currency, and other working capital items, such as the raw material inventory, finished goods inventory, payroll, and provision for accounts receivable, which might be met with local currency.
Assuming depreciation on machinery, equipment, and tools at 10 percent per year, and on buildings at five percent per year, total depreciation per ton of production at two-shift capacity operation, would range from a low of approximately $44 per ton (roughly 10,865 CFA) for a flat loom mill with a capacity of 5,240 metric tons on-two shifts to a high of $119.22 per metric ton for a circular loom mill of only 1,600 metric tons per year of capacity.
Investment cost considerations for flat loom mills are significantly lower than for circular loom mills of comparable capacity. The advantage of total depreciation charges associated with the flat loom mill as compared to a circular loom mill are estimated to be $40.14 (approximately 9,911 CFA) lower for the flat loom system at the 2,500 metric ton per year level and $11.16 ($2,756 CFA) per ton lower at 5,000 metric tons per year level.
The lower depreciation costs associated with the flat loom system would become even more important should market conditions or other unforeseen con tingencies reduce production to less than capacity levels. At 90 percent of two-shift capacity, the advantage in lower depreciation costs of the flat loom system amounts to $4.60 per ton at the 2,500 metric ton per year level, and $12.43 per ton at the 5,000 metric ton per year level.
At the 2,500 metric ton level of annual capacity the total production cost, including depreciation, is $32.22 (7,956 cFA) per ton higher for the circular loom system than for the flat loom system. At the 5,000 metric ton level of annual capacity, total estimated production cost of the flat loom system is $6.17 (1,522 CFA) per ton higher than for the circular loom system. The difference, roughly $32,000 (7,904,913 CFA) per year is almost exactly equal to the diffefence in estimated cost of providing expatriate technical aid and supervision, as recommended by the equipment manufacturers. If the estimated cost of expatriate technical aid and supervision as suggested by the circular loom manufacturer were to prove too conservative (or the estimate suggested by the flat loom manufacturer were to prove too high) the two systems could be considered approximately equal in total cost at the 5,000 metric ton per year level.
In the opinion of the study team, the sharply lower investment required in foreign currency and the lower total investment associated with the flat loom system, and the consequent advantage in reduced sensitivity to increased production costs associated with interruptions in production, might make the flat loom system more appropriate in the study areas considered. 1-49
Exhibit 13 compares key revenue and cost considerations affected by mill size. It should be noted that the manufacturing cost advantage of a large mill over a small one is primarily a matter of spreading fixed costs over a larger volume of production, and that in the study area, this advantage would be partially offset by the lower prices which would have to be charged to compete effectively in countries farther from the mill.
It should also be noted that the suggested rate of depreciation on capital equipment (10 percent) is lower than the rate used by FILTISAC in computing anticipated costs for its operation in Abidjan. (The rate used there was 18 percent.)
A comparison of anticipated revenues at competitive free market prices, detailed estimated costs, cash flow and earnings before interest and taxes, for flat loom mills of 5,240 metric ton and 2,620 metric ton capacity, using retted fiber, at the optimum economic locationin Togo, Upper Volta, and Niger, is presented in Exhibit 14.
On a free market basis, the maximum opportunity for profitable operation on a pro-forma basis, is offered by a 5,240 metric ton mill in Togo. But a 5,240 metric ton mill is not required to satisfy the fiber product requirements of Togo.
At the 2,620 metric ton capacity level, mills in either Togo or Niger could barely cover their depreciation.charges when operating at 100 percent of two-shift capacity. Any interruption in output would be likely to result in unprofitable operation.
In NT-ger, a 5,240 metric ton mill could not be operated profitably, even at 100 percent of two-shift capacity, because of the reduced net mill prices necessary to sell the output in excess of Niger's requirements in other countries at delivered prices which would be competitive with other suppliers.
In Upper Volta, the penalty of high transportation costs on finished products is so great, and the proportion of finished products which would have to be shipped to other countries is so high, that neither a 5,240 metric ton mill nor a 2,620 metric ton mill could be operated profitably.
It is possible to raise the average price a mill would receive for its finished product by imposing a protective tariff on competitive items imported into the domestic market.
Any tariff penalty which significantly exceeds costs of transportation from an adjacent country where fiber materials are available at competitive world market prices would create an incentive for smuggling and create pro blems of tariff collection and enforcement. To the extent that such smuggled products reduced demand for domestically produced and tariff protected fiber products, they would defeat the purpose of the tariff, or make it necessary to subsidize the high cost production by other means. 1-50
A tariff set at a rate which would permit the price of locally manufactured products to be increase to the same level which would be required if free market fiber products were bought in an adjacent country and transported by a less direct route could probably be enforced without serious difficulty, if the rate of tariff accurately reflected the cost of transportation and handling which would be required to avoid the tariff. Any higher rate would encourage smuggling or tariff avoidance.
Another factor which merits consideration in determining the advisability of establishing a tariff to enhance the profitability of a fiber mill's sales in its domestic market is the nature and end use of the fiber products. Where the fiber products would be used for collection and shipment of ground nuts, raising the cost of fiber bags might provide just the additional incentive necessary to induce conversion to bulk handling. If this should occur, the tariff protection would obviously be self-defeating.
The desirability of imposing the additional cost burden of a protective tariff on packaging material required by an existing export industry in order to support some additional industrial employment within a country involves social and political questions as well as economic considerations. A capital investment which depends for its rate of return on an artificial tariff pro tection, which might be eliminated in case of political changes in the country, would necessarily require a higher return than would an investment which could produce a satisfactory profit on its basic economic merits alone.
While the determination of a satisfactory rate of return on a mill investment subject to a high degree of political risk by reason of dependence on tariff protection is beyond the scope of the present study, Exhibit 1B shows the estimated maximum enforceable protective tariff which could be imposed in each of the-study countries, and Exhibit 16 shows how the application of such tariff protection might be reflected in the pre-tax operating profit and cash flow of a fiber mill in each of the countries for which mill feasibility was studied in detail.
Because of its location on the coast, and the relative scarcity of port facilities at points not readily policied for customs enforcement, it would probably be possible to impose a higher protective tariff in Togo than in either Upper Volta or Niger. The fact that both of Togo's coastal neighbors, Dahomey and Ghana, have either begun development of a fiber Industry and Impose tariff to protect it, or contemplate doing so, would make it easier to apply an effective tariff in Togo than would be the case in an interior country such as Niger or Upper Volta, both of which border on one or more countries which permit the import of jute products subject to revenue tariffs only.
A. Economies of Retted Fiber Compared to Unretted Fiber
A comparison of operating costs for mills of the same size, but using retted fiber in one case and unretted fiber ribbons in the other is shown in Exhibit 17. It will be noted that use of unretted fiber increases direct cost in the mill, and also increases the cost of moving the raw fiber from farm to mill, because of the sharply higher waste of fiber encountered in carding and spinning. (Roughly 13 percent more unretted fiber is required per metric ton of product.) 1-51
In the countries of the study area, the relatively high wages commanded by mechanics and operators qualified to run mechapical equipment in the interior areas as compared to the "working day earnings" of peasant farmers, and the high costs of amortization, fuel, and supplies for mechanical ribboning completely offset the lower cash price which might be acceptable to the farmers for growing kenaf and selling it unretted.
The use of unretted fiber has the further disadvantage of having no significant world market and, hence, of being unable to make a contribution to foreign exchange earnings, except as it might be substituted for retted fiber which would be saleable on world markets.
There is some production of hand stripped ribbons in Nigeria which are sold to the Jos mill. However, they command a low price and the mill is unable to use more than 15 percent of the raw ribbons in their normal production. Where water is available for retting, farmers prefer to produce retted fiber since it commands a higher price.
B. Effect of Using Imported Fiber on Cost and Cash Flow of a West African Fiber Mill
The effect of using imported fiber on production cost of a fiber mill would be to increase direct costs by an amount equal to the difference between:
1. The difference between the landed value of imported fiber and a comparable mixture of African fiber at the dock ready for export (approximately 10,000 CFA, or $40.50) plus -
2. The cost of delivering the imported fiber to the fiber mill from the dock, less:
3. The cost of delivering fiber from the African farm production areas to the fiber mill.
The formula described is equal to comparing:
1. Landed price of imported fiber per metric ton, plus cost of-transport to the fiber mill, per metric ton
with
2. Farm price of domestically produced fiber, priced at a level which would make it competitive in world markets, plus the cost of trans port from farm to fiber mill.
The effect, for each of the study areas, would be to increase production cost and correspondingly reduce cash flow and pre-tax profits by the amounts shown in Exhibit 18. The severity of the penalty which would be imposed by using imported Far Eastern fiber, as compared with using African fiber, purchased from customers in quantities equal to their tonnage purchases of finished pro ducts, ranges from about $61.00 per ton to nearly $127.00 per metric ton for large mills, and from a little under $48.00 per metric ton to nearly $137.00 in the case of smaller mills, as shown in Exhibit 19. 1-52
In all cases, the more distant the mill from the coast, the higher the cost penalty for using imported fiber. And, the added cost of using imported fiber would render mill operation unprofitable. It is clear, from a free market standpoint, that use of imported far eastern raw fiber would place mill operation under too severe a handicap for this expedient to be financially practical, regardless of the social desirability of the industrial employment which would be created by a fiber mill. In each of the countries for which mill economics was examined, the cost penalty of using imported oriental fiber would render the operation unprofitable.
While tariff protection for a mill with capacity not too far in excess of domestic fiber product demand might divert sufficient revenue from users of fiber products to give a mill a marginal prospect of acceptable profit ability, this could be possible only if the mill makes use of African fiber.
While it is true that a fiber mill in the region will speed establishbent of the local market for raw fiber, such mills are already under construction or in operation.
Therefore, at this time, the optimum economic return is likely to be obtained from development of raw fiber production on a commercial scale, and re-consideration of the desirability of building an additional fiber mill when raw fiber production exceeds Tocal fiber product consumption. Since none of the countries in the study area is now producing sufficient retted fiber to satisfy the raw material requirements of a fiber mill, but all of the countries included in the Agronomic survey could profitably produce fiber if they choose to do so, and since several years will be required to develop sufficient fiber production to meet the needs of a new fiber mill (and to supply mills already in operation or under construction) cost cal culations have assumed the proposed fiber mill should be built only when these countries are producing sufficient raw fiber in total to supply the mill. It has been further assumed that the fiber mill would purchase raw fiber tonnage from customer countries in the study'area equal to their pur chases of finished products. While this practice would add roughly .$13.00 to $30.00 to the cost of the mill's raw fiber per metric ton of product, compared to costs which might be obtained by purchasing all fiber from areas in the immediate Vicinity of the mill, the reciprocity involved would tend to assure sufficient demand for the mill's output to maintain operation at 100 percent of capacity (an impor tant consideration, since operation at 90 percent of capacity as compared to 100 percent might increase total costs per ton by as much or more than the added cost of transportation of raw fiber). It would also permit the countries buying fiber products from the mill to protect the portion of their raw fiber output covered by such a reciprocal agreement from the sharp and unpredictable price fluctuations which affect the world market for raw fiber.
This assumption that some of the mill's fiber needs might have to be purchased from more distant areas also allows for the significance of the mix of fiber qualities which might actually be produced on farms near the mill. I-53
If the farms close to the mill do not produce sufficient Grade A fiber, for example, some tonnage of the fiher fiber will have to be transported from areas where such fiber is available, or additional processing costs roughly equal to the added transportation expense would be incrred in order to use the lower grade fiber. On the other hand, if the fiber produced in the'Vicinity of the mill has a higher average value than the maximum mixture shown for purposes of cost calculation, It would be more profitable to the national economy to sell the higher value fiber on the world market and satisfy the mill's requirements for low-grade fiber from other African sources more distant from the'mill.
At some future time, when raw fiber production in west Africa reaches levels which will permit these countries to supply their mill requirements and also cultivate export markets, and raw fiber production in the vicinity of a fiber mill becomes large enough to satisfy all of the mill's require ments, this saving in transportation cost could increase the mill's cash flow and earnings potential by some $12.00 to $30.00 per metric ton, pro vided customers would be willing to continue their puchases of finished pro ducts without having a price-quaranteed-market for equal tonnage of raw fiber. (Ifthe price level for raw fiber were to remain stable, this same result would be achieved by selling the fiber purchased from customer countries on the world market, and buying equal quantities and qualities of fiber from the areas closest to the mill.)
This potential cost reduction per ton of fiber output, if all fiber could be purchased from the vicinity of the mill in the most ecnomical mix of fiber grades, is also shown in Exhibit 18. Since it is impossible to predict with certainty the exact grades of fiber which would be produced in the vicinity of the fiber mill, and the proportion of fiber in each grade, the opportunity to achieve this maximum economy in raw fiber cost probably would not be attainable until the farm areas close to the mill are producing substantially more raw fiber in total than would be required to supply the mill.
C. Cash Flow Analysis
A cash flow analysis of mTll operation in the absence of tariff protection for the most economical combination of factors examined in the study area countries (i.e., a mill at Sokode, Togo) is -shown in U.S. dollars in Exhibit 20. In the opinion of the study team, this rate of return would not be attractive to private investors on an equity investment basis.
Columns a, b, and c of Exhibit 20 show the investment in both foreign currency, African currency, and in total, which would be required to establish a fiber mill of 5,240 metric tons capacity in Sokode, Togo.
It is estimated that approximately two years would be required from the placement of a firm order for mill equipment and contract for mill construction to complete all construction work, deliver and install all mill equipment, and train the necessary labor force to be in a position to produce a saleable pro duct. While plans for fiber mills in other African countries of the study area have called for completion of a mill within eight months from the date of accep tance of an equipment proposal, the apparently inevitable delays in shipments, and in construction, have resulted, in practice, in an elapsed time of two years before commercial levels of production are achieved. This experience is, accord ingly, reflected in our calculations. 1-54
Direct costs of a 5,240 metric ton flat loom mill in foreign currency, African currency, and in total, as identified in detail -inExhibit 14, are shown in columns d, e, and f.
Columns g, h, and I show the fixed operating expenses of the mill in foreign ctrrency, African currency, and in total, insofar as such operating expenses would require actual cash outlays.
Columns j, k, and I show the total currency outlays, both during the two-year investment period and during the years of mill operation.
Column m shows the dollar value of sales in African currencies of the mill 's production at two-shift capacity. Column n shows the net cash avail able For depreciation charges, return on investment (and for payment of interest charges, if part of the mill's capital structure consists of fin ancing on which interest would have to be paid).
Column o shows the net cash position at the end of the year.
The calculations in Exhibit 20 assume that all raw fiber would be paid for in African currency. While some of the expenses of producing the raw fiber (i.e., fertilizers, vehicles, and fuel for the collection and trans portation of raw fiber, etc.) would involve foreign currency, such expenses would not normally be segregated in the books of account of the fiber mill.
The discounted cash flow return on the mill investment, in the absence of tariff protection, is approximately 3.4 percent ... which would not be attractive to private investors. inasmuch as this return is below the current interest rate on either long term or short term commercial loans, even the application of liberal loans for fixed and/or operating capital would not pro vide sufficient leverage to make this type of investment attractive to private investors.
Even if the entire cash flow is applied to amortization of foreign currency investment, without allowance for interest charges, cash flow would be insufficient to amortize the foreign currency investment until the eighth year. Without allowance for interest costs, the cash flow from operations would not equal total investment until close to the end of the 14th year after the project is started.
