The Role of Cotton in Economic Development and Ensuring Food Security During a CAPE TOWN Period of Global Economic Crisis SOUTH AFRICA 7 to 11 September 2009 www.icac.org agriculture Department: Agriculture REPUBLIC OF SOUTH AFRICA International Cotton Advisory Committee 68th Plenary Meeting ORGANIZING COMMITTEE Organising committee of the 68th ICAC Plenary Meeting 1. Billy Morokolo - Project Leader 2. Maliga Moodley - Project Manager 3. Dr Terry Townsend – ICAC secretariat 4. Carmen S. Leon - ICAC secretariat Committees Members Hennie Bruwer Nic Greyling Tom Mabesa Danie Olivier Fanie Friie Dr Graham Thompson Dr Gert van der Linde Cotton industry Stan Rudman Hansie Willemse L. Venter Brian Brink Technical and Sub- Phineas Gumede stance Subcommittee Simon Molope Maliga Moodley Thabo Ramashala Japie Smit Linda Sifumba Esther Kujane Jo-Anna Lanecki Department of Agriculture Martha Manoto Walter Mokgobu Maserame Mcucwa Wellington Muzondo- Project Management Support Offi ce Thapsana Molepo Eric Govuza Security and Health Fanta Venter and Wellness subcom- Department of Agriculture M. Steffen mittee Nomiso Mashalaba Maria Sekgobela Rudolf Abercrombie Budget subcommittee Department of Agriculture/Cotton Hennie Bruwer South Africa D. Henrico Steve Galane Communication Gugu Gumede subcommittee Portia Mabuse Department of Agriculture Rebecca Tlhabane Hennie Bruwer Pauline Skhosana Eugenie Parker Victor Mncube Logistics subcommit- Trevor Colyn Department of Agriculture/ tee Thandeka Mafu Travel with Flair - Events manage- Doreen Sedibe – contact person for accom- ment company/Cotton SA modation Penny Maketekete Hennie Bruwer Contents Organising Committe ............................................................................................................................................. p Welcome Remarks ................................................................................................................................................ p Cotton and Textiles in South Africa ....................................................................................................................... p 68th Plenary Meeting Preliminary Agenda ............................................................................................................ p Overview of the Programme and Timetable .......................................................................................................... p Hospitality Services ............................................................................................................................................... p Accommodation and Reservation Conditions........................................................................................................ p Host City - Cape Town .......................................................................................................................................... p General Information on South Africa ..................................................................................................................... p Daily excursions .................................................................................................................................................... p COTTON AND TEXTILES IN SOUTH AFRICA Cotton in South Africa Although fi rst planted at the Cape of Good Hope in 1690, cotton was still a relatively unknown crop in South Africa up to 1970, however, since 1974 the area under cotton production has increased steadily. Notwithstanding this, production met demand only on two occasions when production reached its peak in the late eighties. In terms of world cotton production, South Africa is an insignifi cant cotton producer, contributing less than 0.05 % of world production. Compared to other South African fi eld crops, the importance of domestically produced cotton, in terms of its gross value is also very low, less than 0.2 % of the total South African agricultural production. It is, however, a most suitable crop for small-scale farmers as it is drought toler- ant and nonperishable. Cotton production is also labour intensive, providing numerous job opportunities on farm level and production can be expanded without causing surpluses. Although cotton production may not always seem to be fi nancially lucrative, it is often the most economic and viable crop in mar- ginal dryland production areas and contributes to the social upliftment of people in remote areas. Cotton in South Africa is currently mostly produced under irrigation, mainly in the warmer Limpopo and Northern Cape provinces. The major dryland production areas are in the Limpopo Province and in north- ern KwaZulu-Natal, where more than 3 000 small-scale cotton farmers reside. Although local cotton production is small, the qualities produced