Cottco boosts input credit scheme to farmers

season as it seeks to boost output.
Contract farming is an arrangement in which a company provides a farmer with inputs to produce and supply it with agricultural product to recover the costs.

Cottco managing director Mr David Machingaidze said 156 673 cotton growers would participate under the company’s input scheme this season, with 142 650 already assessed.
Last season, 103 651 growers participated under the scheme which has now been spread to non-traditional cotton growing areas.
“This season, the scheme is going to support 250 000 hectares of cotton, compared with 208 422 hectares last season,” said Mr Machingaidze.

“It has now been extended to areas such as Lupane and Lusulu which are non-traditional cotton growing areas. Four districts in Matabeleland North, Tsholotsho, Nkayi, Umguza, Bubi and one district in Matabeleland South and Insiza would be covered under this (contract scheme) project.”

Cottco intends to support cotton production covering 2 500ha from these areas. Mr Machingaidze said training on good farming practices and demonstrations by Agritex officers and Cottco field officers were already underway.

He applauded the Presidential Well-Wishers Special Agricultural Inputs scheme for including cotton growers, which he said would go some way to enhance production.
This season, 14 companies have registered to provide farmers with inputs, according to the Agricultural Marketing Authority.

Apart from Cottco, Cargill, Olam, Sino Zimbabwe, Romsdal, Alliance, Grafax, Parrogate, Insing, CottZim, Viridis, Southern Cotton Company, Fahad and Jimmac Zimbabwe Cotton have also registered to support cotton farmers, leading to a big increase in cotton output.

As at October 31 this year, cotton intake was 249,9 million kg compared with 93,4 million last year. Zimbabwe is targeting over 300 million kg this season.
The contract system has over the past years presented challenges as the contractors were accused of giving inadequate inputs to farmers and claiming the whole crop at the end of the season.

But contractors also accused farmers of side-marketing the supported crop. Over the last six years, cotton production declined because contractors were were hesitant to finance a crop that would be open to purchasing by non-financing buyers.

However, the advent of legislation compelling merchants to be directly involved in funding cotton production gave contractors confidence.

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