An annual cash flow of $356,000 would represent an attractive return (i.e., 17 percent discounted) on a private investment of not more than $2,050,000 of private capital. The significant benefit such a project might have for the area's balance of payments position, however, suggests that it might be in the long-range interest of the area for one or more of the countries concerned to guarantee to pay up to $2,162,000 in local currency to cover transportation of equipment from port to mill site, cost of locally-produced construction materials, wages of local construction labor and miscellaneous start up costs in local currency, in return for a 75 percent share of cash flow revenue in excess of $356,000 per year and representation on the board of directors of the enterprise. 1-55
If this guaranteed investment in African currency is made with funds obtained at six percent on income debentures having a second priority claim on the revenues of the mill (i.e., to be paid from the government's 75 percent share of cash flow revenues in excess of $356,000 per year); and the mill is located at Sokode in Togo, the imposition of a protective tariff at the maximum enforceable level would permit a pricing policy which would, generate about $206,510 of additional annual cash flow in excess of $356,000. The government's share of this amount, $154,875, would be sufficient to cover the interest charges on the bonds, and payments on a sinking fund which would betsufficient-to retire the bonds in roughly 50 years.
If the preferred equity investor's 25 percent participation in cash flow revenues in excess of $356,000 per year is delayed until after the government's investment is repaid, the bonds could be retired in approximately 22 years.
Under such an arrangement, the private investors would be responsible for supplying and arranging for terms of payment on the necessary capital equipment and engineering services required for design and installation of the mill facilities as well as recruitment and direction of the expatriate technical and supervisory personnel required for mill operation.
It should be noted, however, that even a scheme of this kind could not prove financially feasible unless and until an adequate supply of raw fiber is produced in these West African countries to satisfy the raw material requirements of the mill. In the case of the mixture of fiber grades used for illustrative purposes in this report, for example, total production of fiber might have to exceed mill requirements by roughly 50 percent in order to offer an adequate selection of grades and prices of fiber to permit optimization of raw fiber cost through selection of the most economical mix of fiber grades and prices.
D. Mill Operation and Balance of Payments
The effect of the operation of a fiber mill of 5,240 metric ton two-shift capacity on the balance of payments position of the entire region is shown in Exhibit 21. For the region as a whole, the investment in foreign currency required to set up and operate a new 5,240 metric ton fiber mill could be recovered in savings in foreign currency by the end of the fifth year after the project is started (i.e., by the end of the third year of full scale mill operation).
The effect of such a mill on the balance of payments position of the country in which the mill is located and of the countries which would serve as suppliers of retted fiber -and customers for the mill's output is shown in Exhibit 22.
By comparing Exhibits 21 and 22, it is apparent that countries devoting their efforts to fiber production will realize a more immediate improvement in their balance of payments positions than will the country which undertakes the establishment of a fiber mill. While the foreign currency Investment needed to generate a commercial volume of fiber production can be recovered from-.the sales value of fiber production within five years, it requires nearly 10 years for the operation of the mill to balance out the foreign currency out lays, even if all costs for raw fiber purchased from other African countries are, considered expenses in African currency, and all profits generated by mill operation are reinvested in the country in which the mill is located, rather than withdrawn in foreign currency. I-56
If the raw fiber is evaluated in terms of its potential alternative value as a direct source of foreign currency earnings to the extent its sales value in foreign currency exceeds the direct expenses in foreign currency likely to be required to produce and market it, it is clear that whichever African country undertakes establishment of a fiber mill under takes a more serious balance of payments burden than do countries which concentrate on fiber production.
r WEST AFRICA Potential Kenaf producing areas NIGER and existin'g Bag Mills
TILLABERI I- 150 . )3 DOGONDOUTCHI z ARADI w OLTA NIAMEY . * -
OUGADOUGOU 0 FADA N'GOURMA . O '.1 N. ~. BOBO DIOULASSO / r- LEO A 0O --- 0 D3 r------***e..(U .- f'DDA HOM EY .::::;*W yr 1DIEBOUGOU > tu :: .f .. DAPONGO . FERKESSEDOUGOU A ; . NIGERIA 1BOUNDILAI KANDAO O G\ DLAMA KARA( 100 .. KORHOGO - 1 JOS SBOUNA ) 0 SOKODE / BOUNDOUKOU J 0) GHANA ?OBLITTA BOUAKE 0 / /ATAKPAME ATAKPAO0 j BOHICON omo IVORY COAST M KUMASI TOGO BADAGRI \4$A~AGOS -\~-COTONU ABIDJAN ACCRA LOME
5o
0 POTENTIAL KENAF AREAS Bureau for Africa I 1 BAG MILLS AGENCY FOR INTERNATIONAL DEVELOPMENT 1968 CAPITAL CITIES 1-A RAIL LINES IN KENAF STUDY AREA
I- NIGER z w 15
VOLTA
Ougodougou NIG IA Ngum Maiduguri Kano
Bauchi
GHANA chan
IVORY COAST
Kumasi
-5
Port Harcourt
AGENCY FOR INTERNATIONAL DEVELOPMENT Bureau for Africa 1968 EXHIBIT 2
DOLLAR VALUE PER METRIC TON OF SELECTED INTERNATIONALLY TRADED AGRICULTURAL COMMODITIES (March 1966)
Value Dollars CFA Market (M)
Jute--Pakistani Firsts 363 89.7 London
"B" Siam Jute (Est.)1 205 50.7 London
Cotton--Sudanese 847 209.1 Liverpool
Groundnuts (Shelled)-- Nigerian .187 46.2 London
Coffee--Ivory Coast 737 182.1 New York
Cacao--Ghanian 489 120.9 New York
Palm Kernels--West Africa 162 40.0 C.I.F. European Ports i Sisal--East African 214 52.8 London
Sisal--West African (Est.)2 150 37.1
1 It is assumed that the average quality of the kenaf crop which could be grown in West Africa might have a market value roughly comparable to the "B" grade of Siam jute, which is a variety of kenaf.
2 Assumes West African sisal might be approximately equal in quality to Brazil's sisal, which is produced on a small-farm basis, in contrast to the higher quality plantation sisal of East Africa.
Source: International Financial Statistics (International Monetary Fund), August 1966, pp. 26-29, converted to metric ton basis.
F EXHIBIT 3
PRICE AND VALUE RELATIONSHIPS OF SELECTED GRADES OF SOFT INDUSTRIAL FIBERS (Estimated Average value Per Ton in CFA and U.S. Dollars)
West African Ports cenaf Type Major Markets1 Delivered For Shipment2 Fibers CFA CFA $ CFA $
Super "A" 59,940 242.76 64,940 263.01 54,940 222.51 Selected "A" 57,315 232.13 62,315 252.38 52,315 211.88 Siam A 52,500 212.63 57,500 232.88 47,500 19.2.38 Siam B 48,650 197.03 53,650 217.28 43,650 176.78 Siam C 41,125 166.56 46,125 186.81 36,125 146.30 Cuttings 29,400 119.07 34,400 139.32 24,400 98.82
Examples of Price Relationships Between Jute Type Fibers for Shipment in September and October 1966 (Value Per Metric Ton)
Pounds4 Dollars CFA1 '3
Jute LJA Firsts--Nepal 128.00 363.00 89,600 Lightnings-- Pakistan 128.00 363.00 89,600 Lightnings--Nepal 117.00 332.00 81,900 Hearts--Pakistan 121.00 343.00 84,700 Hearts--Nepal 107.00 303.00 74,900 Cuttings--Nepal 62.50 177.00 43,750
Siam Jute (Kenaf) Super "A" 86.25 242.00 60,375 Selected A 83.25 236.00 58,275 A 77.50 220.00 54,250 B 72.50 205.00 50,750 C 62.50 177.00 43,750 Cuttings 43.50 123.50 30,450
1 Converted at 1 Pound = 700 CFA and 1,000 CFA = $4.05.
2 Assumes shipment from deepwater ports. Values would be lower by cost of lighterage (approximately $2.85 or 705 CFA per ton) from shallow water ports.
3 Does, not include cost of shipment to West African ports.
4 Fractional values of 1 Pound have been shown in decimal notation rather than in shillings and pence. ESTIMATED TRANSPORTATION COSTS LIKELY EXHIBIT 4 TO AFFECT FIBER INDUSTRY
COST PER METRIC TON (Equals approximately 1,000 sacks)
Mill Location7 Ivory Coast Togo Upper Volta Niger Mali CFA Growing Area $ CA $ CFA $ CFA CFA
1 Raw Fiber From Farm to Mill
Ivory Coast 21.65 5350 56.17 13870 16.52 4080 80.60 19900 51.84 12800 2 Togo 52.60 13000 13.10 3240 54.19 13380 59.45 14680 95.00 23460 Togo 3 32.40 8000 19.80 4900 24.46 6040 25.49 6540 67.47 16660 2 Upper Volta 20.90 5160 42.69 10540 3.24 800 46.37 11450 33.70 8320 3 Upper Volta 40.56 10015 31.75 7840 22.34 5515 43.80 10815 64.56 15940 Niger 68.04 16800 46.33 11440 50.18 12390 12.56 3100 92.18 22760 Mali 38.39 9480 60.18 14860 33.70 8320 83.43 20600 10.37 2560
Finished Product to Principal Markets, Compared to Freight from Oriental Shipping Points4
24.30 6000 Dahomey ( 4.05) 1000) ( 5.27) ( 1300) .25.84 6380 20.25 5000 Ivory Coast (22.28) 5500) ( 8.10) ( 2000) .65 160 4.05) 1000) 14.18 3500 Togo 4.05) 1000 (24.30) ( 6000) 20.25 5000 21.99 5430 10.77 2660 Upper Volta == 20.25 5000 (19.28) 4760) 1.40) 345) (23.00) 5680) Niger5 4.05) 1000) 20.25 5000 ( 9.50) 2345) (61.97) (15300) 72.90 18000 Niger6 4.05) 1000) 20.25 5000 ( 1.40) 345) (53.87) (13300) 6480 16000 Mali = 4.66 1150 (23.00) 5680) 40.46 9990 (56.70) (14000) Senegal = 9.11 2250 16.20 4000 40.46 9990 32.40 8000 Mauritania = 9.11 2250 16.20 4000 40.46 9990 28.35 7000 Gambia = 9.11 2250 16.20 4000 40.46 9990 28.35 7000 Sierra Leone - 9.11 2250 16.20 4000 40.46 9990 28.35 7000 4.05) 4000 40.46 28.35 7000 Liberia ( 1000) 9.11 2250 16.20 9990 Nigeria ( 4.05) 1000) 9.32 2300 12.80 3160 1.62) 400) 28.35 7000 Ghana ( 4.05) 1000) 8.10 2000 12.80 3160 32.40 8000 28.35 7000 Guinea = 9.11 2250 16.20 4000 40.46 9990 28.35 7000
1 Includes cost of travel on poor roads to typical rural market villages and average distance over best available roads to town considered as possible site for mill.
2 Cost of transportation from region considered likely to provide best yield from agronomic standpoint.
3 Cost of transportation to region considered suitable for fiber crop, but where rainfall, soil conditions, or other factors are less suitable than in areas for which transportation costs are shown on line noted (2).
4 Figure showniis amount by which transportation cost from selected West African production location to principal distribution center, from which bags, -sacks, or jute packaging materials are normally distributed, would exceed cost of shipment from Calcutta. Figure in () indi cates lower cost for West African location. Where transportation costs would be the same from West African location as from Calcutta, an equal sign (=) is used. Freight from Calcutta to West African ports was computed at 6000 CFA ($24.30) per ton. Freight charges within West Africa were computed from official tariffs of railroad and motor carriers operating in the area, including charges for re-handling and transshipment where necessary. Costs for shipment from West African mill location to distribution center are the lowest combi nation of-truck, rail, and/or water freight available, regardless of distance.
5 Import via Dahomey.
6 Import via Nigeria.
7 Mill locations assumed for calculation of transportation cost: Ivory Coast - Abidjan Togo - Sokode Upper Volta - Banfora Niger - Niamey Mali - Segou FARM PRICE PER TON FOR RETTED FIBER TO COMPETE FOR WORLD EXPORT MARKETS
Fiber Grade: C Average Proportion: 30% 35% 35%0 100% Currency: CFA CFA CFA CFA
Country Ivor Coastl 150.32 37, 115 134.72 33,265 104.25 25,740 137.30 33,900 Togo 158.86 39,225 143.27 35,375 112.79 27,850 145.84 36,010 Togo3 152.14 37,565 136.63 33,735 106.07 26,190 139.12 34,350 Upper Volta 2 151.13 37,315 135.57 33,475 105.10 25,950 138.15 34,110 Upper Volta 3 140.23 34,625 124.64 30,775 94.16 23, 250 127.21 31,410 Niger 118.12 29,165 102.61 25,335 55.85 13,790 105.10 25,950 Mali 133.43 32,945 117.83 29,095 87.36 21,570 120.41 29,730
1 Average for areas close to rail transport and areas which would require substantial transport to rail head.
2 Best area for fiber production.
3 Areas considered suitable for fiber production but likely to have somewhat lower average yields than best areas.
NOTE: The foregoing prices are based on cost of grading, sorting, and baling of fiber at $12.15 (3,020 CFA) per ton at rural collection points and most economical freight to export port. 0 EXHIBIT 6
ESTIMATED NORMAL ANNUAL REQUIREMENTS FOR NEW JUTE AND ALLIED FIBER PRODUCTS4 (inTons)
Current Committed Anticipated Study Countries With 1967 Local Import Additions to 1970 Local Anticipated 1970 Import 1970 Export out Existing Mill Demand Capacity Production Requirements Capacity 1966 Capacity 1970 Demand Requirements Capability Togo 1,250 1,250 2,160 Upper Volta 200 = 200 505 Niger 1,4oo 1,275 Sub-Total 2,850 - 2,850 5,240 3,940 1,300
Mali 2 850 Combined Sub-Total 3,700 4,200 5,240 1,300 ,Mauritania 6 6 7 Senegal 3 350 350 400 Gambia 650 0 600 Sub-Total 1, 006 6 1007 1,007 1goo Guinea 900 900 930 Sierra Leone 1,100 1,100 1,160 Liberia 400 400 443 Sub-Total 2,400 2,400 2,533 2,533 Countries with Mills
Dahomey 500 5,000 2,000 (Est.) 500 5,240 1,100 Ivory Coast 6,265 4,350 4,350 (Est.) 1,195 2,150 6,500 6,420 80 Ghana 10,000 12,000 1,188 (Est.) 8,822 12,000 12,000 Nigeria 13,000 13,000 (Est.) 14,o4o 10,000 23,000 5,000 Sub-Total 37,805 34,350 20,538 24,277 12,150 47,520 5"000 Total Study Area 44,911 34,350 20,538 31,383 46,740 56,500 9,840 1,380
Assumes a fiber mill of indicated capacity might be built in one of the three countries listed. If such a mill is not built, these countries will have to meet their needs from imported fiber products. 2 Mali is currently attempting to develop fiber production and anticipates installation of a mill if fiber production appears feasible.
