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The world lint price — which determines local cotton producer prices — has gone up to US$1,70 per pound from US$0,78 last year.
The price translates to US$3,70/kg, which shou-ld excite cotton growers, who last year roundly criticised merchants for paying US$0,30 per kg which they deemed unviable.
Merchants yesterday were optimistic that the sustained lint price increase would result in local
producer prices edging towards US$1 per kg although they said US$0,64/kg would be a realistic price to pay growers, taking into consideration that the crop was largely contracted. In an interview yesterday, Cotton Company of Zimbabwe managing director, Mr David Machingaidze, said to capitalise on the firming world lint price,
Cottco had ensured timely disbursement of inputs and farmers — buoyed by the encouraging prices — had been willing partners in the production matrix.
“With the current world lint prices, we are left with no choice but to pass on the rich pickings from our lint exports to our farmers.
“We believe the current lint price storm will be with us through 2012 and this is good news for both of us in terms of viability.
“The season has really been blessed in that apart from the attractive lint prices on the world market, the rains have been good and inputs were disbursed to contracted farmers well ahead of time, which should produce a good crop,’’ said Mr Machingaidze.
Resultantly — the cotton industry is this season anticipating more than 30 percent increase in seed cotton production — which should see the country producing over 350 000 tonnes, a rise on last year’s crop of 270 000 tonnes.
Zimbabwe Commercial Farmers’ Union dire-ctor Mr Philip Tauyanago said farmers expected a bonus from merchants based on the firming world lint price.
“We had agreed with the Cotton Ginners Association that farmers will receive some bonuses as the international lint price increases so I do not see any reason why farmers should not benefit from this development,” he said.
Mr Tauyanago said the firming lint price mea-nt that local farmers would also get better producer prices for their commodity.
“We have a formula we use to determine the price for cotton but obviously farmers will get nearly double the money they got last season for their crop,” he said.
He said a price of US$1/kg per kilogramme was fair and a higher one was appropriate in a situation where the international prices continue to rise.
Zimbabwe National Farmers Union production and logistics director, Mr Daniel Madungwe said they were looking at a price of US$1,50/kg during the 2011selling season.
An update of the Zimbabwe Cotton Industry released yesterday noted that in the wake of the sustained increase in the world lint price, local average grower yields of 850kg per hectare now needed to be doubled to ensure viability of growers against the backdrop of subsidies of up to 33 percent that are paid to farmers in the major cotton-producing countries — the US, China and the Eurozone.-The Herald
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