Online Reporter
Edgar Vhera, Specialist Writer — Agribusiness
SEED cotton uptake by the country’s six registered contractors has surged by 78 percent, rising from 13 million kilogrammes (kg) in 2024 to 23 million kg over the same period this year.
This development comes as the Agricultural Marketing Authority (AMA) assesses deliveries at common buying points (CBPs) to determine whether to extend the marketing season, which officially ended on 15 July.
Statistics released by AMA show that purchases increased from 13 million kg as of July 16 2024 to 23 million kg on the corresponding date this year.
The largest share of the uptake was handled by Cottco, which purchased 13 million kg — representing 58 percent of total sales.
Alliance Ginneries followed with 5 million kg (21 percent), while Southern Cotton accounted for 2 million kg (eight percent).
Agri Value Chain ranked fourth, contributing seven percent of the total intake with 2 million kg. Cangrow Trading came fifth with 1 million kg (five percent), and the Zimbabwe Cotton Consortium (ZCC) accounted for the remaining 230 807 kg.
AMA statistics also revealed that contractors offered prices ranging from US$0,30 to US$0,35 per kg, payable in foreign currency.
AMA Acting Chief Executive Officer, Mr Jonathan Mukuruba, said yesterday that the authority was still assessing CBPs to determine whether to extend the marketing period.
“We are still assessing, which points to extend marketing. All bales are vetted at buying points to prevent side marketing,” said Mr Mukuruba.
At the launch of the 2024/25 cotton marketing season, Mr Mukuruba reiterated that no bales would be moved from CBPs unless fully paid for. To curb side marketing, AMA reminded farmers that if any cotton is produced beyond contractual obligations, the contractor retains the right of first refusal.
Statutory Instrument (SI) 63 of 2011 stipulates that growers and contractors must enter into a mutually agreed volume-based contract, which is binding. Under this regulation, contract seed cotton may not be purchased by any party other than the designated contractor.
Cottco is targeting to purchase over 60 million kg of seed cotton this year, buoyed by a favourable rainfall season and the timely disbursement of adequate input packages to growers. The company funded 109 362 hectares of cotton production.
Cottco Acting Chief Executive, Mr Rockie Mutenha, said the company remained optimistic about reaching its target, as deliveries were still being made from farms.
Meanwhile, Cotton Producers and Marketers Association (CPMA) chairman, Mr Stewart Mubonderi, said farmers were pleased that Cottco had resumed payments and increased the price to US$0,32 per kg.
“This development is good news for growers, as some merchants were attempting to lure them into side marketing due to delayed payments from Cottco. Cottco paid for its initial seed cotton intake, but the funds were exhausted midway, resulting in growers leaving bales at CBPs without receiving payment,” he said.
A concerned cotton farmer in Chipinge, who requested anonymity, echoed the sentiment, noting that Cottco had resumed payments for previously undelivered seed cotton. “The delayed payments were pushing some growers to consider selling to buyers offering cash on the spot, with some offering between US$0,40 and US$0,45 per kg. Now, Cottco is paying for the earlier deliveries at US$0,32,” the farmer said.
According to the Second Round Crop, Livestock and Fisheries Assessment (CLAFA-2) 2024/25 report, cotton production is expected to increase by 354 percent — from 13 500 tonnes last year to 61 289 tonnes this season.
Current purchases represent 38 percent of this year’s projected total production.
Sidumisile Mabena