Excludes hard fibers -- e;g., sisal. 4 Ivory Coast mill currently under operation. 5 Equipment installation not complete. Non-technical problems have limited operations. Estimate of 1967 Import requirements assumes 1966 production 6f 1,188 tons of product could be repeated. 6 Nigeria is attempting use of 15 percent unretted 'fiber for part of raw fiber requirements. EXHIBIT 7
PRODUCT PRICE IMPLICATIONS OF TRANSPORTATION COSTS PER TON OF PRODUCT FOR WEST AFRICAN MILLS COMPETING FOR WOPLD MARKETS
CFA Dollars
Standard B Twill sacks, per 1,000 (one-ton), delivered to major world ports, from India or Pakistan 90,000 364.50 Less Average cost of shipment from- West African port to major world markets 10,000 40.50 Equals World.market value at port for export to non-African markets 80,000 324.50
Value at mill location (i.e., less freight to port and handling costs) Ivory Coast--Abidjan 79,500 321.98 Togo--Sokode 76,450 309.62 Upper Volta--Banfora 67,650 273.98 Niger--Niamey 66,090 267.66 Mali--Segou 66,000 267.30 PRICING IMPLICATION OF TRANSPORTATION COSTS FOR WEST AFRICAN FIBER MILLS SERVING WEST AFRICAN MARKETS (Net Mill Prioe-Excluding Freight-Required to Equal Delivered Price from India or Pakistan)
Mill Location Ivory Coast Togo Upper Volta Niger Mali Market CFA -L CFA CFA CFA CFA
Ivory Coast 366.53 90500 348.30 86000 339.55 83840 344.25 85000 326.03 80500 Togo 344.25 85000 383.78- 94760 319.95 79000 318.21 78570 329.43 81340 Upper Volta 366.53 90500 319.95 79000 388.80 96000 341.60 84345 363.20 89680 Niger 360.45 89000 319.95 70000 341.60 84345 418.37 103300 275.40 68000 Mali 340.20 84000 335.54 83850 387.50 95680 299.74 74010 421.61 104000
Dahomey 344.25 85000 345.47 85300 314.36 77620 319.95 79000 31'5.90 78000 Senegal 340.20 84000 331.09 81750 324.00 80000 299.74 74010 332.10 82000 Mauretania 340.20 84000 331.09. 81750 324.00 80000 299.74 74010 336.15 83000 Gambia 340.20 84000 331.09 81750 324.00 80000 299.74 74010 336.15 83000 Guinea 340.20 84000 331.09 81750 324.00 80000 299.74 74010 336.15 83000
Sierra Leone 340.20 84000 331.09 81750 324.00 80000 299.74 74010 336.15 83000 Liberia 344.25 85000 331.09 81750 324.00 80000 299.74 74010 336.15 83000 Nigeria 344.25 85000 349.52 86300 327.40 80840 366.12 90400 336.15 83000 Ghana 344.25 85000 348.30 86000 327.40 80840 307.80 76000 336.15 8300d Other World Markets 321.98 79500 309.62 76450 273.98 67650 267.66 66090 267.30 66000
NOTE: Assumes average freight cost of 6000 CFA ($24.30) per ton from India or Pakistan 00i to West African ports. EXAMPLES OF MINIMUM COST MIXTURES OF RETTED FIBER SUITABLE EXHIBIT 9 FOR ONE TON OF "B TWILL" SACKS FOR MILL EQUIPPED TO PROCESS LOW-GRADE FIBERS
Approx. Price @ W. Afr. Ports Fiber-Grade Quarter-4. 1966 Ya rn Extension Cloth txtensior % CPA
Using Imported Fiber Warp--l Pound Siam A 57,500 80 46,000 Siam C 46,125 20 _9.250 100 55.,250 x 40 22,100
Weft--33 Pound Siam C 46,125 50 23, 063 Siam A 57,500 25 14,375 Siam Cuttings 34,400 25 8,600 100 x 60 Average cost per ton, C.I.F. port -49,723 Port charges and delivery to mill, Sokode, Togc 5,032 Total inventory cost per ton 54, 755 ($221.76)
- World Maiket Value at Farm
Using West African Fiber Warp- 11 Pound Grade A 39, 225 80 31,380 - Grade C 27,850 20 5,570 100 36,950 x 40 14,780
Weft--33 Pound Grade A 39, 225 25 9,806 Grade C 27,850 75 20 888 100 304 x 60 Total value to farmer per ton 33,196 Cost of sorting, grading, and baling 3,020 Cost of delivery to mill 3,240 Total inventory cost per ton 39,456 ($159.80) Cost of comparable mixture at mill in India or Pakistan per ton1 43723 ($177.08) Difference in fiber cost 4,267 ($ 17.28)
1 Summary of fiber input by grades:
Siam A or equal (80% x 40%) + (25% x 60%) = 32% + 15% = 47% Lower grade fiber (20% x 40%) + (75% x 60%) = 8% + 45% = 53%
2 Estimated cost of comparable mixture at mill in India or Pakistan:
Local fibers Siam A or equal 47% @ L 77 (54,250 CPA) = 25,497.5 CPA Local fibers Siam C or equal 15% @ L 62 (43,750 CPA) = 6,562.5 Local fibers priced as Siam cuttings* 38% @ L 43 (30,450 CPA) = 11,571.0 Sub-Total 43,631.0 CFA Licenses, taxes, etc. (est.) 92.0
Total 43,723.0 CPA
Conversion @ 1,000 CFA = $4.05 $177.08
* Lower grades of Indian and Pakistani fibers not normally offered for export range in quality from Siam cuttings to the equal of Siam C, but command prices approximately equal to cuttings imported from Siam. The mixture of grades shown would be a working -equivalent to the mixture of kenaf fibers shown for the West African mills. COMPARISON OF LOCAL LABOR COSTS FOR MILL OPERATION (includes All Taxes and Social Charges)
Cost Per Shift Per Worker Per Week (48 Hours) Upper Ivory Togol Volta 2 Niger 3 Mali 4 Coast5 -t CFA -L CFA $ CFA $ CFA $ CFA Class of Worker Unskilled 4.85 1,200 7.30 1,800 6.80 1,680 7.97 1,968 12.00 2,976 Semi-skilled 7.80 1,920 10.95 2,690 14.42 3,560 13.00 3,208 16.00 3,960 Skilled 13.30 3,270 17.20 4,250 19.36 4,780 21.30 5,280 26.80 6,625
Local Engineer/Technician 92.50 22,800 129.00 31,800 166.09 41,000 152.32 37,600 220.60 54,480 Foremen 46.25' 11,400 64.50 .16,900 83,04 20,500 76.16 18,800 110.00 27,240 Accountants 51.90 12,800 72.20 17,800 93.41 23,060 85.07 21, 000 124.00 30,645 Clerks 13.20 3,260 19.50- 4,800 19.36 4,780 19.69 4,860 26.80 6,625
1 Zone 3 (Centrale)--Sokode
2 Plant at Banfora (Zone 1)
3 Plant at Niamey
4 Plant at Segou
5 Plant at Abidjan
Note: Cost for Ivory Coast is for Abidjan. Cost for other countries is for region most w Suitable for fiber production. H
H 0 EXHIBIT 11
COMPARISON OF OPERATING COSV1 OF MILLS USING PETTED FIBER (Minimum Costs for Study Area)
Flat Flat Circular Flat and Circular 2, 620 Tons 2,400 Tons 1,600 Tons 5.240 Tons 5.00 Tons 4,350 Tons CPA CPA CPA$ CFA CPA CPA Direct Costs Direct Labor 9,830 39.81 10,540 42.68 13,120 53.13 9, 020 36.53 -9,000 36.45 11, 225 45.46 Electricity 4,890 19.80 4, 900 19.85 4, 890 19.85 4,890 19.80 4, 900 19.85 4,630 18.75 Water for Humidification 700 2.84 700 2.84 700 ,2.84 700 2.84 700 2.84 700 2.84 Sub-Total 15,420 62.45 16,140 65.37 18,720 75.82 14,610 59.17 14,600 59.13 16,555 67.*05 Raw Fiber (allowing farmers only competitive world marcet prices) 39,500 159.98 39. 500 159.98 I - 39,500 L599 39,500 159.98 39, 500 159.98 39,500 159.98 Sub-Total (direct costs in local currency) 54,920 222.43 55,640 225.34 58,220 235.00 54,110 219.15 54,100 219.11 56,055 227.02 Oils and Emulsions to Treat Fiber Lubricants, Replacement Parts, Mill Suppligs etc. . 5-548 22.47 5.795 23.47 5,795 23.47 5,548 22.46 5.795 234 61.00 Sub-Total (direct costs in foreign currency) 5.548 22.47 5.795 23.47 5,795 23.41 5,548 22.46 5,795 23.47 6,100 24.71 Sub-Ttal--Direct Costs Per Ton 60,468 244.90 61,435 248.81 64,015 259.27 59,658 241.61 59,895 242.57 62,155 251.73
Fixed Cosis Exclusive of DePreciation., Interest, nsed A~rmti4*ni4n of Tnveatment Indirect Labor (local personnel) 19, 309, 400 78,203.07 14,520,000 58, 806.00 12, 160, 000 49, 248.00 28,531,800 115, 553.79 12, 175, 000 49, 308.75 20,445,000 82,802.25 Indirect Labor--Average Per Ton) 7,370 29.85 6,050 24.50 7,600 30.78 5,445 22.05 2,435 9.86 4,700 19.04 Housing for Expatriate Technical Per sonnel,'Building Repairs and Mainte nance, Miscellaneous Taxes, Etc. 28,951,000 117,251.55 23,376.000 94,672.80 21,888,000 88,646.40 38,042,400 154,071.72 31,000,000 125, 550.00 33,147,000 134,245.35 Average Per Ton 11,050 44.75 9,740 39.45 13,680 55.40 7, 260 29.40 6, 200 25.11 7,620 30.86 Annual Expense in Local Currency 35,160,400 142,399.62 29,352,000 118,875.60 25,488,000 103,226.40 50,487,400 204,473.97 32,525,000 131,726.25 40,455,000 168,842.75 Aninal Expense Per Ton @ Two-Shift Cap. 13,420 54.35 12,230 49.53 15,930 64.52 9,635 39.02 6,505 26.35 9,300 37.61 Annual Expense in Foreign Currency 13, 100, 000 53,055.00 8,544,000 34, 603.20 8,560,000 34,668.00 16, 086,800 6S,151.54 10, 650, 000 43,132.50 13, 137, 000 53, 204.35 Annual Expense Per Ton @ Two-Shift cap. 5.000 20.25 3,560 14.42 5,350 21,67 3.070 12.43 2.130 8.63 3.020 12.23 Sub-Total (Per Year) 48, 260,400 195,452.62 37, 896, 000 153, 478.80 34, 048,000 137, 894.00 66, 574, 200 269,625.51 43, 175, 000 174, 858.75 53, 592, 000 217, 047.60
Average Fixed Expense Per Ton At Capacity 18,420 74.60 15,790 63.95 21,280 86.18 li,705 51.46 8,635 34.97 12,320 49.90 At 90 Per Cent of Capacity 20,446 82.81 , 17,527 70.98 23,621 95,67 14,103 57.12 9,585 38.82 13,675 55.38
Total Per Ton (Excluding Depreciation, Interest; and Amortization) Local Currency 68,340 276.78 67,870 274.87 74,150 300.31 63,745 258.17 60,605 245.45 65,355 264,69 Foreign Currency 10,548 42.72 9,355 37.88 11,145 45.14 8,618 34.90 6,925 32.10 9,120 36.94
Total at 100,Per cent of Capacity 78,888 319.50 77, 225 312.76 85,295 345.45 72, 363 293.07 68,530 277.55 74,475 301.63 Total at 90 Per Cent of Capacity 80,914 327.71 78,962 319.79 87,637 354.94 73,761 298.73 69,480 281.40 75,830 307.11
1 Costs calculated per ton of product. EXHIBIT 12 FIBER MILL INVESTMENT FACTORS
Annual Two-Shift Capactiv (in Tons) Flat Loom4 Circular Loom 2 2.620 5.240 2.400 5.000
Equipment, F.O.B. Supplier $ 980,0001 $1,680,0001 Freight to West African port 21, 2101 37,8751 Supervision of Erection 28,0001 Total Foreign Currency Investment, Fixed Capital* $1,029,210 $1,762,675 $1,570,000 2 $1, 883, 0002 $2, 200, 0002
Shipment to Mill Site 22,880 40,155 15,000 22,000 40,000
Sub-Total, installed value of equipment $1, 052, 090 $1,802,830 $1,585,000 $1,905,000 $2,240,000
Construction of Mill Buildings, Warehouse, and Housing for Expatriate Personnel 785,0001 1,050,0001 645,0002 765,0002 1,035,0002 Contingencies and Unforeseen 367,5101 5705701 446,0002 532.0002 665,0002 Sub-Total $2, 204,600 $3,423, 400 $2,676,000 $3,192,000 $3,930,000
Working Capital Six Months Raw Material Inventory $ 210,000 $ 419,000 $ 128,000 $ 192,000 $ 400,000 One Month Finished Goods Inventory 81,500 151,700 60,500 81,500 138,500 One Month Payroll 19,600 31,000 14,100 16,300 22,850 One Month Accounts Receivable 82,500 157,500 50,000 76,000 151,000 Three Months Supplies Inventory* 14,700 29,400 9.400 14,100 29,300 Sub-Total $ 408,300 $ 788,600 $ 262,000 $ 380,900-$ 741,650
Total Investment 2,612,900 4,212,000 2,938,000 3,572,900 4,671,650
Foreign Currency* 1,043,910 1,792,075 1,579,400 1,897,100 2,269,300 Local Currency 1,568,990 2,419,925 1,358,600 1,675,800 2,402,350
Depreciation Machinery, Equipment, and Tools at 10 per cent $ 105, 290 $ 180,283 $ 158,500 $ 190,500 $ 224,000 Buildings at 5 per cent 39,250 50,250 32,250 38.250 51,750
Total $ 144,540 $ 230,533 $ 190,750 $ 228,750 $ 275,750
Per Ton at Capacity 55.17 43.99 119.22 95.31 55.15 Per Ton at 90 Per cent of Capacity 61.29 48.84 132.45 105.89 61.27
IDetailed estimate supplied by James Mackie and Sons, Belfast, Northern Ireland 2 Turn-key estimate supplied by Fairbairn, Lawson, Conibe, Barbour, Ltd., Leeds, England
* Foreign Currency EXHIBIT 13
COMPARISON OF KEY REVENUE AND COST CONSIDERATIONS AFFECTED BY MILL SIZE, FLAT LOOM MILLS Sokode, Togo
Economy Two-Shift Capacity 2,620 Tons 5,240 Tons Of Scale
Anticipated Revenue Per Ton $377.05 $361.40 -$15.651
Direct Costs Per Ton Local Currency 222.43 219.15 Foreign Currency 22.47 22.46 Sub-Total 244.90 241.67
Available for Fixed Expense and Profit 132.15 119.73 - 12.42
Out of Pocket Fixed Expenses At rated capacity 74.60 51.76 At 90 per cent of capacity 57.12
Available for Depreciation and Financial Charges At rated capacity 57.55 68.27 + 10.72 At 90 per cent of capacity 62.61 + 5.06
Depreciation At rated capacity 55.17 43.99 At 90 per cent of capacity 48.87
Available for Financial Charges and Return on Investment At rated capacity 2.38 24.282 + 21.902 At 90 per cent of capacity 13.743 + 11.363
1 Larger mill must sell higher proportion of output in markets in which it has less freight advantage compared to Indian or Pakistani mill.
2 Would be $30.45 per ton at estimated costs of circular loom mill of 5,000 ton annual capacity compared to a flat loom mill of 2,620 ton capacity, for potential economy of scale of $28.07.
