DURING the past cropping seasons, the once thriving and lucrative cotton production sector was under threat.
It appeared the sector could not be revived.
Growers either downsized cotton fields or abandoned production opting to produce viable crops that thrive in drier regions.
A myriad of challenges bedevilled the sector as production levels plummeted on the back of poor prices on the market.
Even contracting firms which financed 90 percent of the locals’ cotton output were now investing their money elsewhere.
Cotton farmers cried foul over returns realised after selling their crop.
With the domestic industry consuming less than three percent of the cotton produced locally, many farmers stopped production.
Cotton thrives in dryer regions such as Gokwe, Chiredzi, Chipinge and Masvingo. Over the years, these places sustained the cotton industry.
The cotton industry was a significant source of income and employment that was key to economic growth.
An estimated 250 000 smallholder farmers produced 99 percent of the country’s cotton crop, mainly through contract farming schemes with cotton ginning companies.
At least 25 percent of the country’s rural population derived livelihoods from cotton farming.
However, the ‘white gold’, which according to historical records was the second largest foreign currency earner after tobacco, had lost its lustre.
Production levels dwindled over the years.
In 2013, production levels dropped drastically from 353 000 kilogrammes (kg) produced in 2012 to 135 000 kg.
In 2014, 146 000 kg were produced and in 2015 levels plummeted to 100 000 kg.
However, just before farmers totally abandoned production of the white gold, Government stepped in and extended a lifeline to the ‘dying’ sub-sector.
During the 2015/2016 summer cropping season, Government availed inputs to cotton growers.
Under the scheme, Government targeted
250 000 hectares and farmers received seed, fertilisers and chemicals.
Production levels stood at 28 000 kg.
During the 2016/2017 cropping season, once again, Government assisted growers with inputs and the move has paid off.
Cotton company (COTTCO) has reported it has since received 30 000 kg of cotton which surpasses last year’s output.
Harvesting is still underway and more deliveries are expected.
The country is expecting about 110 000 tonnes of cotton this season.
Of the 30 000 tonnes delivered to COTTCO, about 3 000 tonnes of cotton seed have been supplied to various companies to produce cooking oil, while 2 000 tonnes have been ginned into lint for export.
Zimbabwe Commercial Farmers Union (ZCFU) president Wonder Chabikwa commended Government efforts in reviving the sector.
He said more needed to 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 subsidises on inputs yet those in countries such as China, India and Burkina Faso get between 30 and 50 percent subsidises 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 should 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,” he said.
To avoid price disputes, Government set the 2017 cotton marketing price guide.
According to the Agriculture, Mechanisation and Irrigation Development Ministry, the 2017 cotton producer price was set at 55 US cents per kilogramme (kg) for grade cotton.
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’ needs are satisfied.
Unfortunately, because of the small size of the crop from Zimbabwe, local production cannot influence world market prices for lint on the international market, which reduces the domestic players to price-takers.
The country used to produce an average of
100 000 tonnes of lint per year out of global production of 28 million tonnes.