Development of National Cotton Classing

System in Kenya and Mozambique

COTTON CLASSIFICATION: A VEHICLE FOR

STANDARDIZATION OF TRADING PRACTICES

ICAC – 73rd PLENARY MEETING

Thessaloniki- Greece

2nd – 7th November, 2014

Presented by: Presented by: Presented by: Presented by: Moses Bujaga Moses Bujaga Moses Bujaga Moses Bujaga ---- Wakefield Inspection Services Wakefield Inspection Services Wakefield Inspection Services Wakefield Inspection Services

Contributors: Alex Mungai*, Ancha Ainadine** Contributors: Alex Mungai*, Ancha Ainadine** Contributors: Alex Mungai*, Ancha Ainadine** Contributors: Alex Mungai*, Ancha Ainadine**

* Kenya Cotton Development Authority* Kenya Cotton Development Authority* Kenya Cotton Development Authority* Kenya Cotton Development Authority

** Instituto do Algodao de Mocambique ** Instituto do Algodao de Mocambique ** Instituto do Algodao de Mocambique ** Instituto do Algodao de Mocambique

� Cotton classification has served the cotton world as a standard for

trading since 1920’s.

� Traditionally manually classed for staple length and grade (color,

leaf and extraneous matter).

� The expected price for cotton lint depends on its assessed quality

[…marketing and shipping factors counts]

� Higher and lesser cotton quality attract premiums and discounts,

resp..[estimate $50/ton on market differentials

� 5 decades later automation and precision in the textile

manufacturing called for more characteristics, which are impossible

to call without instrumentation.

� By 1991, the entire US crop is classed with HVI system (bale x

bale).

2

As case is for many African cotton producing countries,

Kenya and Mozambique have relied on traditional manual

and visual classing, which is viewed non transparent and

unverifiable.

� Prone to subjectivity and human error [fatigue or state of

mind].

� It requires skilled and highly specialized classers [not easy

to ensure].

� Individual differences in visual acuity and the quality of

lighting in different labs

� It has proved to be time consuming [values tabulated

manually then printouts sent to customer]

Instrument testing of cotton is gradually replacing hand

classing the world over.

� The objective is to establish a functioning NCC structure that will:-

� Facilitate 100% sampling and instrument [HVI] of cotton

� Enable ginners negotiate a better price [sell their cotton based on reliable and comparable test results thus avoid price discounts and claims]

� Better price to farmers

� Strengthening local cotton competitive position by improving quality [as compared to global quality trends]

� Project Financing

� CFC grant with co-financing

from OFID

� In kind contributions [GoK,

GoM & WIS]

� Management

� ICAC – Supervisory Body

� CoDA/IAM – PIAs

� WIS - PEA

� Cotton as a main stay

� Lifeline to over 450,000 seed cotton producers

� 37,670 households in Kenya

� 200,000 – 250,000 smallholder farmers in Mozambique.

� Source of direct employment to 45,000 people [processing, manufacturing and logistics].

� Local consumption

6

Textile Textile Textile Textile

ManufacturersManufacturersManufacturersManufacturers

(Outside EPZ)(Outside EPZ)(Outside EPZ)(Outside EPZ)

Local Market

� Export Oriented

7

� Apart from commercial

benefits to Kenya and

Mozambique.....

� The system can be replicated

as is or in a modular type of

expansion to other countries

� Because of its non-human, the HVI system has been proven

reliable, effective and efficient over more than twenty years of

use.

� Modern textile industry machinery calls for homogeneity from

cotton fiber, an information HVI system can offer.

� Possibility for suppliers to negotiate premiums for supply of

homogeneous quantities / quantities of confirmed qualities.

� Flexibility allows for further technological advancement for the

HVI system to test other characteristics like extraneous matter.

8

1. Setting up of Cotton Classing

Facilities

Montepuez – Cabo Delgado

Nampula – Nampula

Beira – Sofala

KARI – Nairobi Kenya

2. Documentation and Institutionalize the systemGovernment Enforcement of grading standards and classification [Cotton Regulation

legislation]

• Increased strict grading at the market points for seed cotton;

• Differential payment according to grade A and B with better grades attracting high

prices as an incentive to grading;

Packaging before Improved packaging promoted Packaging before Improved packaging promoted Packaging before Improved packaging promoted Packaging before Improved packaging promoted

Cotton used to be Ungraded when selling but this has Been discouraged through regulations

Cotton bags packagingBeing promoted

Government Enforcement ……

Common before Sampling SimplifiedCommon before Sampling SimplifiedCommon before Sampling SimplifiedCommon before Sampling Simplified

•Manually and tedious• Time consuming•High labour cost

•Sample Cutters fitted at most of gins•Clear labeling•Proper sample wrapping applied•Delivery to lab not later than 7days

3. Sampling Protocol, 2013 4. Cotton Classification Manual

5. Guideline on Data Interpretation 6. Operating Procedures – HVI Machine

Training undertaken at USDA-Cotton Office;

ICA-Bremen and IAM-Beira....

