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Fildah Gwati
COMING on the backdrop of Government’s acquisition of a 51 percent stake in Cottco, the Second Republic’s decision to select cotton alongside sunflower as key policy crops for economic transformation underlines its commitment to transforming rural areas into industrial hubs to spawn economic development.
Lands, Agriculture, Fisheries, Water and Rural Development Minister Dr Anxious Masuka was candid at this year’s edition of the World Cotton Day commemorations when he said: “Cotton and sunflower are smallholder crops that can be engines for transformation of communities. Government is currently a facilitator and actor in the cotton value chain, but when the sector is fully established it ceases the actor role and focuses on facilitation. Cotton plays a central role in the transformation of communities in the context of climate change as Zimbabwe and Southern Africa are predicted to be much drier in the coming years, therefore the areas suitable for cotton could be limited. Grower viability is crucial for sustainability of the crop.”
Government has since put in place stringent measures to enhance accountability and improve grower viability for sustainable increased seed cotton production ahead of the 2023/24 season.
“Transformation of the cotton sector is premised on grower viability, which can be achieved by giving farmers fair prices for seed cotton. Sustenance of this transformation is underpinned by grower viability and discipline at grower, contractor, Government, stakeholder and partner levels. Increasing discipline augurs well for value chain financing,” said Dr Masuka.
This follows revelations that numbers of growers contracted under the Presidential Cotton Scheme who delivered seed cotton to Cottco had been declining from 58 percent in 2020 to 37 percent in 2023.
Importance of cotton to the economy
Cotton is a major source of livelihood for approximately two million people from farmers, farm workers, their families, and industrial workers.
The crop contributes immensely to income and employment creation while contributing to foreign currency earnings.
In a post on X (formerly Twitter), Cottco said: “The cotton sector has evolved from only accounting for one percent of the commercial agriculture output in 1965 to about 10 percent to date. Though it was not exported then, currently it is a major source of foreign currency with 70 percent of the crop produced being exported.”
Cotton provides raw materials for oil expressing, knitting, spanning, weaving and stockfeed industries.
Cottco revealed that prior to the start of the 2023 marketing season, it had exported lint worth US$229,8 million since 2017.
Cottco is also sustaining rural livelihoods as approximately two million households benefit in the cotton value chain with US$260 million injected into the community through farmer payments since 2017. This figure is likely to reach US$300 if statistics of the 2023 marketing season are factored in. The number of cotton farmers grew exponentially from 80 000 in 2017 to over 400 000 currently.
Local rural district councils are immensely benefiting from cotton production with Cottco paying over US$2,5 million from 2017.
The Zimbabwe Electricity Supply Authority (ZESA) has also received US$4 million with transporters getting a whopping US$22 million since 2017.
In its recent trading update from July 1 last year to August 31 2023, Cottco said its value addition initiative had seen the company converting over 800 tonnes of lint to yarn for the local market. Prices paid for yarn are much higher than those paid for lint.
“Cottco has paid a deposit and commenced site clearance for a 60 tonnes per day oil expression plant to be located in Gokwe. Commissioning of the plant is targeted for early 2024 and is expected to contribute towards rural transformation and development,” said the trading update.
The establishment of plants in production areas will curb rural-urban migration, lower cooking oil and stockfeed costs.
What policies did the Second Republic put to steer seed cotton production?
- Funding under the Presidential Cotton Scheme (PCS)
Seed cotton production dropped from a record high of 351 million kilogrammes in the 2012 marketing season to a low of 29 million in 2016. Government initiated the Presidential Cotton Scheme in 2017, which resulted in a 155 percent increase in production to 73 million kilogrammes. Continuation of the PCS over the years has seen production rising 215 percent from the lowest figure of 29 million kilogrammes to 90 million in the 2023 marketing season.
The Zimbabwe end of year cotton report for 2022 by the Agricultural Marketing Authority (AMA) said the Presidential Free Cotton Input Scheme was a subsidy to the farmer that was being administered by Cottco.
An analysis of the report indicates that the proportion of Government to private sector financing was 65 to 35 percent at inception but had widened over the years to the current 84 to sixteen percent for the 2022/23 season.
- Split payment for seed cotton purchases
The Government introduced a split payment method in the 2022 marketing season to cushion farmers from inflationary pressures experienced in the 2020 and 2021 marketing seasons. This was meant to encourage farmers to take farming as a business. A kilogramme of seed cotton fetched a price of US$0,30 in cash on the spot plus $32,50 through mobile or bank transfers. This was 75/25 percent split between the foreign and local currency.
iii. Standardised foreign currency retention at 75 percent
After allowing growers to retain 85 percent of their earnings in foreign currency in the 2023 marketing season the Government will allow farmers to receive 75 percent of their earnings in foreign currency for the 2024 marketing season.
- Grade-based pricing model
The Government introduced a grade-based pricing system to reward production of quality seed cotton in the 2023 marketing season. The price was set on a sliding scale from US$0,40 for grade D, US$0, 41 for grade C, US$0,43 for grade B and US$0, 46 for grade A.
Over the period 2017 to 2022 the average percentage for the different grades were: A (two percent), B (four percent), C (34 percent) and D (60 percent).