3 Would be $18.74 per ton at estimated costs of circular loom mill of 5,000 ton annual capacity, operating at 90 per cent of two shift capacity, for potential economy of scale of $16.36. EXHIBIT 14
COMPARISON OF COST AND REVENUE POSSIBILITIES FOR FLAT LOOM MILLS AT LOCATIONS CONSIDERED
Togo UPPer Volta Niger Mali Price quantity Revenue Price quantity Revenue Price uantity Revenue Price Ouantitv Revenue CFA Tons CPA CFA Tons CFA CFA Tons CFA CPA Tons CFA
oerating Revenues From Own Market--100% Togo 94, 760 2,160 204, 681, 600 79, 000 975 77, 025, 000 78, 570 800 62, 856, 000 81, 340 From Other Adjacent Markets, Upper Volta 79, 000 50 3,950, 000 96, 000 505 48,480, 000 84, 345 200 16, 869, 000 89, 680 505 45, 288, 400 On Basis of Maximizing Niger 1 79, 000 125 9,875, 000 84, 345 1,150 96, 995, 750 103, 300 1,275 131,707, 500 68, 000 Revenue While Serving Dahomey 85, 300 1,100 93, 830, 000 77, 620 110 8,538,200 79, 000 410 32, 390, 000 78, 000 Market in Major Countries Mali 82, 850 150 12, 427, 500 95, 680 1,500 143, 520,000 74, 010 55 4, 070, 550 104, 000 1,500 156, 000, 000 of West African Customs Nigeria 86, 300 1,655 142, 826, 500 80,840 1,000 80,840, 000 90, 400 1,900 171, 760, 000 83, 000 1,995 165, 585, 000 Union Other West Africans 81,750 - - 80,000 - - 74,010 -- 83, 000 1240 102, 920, 000
Total 5,240 467, 590, 600 5,240 455, 399, 950 5,240 419,653,050 5,240 469,793,400 Average Price Per Ton 89,234 ($361.40) 86,908 ($351.98) 80,086 ($324.35) 89,655 ($361.31)
Total for Smaller Plant Total 2,620 243, 919, 380 2,620 243,872,175 2,620 253,295,500 2,620 252, 333, 400 Serving Maximum Revenue Average Price Markets only (Operating Per Ton 93,099 ($377.05) 93,081 ($376.98) 96,678 ($391.55) 96,310 ($390.05) revenues and costs calc lated on basis of serving own market and most profi- Tons Per Year table adjacent markets) 2.620 5,240 2,620 5,240 2,620 5,240 2,620 5,.240
Selected Cost Factors (Per Ton) Direct Labor $ 39.81 $ 36.53 $ 55.70 $ 51.05 $ 71.60 $ 65.70 $ 65.30 $ 59.90 Electricity 19.80 19.80 22.60 22.60 24.05 24.05 10.60 10.60 Water 2.84 2.84 2.84 2 2.84 2.84 2.84 2.84 2.84 Raw Fiber 159.98 160.40 176.583 159.02 118.41 128.32 139.45 135.49 Imported Oils, Grease, Etc. 22.47 22.46 22.93 22.93 24.71 24.71 24.00 24.00 Local Indirect Labor 29.83 22.05 41.80 30.80 47.80 35.30 48.90 36.10 other Annual Expenses in Local Currency 24.40 16.97 24.40 16.97 24.40 16.97 24.40 16.97 Annual Expenses in Foreign Currency 20.25 12.43 20.25 12.43 20.25 12.43 20.25 12.43 Total Before Depreciation and Financial Charges $319.40 $293.48 $367.10 $318.64 $334.06 $310.32 $335.74 $298.33
Available for Depreciation and Charges 57.65 67.92 9.88 33.34 57.49 14.03 54.31 62.98 Depreciation 55.17 43.99 55.17 43.99 55.17 43.99 55.17 43.99 Available for Amortization, Interest, and Return on Investment $ 1.48 $ 23.93 (-$ 45.29) (-S 10.65) $ 2.32 (-$ 29.96) (-$ 0.86) $ 18.99 1 Since Dahomey has a sewing plant for manufacture of bags, it is assumed that Dahomey would purchase only cloth and thread.
2 Assumes that each "customer" country will be favored with fiber purchases equal to the weight of finished products it purchases. 3 High cost of raw fiber is result of assumed purchases of fiber in Mali and absorption of high transporation costs on tonnage of raw fiber equal to sales of finished product to Mali. EXHIBIT 15
CALCULATION OF MAXIMUM ENFORCEABLE TARIFF PROTECTION FOR FIBER PRODUCTS IN WEST AFRICAN COUNTRIES (Tariff Per Ton of Product)
Country for Which Tariff Protection Ivory Upper 2 Is Considered Coast Volta Togo Niger
Adjacent country where fiber pro ducts might be purchased at world Upper market prices Liberia Togo Dahomey Volta Nigeria
Existing tariff $20.20 CFA 5000
Estimated transpor tation cost for "legal" fiber (good $20.25 $20.25 $19.03 $60.81 $22.68 roads, rail, etc.) CFA 5000 CFA 5000 CFA 4700 CFA 15015 CFA 5600
Estimated additional cost for smuggling (poor roads, trans- $ 8.10 $ 8.10 $8.10 $ 8.10 $ 8.10 shipment, etc.) CFA 2000 CFA 2000 CFA 2000 CFA 2000 CFA 2000
Estimated maximum tariff which could be imposed without creating signifi cant incentive for $28.35 $28.35 $47.39 $68.91 $30.78 smuggling CFA 7000 CFA 7000 CFA 11700 CFA 17015 CFA 7600
1 Assumes only tariff to protect existing sewing plant.
2 Assumes protected plants in both Ghana and Dahomey. EXHIBIT 16
EFFECT OF MAXIMUM ENFORCEABLE PROTECTIVE TARIFF ON ANTICIPATED CASH FLOW AND EARNINGS BEFORE INTEREST AND TAXES OF FIBER MILLS (Based on Operation at 100 Per Cent of Capacity)
Upper Volta Niaer
2,620 Mill Output (Tons Per Year) 5,240 2,620 5,240 2,620 5,240 1 Sales to Domestic Purchasers (Tons) 2,160 2,160 505 505 1,275 1,275
CFA CFA _L CPA _FA CFA CFA
Price Increment Per Ton on Domestic Sales Supportable by Tariff Protection Current Situation 11,700 47.39 11,700 47.39 7,000 28.35 7,000 28.35 Protected Mills in Ghana and Dahomey 17,015 68.91 17,015 68.91
Proportion of Sales Affected by Tariff Protection 41% 81% 9% 19% 24% 49%
Potential Average Incremental Revenue Per Ton Supportable by Tariff Protection Current Situation 4,797 19.43 9,475 38.38 630 2.55 1,330 5.39 1,890 7.66 3,725 15.08 Protected Mills in Ghana and Dahomey 6,975 28.25 13,780 55.81
Cash Flow Per Ton in Absence of Tariff Protection 16,770 67.92 14,235 57.65 8,230 53.34 2,440 9.88 3,464 14.03 14,195 57.49 Earnings Before Interest and Taxes 2 Without Tariff Protection 5,908 23.93 365 1.48 - 2,630 -10.65 -11,180 -45.29 7,397 -29.96 570 2.32
Estimated Maximum Cash Flow With Tariff Protection Per Ton Current Situation 21,570 87.36 23,710 96.03 8,860 35.89 3,770 15.27 5,355 21.69 17,918 72.57 Protected Mills in Ghana and Dahomey 23,745 96.17 28,015 113.46 3 Per Year Current Situation 113,027 457.80 62,120 251.60 46,426 188.10 9,877 40.00 28,060 113.70 46,945 190.10 Protected Mills in Ghana and Dahomey 124,424 503.90 73,399 297.30 - -
Estimated Maximum Earnings Before Intere and Taxes with-Tariff Protection Per Ton Current Situation 10,705 43.36 9,840 39.86 - 2,000 - 8.10 - 9,850 -39.90 - 5,505 -22.30 4,295 17.40 Protected Mills in Ghana and Dahomey 12,883 52.18 14,145 57.29 3 Per Year Current Situation 56,097 227.20 25,785 104.40 -10,479 - 42.40 -25,810 -104.50 -28,851 -116.80 11,256 45.60 Protected Mills in Ghana and Dahomey 67,508 273.40 37,060 150.10
1 Based on anticipated 1970 demand. 2 Cash flow less depreciation. 3 Annual data in thousands. EXHIBIT 17
COMPARISON OF KEY COST FACTORS IN USING RETTED FIBER VERSUS DECORTICATED FIBER Cost (CFA) Per Ton--5,260 Ton Mill--Flat Loom
Retted Decorticated Mill Costs Fiber Fiber Difference Local Currency
Direct Labor 9,020 9,480 + 460 Electricity 4,809 5,040 + 150 Water 700 1,000 + 300 Indirect Labor 5,445 7,370 +1,925 Repairs & Maintenance 500 600 + 100 Sub-Total +2, 935 = $11.90
Foreign Currency
Treating Oil & Emulsions 2,380 3,905 +1,525 Lubricating Oil & Grease 168 173 + 5 Mill Supplies & Spare Parts 3,000 3,100 + 100 Sub-Total +1,630 = $ 6.60
Total (Per Ton) -- Inside Mill +4, 565 = $18.50
Freight (Per Ton) -- Farm to Mill (+13%) x 75901 985 = $ 3.98
Reduction in Farm Price Per Ton Required to Make Decorticated Fiber Competitive 5,550 = $22.48
Less Added Foreign Currency Costs For: Fuel $ .60 Expatriate Supervision .60 Maintenance and Depreciation on Decortication Equipment 4.00 $ 5.20
Less Wages Per Ton for Specialist-s to operate Decortication Machinery 267 = $ 1.00
Overall Reduction in Cash Yield Per Ton to Farmers 7,081 = $28.68
1 Average transportation cost for mill locations considered in Togo, Upper Volta, and Niger, assuming mills would purchase raw fiber from countries to which fiber products would be sold in same pro portion as shipments are made and that all purchased fiber would be decorticated fiber. EFFECT OF RAW FIBER 3UPPLY SOURCE ON DIRECT COST PER TON OF FIBER MILL OPERATION
Potential Cost Reduction If Cost Penalty If All Fiber Could Be Obtained Imported Fiber From From vie inity of Mill1 Far East Is Required 5.240 Tnn Mill 2.(20 Tnn Mill 5.240 Ton Mill 2,620 Ton Mill U.S. $ CFA U.S. S CF.A U.S. S CFA U.S. $
Sokode, Togo 39,605 160.40 39,500 159.98 54,755 221.76 54,755 221.76 -36,455 -147.56 -36,455 -147.56 - 39,605 -160.40 -39,500 -159.98
3,150 12,84 3,045 12.42 15,150 61.36 15,255 61.78
Banfora, Upper Volta 39,265 159.02 43,600 176.58 55,383 224.30 55,383 224.30 32,092 129.97 32,092 129.97 39,265 159.02 43,600 176.58
7,173 29.05 11,508 46.61 16_118 65.28 11,788 47.72
Niamey, Niger 31,685 128.32 29,235 118.41 63,023 255.24 63,023 255.24 24,116 97.68 24,116 97.68 31685 128.32 29,235 118.41
7,569 30.64 5,119 20.73 31,338 126.92 33,788 136.83
WI Since none of the study area countries is presently producing sufficient raw fiber to support operation of a mill and since development of fiber cultivation to commercial'volume levels 0w will require five to seven years, Case and Company's cost calculations have been based on the assumption that raw fiber would be purchased from African customers in tonnage equal to their purchases of manufactured products. EFFECT OF SOURCE OF FIBER ON CASH FLOW AND E.B.I.T (All figures shown in'terms of dollars per ton at 100% of two-shift capacity)
Cash Flow E.B.I.T. African Oriental African Oriental 2 Mill Location Fiber Fiber Penalty3 Fiber 2 Fiber Penalty 3 For a 5,240 ton mill
Sokode-Togo $ 67.92 $ 6.66 $ 61.26 $ 23.93 -$ 37.33 $ 61.26
Banfora-Upper Volta 33.34 - 31.84 65.18 - 10.65 - 75.93 65.18
Niamey-Niger 14.03 - 112.89 126.92 - 29.96 - 156.88 126.92
For a 2,620 ton mill
Sokode-Togo 57.65 4.13 61.78 1.48 - 60.30 61.78
Banfora-Upper Volta 9.88 - 37.84 47.72 - 45.29 - 93.01 47.72
Niamey-Niger 57.49 - 79.34 136.83 2.32 - 134.51 136.83
1 Earnings before interest and taxes (i.e., cash flow less depreciation). 2 African fiber cost computed on assumption that raw fiber would be purchased from other African countries in tonnage equal to their purchases of finished products. 3 Penalty would be even greater if it is assumed that all necessary grades of African H fiber could be obtained from farm areas in the immediate vicinity'of the fiber mill. '-3 H LO EXHIBIT 20
CASH PLOW ANALYSIS OF MILL OPERATION--5,240 TON FLAT LOOM MILL (Based on Use of Rtted Fiber)
Investment niect on.ratin. an a Fixed Oreratnq Exensesl Total Currency Outlays 2 5 Sales in Net Cash Cumulative Foreign African Tot. All Foreign Agxican Tot. All Foreign African Tot. All Foreign Africano Tot. All African Avail. for Net Cash Period Currency Currency currency Currency currency Currency Currency Currency Currency Currency Currency currency Currencies Depr.&ROI Position Year (a) (c) (d) (e) () (g) (h) (i) () (k( (1) (mo) (n) (o) 1st Year $ 880000 $ 620000 $1500000 $ - $ - $ - $ - $ - $ - $280000 $ 620000 $1500000 $ - $ - $-1500000 1 2nd Year 912075 1799925 2712000 ------912075 1799925 2112000 2nd Year Total 1792075 2419925 4212000 ------1792075 2419925 4212000 - -4212000 2 3rd Year 117690 1150550 1268240 65150 204475 269625 182840 1355025 1537865 1893640 355775 - 3rd Year Total 117690 1150550 1268240 65150 204475 269625 1974915 3775050 5749865 1893640 355775 -3B56225 3
4th Year 117690 1150550 1268240 65150 204475 269625 182840 1355025 1537865 1893640 355775 4th Year Total 235380 2301100 2536480 130300 408950 539250 2157755 5180075 7287730 2787280 711550 -3500450 4 5th Year 117690 1150550 1268240 65150 204475 269625 182840 1355025 1537865 1893640 355775 5th Year Total 353070 3451650 3804720 195450 613425 808875 2340595 6485100 8825595 4680920 1067325' -3144675 5 6th Year 117690 1150550 1268240 65150 204475 269625 182840 1355025 1537865 1893640 355775 6th Year Total 470760 4602200 5072960 260600 817900 1078500 2523435 7840125 10363460 6574560 1423100 -2788900 6
7th Year 117690 1150550 1268240 65150 204475 269625 182840 1355025 1537865 1893640 355775 7th Year Total 588450 5752750 6341200 325750 1022375 1348125 2706275 9195150 11901325 8468200 1778875 -2433125 7 8th Year 117690 1150550 1268240 65150 204475 269625 182840 1355025 1537865 1893640 355775 8th year Total 706140 6903300 7609440. 390900 1226850 1617750 2889115 10550175 13439190 10361840 2134650 -2077350 8 9th Year 117690 1150550 1268240 65150 204475 269625 182840 1355025 1537865 1893640 355775 9th Year Total 823830 8053850 8877680 456050 1431325 1887375 3071955 11905200 14977055 12255480 2490425 -1721575 9
10th Year 117690 1150550 1268240 65150 204475 269625 182840 1355025 1537865 1893640 355775 10th Year Total 941520 9204400 10145920 52l200 '1635800 2157000 3254795 13260225 16514920 14149120 2856200 -1365800 10 11th Year 117690 1150550 1268240 65150 204475 269625 182840 1355025 1537865 1893640 355775 11th Year Total 1059210 10354950 11414160 586350 1840275 2426625 3437635 14615250 18052785 16042760 3211975 -1010025 11 12th year 117690 1150550 1268240 65150 204475 269625 18240 1355025 1537865 1893640 355775 12th Year Total 1176900 11505500 12682400, 651500 2044750 2696250 3620475 15970275 19590650 17936400 3567750 - 654250 12
13th Year 117690 1150550 1268240 65150 204475 269625 182840 1355025 1537865 1893640 355775 Year Total 13th 1294590 12656050 13950640 716650 2249225 2965875 3803315 17325300 21128515 19830040 3923525 298475 13 14th Year 117690 1150550 1268240 65150 204475 269625 182840 1355025 1537865 1893640 355775 -+ Year Total 14th 1412280 13806600 1521f880 781800 2453700 3235500 3986155 18780325 22666380 21723680 4279300 57300 14 15th Year 117690 1150550 1268240 65150 204475 269625 l82840 1355025 1537865 1893640 355775 + 15th Year Total 1529970 14957150 16487120 8469502 2658175 3505125 1168995 20135350 24204245 23617320 4635075 413055 15
1 Excludes depreciation and possible interest charges which would be required if part of capital structure consists of debt financing.
