Business Reporter
THE Cotton Company of Zimbabwe has recorded a surge in farmer interest ahead of the 2026/2027 agricultural season, following the full payment of all farmers who delivered seed cotton during the past marketing season, an official has said.
The timely payment marks a significant turnaround for the country’s main cotton contractor, coming against a backdrop where widespread non-payment and delayed settlements in previous years had severely eroded producer confidence, leading many smallholder farmers to abandon the crop.
Cottco went into voluntary corporate rescue in April this year to restore operational viability.
Speaking to The Herald Business in an interview, Cottco corporate rescue practitioner Mr Ian Mtetwa revealed that over 72 400 farmers have now registered interest in growing the “white gold” this coming season—nearly double the previous year.
He said the surge in producer confidence follows Cottco’s completion of payments for the 12 300 tonnes of seed cotton procured this year.
Deliveries were fully settled in both US dollars and Zimbabwe Gold, in compliance with Reserve Bank of Zimbabwe (RBZ) regulations requiring 70 percent payment in foreign currency and the remainder in ZiG.
“We had about 37 000 farmers for the past season, all of them fully paid,” said Mr Mtetwa. “Now, as we prepare for the following season, the total number of farmers who have approached us, motivated by this past season, sits at about 72 400.”
Despite a delayed start to the purchasing process in mid-June 2026—which saw Cottco secure slightly below 50 percent market share of the estimated 29 000 tonnes available nationally, down from its historical 70–80 percent average—the company achieved major operational gains.
Ginning operations are already 80 percent complete, a significant departure from previous years when ginning dragged into January or February, resulting in severe crop degradation and financial loss.
Looking ahead to the 2026/2027 season, Cottco is taking strategic measures to navigate anticipated El Niño weather patterns and maximise commercial viability.
Mr Mtetwa noted that the company’s new strategy will focus heavily on farmer viability and yield productivity.
Because local producers are international price takers, boosting output per hectare is critical to ensuring that farmers achieve profitable returns despite global market fluctuations.
At its peak in 2011, Zimbabwe produced 351 000 tonnes of cotton, a benchmark the sector is striving to progressively build back towards.
Mr Mtetwa said inputs will be prioritised for farmers with a proven track record of consistent deliveries.
Seed has already been moved to common distribution points across the country.
Cottco is also currently engaging the Agricultural Marketing Authority (AMA), cotton merchants, and the Ministry of Agriculture, Mechanisation and Water Resources Development to establish optimal input allocation levels before the official launch of the season.
Addressing the broader corporate rescue strategy, Mr Mtetwa emphasised that Cottco’s core challenges are internal rather than market-driven, given strong global demand for cotton.
“Cotton is in demand worldwide,” Mr Mtetwa said.
“The problem is not the market or the product; it is our own internal issues. We are price takers, so we must rationalise staff, streamline cost structures and optimise our operations.”
As part of long-term value-addition efforts, Cottco is negotiating the acquisition of an oil expression plant, with key proposals submitted to potential financiers.
Processing cotton seed into crude oil locally will enhance revenue streams and capture higher value chain margins.
