Cotton intake edges up as contractor performance diverges

 

Business Reporter

Zimbabwe’s national seed cotton intake reached 28,7 million kilogrammes as of 19 August 2026, recording a slight 1,6 percent increase from the 28,21 million kg harvested during the same period in 2025, according to official data from the Agricultural Marketing Authority (AMA).

The current crop carries a combined commercial valuation of US$7,02 million, equivalent to 79,24 million Zimbabwe Gold (ZiG).

All participating private and State-backed contractors maintained a uniform buying price of US$0.35 per kilogramme.

State-backed contractor Cottco preserved its position as the market leader with a 42 percent intake share, securing 12,17 million kg.

However, the firm suffered a steep 28 percent reduction in intake compared with the 16,91 million kg it bought during the corresponding period last year.

Southern Cotton recorded the sharpest growth among major contractors, nearly doubling its deliveries from 2,55 million kg in 2025 to 5,03 million kg in 2026. The firm currently controls an 18 percent market share.

The Agri-Value Chain achieved a similar surge, expanding its intake by over 110 percent to reach 4,7 million kilogrammes. The contractor now commands 16 percent of the total national market share, up from 2,23 million kilogrammes in 2025.

Alliance Ginneries handled 4,24 million kilogrammes, representing a 15 percent market share, despite an 11,7 percent decline from the 4,8 million kilogrammes purchased in 2025.

Cangrow accounted for 7 percent of total deliveries after processing 2,13 million kilogrammes, up from 1,38 million last year.

ZCC recorded the smallest volume at 390 236 kilogrammes, representing a 1 percent share of the 2026 market.

Historically dubbed Zimbabwe’s “white gold”, seed cotton anchored rural livelihoods across major growing regions such as Gokwe, Muzarabani, and Chiredzi, peaking in 2012 when national production reached an all-time high of over 350 000 tonnes.

Subsequent seasons saw a severe downturn, driven by erratic weather, macroeconomic volatility, and unsustainable side-marketing. Production hit record lows by 2014 – the lowest since 1992 – prompting direct State interventions, most notably through the Presidential Free Cotton Inputs Scheme delivered via Cottco.

While Government support stabilised production, confidence among smallholder growers was severely tested in the following years due to delayed payouts and accumulated arrears, causing some farmers to abandon the crop.

For the 2026 marketing season, Cottco has restored farmer confidence by clearing outstanding liabilities and maintaining up-to-date settlements upon delivery.

Cotton serves as a socio-economic backbone for semi-arid, low-rainfall regions in Zimbabwe, sustaining over 200 000 smallholder farming households and upwards of 1,2 million dependents.

In regions such as Gokwe, Muzarabani, Sanyati, and Chiredzi, low annual rainfall makes traditional cereal crops prone to frequent failure. Cotton provides a drought-tolerant cash crop alternative, giving communal farmers a direct income stream.

Cash injections during the cotton marketing season stimulate liquidity in isolated rural economies. Beyond farming households, cotton harvesting and logistics create seasonal manual work for rural youth and women. Local collection points, transit haulage, and rural ginneries employ workers in loading, grading, ginning, and transportation.

 

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