2 No provision for income taxes.
Assumes raw fiberwould be purchased for African currency. (Disregards costs of fertilizers, fuel, and vehicles used for might be considered a cost in non-African currency.) transportation, alloor partp of which EXHIBIT 21
EFFECT ON REGIONAL BALANCE OF-PAYMENTS OF DEVELOPMENT OF 5,240 TON FIBER MILL
Foreign Currency Expense Apparent Net Foreign Net Foreign Cost of Fiber Equip and Foreign Cur- Currency Value Currency Net Cumulative 1 2 3 Period Imports Production Operate Mill Total Rency Savings of Fiber Used Savings Foreign Currency Position 4 6 7
1st Year $ - $880,0003 $880,000 $ - $ - $ - $- 880,000 $- 880 000 2nd Year 912, 0753 912,075 -1,792,075 -1,792,075 3rd Year 1,910, 000 217, 460 182, 8405 400,300 1,509,700 668, 990 840, 710 - 951,365 -1,181,925 4th Year 1,910,000 217,460 182,840 400,300 1,509,700 668,990 840,710 - 110,655 - 571,775 5th Year 1,910, 000 217,460 182,840 400,300 1,509,700 668,990 840,710 + 730,055 + 38,375
6th Year 1, 910, 000 217,460 182,840 400,300 1,509,700 668,990 840,710 +1,570,765 + 648,525 7th Year 1,910, 000 217,460 182,840 400,300 1,509,700 668,990 840,710 +2,411,475 +1, 258,675 8th Year 1, 910, 000 217,460 182,840 400,300 1,509,700 668,990 840,710 +3,252,185 +1,868,825 9th Year 1, 910, 000 217,460 182,840 400,300 1,509,700 668,990 840,710 +4,092,895 +2,478,975 10th Year 1,910,000 217,460 182,840 400,300 1,509,700 668,990 840,710 +4,933,605 +3, 089,125
11th Year 1, 910, 000 217,460 182,840 400,300 1,509,700 668,990 840,710 +5,774,315 +3, 699,275 12th Year 1,910, 000 217,460 182,840 400,300 1,509,700 668,990 840,710 +6,615,025 +4,309,425 13th Year 1,910,000 217,460 182,840 400,300 1,509,700 668,990 840,710 +7,455,735 +4,919,575 14th Year 1,910,000 217,460 182,840 400,300 1,509,700 668,990 840,710 +8,296,445 +5,529,725 217, 460 1, 509, 700 668, 990 840, 710 15th Year 1,910,000 182,840 400,300 +9,137,155 +6,139,875
1 Calculated at 90,000 CFA ($364.50) per ton of fiber products.
2 Excludes investment required to develop-fiber production because mill would not be financially feasible until raw fiber supply is available. Weighted average of $41.50 per ton is used.
3 From Exhibit 12 (Total Investment in Foreign Currency), $1,792,075
4 Weighted average of potential net export value of all customers' fiber, computed at ($127.67) per ton
5 From Exhibit 14.
6 Assumes that profits are re-invested in West African countries.
1 Assumes that an.annual profit of $230,560 is withdrawn in foreign currency. EXHIBIT 22
EFFECT OF 5,240 TON FIBER MILL IN TOGO ON BALANCE OF PAYMENTS IN COUNTRIES SERVED BY THE MILL
Foreign-Currency Expense Net For. Other African Currencies Customer Countries Reduced Equip & Apparent Cur. Val. Net Net Payments Received Foreign Net Cur. Net Cost of Fiber Pro-Operate For. Cur. of Fiber For. Cur.Cumultive Foreign Re ceipts for For Val. Currency Val. of For. Cur. Period Imorts duction Mill Total Saving Used Saving Currency Position At Mill Fiber Added Savings Fib, Sold Saved Year 1 2 4 5 6 7 88 1,7 9
1st Year $ - $ - $8800003 $ - $ - $ - $- 880000 $- 880000 $ - $ - $ -, $ - 1 2nq Year 9120753 - -1792075 -1792075 $ - - - 2 3rd Year 787320 86400 182840 269240 518080 278640 239440 -1552635 -1783195 1122680 390350 732330 3 1064780 495880 568900 4th Year 787320 86400 182840 269240 518080 278604 239440 -1313195 -1774315 1064780 495880 568900 1122680 390350 732330 4 5th Year 787320 86400 182840 269240 518080 278640 239440 -1073755 -1765435 1064780 495880 568900 1122680 390350 732330 5
6th Year 787320 86400 182840 269240 518080 278640 239440 - 834315 -1756555 1064780 495880 568900 1122680 390350 732330 6 7th Year 787320 86400 182840 269240 518080 278640 239440 - 594875 -1747675 1064780 495880 568900 1122680 390350 732330 7 8th Year 787320 86400 182840 269240 518080 278640 239440 - 355435 -1738795 1064780 495880 568900 1122680 390350 732330 8 9th Year 787320 86400 182840 269240 518080 278640 239440 - 115995 -1729915 1064780 495880 568900 1122680 390350 732330 9 10th Year 787320 86400 182840 269240 518080 278640 239440 + 123445 -1721035 1064780 495880 568900 1122680 390350 732330 10 + 365885 11th Year 787320 86400 182840 269240 518080 278640 239440 + 365885 -1712155 1064780 495880 568900 1122680 390350 732330 11 12th Year 787320 86400 182840 269240 518080 278640 239440 + 602325 -1703275 1064780 495880 568900 1122680 390350 732330 12 13th Year 787320 86400 182840 269240 518080 278640 239440 + 841765 -1694395 1064780 495880 568900 1122680 390350 732330 13 14th Year 787320 86400 182840 269240 518080 278640 239440 +1081205 -1685515 1064780 568900 1122680 390350 732330 14 787320 86400 269240 518080 1064780 495880495880 568900 15th Year 182840 278640 239440 +1320645 -1676635 1122680 390350 732330 15
1 Calculated at 90, 000 CFA (364.50) per ton of fiber products.
2 Includes only fiber produced in Togo for use in manufacture of products for Togo. Excludes investment required to develop fiber production because mil l would not be financially feasible until raw fiber supply is available. Computed at $40.00 per ton.
3 From Exhibit 12 (Total Investment in Foreign Currency); $1,792,075
4 Computed at $129.00 per ton.
5 Assumes profits are re-invested in Togo.
6 Assumes profits are withdrawn each year in foreign currency.
7 Difference between net mill receipts in Togo and foreign currency savings in customer countries is the cost of freight to deliver the finished products on a competitive price basis.
8 Includes cost of delivery of fiber from customer countries.
9 Computed at weighted average of $119.00 pqr ton. INVESTMENTS AND EXPENSES FOR A COUNTRY FIBER DEVELOPMENT PROGRAM EXHIBIT 23 (InThousands of CFA Francs) (1,000 CFA Francs m $4.05)
First Second Third Fourth Fifth Sixth Seventh Eighth Total Year Year Year Year Year Year Year Year REGIONAL FIBER RESEARCH CENTER Investment and expenses based on one-fourth of total expenses assuming all four countries in the study group will participate (Note page 26, Vol. 1) 2,831 2,387 2.995 585 566 585 741 552 11,242 SEED FARM One Assistant Agronomist - 360 378 396 414 432 450 468 2,898 Other Personnel: Mechanic - 216 216 216 216 216 216 216 1,512 Workers - 360 432 504 576 648 648 648 3,816 Living Quarters 1 - 2,000 ------2,000 Living Quarters 2 - 2,500 ------2,500 Equipment Shed - 1,000 ------1,000 Seed Warehouse and Office - 1,000 ------1,000 Agricultural Equipment: Tractors - 900 - 900 - 900 - - 27,000 Thresher - 500 ------500 Plows - 150 - ISO - 150 - - 450 Pulverizer - 100 - 100 - 100 - - 300 Harrow - 15 - 15 - 15 - - .45 Seed Drill - 125 - 125 - - - - 250 Cultivator-Weeder - 75 - 75 - 75 - - 225 Farm Wagons - 100 - - 100 - - - 200 Sprayer - 75 - - - 75 - - 150 Mower - 100 - - 100 - - - 200 Tractor Costs (1,000 h/Yr.) - 650 650 1,300 1,300 1,300 1,300 1,300 7,800 Fuel and Supplies - 150 - - 150 - - - 300 Scales - 100 - - 100 - - - 200 Small Tools - 250 200 200 200 200 200 200 1,450 Bags - 25 6o 100 140 190 190 190 895 Fertilizer - 60 150 270 390 510 510 510 2,400 Sanitary Supplies - 10 25 50 75 100 100 100 460 pe Clgr ------150 - Geerator ectc) - 125 125 125 175 125 125 175 975 Office Supplies - 150 150 150 150 150 150 150 1,050 Miscellaneous Expenses 500 500 600 600 700 700 700 4.300 Sub Total - Seed Production 12,621 2,886 5,276 4,686 5,886 4,739 4,657 42,551 LOCAL TESTS IN PILOT CENTERS One Assistant Agronomist - 360 378 396 414 432 450 - 2,430 One Living Quarters - 2,000 ------2,000 One Vehicle - 750 - - - 750 - - 1,500 - Vehicle Operating Costs - 165 180 195 210 165 150 - 1,065 Handuork 6 Workers - 216 216 216 216 216 216 - 1,296 Tools, Equipment, Fertilizer - 150 130 130 130 130 130 - 800 Climatology Material - 150 25 25 25 25 25 - 275 Office Costs - I 5O 150 150 150I 50 goo Sub Total - Pilot Tests - 3,941 1,079 1,112 1,145 1,868 1,121 - 10,266 FIBER PROMOTION AND FARMER TRAINING Assistant Agronomists - 360 360 720 720 720 720 - 3,600 Vehicles - 750 - 750 - - 750 - 2,250 Vehicle Operating Costs - 165 180 360 390 42o 360 - 1,875 Office Costs and Miscellaneous 5- 250 500 500 500 500 2.500 Sub Total - Promotion and Training - 1,525 790 2,330 1,610 1,640 2,330 - 10,225 Miscellaneous - Ten Percent 283 2,047 775 93 801 99 89 521 7 Total Program Expense 3,114 22 8,525 10,233 8,808 10,977 9,824 5,730 81,712- Seed Sales- - 350 752 .25 2.975 2 4,2004200 Total Cost Excluding Seed Farm Fiber Revenues 1 2 8,175 9,358 6,883 8,2 5,624 Estimated Fiber Revenues - 675 1.560 2830 4481 4 481 448 18,702 Total Net Expense 3,11 22,327 7,500 7,798 4,053 3,521 2,951* 48,485
* Profit EXHIBIT 24 Page 1 of 3
PAKISTAN JUTE AND THAI "KENAF" QUOTATIONS--1960-4965 (In Cents Per Pounds, Landed East Coast U.S.A Considered Equal to Landed West Africa)
Export Export Cuttings Date Lightenings Hearts N.C. SNC Thai A Thai B
1960 Mar. 4 12.21 10.62 5.70 6.55 Apr. 4 12.64 11.27 6.56 6.56 May - 4 14.43 13.64 7.57 June 1 17.57 16.52 8.68 July 1 (new crop) 14.30 14.09 7.09 Aug. 3 14.26 13.63 6.57 Sept 1 14.44 13.64 7.31 7.89 Oct. 1 16.74 16.21 9.76 11.16 Nov. 1 24.07 23,54 15.50 19.33 Dec. 6 22.96 22.43 12.98 15.10
1961 Jan. 3 23.44 22.91 14.98 16.24 Feb. 1 24.33 23.80 15.83 16.88 Mar. 1 25.72 25.19 17.87 18.66 Apr. 5 23.89 23.10 15.59 16.11 May 1 23.46 22.67 16.04 16.56 June 6 22.21 21.48 14.33 15.12 July 4 (new crop) 17.72 18.79 12.07 10.81 Aug. 2 17.00 15.53 10.81 12.06 Sept 6 13.35 11.88 7.39 9.82 9.76(10/25)- Oct. 4 14.61 11.97 7.67 10.32 9.17(11/9) - Nov. 1 13.83 11.34 7.41 9.79 Dec. 6 13.19 10.81 7.14 8.72 9.13
1962 Jan. 3 13.33 10.95 7.52 9.10 9.53 Feb. 12 12.55 11.07 7.00 8.85 9.56 Mar. 9 12.66 11.08 7.11 8.96 9.52 Apr. 6 12.55 11.02 7.01 8.86 9.45 6.95 May 5 12.55 11.02 7.00 9.01(5/2) 9.39 6.89 July 4 12.53 10.96 6.20 7.78 9.20 7.20 Aug. 1 12.53 10.96 5.98 7.51(8/8) 9.20 8.45 Sept 6 12.40 10.92 5.50 7.08 9.52 8.52 Oct. 3 12.40 10.92 5.76 7.34 8.90 8.37 Nov. 7 12.40 10.92 6.45 7.50 9.25 8.82 Dec. 4 12.40 10.92 6.45 7.50 10.50 9.45 EXHIBrT 24 Page 2 of 3
Export Export Cuttings Date Lightenings Hearts N.C. SNO Thai A Thai B
1963 Jan. 2 12.61 10.92 6.71 7.50 11.89 10.89 Feb. 6 12.41 10.92 6.45 7.19 11.14 10.39 Mar. 6 12.41 10.92 6.45 7.19 10.89 10.39 Apr. 3 12.41 10.92 6.45 7.19 10.02 9.39 May 1 12.41 10.92 6.45 7.19 9.89 9.27 June 5 12.41 10.92 6.45 7.19 10.27 9.89 July 3 12.41 10.92 6.45 7.19 9.83 9.20 Aug. 7 12.67 11.10 6.70 7.59 9.77 9.27 Sept 4 12.67 11.10 6.70 7.59 9.52 9.02 Oct. 2 12.67 11.10 6.70 7.59 9.33 8.83 Nov. 6 12.67 11.10 6.70 7.59 9.45 8.83 Dec. 4 12.67 11.10 6.70 7.59 9.95 8.89 1964 Jan. 2 12.67 11.10 6.70 7.59 9.77 8.77 Feb. 4 12.67 11.10 6.70 7.59 10.77 9.64 Mar. 4 12.67 11.10 7.06 8.06 10.52 9.58 Apr. 1 12.67 11.10 7.22 8.06 10.70 9.52 May 6 12.67 11.10 6.85 7.59 10.52 9.52 June 3 12.67 11.10 6.85 7.69 10.39 9.52 July 1 11.90 10.24 6.79 7.78 9.64(8/12)9.14 Aug. 3 12.85 11.33 8.00 9.20 11.64 10.89 Sept 1 17.11 16.38 11.49 12.01 12.45 11.89 Oct. 8 16.35 15.35 10.85 11.48 11.46 11.10 Nov. 4 16.35 15.35 10,85 11.48 11.67 11.05 Dec. 2 16.29 15.30 10.80 11.43 11.64 11.02 1965 Jan. 5 16,29 15.30 9.80 10.43 11.08 10.52 Feb. 2 16.24 15.24 9.80 10.43 11.64 10.89 Mar. 3 15.35 14.35 9.27 9.91 11.02 10.39 Apr. 6 15.61 14.35 9.27 10.41 11.64(4/1510.39 May. 5 16.50 15.35 10.27 11.43 11.95 10.70 June 6 16.24 14.61 - 10.17 12.14 11.14 July 7 15.30 14.30 9.70 10.22 11.39 10.77 Aug. 4 15.30 14.30 9.70 10.22 12.08 9.94 Sept 1 14.35 12.83 9.02 9.49 11.39 10.77 Oct. 6 14.62 12.83 9.12 9.60 11.36 10.83 Nov. 4 14;35 12.62 8.54 9.28 11.6411/1110.89 Dec. 8 14.35 12.62 7.13 8.76 12.14 11.02 EXHIBIT 24 Page 3 of 3
Export Export Cuttings Date Lightenings Hearts N.C. SNC Thai A Thai B
1966 Jan. 3 15.09 13.46 8.39 9.28 13.08(1/1212.02 Feb. 2 16.56 15.35 9.86 10.12 12.27 11.39 Mar. 2 18.87 17.50 11.80 13.36 13.27 12.27 Apr. 1 17.29 16.19 10.49 11.12 13.64 12.77 May 4 18.08 17.08 11.01 11.91 14.77 13.77 June 2 17.82 16.82 10.38 10.75 13.89 13.77 July 6 17.29 14.07 10.38 10.75 11.39 10.77 Aug. 3 16.98 16.14 10.33 10.70 11.33 10.70 Sept 7 16.98 16.14 10.33 10.70 10.77 10.03 Oct. 5 16.98 16.14 9.23 10.70 10.33 9.58
RECORD OF PAKSTAN GOVERNMENT MINIMUM OR "EPC" PRICES 1964, 1965, 1966
Date Export Export Announced Lightenings Hearts' SNC Cuttings
October 1964 16.35 15.35 11.48 February 1965 15.35 14.35 9.91 June 1965 15.30 14.30 10.22 August 1965 14.09 12.83 9.23 July 1966 16.98 16.14 10.70
Note: The minimums are promulgated in terms of Pounds per long ton, F.O.B. East Pakistani port. The cents per pound quotations noted are converted from the Pounds EPC to landed East Coast U.S.A.