Modules covered:

� Importance of fibre properties in cotton

production and processing

� Cotton properties and testing instruments

� Influence of test results

� Verification of instrument test results, etc

- No HVI machine

- No HVI machine operator

- HVI lab not existent

-1 Uster 1000 Line (Kenya), 3 Premier

ARTII (Mozambique),

- Qualified classers/machine operators

[2-Kenya; 12-Mozambique]

- 4 cotton labs [1-Kenya; 3-Mozambique]

Training of Cotton Classers

2014

Before 2012

14

Cotton fibres Moisture content at 6.75-8.25%

•Testing procedures developed using CSITC guidelines

•Samples handling and capacity building ongoing for users

Colour Colour Leaf (% Trash area & # of particles)

Staple Length Micronaire

Descriptor Code Descriptor Code Descriptor Code Measurement Code Measurement Code

Good Middling (GM) 1 White 1 Level 1(least) 1 1 inch 32 2.4 and below G0

Strict Middling (SM) 2 Light Spotted 2 Level 2 2 1 1/32’’ 33 2.5 through 2.6 G1

Middling (MID) 3 Spotted 3 Level 3 3 1 1/16’’ 34 2.7 through 2.9 G2

Strict Low Middling (SLM)

4 Tinged 4 Level 4 4 1 3/32’’ 35 3.0 through 3.2 G3

Low Middling (LM) 5 Yellow Stained

5 Level 5 5 1 1/8’’ 36 3.3 through 3.5 G4

Strict Good Ordinary (SGO)

6 1 5/32’’ 37 3.7 through 4.4

G5

Good Ordinary (GO) 7 1 3/16’’ 38 4.5 through 5.2 G6

Below Grade (BG) 8 1 7/32’’ 39 5.3 and above G7

Actual length applies and this table is an illustration of possible staple lengths Strength

Grams/tex Code

24.0 -24.9 1

25.0-25.9 2

26.0-26.9 3

27.0-28.9 4

29.0-29.9 5

30-30.9 6

31.0-32.9 7

33.0 & above 8

Introduction of Lint Base GradeIntroduction of Lint Base GradeIntroduction of Lint Base GradeIntroduction of Lint Base GradeChart showing Base Grade, start of Premium and Discount levels Chart showing Base Grade, start of Premium and Discount levels Chart showing Base Grade, start of Premium and Discount levels Chart showing Base Grade, start of Premium and Discount levels

*Price Differentials for Grade *Price Differentials for Grade *Price Differentials for Grade *Price Differentials for Grade

((((UScUScUScUSc/lb) /lb) /lb) /lb)

*Price Differentials for Staple Length *Price Differentials for Staple Length *Price Differentials for Staple Length *Price Differentials for Staple Length

((((UScUScUScUSc/lb)/lb)/lb)/lb)

DescriptorDescriptorDescriptorDescriptor Premium/DiscPremium/DiscPremium/DiscPremium/Disc MeasurementMeasurementMeasurementMeasurement Premium/DiscPremium/DiscPremium/DiscPremium/Disc

Good Middling (GM) +1.5 to +2.5 1 inch +1.5 to +2.0

Strict Middling (SM) +0.75 to +1.0 1 1/32’’ +0.5 to +1.0

Middling Middling Middling Middling (MID)(MID)(MID)(MID) BASEBASEBASEBASE 1 1 1 1 3333////32323232’’’’’’’’ BASEBASEBASEBASE

Strict Low Middling (SLM) -0.5 to -2.0 1 1/16’’ -1.75 to -4.0

Cotton Price DifferetialsCotton Price DifferetialsCotton Price DifferetialsCotton Price DifferetialsUsual world market for price differential for Grade and Staple LengthUsual world market for price differential for Grade and Staple LengthUsual world market for price differential for Grade and Staple LengthUsual world market for price differential for Grade and Staple Length

Source: Estur, G: WB WP121

Environmental Environmental Environmental Environmental

monitoring systemmonitoring systemmonitoring systemmonitoring systemHVI Analysis HVI Analysis HVI Analysis HVI Analysis

systemsystemsystemsystem

Extraneous matter Extraneous matter Extraneous matter Extraneous matter

analysis system analysis system analysis system analysis system

Data base serverData base serverData base serverData base server

Web portal Web portal Web portal Web portal

ReportsReportsReportsReports

AAMS

& HVI Data

Systems

Wireless point to point linkWireless point to point linkWireless point to point linkWireless point to point link

� Maintenance of Ambient Air Management System (AAMS) consistent at

21°C ±1 and 65% rH ±2 [Beira, Nampula and Montepuez labs].

� Test services fee charged to ginners and spinners may not sustain HVI

business [Kenya case - low volumes]

� Local mills are used to visual and manually assessed values or using other

instruments [Shirley analyzer instrument for trash / leaf]

Main operational costs

– Distance to the served ginneries

– Maintenance of equipment [annual contracts to suppliers]

– Spare parts [likely in future]

– Salaries

– Electricity [low volume of samples received per week]

� Up grading of the Beira, Nampula and Montepuez AAMS [at least one lab

2014]

� Address future marketing of the laboratory to increase capacity

utilization to above 50% during operations (installed capacity 700

samples/day)

� Adopt 100% bale classification inline with National quality assessment

regulations [Cotton (General) Regulations, 2014]

� Business plan [projecting income and expenditure] to be done to determine

daily logical target for the lab to break-even hence the actual cost of testing 1

sample

� Intensive capacity building of actors along the chain [Production – Textiles]

THANK YOU FOR YOUR ATTENTIONTHANK YOU FOR YOUR ATTENTIONTHANK YOU FOR YOUR ATTENTIONTHANK YOU FOR YOUR ATTENTION

MUITO OBRIGADOMUITO OBRIGADOMUITO OBRIGADOMUITO OBRIGADO