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This paper presents an analysis of the objective outcome of cotton sector liberalization in Sub-Saharan Africa in terms of quality, marketing, and pricing. It gives an overview of the world cotton market with a particular focus on the increasingly stringent demand for quality, and provides a detailed comparative description and performance assessment of quality control (seed cotton grading and lint classification) methods and their impact on prices in nine Sub-Saharan African cotton-producing countries (Benin, Burkina Faso, Cameroon, Mali, Mozambique, Tanzania, Uganda, Zambia, and Zimbabwe), as reflected in the export price differentials. The paper examines the lint marketing strategies and how market signals are passed on to producers in the countries under review. It elaborates on some of the major opportunities and challenges faced by cotton sectors in Sub-Saharan Africa.

The price of cotton lint is primarily linked to fiber characteristics but also to non-quality factors such as the way it is marketed internationally. African cotton has two comparative advantages in the world market: the intrinsic quality of its fiber and the fact that it is handpicked. However, the elimination of contamination of raw cotton by foreign matter stands out as the first priority for quality improvement. Sector structure has important repercussions for quality, and performance varies widely throughout SSA. Quality and marketing of cotton lint affect the producer price for seed cotton. Quality improvement could potentially increase lint prices by up to 15 percent, which could translate into a 30 to 40 percent increase in farmer prices. Thus, quality management should be considered one of the most important areas of improvement for SSA cotton exporting countries