Cotontchad
Encyclopedia
The Société cotonnière du Tchad, also called Cotontchad, is a parastatal Chadian
company operating in a monopoly regime that buys and exports all the cotton
produced in Chad
, a product which represents 40% of the country's exportations and in the past years has been even more dominant. It was created in 1971 from the nationalisation of the Franco-Belgian society Cotonfran, and had the task to collect, buy, gin, transport, and export the cotton crop. At present the state owns 75% of the company, the French Textile Development Company (Compagnie Française pour le Développement des Textiles or CFDT) 16%, a consortium of Chadian banks 6% and the French Development Agency
2%. The CFDT's main role is to market Chad's cotton on the world market, while private banks provide the credits necessary to Cotontchad and to the peasants to finance the opening of each planting season and especially to provide capital for the import and distribution of fertilizers and insecticides. Originally the producers were protected from market fluctuations by the Cotton Price Stabilization Board
(Caisse de Stabilisation des Prix du Coton or CSPC), created in 1968, whose task was to stabilize prices paid to peasant producers by funding operating losses incurred by Cotontchad. Assuring a constant price to the producer not only helped maintain a certain level of production for Cotontchad but also limited costs to the company by holding down producer prices. But the recession that hit the cotton market between 1991 and 1993 drastically reduced the activities of the company and brought to the abolishment of the CSPC in 1993 and the decision to let the prices of the cotton bought by the producers fluctuate freely, following the market. Notwithstanding, economic difficulties have continued to hamper the society to the point that its privatization is often spoken of.
Chadian
Chadian may refer to:* Something of, from, or related to the country of Chad* A person from Chad, or of Chadian descent. For information about the Chadian people, see Demographics of Chad and Culture of Chad. For specific persons, see List of Chadians...
company operating in a monopoly regime that buys and exports all the cotton
Cotton
Cotton is a soft, fluffy staple fiber that grows in a boll, or protective capsule, around the seeds of cotton plants of the genus Gossypium. The fiber is almost pure cellulose. The botanical purpose of cotton fiber is to aid in seed dispersal....
produced in Chad
Chad
Chad , officially known as the Republic of Chad, is a landlocked country in Central Africa. It is bordered by Libya to the north, Sudan to the east, the Central African Republic to the south, Cameroon and Nigeria to the southwest, and Niger to the west...
, a product which represents 40% of the country's exportations and in the past years has been even more dominant. It was created in 1971 from the nationalisation of the Franco-Belgian society Cotonfran, and had the task to collect, buy, gin, transport, and export the cotton crop. At present the state owns 75% of the company, the French Textile Development Company (Compagnie Française pour le Développement des Textiles or CFDT) 16%, a consortium of Chadian banks 6% and the French Development Agency
French Development Agency
French Development Agency is the French international development agency.The Agence Française de Développement is a public institution providing development financing...
2%. The CFDT's main role is to market Chad's cotton on the world market, while private banks provide the credits necessary to Cotontchad and to the peasants to finance the opening of each planting season and especially to provide capital for the import and distribution of fertilizers and insecticides. Originally the producers were protected from market fluctuations by the Cotton Price Stabilization Board
Cotton Price Stabilization Board
The Cotton Price Stabilization Board was a Chadian governative board created in 1968. Its task was to stabilize prices paid to peasant producers by funding operating losses incurred by Cotontchad, the parastatal giant that bought, ginned and sold all the cotton produced in Chad...
(Caisse de Stabilisation des Prix du Coton or CSPC), created in 1968, whose task was to stabilize prices paid to peasant producers by funding operating losses incurred by Cotontchad. Assuring a constant price to the producer not only helped maintain a certain level of production for Cotontchad but also limited costs to the company by holding down producer prices. But the recession that hit the cotton market between 1991 and 1993 drastically reduced the activities of the company and brought to the abolishment of the CSPC in 1993 and the decision to let the prices of the cotton bought by the producers fluctuate freely, following the market. Notwithstanding, economic difficulties have continued to hamper the society to the point that its privatization is often spoken of.