Note: There are no price controls by the government in Thailand. ]a -$- EVOLUTION OF JUTE PRICES EXHIBIT 25 22n --' HI
1-1-1 rl' 14*Ii 2. . 1.12
r4t ~AA r 1: 1I it
Tl'
-4-
SLL.. ~ -. 4 -'1-' r--LVlLrIlVdH+-i k _.T I4t1,i -I
Ml 11 4-1- .4 F. .S .hL . HA p-i-i -114 I! -t rII H-H+r H+
SOURCE: European Institute For The Study of Industrial Pibers -1- -
APPENDIX A
Scope of Agronomic Research
Ivory Coast, Niger, Togo, Upper Volta
Upon arrival in each country, the AID officer was contacted. The information collected was classified under two principal headings:
A. Agricultural factors B. Economic feasibility factors
After studying the available secondary data, the study team agronomist made field trips as required to supplement this information whenever necessary with respect to each of the following factors:
A. Agricultural Aspects
1. The history of the test plots and commercial fiber mills, where they may exist
2. Potential fiber production areas were surveyed with respect to:
a. Type of soil b. Depth of topsoil c. Type of subsoil d. Soil drainage e. pH of soil f. drop history of soil g. Latitude of soil h. Is the area subject to severe storms, wind, rain, sand, etc?
3. Climatic requirements of fiber crops were evaluated against actual weather records on such factors as
a. Day length b. Rainy seasons and average rainfall during growing season c. Length of period of dry season that may occur during growing season
4. Varieties of fiber crop that would most likely do best were determined on the basis of 1, 2 and 3 above
5. Culture and processing possibilities were evaluated with respect to:
a. Availability of agricultural labor to grow a Ctfop b. Availability of land -2 c. Availability of tractors, plows, and seeders to plant the soil d. Standard method of land prepnration now used e. Is there or is there not cotton grown in the same area? f. Availability of water for irrigation
(1) River - distance from river to suitable soils (2) Wells available (3) Depth of water table for pumping g. Crop rotation
(1) Crops that will rotate well with fiber crops (2) Estimated yields of rotation crops (3) Economic feasibility of growing rotation crops with fiber crop h. Determination as to whether it is more feasible to harvest with hand-fed machines and use relatively high labor input or use self-propelled harvester decorticators and produce a slightly more standard quality at a different cost i. Availability of water for retting
(1) River (2) Rainfall (3) Well water
6. Fertilization requirements were considered
a. Recommendation of formula for the area to be planted
7. Harvesting
a. Evaluate from the point of view of terrain, rainfall, soil, agricultural and mechanical skill of available farm labor, whether it is best to harvest by hand-stripping, hand-fed decorticator, or self-propelled harvester decorticator b. Feasibility of retting: stack retting, river, pond, or ditch
8. Pests and diseases
a. Pests in area which affect kenaf b. Diseases in area to which kenaf is subject c. Nematodes -3
9. Social aspects of fiber production-- willingness of available labor to undertake the arduous labor required for some fiber crops and type of alternative activities available 10. Comments as to the practicability of a central farm or organization to produce seed and fertilizer, operate or maintain harvesting equipment, and possibly act as a purchasing agent for small growers, or whether it is best to organize production on the small farm or tribal basis. Comments on each form of organization with special emphasis on the central farm or organization for seed production and species improvement.
11. Analyze the capability of the potential production zones and compare them against requirementszto satisfy the market potential
12. Comment on the adequacy of the transportation facilities, highway, railroad, and air communication to the Capitol and nearest large town.
13. Labor rates:
a. Average unskilled laborer's daily wage for crops in the proposed kenaf areas b. Average skilled laborer's daily wage c. Does an incentive pay scale exist, and if so, how much per day? d. Does a task basis of payment exist, and if so, how much per day or per unit of work performed?
14. Describe the average crop profit on the basis of a hectare or acre for the country's basic crops (corn, rice, peanuts, cocoa, sorghum, sesame, etc.). At the same time, the total wage factor should be analyzed for each crop
15. Determine which fiber--kenaf, jute, urena, sisal, etc.--is most feasible for each country
16. Select areas for potential commercial test plantings, and if possible locate and identify experienced personnel in each area capable of properly carrying out such plantings
B. Economic Feasibility
a. Cost of unskilled labor per hour b. Cost of skilled labor per hour c. Cost of diesel fuel per gallon -4
1. Land
a. Cost of land rental per acre b. Cost of land purchase per acre
2. Land preparation
a. Cost per acre of cleaning land and burning brush Hand labor Mechanically b. Plowing with diesel tractor Fuel oil per gallon Labor per hour Total plowing cost per acre c. Cross-plowing Fuel oil per gallon Labor per hour Total cross-plowing per acre d. Harrowing Fuel oil per gallon Labor per hour Total harrowing per acre Estimated labor and fuel cost per acre Using wheeled diesel tractor Using tracked diesel tractor e. Incidentals Total land preparation cost per acre f. Estimated cost to plow, cross plow, and harrow with animal drawn plow
3. Planting and fertilizing
a. Cost of seed per acre @ 44 lbs. per acre b. Cost of fertilizer per acre @ 300 lbs. C. Cost of fuel per acre d. Cost of labor per acre Total cost per acre to plant and fertilize
4. Cultivation -5
a. Irrigation if necessary
(1) Labor cost per acre for each irrigation (2) Fuel or water cost per acre for each irrigation (3) Total irrigation cost per acre (4) Recommended frequencies of irrigation per crop (5) Recommended method of irri gation (flood, rice, spray, etc.) (6) Estimated cost per acre of ditching and diking for irrigation
b.. Replanting and refertilizing if necessary c. Weeding (hand labor)
(1) Cost of hand weeding per acre (2) Estimated frequency
d. Insect control
(1) Cost of insecticide per acre (2) Cost of spraying or dusting per acre (3) Insecticide to be used
5. Harvesting (per acre)
a. Hand-fed decorticator per acre (1) Man hours of field labor per acre (2) Man hours of skilled labor per acre (3) -Fuel for machine per acre Total fuel and labor per acre b. Self-propelled harvester decorti cator (1) Man hours of unskilled labor (2) Man hours of skilled labor (3) Fuel for machine Total fuel and labor per acre -6
6. Retting and stapling (per acre)
a. Labor to load and unload per acre b. Cost of fuel or water for retting C. Labor for washing fiber (by hand) d. Labor for washing fiber (mechanically) e. Fuel for washing fiber mechan ically Total estimated retting cost per acre
7. Drying, grading, baling (per acre)
a. Labor transportation to drying yard b. Fuel cost to transport fiber to drying yard c. Labor in drying yard for grading and baling
8. other variable costs
a. Water if purchased b. Supplies (1) Land preparation (2) Cultivation (3) Irrigation (4) Fumigation (5) Harvesting (6) Retting c. Drying, grading, and retting d. Fuel for management Jeeps e. Fringe and social benefits for daily labor, if not already in labor rate f. Other costs not already specified
9. Agricultural overhead
a. Tractors (1) Rent, if rented (2) Depreciation, if owned 7
b. Other Depreciation (1) Standard agricultural equip ment (2) Decorticators (3) Vehicles and trucks (4) Storage facilities c. Maintenance and repairs (1) Parts (2) Labor d. Unclassified salaries (1) Farm Supervisor (2) Ass't Farm Supervisor (3) Mechanics . (4) Drivers
10. Economics of possible crop rotation--any farm or plantation to be considered over:
a. One-year harvest cycle (1) Fiber crop with suitable rotation with other crops. For crops suggested for rotation identify: (a) Out-of-pocket cost of production per acre (b) Additional overhead costs per acre (c) Yield per acre (d) Sales value per acre b. Three- or five-year harvest cycles (1) Sequence of fiber crop plantings and rotation crop plantings suggested for optimum results (2) Costs for each planting as outlined for one-year rotation cycle (3) Quantities and sales values of each crop over three- or five-year harvest cycle c. Comment on optimum rotation cycle in terms of: (1) Cash flow and profit per acre (2) Food production in relation to size of labor force required (3) Foreign exchange value generated versus local currency
11. Additional agronomic economic data required--for each area of the country considered for growing fiber (i.e., soil, climate, availability of labor, etc.), also learn: -8
a. Major crops presently cultivated (1) Yield per acre b. Prices obtained for crops now cultivated (1) Sales value per acre c. Cost of growing crops now cultivated (1) Direct costs per acre (2) - Overhead costs per acre d. For current crops (1) Cash flow per-acre (local currency and dollars) (2) Net profit per acre (local currency and dollars) AGRICULTURAL COSTS OF GROWING FIBER CROP
Land Preparation
Salaries and wages Fuel Other supplies
Planting
Salaries and wages Cost of seed Cost of fertilizer Cost of insecticide Fuel Other supplies
Cultivation and Control
Salaries and wages Fertilizer application after planting insecticide Fuel Other supplies Irrigation Fuel Labor
Harvesting
Salaries and wages Fuel Other supplies
Drvinc, Grading, and Baling
Salaries and wages Fuel -1- APPENDIX B Outline of Marketing and Economic Information
Investigated for Each Country
1 Principal local staple food crops (yams, casava, rice, corn, other grains) production volume and price trends, 1960-1966.
a. How packaged (bagged) for internal shipment?
2. Statistical data on principal local cash export crops and products (cacao, coffee, peanuts, other groundnuts, shea nuts, sesame, cotton, sugar, palm kernels, high value ores, if any, etc.)
.a. Volume of production and price trends b How packaged for export
(1) For each commodity, obtain exact description of packaging material (e.g., typical standard catalog description of material). (2) Number of packages (e.g., sacks) used per unit (e.g., ton) of product shipped. (3) Number of packages (sacks, etc.) in standard wholesale unit of packaging material.
3. Status of transportation system for:
a. Internal shipment of food and other products b. Bulk handling facilities
(1) At ports, railheads and truck terminals (use of -bulk handling systems versus bagged and crated items)
C. Trend in volume of shipments of export and internal items, 1956-1966 (purpose - determine whether or not volume would justify bulk handling systems). d. Labor costs incurred in handling products shipped in-bags, sacks and other fiber based packaging materials
4. Physical volume and price trends 1960-1966 for:
a. Imports, by country of origin, of:
(1) Bags, sacks, baling materials, twine (2) Trends in unit prices of each of the above, free at ship, principal P.O.E. 1960-1966. -2 b. Transshipments (i.e.,re exports) by the above, by country of destination. C. Political Factors affecting fiber economics - each country: .
(1) End Product Tariffs
(a) Tariffs applied to
o Raw materials imports - Jute Retted kenaf (Siam jute)
o Finished product imports - Burlap cloth Bags
(b) Where Tariffs exist, what rates and rela tionships apply?
o Major exporting countries o Other countries in study region
(2) Capital Equipment Tariffs
(a) Spinning and weaving machinery originating in:
o Northern Ireland o France or other OEEC countries o U.S.A.
(b) Trucks, tractors, agricultural machinery (c) Replacement parts for equipment
(3) Changes in tariff situation, 1960-1966, and any changes currently anticipated.
5. Local crops and/or raw materials not now offered in export markets (e.g., hides, finished leather, high value ores) which could be sold if cost of packaging ,material were to be returned to lowest level since 1960
6. Latest available analysis of country's balance of payments position, 1960-1965. -3
7. Trends, 1960-1965, costs of labor in local currency:
a. Farm labor by type of farm organization (i.e., plantation, tribal land, etc.) b. Semi-skilled labor, manufactkring activity C. Skilled labor, manufacturing maintenance work d. Labor rates (and labor costs) in transportation industries Truck Rail Stevedoring Warehouse handling
8. Use (consumption) of:
*a. Imported fibers, by country of origin, 1960-1966
(1) Volume (2) Price trend
*b. Manufactured products based on fibers, (bags, sacks, baling material, twine, coarse paper).
(1) Imported products, by country of origin, 1960-1966 (2) Locally manufactured, 1960-1966 *Distinction between questions #4 and #8 represent the difference between imports and usage that is caused by losses by theft or fire, current inventory build-up, etc.
C. Products and activities which may represent important secondary markets for fiber products
(1) Cement curing covers (2) Shipment of plants and seedling construction (3) Protection of plantings from erosion on slopes, etc.
9. From introduction supplied by U.S.A.I.D. personnel and your field contacts,'please list the names, addresses and telephone or cable address of the individuals who are in best position to provide information on:
a. Import of raw or woven fiber b. Import of fiber bags, paper bags, and other-packaging materials c. Wholesale distribution within the country of fiber bags and packaging materials d. The three largest organizations engaged in growing and/or packing for export the commodities commonly shipped in fiber bags -4
e. Transportation of export commodities and locally consumed commodities which may be packed in fiber bags. f. Warehousing and shipment at port of commodities packed in fiber bags.
10. Nature of commercial and distribution relationships
a. Who is responsible for importing sacks and packaging material? b. Who is responsible for distribution of sacks and packaging material to point of use? c. What proportion of sacks and other packaging material flows through each major type of distribution chan nel? d. For each channel of distribution used, what are the price and discount relationships, for each type of dealer, distributor agent, etc., from the user of the sack or packaging material to its source within the country? e. At what points in the distribution system for sacks and other packaging materials are physical inventories accumulated? . f. Who bears the risk of price fluctuation of inventories of sacks and packaging material in the distribution channels? g. Have any special distortions in the country's apparent demand for sacks and packaging material been caused by reason of changes or problems in distribution channels or inventory practices?
11.. For each of the segments of the market for fiber packaging materials, identify any program or definite project, public or private, which may significantly affect demand for pack aging material from 1966 to 1970:
a. Planned increase in production of product requiring sacks of fiber packaging material b. Planned decrease in production c. Planned change in form of export commodity (e.g. installation of local processing facilities to permit export of commodity in a form which would require different packaging for shipment). -5
d. Planned changes in transportation facilities and equipment
(1) installation of bulk handling facilities (which would tend to reduce demand for fiber sacks and packaging material) (2) extension of roads, rail lines, etc. to new areas (which may tend to increase the volume of material produced and packaged for both internal and ex ternal shipment.)
e. Construction of new facilities for local manufactur ing of packaging materials
(1) fiber sack or bag mill (2) paper mills or paper product conversion plants
(a) to manufacture from locally produced pulp and fiber (b) to manufacture paper and/or paper products from imported pulp
12. Cost/Ton for shipping sacks, fiber packaging-material or raw fiber from:
a. Ivory Coast b. Niger c. Togo d. Upper Volta e. Pakistan f. India g. Siam
to principal port of entry used for distribution of such materials. Report on shipping cost should indicate current rates, and range of rates charged from 1960-1965. -1- APPENDIX 7 Mill Cost - African Regional Fiber Study
Outline of Information Compiled
Suppliers of mill equipment were asked to supply pertinent information on each of the following factors affecting investment and operating costs of fiber mills. Specific local factors affecting costs and revenues, (i.e., labor rate, power costs, and transportation costs were obtained in Africa by the field personnel of the study team.
