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Edgar Vhera
Agriculture Specialist Writer
COTTON farmers, transporters and rural district councils are set to receive over US$30 million by the end of this marketing season from Cottco, in payment for their goods and services.
In a recent interview, Cottco board chair Mr Sifelani Jabangwe said: “This year we are injecting approximately US$30 million through seed cotton payments.
“We will also channel between US$3 million to US$4 million towards the transportation of inputs and seed cotton directly into rural communities.”
Mr Jabangwe said about US$500 000 would be paid as rentals to rural district councils and holders of building premises used as common buying point (CBP)
Cottco is expecting over 100 000 tonnes of seed cotton from 190 000 hectares contracted to farmers, with a minimum 0,5 hectares to a maximum of 20 hectares per farmer.
Payments to the cotton value chain player may be over US$40 million, if the anticipated 100 000 tonnes of seed cotton are achieved.
For the present seed cotton intake, Cottco has paid out US$8 million, with the balance to be paid under the first-in first-out (FIFO) payment method.
Said Mr Jabangwe: “So far, we have disbursed US$7, 84 million to our farmers and efforts are being made to ensure payments for all the seed cotton that has been delivered.
“We faced delays in accessing funding from our arranged banking facilities due to market-wide liquidity challenges.
“We are pleased to advise that arrangements have been made to begin releasing funding in tranches and farmer payments have resumed using the FIFO method.”
Cottco is using mobile money, banking platforms and other money transfer agents to pay farmers countrywide.
Mr Jabangwe said the emphasis of Cottco was to bring maximum convenience to farmers and had engaged mobile money service providers to have agents and booths in areas that are easily accessible.
Mobile disbursements will take place for those areas which do not have a permanent pay-out point, he said.
Meanwhile, Mr Jabangwe said lack of draught power due to January disease in areas such as Muzarabani, abuse of inputs and farmers opting for competing crops such as tobacco, resulted in Cottco not achieving the 260 000ha target.
Women constituted 34 percent of the 360 224 contracted growers.
Farmers got 48 tonnes of Mahyco hybrid seeds, together with some local cotton seed varieties.
Cottco has now distributed enough wool packs to maintain the quality of the seed cotton.
“We acknowledge that our wool packs were a bit delayed but so far, we have received 70 percent of our requirements and they have been delivered to all our ten business units countrywide.
“The wool packs are enough for our requirements as we are recycling them,” said Mr Jabangwe.
Ginning has since started in Chiredzi, Gokwe and Muzarabani while Sanyati will start soon.
Mr Jabangwe said payment towards the procurement of the oil expressing plant for value addition had been made and civil work designs were in place, and construction will begin before year end.
Cottco has partnered with a local spinner to value-add their lint into yarn to increase earnings.
At the inaugural World Cotton Day last year, textile stakeholders complained about the decline in cotton quality.
However, the seed cotton quality this year is expected to be good because of a favourable season.
“Given the early rains this year and adequate heat units, we foresee an improvement in fibre maturity. “We are also encouraging farmers to grade their cotton and to follow the good agronomic advice to improve the lint quality,” said Mr Jabangwe.
He added that Cottco was significantly contributing to rural development through peak marketing season employment of up to 4 000 employees and 1 000 off peak.
Cotton is a foreign currency earner and depending on the intake, can bring in between US$25 million and US$60 million from lint exports annually.
“Further, we are an agent for rural transformation with over two million households deriving their livelihood from cotton production,” he said.
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