The introduction of the grade-based payment system is expected to reverse the above trend with much of the seed cotton anticipated to get better grades as farmers seek higher returns.
- Adoption of Pfumvudza/Intwasa cotton model
The Government is addressing the decline in cotton productivity from an average of about 800 kilogrammes per hectare in 2010 to 232 kilogrammes in 2022 by calling on farmers to adopt Pfumvudza/Intwasa cotton model as that allows farmers to give maximum attention to smaller pieces of manageable land where optimum inputs are applied.
Because of the drudgery involved in holing, the Government has activated the acquisition of two-wheel tractors for use by smallholder farmers to mechanise them. It is also calling on farmers to adopt the 4R concept of applying the right type of input, in the right quantity, at the right time and placement as well as right pH in order to keep the vital nutrients in the field for improved production, productivity and profitability.
Lands, Agriculture, Fisheries, Water and Rural Development deputy minister Mr Vangelis Haritatos recently said Government introduced the Pfumvudza/Intwasa cotton concept to mitigate the negative effects of climate change and increase production and productivity.
“Pfumvudza/Intwasa cotton is an initiative by Government to boost production with farmers being cushioned through the provision of inputs under the Presidential Input Scheme,” said Dep Min Haritatos.
Cotton removes carbon emissions from the atmosphere, as it sinks 150 times more carbon dioxide than it produces. Conservation tillage practiced under Pfumvudza/Intwasa cotton further helps in carbon sequestration.
Dep Min Haritatos said better farmer viability and sustainability would encourage more farmers to venture into cotton production.
“The Government has upped dam construction for irrigation development. In the 2018/19 season four farmers started cotton production under irrigation and the number has since grown to 211,” added Dep Min Haritatos.
Success stories of smallholder cotton farmers
Mr Smart Kambanje from Nembudziya under Chief Makore in Gokwe district, who was voted the 2021/22 season’s best cotton farmer, chronicled how interventions by the Second Republic in the cotton sector transformed his life.
“I used to do menial jobs such as weeding in other people’s fields to finance my own farming ventures. I started by planting about 30 to 40 lines of cotton, which was less than a hectare around 2010 because I knew it was a game-changer for me.
“In 2018 the Government gave us free cotton inputs and I planted the local open pollinated varieties (OPV) SZ9314 and yielded 21 bales,” said Mr Kambanje.
In 2019 and 2020 he got 27 bales, thanks to Government support. In 2021 he planted two hectares — one under the local variety SZ9314 and the other under imported hybrid Mahyco C567.
“I observed that there was not much difference in the yield between the two varieties with the imported Mahyco hybrid producing 4 560 kg while the local variety SZ9314 yielded 4 006 kg per hectare. If anything, I noticed that the balls from the local variety are heavier at about 5 grammes compared to those for the hybrid that are around 3 grammes,” continued Mr Kambanje.
The Government’s intervention last year in the pricing of cotton by offering a cash price of US$60 plus Z$6 500 per 200 kilogramme bale brought joy to the farming community with Mr Kambanje pocketing US$2 570 cash and $278 395 in his phone.
This past season Mr Kambanje planted to 4,5 hectares and harvested 52 bales earning US$3 300 plus the local currency component, which is still to be paid.
For the 2023/24 season he intends to do six hectares and has finished ploughing all his fields and now awaits inputs from the Grain Marketing Board.
His success story comes from implementing good agronomic practices from land preparation, planting, upkeep, harvesting and storage under the Going4Growth 4R (right seed, right quantity, right time, right placement) theme.
“I managed to build houses, bought a grinding mill, drilled a borehole and I plan to set up an irrigation system for use in other cropping options,” he said.
Runner up Mrs Sekai Chinyandura had her life transformed when she had a 120-metre borehole sunk at her Muzarabani homestead.
Another farmer doing wonders is Mr Lyben Sithole of Munepasi Village in Ward 26 of Chipinge who is practising commercial cotton production on 20 hectares out of his 31-hectare plot.
Mr Sithole applauded Government support in the provision of inputs under the Presidential Cotton Input Scheme, saying this had transformed his life for the better.
“I planted 20 hectares under dryland this season up from 15ha last season. I harvested 320 bales and achieved an average yield of 16 bales per hectare,” said Mr Sithole.
Mr Sithole managed to electrify his homestead by drawing power from seven kilometres away. He bought three grinding mills, built a large shed for crop storage and built a house in Harare.
He employs up to 30 people who pick cotton, do weeding and general crop maintenance.
Another farmer from Nemangwe Village, Ward 19 in Gokwe North, Mrs Priviledge Masunda said she is able to send her children to school, built a house and has ventured into livestock farming as a result of raised incomes from cotton farming.
“We started cotton cultivation on one hectare in 2018 but have since increased to six hectares after receiving inputs from Cottco,” she said.
Another farmer from Machona Village, Ward 30 in Chisumbanje, Mrs Mavis Madondo glorified cotton production, saying she built a four-roomed house, set up a solar system and bought four head of cattle.
“I managed to plant four hectares last season but I was not fully paid making it a bit difficult to achieve everything I wanted to. I have since prepared four hectares of land for cotton farming, but am still to receive the inputs, as we wait patiently for the commencement of cotton inputs distribution, which we expect anytime soon,” she said.
Online Reporter