Online Reporter
Edgar Vhera-Specialist Writer – Agribusiness
Contractors have proposed a new seed cotton production model for the 2026/27 season to rescue the sector from continual decline as intake slumps 15 percent to 20 million kilogrammes this year from 23 million.
Statistics from the Agricultural Marketing Authority (AMA) show that the average national seed cotton yield has been on continual decline from a peak of 1, 8 tonnes per hectare in 1980 to the lowest of 93 kilogrammes per hectare in the El Niño-ravaged 2024 season.
The AMA market update report dated July 17 disclosed that stakeholders in the cotton value chain are proposing new cotton production and marketing models to revamp the industry.
The stakeholders proposed zoning wherein a contractor is given a particular district to operate from, which gives them the liberty to fully support their farmers. A maximum of two contractors can be given a licence to operate in a particular district.
While acknowledging the importance of the Presidential Inputs Programme (PIP), the merchants want a level playing field with all contractors benefiting from the scheme.
“The merchants also want a return to the full credit scheme to recover all inputs advanced to farmers.
“This allows contractors to increase their input support levels with a guarantee of recovering all their inputs,” read the report.
The contractors are also mooting a price incentive scheme to support growers with more money above the prevailing market prices.
“This allows farmers to source their own inputs and get rewarded at delivery time.
“Tied to this should be the announcement of pre-planting prices for seed cotton by August,” continued the report.
Private contractors are planning to contract 113 000 hectares in the upcoming season while the main contractor Cottco is yet to reveal its target.
Farmers have so far earned US$4, 8 million and ZiG54, 3 from current sales that are expected to end in a week.
The largest merchant, Cottco, has bought 53 percent of the crop (10 300 000kg) sold thus far, followed by Agri Value Chain (AVC) at 16 percent (3 218 188kg) and Alliance Ginneries with 14 percent (2 800 000kg).
Southern Cotton came fourth after purchasing 11 percent (2 207 628kg), with Cangrow at five percent (905 000kg) and Zimbabwe Cotton Council (ZCC) coming last at one percent (136 395kg).
Meanwhile, speaking on the Zimbabwe Agricultural Think Tank (ZATT) – Cotton Council Discussion Forum, a cotton expert who requested anonymity said the only thing which can resuscitate the sector was competitive/fair pricing.
A competitive pricing regime will ensure that only serious actors (growers and buyers) will remain in the industry.
“In Sub-Saharana its only Tanzania still ticking because right now they are paying US$0, 49 per kg on free inputs, weeding cost low at US$15 per hectare, tractor tillage as low as US$25 per hectare.
“Their Ginning Out Turn (GOT) is 36 percent while Zimbabwe is 44 percent,” he said.
GOT refers to the percentage ratio of usable cotton lint produced from a total weight of raw seed cotton.
Zimbabwe ginners are getting more lint to sell than Tanzania ginners.
A University of Zimbabwe lecturer, Dr Kingston Mujeyi, weighed in, saying cotton can be viable if the benefits derived from marketing the crop outweigh the costs of production and marketing.
Waiting for prices to increase and acting as a stimulus for increased production and productivity will not bring the desired outcome in the near future
“Profitability increases if productivity increases, costs of inputs decline and producer price increases.
“However, under the prevailing circumstances, cotton farmers have very limited power and influence over all of the above,” he said.
Dr Mujeyi said the narrative can change if farmers are vertically integrated along the value chain and take control of backward (inputs supply) and forward (processing and value addition) nodes.
“Local value addition (farmgate ginning, seed crushing, oil processing and stockfeed formulation) seems to be the most viable option,” he pointed.
