HomeOld_PostsCotton farmers urged to value-add

Cotton farmers urged to value-add

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OVER the past few seasons, the once thriving and lucrative cotton sector has suffered a myriad challenges; chiefly poor returns and high production costs forcing growers to downsize cotton fields or totally abandoned the crop.
The white gold, which historically was the second largest foreign currency earner after tobacco, has lost its lustre.
Cotton, which thrives in drier regions, such as Gokwe, Chiredzi and Chipinge had sustained the cotton industry over the years.
An estimated 250 000 smallholder farmers produced 99 percent of the country’s cotton crop mainly through contract farming with cotton ginning firms.
At least 25 percent of the country’s rural population derived livelihoods from cotton farming.
The cotton industry had proved a significant source of income and employment that was vital for economic growth.
In 2014, the International Cotton Advisory Committee indicated that the country’s small-scale cotton farmers stood at 170 000, down from 200 000 in 2013.
Production levels also dwindled.
In 2013 production dropped drastically from 353 million kilogrammes (kg) produced in 2012 to 135 million kg.
In 2014, 146 million kg were produced and this year, levels plummeted to 100 million kg.
The production of cotton is no longer viable, argue the growers.
Analysts contended cotton production is likely to decline in the coming seasons as many farmers are disgruntled with low producer prices.
They are shifting to other cash crops, mainly tobacco.
The tell-tale signs of poor cotton prices were there for everyone to see.
Even contracting firms who financed 90 percent of the local cotton output are now investing their money elsewhere.
Cotton farmers cried foul over the low returns realised after selling their produce.
Past marketing seasons of the crop have been marred by price disputes between farmers and ginners, with the former arguing the prices offered by the latter were not viable.
It seemed cotton production was a lucrative business for ginners rather than the farmers.
To determine producer prices, the cotton industry uses international lint prices as a benchmark. In most producer countries, the price is normally estimated because the actual price will be known at the time the lint is sold.
Ginners and farmers will monitor world markets and meet to review prices according to any developments that might occur to ensure that all stakeholders’ are satisfied.
Unfortunately, because of the small contribution of the crop from Zimbabwe (in relation to world trade), local production cannot influence world market prices for lint, which reduces the domestic players to price takers.
The country produces an average 100 000 tonnes of lint per year out of a global production of 28 million tonnes.
The domestic industry consumes less than three percent of the cotton produced locally.
All this has spelt doom for the local cotton producers.
Just when it was making business sense for traditional cotton growers to ditch the production of the white gold, Government has stepped in, giving a lifeline to the ‘dying’ sub-sector.
“As Government we took a position that we cannot allow the sector to perish,” Agriculture, Mechanisation and Irrigation Development Minister Dr Joseph Made said.
For the 2015/2016 cropping season, Government, which is targeting 250 000 hectares, has put in place an input support scheme for cotton farmers under which they will receive seed, fertilisers and chemicals.
Inputs, according to the Agriculture, Mechanisation and Irrigation Development ministry, will be distributed through the Grain Marketing Board (GMB).
Cotton seed producer Quton has been contracted by Government to supply 5 000 tonnes of seed.
Zimbabwe Commercial Farmers Union president Wonder Chabikwa said more should be done to revamp the cotton production sector.
“Local cotton producers are not competitive enough,” he said.
“The environment we produce our crop (in) is different from that of our counterparts in other countries.
“Our cost of production is high given that there are no subsidies on inputs yet those in countries such as China, India and Burkina Faso get between 30 to 50 percent subsidies on inputs.
“So, on the market, their profit margins are higher than ours and we get to complain that the prices are not viable.”
Chabikwa said for farmers to get more returns, they must value-add.
“Ginners are making more as they value-add and sell by-products so it is advisable that farmers add value to the crop if they intend to reap more from their hard work,” he said.
Given the depressed prices, survival of the local producer would be dependent on improving yields and quality as a way of enhancing viability.

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