are generally excellent, with about 80% of the crop normally in the higher categories of Middling to Good Middling. Biotech varieties make up more than 90 % of the crop, with more than 85% of the crop being stacked-gene cotton. South African cotton yields, compared to the rest of Africa, are also outstanding. On average yields are lately between 700 kg and 1 000 kg cotton lint per hectare, about 3 times higher than the sub-Saharan average. South Africa’s average production over the past 10 years of about 24 000 tons of cotton lint is insuffi cient to meet the local demand for cotton lint, which averaged about 60 000 tons over the same period. The importation of cotton is therefore a certainty with 99 % of all cotton lint imports originating from countries within the Southern African Development Community: Zambia, Zimbabwe and Malawi being the main suppliers. Textile and apparel industry g The textile and apparel industry is one of South Africa’s larger employers in the manufacturing sector, ng providing approximately 110 000 jobs and representing close to 9 % of the total workforce in the manu- ti ee M facturing sector. The industry is also a major payer of rates and taxes in towns and cities across South M Africa in which it is located. ry na e le P The country has a number of mills producing not only cotton and cotton-blend yarns and fabrics, but also th a wide variety of other types of textiles and clothing. There is suffi cient production capacity available lo- 68 e cally, however, textile factories are currently only producing at around 85 % of capacity. te it mm m The local textile and clothing industry contributes approximately 4% to South Africa’s GDP, while its Co y share of the country’s total manufacturing output represents nearly 2,5%. During 2008 exports of textiles or and clothing represented approximately 1% of total South African exports. is i dv A on The South African textile and clothing industry’s strengths lie in its ability to design innovative products tt and to produce high–quality goods. Co C l na io at n r te n I 1 68TH PLENARY MEETING PRELIMINARY AGENDA Main Topic of the 68th Plenary Meeting The Organising Committee in South Africa selected the theme of the 68th Plenary Meeting as “ The Role of Cotton in Economic Development and Ensuring Food Security During a Period of Global Eco- nomic Crisis”. The theme was selected to provide opportunities for discussion of problems confronting policy makers and businesses on the role of cotton in the current economic situation and how cotton contributes towards food security. Preliminary Agenda The Preliminary Agenda of the 68th Plenary Meeting includes four plenary sessions. Plenary ses- sions are sessions in which observers are permitted; however, participation in discussions is limited to government representatives. 1. Inaugural plenary session for open remarks 2. First plenary session for discussion of government measures 3. Second plenary session for statements from international organizations, member countries and nonmember countries 4. Closing plenary session for concluding remarks Open sessions, in which observers may participate 1. Policies to enhance food security 2. Facilitating smallholder cotton production 3. Cottonseed and value addition 4. Outlook for supply, demand and prices of cotton and inputs 5. Technical seminar: Biosafety regulations, implementation and consumer acceptance 6. The impact of social and environmental standards on demand for cotton and textiles Breakout sessions open to all participants 1. The role of organisations in the cotton economy g ng 2. Progress towards harmonisation of trade rules ti ee 3. Enhancing demand for cotton products M M ry 4. The impact of carbon trading on the cotton industry na 5. Best practices in cotton ginning e le P 6. Best practices in instrument testing th 68 Social and cultural activities of the 68th Plenary Meeting e te 6 September Sunday Welcome cocktail, ICC Cape Town it mm m 7 September Monday Welcome dinner Co 9 September Wednesday Sightseeing and shopping opportunities. y or is i 10 September Thursday Gala dinner dv A on tt Co C l na io at rn te t In 2 OVERVIEW OF THE PROGRAMME AND TIMETABLE Sunday, 6 September, 2009 8:00 Erecting trade booths at the convention centre 10:00 Registration at the CTICC Ballroom Gallery 16:00 Tours and shopping opportunities (depart from the Convention Centre) 10:00 Meeting of the Expert Panel on Social, Environmental and Economic Performance of Cotton Production (SEEP) The Boardroom 13:30 Meeting of the Task Force on Commercial Standardisation of Instrument Testing of Cotton (CSITC) (Observers welcome, preregistration requested) The Boardroom 14:30 Round table discussion: The role of organic cotton in the cotton industry 19:00 Welcome reception, Ballroom