Dar es Salaam — THERE is a growing consensus among cotton stakeholders that contract farming, currently being piloted in Mara region, is a panacea for a myriad of problems that have for many years constrained growth of the country's cotton sub-sector.

And, stakeholders are pushing for the countrywide replica of the system that has worked wonders in addressing the chronic problems - shortage of farm inputs, unreliable extension services, cheating and cotton contamination - that had for years proved defiant to all proposed solutions.

"We highly appreciate the introduction of contract farming here... it has helped us a lot," says Mgeta Merogo, Chairman of Changuge Farmers' Business Group (FBG) at Mayani village, Musoma Rural district, noting that the critical problem of farm inputs is now history, thanks to contract farming.

FBGs, associations of between 50 and 60 cotton growers, form reliable network for execution of contract farming. Besides guaranteeing credits to individual farmers, FBGs serve as business entities, contracted by ginners to buy cotton from their members on commission.

"We, small farmers, were for years discarded as not creditworthy but under contract farming and through our groups, we have proved to be highly credible," charges Cheringo Mayingu, a member of Changuge FBG, adding that group members were now getting farm inputs on credit "right here at the village," and repayment rate was above 95 per cent. Under Tanzania Gatsby Trustfunded Cotton and Textile Development Progamme, Tanzania Cotton Board (TCB) has contracted TechnoServe, an international NGO with offices in various developing countries, to manage the contract farming in Mara region.

The NGO assists in the formation and management of FBGs, which go further to trade as cotton buying agents, earning 30/- per kilogramme of cotton purchased. They can generate as high as 30m/-, annually, depending on the quantity of cotton their members have produced. Mr Laizer Gusembe, a member of Mang'ara FBG at Tegeruka village in the district says of the business groups, "The commission is not the only incentive that we enjoy out of our groups -- the trust we have on the person behind the weighing machine is probably the most rewarding aspect."

Cotton growers in the country have for years been subjected to greedy, ruthless cotton buying agents who have been tampering with the weighing scales to steal from unsuspecting poor farmers. Tampering with the gadgets remains a serious problem that frustrates efforts by cotton producers in the country to get out of poverty, with reports indicating that peasants were losing between five and 40 kilogrammes per a 90-kilogramme bale through the dirty game. "During the past, we had no say on people manning the weighing machines because most of them came in just for employment by cotton buyers.

But, now we decide who among ourselves has to man the machine and we can decide to

remove him/her should we sense any element of malpractice...we believe that we are now safe - long live contract farming," says Yusuf Kenyere, another Mang'ara group member. Under contract farming, Musoma- based Badugu Ginnery entered into contracts with FBGs to supply cotton growers with inputs, extension services as well as using the groups as cotton buying agents in return for quantity and high quality produce.

Badugu Ginnery Executive Director Heri Mchunga whose firm has exclusive rights to buy all cotton produced in Musoma Rural district is highly appreciative of contract farming, which he says, "It's highly beneficial...it has enabled us get high quality cotton." He told the 'Business Standard' in Musoma recently that the use of FBGs as buying agents also saves the company from the risks of losing money to untrustful agents. "We used to incur losses because some agents disappeared with our money. But, through FBGs whose members are villagers with strong bonds in their respective areas, our money is safe," Mr Mchunga says with certainty.

Piloting contract farming of cotton started in Musoma Rural district in 2008 before

being extended to Bunda and Serengeti districts last year. The system has as well won accolade in the two districts as Mr Daniel Nyarega, the treasurer of Mawasiliano FBG at Issenye village, Serengeti district attests. "If contract farming has to be sustained, cotton growers' door to prosperity is wide open." Contract farming is seemingly a great success, save for isolated problems caused by the entry of Bariadi-based Alliance Ginneries Limited in the race for cotton buying in Bunda and Serengeti districts.

For, stakeholders accuse the company of reaping where it didn't sow, charging that some farmers who received inputs on credit were diverging loan repayment by selling their produce to Alliance. Only two firms -- Olam and S&C -- had entered into contracts with cotton growers in the districts. Asked to comment on contract farming, Executive Officer of Balili Street in Bunda town Revocutus Luhemeja described the system as a flop. "I don't think contract farming has worked to people's expectations, at least here."

Elsewhere, farmers are yearning for FBG membership. "Initially, we had daunting task persuading farmers to join the groups because FBGs, to many, sounded like cooperative societies. But, now we have problems handling the influx of applications for memberships," charges Mr Nyarega, a 65-year old cotton grower determined to harvest 1,500 kilogrammes of seed cotton per acre next year. However, besides all the benefits, pricing remains a contentious issue, with cotton growers in Musoma rural demanding premium prices over and above the prevailing market prices.

"If Badugu has declared publicly that our cotton is of top quality, there is no doubt that we deserve preferential prices on our produce," queried Pendo Aloyce, a member to IPM group at Tegeruka. TCB acting Director General Marco Mtunga admits that farmers who produce high quality cotton deserve premium prices. "True, that is something that has to be addressed when the system goes nationwide".