Online Reporter
Elita Chikwati
Farmers have called for self-financed or free cotton to bring competition into the sector and increase earnings.
This comes as CBZ Bank has pledged to assist smallholder cotton growers who do not have collateral with funding to produce the crop.
Stakeholders revealed this at the recent Oilseeds Conference held in Kadoma.
The conference brought together farmers, experts and researchers in the oilseeds sector to address challenges currently facing the industry.
Cotton growers highlighted the need to invest in value addition at the local level to create jobs and industrialise rural areas.
Most farmers participating in the conference indicated that they were willing to self-finance cotton production so they could get better returns.
The bulk of cotton is, however, grown under contract farming.
The farmers expressed concern over limited competition among contractors, which they said left them vulnerable as the companies could collude to offer low prices.
Concerns also included late payments and the provision of inadequate input packages. Some companies were said to be giving farmers inadequate inputs, yet they demand the whole crop at the end of the season.
This, however, also resulted in side marketing.
Cotton growers feel that if they have access to cotton seed, they can produce the crop independently.
CBZ head of farming operations, Mr Collins Mpofu, said farmers could access funding or inputs through the bank’s facility.
“We are willing to fund cotton farmers. We can supply inputs and funding from production up to market access. We offer tailor-made services.
‘‘We can also provide training and extension to farmers,” he said.
Several smallholder farmers have been experiencing challenges accessing loans from banks.
Most banks require collateral, mostly immovable property, which most communal farmers do not have.
This has forced many farmers to enter into contract farming to get inputs.
However, the contract system has been presenting challenges.
Cotton Council of Zimbabwe chief executive, Engineer Chris Murove, said cotton was a high-value crop, but farmers were not getting much from producing the crop.
“To increase earnings from cotton, the crop should be processed and consumed locally before we look at exporting. The crop should be processed in the areas where it is produced and this is another way of creating jobs and industrialising rural areas.
“Farmers can be empowered so they can also go into processing. We should produce our own cotton cake and produce stock feeds. Let us express the oil on our own and that is when we can get real profits from the crop,” he said.
Zimbabwe National Farmers Union chairman, Mr Stewart Mubonderi, said farmers were just price takers and would get more from the lint and cake.
“Farmers only get money from the sale of cotton seed. What happens after that does not benefit farmers.
‘‘The lint is the most profitable but the money does not come back to the grower. The grower gets the minimum benefits from cotton in the whole value chain.
“We should have oil pressing machines and that is real empowerment,” he said.
Zimbabwe Commercial Farmers Union representative Mr Clever Gondo welcomed the stance taken by the CBZ to fund smallholder farmers.
“It is good that CBZ is willing to fund farmers. We now need to have a competitive market,” he said.
Agricultural Marketing Authority acting chief executive, Mr Jonathan Mukuruba, said there was need for reforms in Zimbabwe’s cotton and oilseed sectors to boost production and ensure viability.
He said the biggest cotton contractor must be capacitated of taking up cotton production and marketing it effectively.
On free cotton, Mr Mukuruba said self-financed farmers were not under contract with any ginner and they buy their own inputs to grow seed cotton.
“AMA recognises self-financed farmers as those who register with the authority to grow seed cotton from their inputs and furnish the authority with proof of purchase for the said inputs,” he said.
For this season, the authority does not have any free farmers in its database.
“Self-financed farmers, proven beyond any reasonable doubt, are at liberty to sell to any registered buyer of their choice, including ZMX,” he said.
To ensure a smoother market for the harvested lint, Mr Mukuruba urged spinners to put in place adequate financing facilities to take up lint.
Mr Mukuruba said a credit scheme must be considered to increase investments in the sector, while the creation of a stabilisation fund would help buffer farmers against price fluctuations and market instability.
The conference also focused on strategies to enhance the production of soyabeans and sunflowers, vital crops for the country’s oil expression industry.
The bulk of Zimbabwe’s processed cotton is exported and prices are determined on the international markets.
