13 October 2007
Maputo — Climatic factors in the main cotton producing areas of the northern mozambican province of Nampula and Cabo Delgado are likely to reduce cotton production substantially, warns the government's Mozambique Cotton Institute (IAM).
The IAM is revising down its estimates for 2007 production.
Rather than the 121,000 tonnes originally forecast, it seems that shortage of rain at a crucial period in the cotton cycle will cut production to between 90,000 and 100,000 tonnes.
Cotton is grown mainly by peasant farmers on small fields less than a hectare in size. According to IAM figures cited in Saturday's issue of the Maputo daily "Noticias", average peasant cotton yields are 550 kilos per hectare.
Some 300,000 peasant families grow cotton, and sell their crop to ten concessionary companies.
Mozambique should have benefitted from higher cotton prices.
Currently cotton is being sold on the world market for 70 US cents a kilo, rather than the 64 cents that was the price in May and June.
IAM director Norberto Mahalambe said that the expected drop in production could wipe out any gains that Mozambique might have gathered from the higher prices.
Next month the IAM plans to meet with representatives of the government, of the farmers, and of the concessionary companies, for a fresh round of discussions on cotton producer prices. In recent years, consensus between the farmers and the companies has proved impossible, obliging the government to step in and fix the price.
This year the minimum price fixed for first grade cotton was 5.3 meticais a kilo and for second grade cotton 3.7 meticais a kilo (at current exchange rates there are about 27.5 meticais to the US dollars). These prices are exactly the same as those practiced in 2006.
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