A. Capital Investment (see notes)
1. Local currency expenditures
a. Size of land area required for mill and related processing and storage activities (1) Purchase cost for land, including clearing and site preparation (2) Minimum contractual obligation in case of land rental
b. Number and type of buildings required, and square feet of building area of each type (1) Construction cost per square foot c. Cost of providing necessary utilities from nearest available source (1) Electric power (2) Water (a) If retting of fiber is to be done b) If no retting of fiber is to be undertaken at mill site (3) Waste disposal (4) Rail siding or roadway facilities fo incoming materials and shipment out d. Construction of special purpose facilities (e.g., tanks for retting, storage of fuel and/or process materials, etc. e. Working capital for payrolls, services, taxes, etc. 2. Capital investment--foreign exchange expenditures a. Preparation, spinning, and carding equipment* (indicate economic service life) b. Looms and weaving machinery* (indicate economic service life) c. Machinery for manufacture of sacks, etc.* d. Machinery necessary for repair skop to perform normal maintenance and repair work (indicate economic service life) * Any difference in cost of equipment for use with different types or mixtures of fiber was noted. Cost calculations included shipment to local port of entry, West African Port. -2
e. Shipping and insurance charges on 1 - 4. f. Fees to personnel required to supervise installation of equipment and provide necessary training in operation and main tenance g. Trucks and miscellaneous vehicles-, equip ment, and tools h. Boilers and power plant equipment for process steam, standby power, etc.*
B. Start-Up Costs (see notes)
1. Local currency expenses
a. Wages to labor while in training (1) Length of time required to attain standard proficiency for each type of operation should be estimated b. Excess spoilage of locally grown raw mat erials during training period c. Local labor required for erection and installation of machinery d. Transportation of machinery and equipment from P.O.E. to mill site e. Interest on construction loans obtained in local currency
2. Foreign exchange expenses
a. Excess spoilage of imported raw materials and supplies during training and start-up period b. Fees to specialists and consultatns retained to establish operating systems and procedures, develop sources of supply and sales outlets and procedures c. Interest on loans required for purchase of imported equipment during start-up period and before normal operating rates are attained
C. Operating Expenses (see notes)
1. Local currency expenses
a. Variable expenses (to be expressed per ton of sacks and per 1,000 s'acks of each major grade) -3
(1) Retted locally produced fibers, by grade (2) De-corticated locally produced fibers, by grade (3) Other direct materials, if locally nroduced (a) Batching oils (b) Emulsifiers (c) Lubricating.oils and grease (d) Sewing twine (e) Inks, dyes, and miscellaneous supplies (4) Electric power (5)_ Water (a) For decortication (b) For steam and mill operation (6) Steam for process use (a) Cost of fuel, if local fuel is economically available (7) Direct labor (a) Unskilled (b) Semi-skilled (c) Foremen (d) Fringe benefits for labor b. Fixed costs (1) Supervision (General Foremen) (2) Maintenance personnel (3) Clerks (4) Typists (5) Commercial Manager (6) General Manager (7) Assistant General Manager (8) Depreciation on buildings (9) Depreciation on machinery, by class (10) Taxes, ground rents, and similar charges (11) Insurance on buildings (12) Travel and communication expenses (13) Interest on loans in local currency (14) Management prerequisites
2. Foreign exchange expenses
a. Variable expenses (to be expressed per ton of sacks and per 1,000 sacks of each major grade) (1) Imported retted fibers (2) other direct materials which may have to be imported -4
(a) Batching oils (b) Emulsifiers (c) Lubricating oils and grease (d) Miscellaneous chemicals and supplies (3) Spare parts and replacement parts for machinery and equipment (4) Electric power (if supplied from foreign location) (5) Fuel (if obtained from foreign source) b. Fixed ' costs (1) Insurance on imported machinery and equipment (2) Interest on loans in foreign currency (3) Fees or guarantees to expatriate spec ialists and/or management personnel (if required). Notes
1. Capital investment ' and operating costs were estimated for the following three scales of operation:
a. Minimum size bag mill considered economical as a producing unit
b. Plant with 2X minimum economic capacity C. Plant with size and capacity normally found in major producing and exporting countries
2. Mix of fiber input should be indicated in terms of combinations known to be successfully used on a com mercial scale (i.e., if use of decorticated fiber can be successful only if mixed with highest grade retted* fiber, mix specified should be so indicated)
3. For each scale of operations, specific manning tables, per shift, were developed, showing:
a. Direct labor, by class of skill and function
b. Indirect labor, by class of skill and function -5
4. To facilitate calculation of start-up costs, the efficiency of direct labor when fully trained should be taken as 100 per cent, and the efficiency which might be expected from a labor force in training should be estimated at the following points:,
6 months after plant is started
12 months after plant is started
18 months after plant is started
24 months after plant is started PARTIAL LIST OF ORGANIZATIONS AND
OFFICIALS VISITED IN WEST AFRICA
APPENDIX D -1-1
IVORY COAST
Belgian Embassy
Mr. Walravens, Ambassador Mr. Jordan, QBCE Commercial Attache Mr. Montoisy
Ministere du Plan
Mr. Rissacher, French Expert, Mr. Mognot, French Expert Mr. Laigroz (Nouveaux Investissements Prives) Mr. Boidin, French Technical Administrator
Chambre d'Industrie
Mr. Escard, General Secretary Mr. Frion
Ministere d'Agriculture
Mr. Moblo. Deputy Minister
Filtisac
Mr. Abdul Sultan Pirbhai Kassam, Chairman of the Board and President Mr. Jetha, General Manager Mr. Couvreur, Technical Manager
Chamber of Commerce
Mr. Magueron, General Secretary
COTOA (Compagnie Textile de L'Ouest Africain)
Mr. Danielou, Manager
SOAEM (Societe Ouest Africaine D'Entreprises (Maritimes)
Mr. Beckers
Union Routiere
Mr. David, President
African Development Bank
Mr. Beheiry, President Mr. Malmoody, Vice-President
U.S. AID
Mr. Terrence Roche Mr. Michael A. Codi
U.S. Embassy
Mr. J. D. Gelsenliter -2-
UPPER VOLTA
Direction of Customs Mr. DuPont, Adviser Direction du Developpment Rural
Mr. Benit, Counsellor Mr. Leopold Wantisse Siry, Director
Direction du Plan
Mr. Pierre Tahita, Director Mr. Donguy,*Counsellor
Direction du Developpment Industriel
Mr. Hyacinthe Quedraougo, Director
Direction des Statistiques
Mr. Inoussa Quadreogo, Director
Office de Commercialisation
Mr. Faget, Director
Inspection du Travail
Mr. Konate Seydou, Director
Minister of Foreign Commerce
Mr. Mariani, Adviser
SATEC
Mr. Deram, Engineer -
Sugar Mill Project
Mr. A. C. Varma, U.N. Advisor
F.E.D.
Mr. Leroy, Controller
Safelec
Mr. Haugazeau, Director
Souelci
Mr. Clement, Director
Chamber of Commerce
Mr. Pierre Kl, Secretary -3-
UPPER VOLTA (Continued)
U.S. AID
Mr. Sherwin Mr. Harell
U.S. Embassy
Mr. C. Drechser, Administrative Officer Mr. 0. W. Roberts, Temporary Charge d'Affaires Mr. George Martins, Economic Officer
NIGER
Ministry of Finance
Mr. Narechal
Ministry of Rural Economy
Mr. M. Maidoh Mr. Y. Couaud, French Expert Statistical Service
Mr. Adehossi, Director
Ministry of Economic Affairs
Mr. M. Copti Mr. Seguy
Office des Changes
Mr. Boukar, Director
Direction of Labor
Mr. Yacouba Issa Koni, Director
Israel Arid Zone Specialist
Mr. Buda Orev
Sonara
Mr. Mihailetz, Chief Accountant Mr. Bucquoit, Director General
SNTN
Mr. Colombani -4-
NIGER (Continued)
UNCC
Mr. Gaborit, Technical Advisor
Copproniger
Mr. J. Nignon Prinduit, Director General
Chamber of Commerce
Mr. Oriel, Secretary General
Safelec
Mr. Ferrand, Chief of Niamey Center Mr. Goukoye, General Commissioner of Planning Development Mr. Neidah, Minister of Agriculture Mr. Sounna, Director of Agriculture
FED
Mr. Haffner
11l.R.A.T.
Mr. Lienart, Director
FAO
Mr. H. Braun
U.S. Embassy
Mr. R. Ryan, U.S. Ambassador Mr. R. Thompson, Economic Officer
DAHOMEY
Statistical Service
Mr. Charol, French Expert Mr. Tolivaux, French Expert
Central Office of Economic Cooperation
Mr. Canet, Director
Inspection of Labor
Mr. D. Almeida, Controller
Chamber of Commerce
Mr. Viadanou, Secretary General -5-
DAHOMEY (Continued)
Conditionnement des Produits
Mr. Barthelemy, Director
SNAHDA
Mr. D'Assomption, Director
SOCOPA0
Mr. Durieux
SOAEM
Mr. Mari
CFDT
Mr. Morel, Interim Director
IRCT
Mr. Richard, Director
OCAD
Mr. Ott, Director Mr. Bonnard, Chief of Service
Fabre et Cie
Mr. Prekel, Interim Director
U.S. AID
Mr. Dupuis
GAMBIA
Belgian Consulate
H. Berger, Belgian Vice Consul
Ministry of Finance
Taal Ribou, Advisor
Ministry of Foreign Affairs
Mr. Christensen -6-
GAMBIA (ContInued)
Statistical Department - Printing Office
Mr. Percival
Customs Administration: G.O.M.B. (Gambian Oil Seeds Marketing Board)
'Mr. Gialle, Chairman Mr. Draper, General 'Manager
Etablissements.Vezia
Mr. Ray, Manager
U.S. AID
Mr. Cassat, Charge d'Affaires
MAURITANIA
Statistical Department in Nouakchott
Mr. Bonomareff
Chamber of Commerce
Mr. Bochette, Secretary
U.S. Embassy
Mr. Paville, Charge d'Affaires
SENEGAL
Belgian Embassy
Mr. M. Taymans, Ambassador Mr. J. Coene, Secretary
Mauritanian Embassy
Mr. Didi, Advisor
Gambian Embassy
Paps Mdiaya, Attache
Commerce & Industry
Mr. Alexandren
Rural Economy
Mr. Bocar Ly -7-
SENEGAL (Continued)
Transportation
Mr. Desvoyes
Customs
Mr. Fall
Statistics
Mr. Loplat Mr. Planese
Office of Agricultural Marketing
Mr. Abou Bakar Njiaya, Business Manager Mr. Modu Amar, Transportation Mr. Bigler, Advisor
Chamber of Commerce & Industry
Mr. Henri-Charles Gallenca Mrs. Chastenay, Secretary Messrs. Mariani and Bedoux, Associates
SOCOSAC
Mr. Jean Dutruge, Manager
COTOA
Mr. Gallenos
LIBERIA
Department of Agriculture
Mr. A. J. Melton, Special Assistant
Bureau of Labor
Mr. E. Buayou, Director Mr. Cox, Under-Secretary
Bureau of Statistics
Mr. Yaldo, Director Mr. E. Rogers, Assistant
Liberia Produce and Marketing Corporation
Mr. Neils Blemmer, Manager -8-
LIBERIA (Continued)
Customs
Mr. C. C. Piatt, Chief
U.S. AID
Mr. B. M. Witherow, Agricultural Divisitin Mr. F. L. Wheeler, Executive Officer
MALI
Statistical Services
Mr. Huby, Fonctionnaire CEE Mr. Verges, French Technical Assistant
Comptabilite National
Mr. Daniel, French Technical Assistant
Ministry of Development
Mr. Keita, Director Mr. Sidibe, Chief of Cabinet
IRCT
Mr. Bayle, Director
CFDT
Mr. Nicholas, Director
F.E.D.
Mr. Kaus, Bdreau D.S.B.I.
SOMIEl
Mr. Oumar, Li, Director General Mr. Diarra, Administrative Director
0PAM
Mr. Doucure, Director
SOCOPA
Mr. Toscani, Director Mr. Traversa, Chief of Transit
UMIMA
Mr. Canivet, Director -9-
Inspection of Labor
Mr. Geay, French Technical Assistant
U.S. AID
Mr. Peter Daniells, Chief of Mission Dr. Marvin Goff, Food and Agricultural Officer
NIGERIA
Ministry of Industry
Mr. G. Gowen, Industrial Development Consultants
National Office of Statistics I
Dr. Masters, United Nations Statistics Advi'ser Mr. Ambah, Chief, Statistics Mr. Raji Mr. S. 0. Adeyinka, Assistant Chief Statistics
Ministry of Finance Custom Office
Mr. E. U. Umoren, Senior Collector
Ministry of Labor
Mr. P. C. Okpor, Labor Officer
Nigerian Produce Marketing Company
Mr. T. B. Oluyide, General Manager Mr. C. 0. Oshme, Shipping Manager U.S. AID
Mr. L. F. Mansfield, Economic Adviser
SIERRA-LEONE
Statistics
Mr. Herwits, A.I.D. Adviser
Labor
Mr. Nottage, Director
Customs
Mr. Asguild
Agriculture Department
Mr. Davies -10
SIERRA-LEONE (Continued)
S.L.P.M.B.
Mr. Dean, Assistant Director
Rice Corporation
Mr. Kawa
U.S. AID
Mr.. Jeffery (AID Affairs Officer) Mr. J. Wilson
TOGO
Direction du Plan
Mr. Ecklow, Director Mr. Cajuste, Agronomist Mr. Dogo, Administrator, Civil Industry Development
Commissariat au Plan
Mr. Hunlede, High Commissioner
Ministry of Rural Economy
Mr. Ywassa, Minister
Statistical Service
Mr. A. Amenou
Customs
Mr. Jean Texi, Director
Office of Agricultural Products
Mr. Boukari Djobo, Director General Mr. Dovi-Akue, Technical Advisor . Mr. Date, Secretary
Cebevito
Mr. Sapet, Director
Chamber of Commerce
Mr. A. Djabaku, Director -I1-
TOGO (Continued)
SGGG
Mr. Sevely, Director Adjoint
SCIA
Mr. Sermisoni, Director
UAC
Mr. P. Delange, Director
U.S. AID Ii
Mr. T. S. Roche, AID Office A.I Mr. I. Licht, AID Officer
U.S. Embassy
Mr. Terence A. Todmah, Charge d'Affaires Mr. Wygant, Economic Officer -I-
BIBLIOGRAPHY
IVORY COAST
ASECNA - Bulletin Climatalogique Exploitation Meteorologique De Cote D'Ivoire December 1965
Autres Fibres Textiles Vegetales Fils De Papier et Tissue de Fils de Papier Republique de Cote D'Ivoire Tarif des Douanes
Bareme de Base des Prix de Location Des Principaux Materiels Des Travaux Publics de la Cote D'Ivoire Ministere Des Travaux Publics et Des Transports 1965
Bulletin Mensuel - Aout 1965 Chambre D'Industrie de Cote D'Ivoire 1965
Bulletin Mensuel de Statistique Ministere de Finances des Affaires Economiques Et du-Plan Jan. 1965
Foreign Trade Statistics No. 5 1966
Office Belge du Commerce Ext6rieur La Cote D'Ivoire June 1960
Cote D'Ivoire - Statistiques Demographiques et Sociales Bulletin Mensuel 1965
Etat De Repartition Des Credits Ouverts Pour L'Importation des Sacs de Jute D'Origine et en Provenance de l'Inde et du Pakistan Chambre de commerce - Abidjan
Etude Monographique De Trente et un Pays Africains Compagnie .Generale D'Etudes Et du Recherches Pour L'Afrique Dec. 1964
Exportation Cote D'Ivoire 1962 - Statistiques Douanieres 1960-1964
Fraternite - Le Text de Loi sur la Cooperation Maison du Congress du PDCI - RDA - Abidjan 19 Aout 1966 -2- Ivory Coast (Continued)
Importations de 1960-1965 de Sisal, Alsies, etc., et Fils Abaca, Sisal, etc. Statistiques Douanieres 1960-1965
Importations Jute 1966 Statistique Douaniere 1966
Importation Sacs 1960 Statistiques Douanieres 1960
Landendocumentasie Nitgan van het Konenklijk Instituit Voorde Tropen
Liste Des Adherents de l'union Routiere de la Cote D'Ivoire Union Routiet - Abidjan 1966
Liste Des Principaux Exportatuers 'de Cote D'Ivoire Chambre de Commerce - Abidjan
List Des Principaux Importateurs De Sacs de Jute Chambre de Commerce - Abidjan
Marches Tropicaux et Mediterraneens Le Marche de la cote D'Ivoire Rene Mareux, Christian Mareux April 30, 1966
Republick Invoorkust Bureau voor de Statistick der Europese Gemeenschappen 1964
Salaires Bulletin Mensuel de Statistiques Feb. 1966
Salaires Minima de 1'Industrie L'Industriel de Cote D'Ivoire No. 63 1964
Tarifs Des Transports Cafe - Cacoa pour la Campagne Ministere Des Finances des Affaires Economique et du Plan 1963-1964 -3-
Niger
Annuaire Statistique 1962 Commissariat General au Plan Service de la statistique et de la Mechanographie 1962
Balance des Paiements Office des Changes 1961-1965
Bulletin de la Chambre de Commerce d'Agriculture et d'Industrie du Niger June 29, 1966
Bulletin de la Chambre de Commerce d'Agriculture et d'Industrie du Niger June 22, 1966
Bulletin de la Chambre du Commerce D'Agriculture et d'Industrie du Niger July 20, 1966
Bulletin de la Chambre du Commerce D'Agriculture et d'Industrie du Niger June 15, 1966
Bulletin de la Chambre de Commerce d'Agriculture et d'Industrie du Niger July 13, 1966
Bulletin de Statistique Commissariat General au Developpement Service de la statistique ler Trimestre 1966
Commerce Exterieur Commissariat General au Plan Service de la Statistique et de la Mecanographie 1961
Comptes Economiques 1961 Commissariat General au Plan Service de la Statistique 1961
Etude Economique et Techniques sur 1'Amelioration de l'Approvisionnement en Emballages dans la Republique du Niger Societe d'Etudes - Dupl. Ing. Paul Pabst et Partenaires May 1965
Etude Monographiques de Trente et Un Pays Africains compagnie Generale d'Etudes et de Recherches pour L'Afrique Dec. 1964 -4-
Niger (Continued)
Exportation des Princepaux Produits Statistiques Douanieres 1963 - 1965
Laux des Salaires Pratiques Dans le Secteur prive de la Republique du Niger 1959
Foreign Trade Statistics Overseas Associates 1966
Importations Par Pays d'origine Statistiques douanieres Niger 1960-1965
Installation d'une Usine de Fabrication de Sacs Banque de Developpement de la Republique du Niger 1964
Installation D'une Usine de Fabrication de Sacs Banque de Developpement de la Republique du Niger Dept. Developpement 1965
Landendocumentatie No. 78 Nitgare van het Konenklijk - Instituit voor de Tropen Feb. 1965
Prix de l'Eaux Electricite, etc. Republique du Niger
Report of the Mission in Niger July 7 - July 23, 1966 Republick Niger Bureau voor de Statistick der Europese Gemeenschappen) de Statistische Geg evens
Republique du Niger Ministere de la Function Publique et du Travail Rapport Annuel 1964 1964
Societe Nationale de Commerce et de production Au -Niger
Societe Nationale Des Transports Nigeriens Niamey July 21, 1966
Statistiques Demographiques et Sociales Comptes Economiques 1961
Tables Des Matieres Commiss,ariat Generale au Developpement 1965-68 -5-
Niger (Continued)
Tableau Des Salaires Applicables July 1, 1962
Tarif Transports Routiers Des Arachides 1965/66 Campagne Societe Nigerienne de Commercialisation de l'Arachide 1965/66
Transport in Niger -6-
Upper Volta
Bulletin Mensuel de statistique Direction de la Statistique de la Meconographie Ministere du Developpement et du Tourisme February 1966
Bulletin Mensuel de Statistique Direction de la Statistique et de la Meconographie Ministere du Developpement et du Tourisme January 1966
Bulletin Mensuel de Statistique Direction de la Statistique et de Etudes Economiques Ministere de l'Economie Nationale July - September 1965
Developpement Economique en Haute-volta Societe d'Etudes pour le Developpement Economique et Social - Paris October 1963
Etude Monographique de Trente et Un Pays Africains Compagnie Generale d'Etudes et de Recherches pour l'Afrique December 1964
Exportations Sacs 1960 et Suivantes Statistiques Douanieres 1960-1964
Fibres de DAH Society d'Aide Technique et de Cooperation Aug. 12, 1966
Haute Volta Importation de Jute, Sacs, etc. Statistiques Douanieres 1960
Haute Volta Production 1956-59 Comptes Economique de la Republique de Haute Volta 1954-59
Situation Demographique en Haute Volta 1965
Investment Law in The Republic of Upper Volta Overseas Business Reports - Bureau of International Commerce U. S. Dept. of Commerce July 1963 -7- Upper Volta (Continued)
Landendocumentatie - Nr. 79 Boren-Volta Nitgare van het Koninklyk Instituit voor de Tropen March 1965
Proces verbal de la Reunion du 5 juillet 1966 Campagne des Produits 1965/66 Chambre de Commerce d'Agriculture et d'Industrie de la Haute Volta June 5, 1966
Rapport Economique - 50 -- Exchanges Ministere du Developpement et Des Tourisme 1965
Rapport Economique - 49 - Production Ministere du Developpement et du Tourism 1965
Rapport Economique - 48 - Donnees Financieres Ministere du Developpement 1965
RAPPORT Economique Ministere du Developpement et du Tourisme 1965
Report of the Mission to Upper Volta July 25 - Aug. 5, 1966
Republick opper-volta Bureau voor de Statistick der Europese Gemeenschappen
Situation Economique Actuelle de la Haute-Volta Ministere du Developpement et du Tourisme I April 1966 -8-
Togo
Annexe Technique No. 2 Programmes Regionaux
Annexe Technique No. 2 Programmes Regionaux Les Societes Regionales de Developpement
Bulletin de Statistique 1965 Service de la Statistique Generale 1965
Bulletin de Statistique 1963 Service de la Statistique Generale 1963 code Des Investissements du Togo Haut Commissariat du Plan cabinet du President
Etude Monographique de Trente et un Pays Africains Compagnie Generale D'Etudes et de Recherches Pour l'Afrique Dec. 1964
Exportations par produits Togo Bulletin Statistiques No. 2 1966
Extraction et Transformation des Fibres de coco Brustlein - Mulhouse 9/30/64
Extrait du Proces Verbal de la Reunion du 26 Mai 1965 chambre de Commerce de Lomi Togo 1965
Five Year Development Plan 1966-1970 Regional Technical Aids Center - American Embassy Paris, France
Landendocumentatie No. 77 Nitgare van het Koninklyk Instituit voor de Tropen January 1965
Official Customs & Tariff Regulations 1966
Orientation Geographique des Eshenges du Togo 1956-1964 Comptes Nationaux du Togo 1963 -9-
Togo (Continued)
Plan de Developpement Economique et Social Societe d'Etude pour le Developpement Economique et Social - Paris 1965 plan de Developpement Economique et Social 1966-1970 Societe d'Etudes pour le Developpement Economique et Social 1965
Producing Countries Statistique FAO sur Commerce du Cacao
Rapport Annuel 1964 Min-istere de 1'Economie Rurale - Direction de l'Agriculture 1964
Report of the Mission to Togo August 6 - 23, 1966 Republick Togo Bulletin Statistique du Togo
Technical Annexes Nos. 3 to 7 European Economic Community
Togo - Importations Sacs 1960 Docutents Statistiques
Togo Objectifs de production Agricale pour 1970 Plan Quinquinnat 1966-1970
Togo Production of Agricultural Products. Direction de l'Agriculture Rapport Annuel 1964 Inventaire Economique du Togo 1964 Compte Nationaux du Togo 1963
Togo Statistiques Demographiques et Sociales Inventaire Economique 1965 -10-
Ghana
Bags Ordered 1961-1966
Black Oils Price List Ghana List No. 2/65 (Retail) July 19, 1965
Budget Statement for 1966-67 National Liberation Council Lt. Gen. j. A. Ankrah July 20, 1966 cocoa Purchases byNRegions 1959-1965 - Official Dept..of Agriculture Estimate
Comments of Kenaf Production for 1964-1965 U. S. AID Mission to Ghana Raymond A. White, Jr., Horticultural Advisor 1964-65 commodity Note.- The Longer-Term Outlook for Cocoa Production and Consumption Commodities Division of FAO January 1966
Cost of Domestic Fibre Production 1965
Cost of Production of Urena Lobata Fibre
Customs and Excise Tariff Ministry of Finance on behalf of the Ghana Customs & Excise 1966
Economic Survey 1964 Central Bureau of Statistics - Accra 1965-
The Economics of Fertilizer Use in Ghana Based upon Interim Experimental Results Kwame Ukrumah University of Science & Technolgy, Kumasi R. K. Djokoto Sept. 1965
Etude Monographique de Trente et Un Pays Africains Compagnie General d'Etudes et de Recherches pour l'Afrique Dec. 1964 -11-
Ghana (continued)
Export of Minerals 1960-1962
Exported Minerals 1962-1965
External Trade Statistics of Ghana Vol 15 - No. 12 Central Bureau of Statistics December 1965
External Trade Statistics of Ghana Vol. XIV No. 12 Government Printing Dept. E. N. omabae December 1964
External Trade Statistics of Ghana Vol. XIII No. 12 Central Bureau of Statistics December 1963
External Trade Statistics of Ghana Vol. XII No. 12 Government Printing Dept. E. N. Omabae December 1962
External Trade Statistics of Ghana Vol. XI, No. 12 Central Bureau of Statistics December 1961
FAO Fertilizer Program 1965 - Summary & conclusions F. W. Hauck Jan. 10, 1966
Fishing Cords, Natural Fibres Government Printing Department - Accra 1961-1965
Fishing cords, Synthetic Fibres Government Printing Department - Accra 1961-1965
Freedom From Hunger campaign Fertilizer program in Ghana Vol. 11 Kwame Ukrumah University of Science & Technology R. K. Djakoto 1963/64
Ghana Cocoa Ghana Cocoa Marketing Board
Ghana Cocoa Marketing Board at work Ghana Cocoa Marketing Board August 1963
The Ghana Cocoa Marketing Board Fourteenth Annual Report and Acct's. composition for the year Ended 30 Sept. 1961
Ghana Trade journal No. 86 Business Publications, Ringway Press, Accra July 1966 -12-
Ghana (continued)
Importations du Ghana 1961-1965
Informations Economiques Pour le Ghana
Kenaf Development Program for the Northern and Upper Regions - Progress Report #1 Raymond A. white, Jr. Feb. 7, 1963
Labor Statistics 1963 central Bureau of Statistics, Accra Aug. 1964
Local Duty - Export Duties of Customs-
Manufactured Products - Based on Fibers Government Printing Department - Accra 1963-1965
Notes on the Fibre Bag Mfg. corporation M. Oldenhove after his visit to Kumasi Aug. 1966 official Dept. of Agriculture's Estimates of Crops Produced - Exported 1960 - 1965
Other Cordage and Twine, Natural Fibres Government Printing Department - Accra 1961 - 1965
Other Cordage and Twine, Synthetic Fibre 1961-1965 Government Printing Office - Accra
Producing Countries - Table 25 1963-65 production Targets for Crops Requiring Bags 1963/64 1966/67 1969/70 statistical Data on principal Local cash Export crops and Products 1963-1965
Statistical Data on principal Local Cash Export Crops and Products 1960-1962
Urene Lobata 1961-1962
White Oils Price List Ghana List No. 2/65 July 19, 1965 -13-
Congo
L'Afrique et la Marche Commun M. Heinrich Hendas January 25, 1963
Gambi
Le Commerce de I'Arachide en Gambi et la Politique de 1'Office de Commercialisation des Oleageneux de la Gombi (G.O.M.B.)
La Structure Cooperative en Gambi Institut Science Economique Applique Feb. 1963
Etude Monographique de Trente et un Pays Africains Compagnie Generale d'Etudes et de Recherches pour 1'Afrique Dec. 1964
Fifteenth Annual Report of Gambia Oilseeds Marketing Board Marina Foreshore, Bathurst Gambia Oilseeds Marketing Board 1963/64
The Gambia for Visitors and Businessmen Gambia Government July 1964
Madagascar
Basisgegevens Betreffende de Geassocieerde Afrikaanse Staten en het Geassocieerde Madagascar Directoraat Ontwikkeling van Landen Overzee Directoratt Ontwikkelengsstudie June 1965
Relations Between the African States and Madagascar and the EEC M. Henri Rochereau Oct. 29, 1962
Mali
Reglementation des Changes en Republique du Mali Chambre de Commerce d'Agriculture et d'Industrie de Bamako March 1964
Statut General des Societes Mutuelles de Commercants en Republique du Mali
Mauritania
Economie et Plan de Developpement Direction des Affaires Economiques et Financieres Dec. 1963
Etude Monographique de Trent et un Pays Africains Compagnie General d'Etude et de Recherches pour l'Afrique Dec. 1964
Portuguese Guinea
Etude Monographique de Trente et Un Pays Africains Compagnie Generale de'Etudes et de Recherches pour I'Afrique Dec. 1964 -14-
GENERAL
AOM Foreign Trade Statistics No. 5 Statistical Office of the European Communities 1966
AOM Statistical Bulletin No. 7 1965
Bulletin d'Analyse No. 395(6) Centre de Technologie Institute de -Recherches & Des Textiles Exotiques Bul-Kuen uhuan 1964
Commerce Exterieur Direction des Duouanes - Direction de la Statistiques 1959-1961
Commodity Note - The Longer Term Outlook for Cocoa Production and Consumption Commodities Division of FAO 1966
Convention De 1'Union Douaniere Des Etats de L'Afrique de 1'Quest March 14,1966 Customs Department Report Government Printer - Bathurst 1965
Descriptive Literature of Products J. Mackie & Sons, Ltd. 1966
Economic Summary 1965 May 1966
Etude sur les salaires du Cadres Etude Reserves aux president du Directours Generaux
Etude de Fibres Dans une Region d'Afrique Cost of a Factory
Fertilizer as an Agricultural Input Factor U. S. Economic Commission for Africa, Addis Ababa F. W. Hauck 1965
Industrial Fibres - A Review Her Majesty's Stationery Office 1965-1966
Jute Bags & Sacks New and Other 1962-1965 -15
General (Continued)
Tropical Abstracts Royal Tropical Institute June 1966
U. N. Economic and Social Council 2/15/66
vegetable Fibres R. H. Kirby 1963 UNITED STATS5 OF AMERICA