The Cotton Council of Zimbabwe (CCZ) has released a comprehensive blueprint to revitalise the cotton industry whose performance had plunged to levels that saw it producing less than a third of its full potential.
The plan emphasises the need to re-fashion the cotton industry in a way that benefits not only the farmers who grow the crop but workers in the upstream and downstream sectors and the nation as a whole. It will also lay the foundation of the revival of the sector that had become a pale shadow of itself after production levels plummeted to unfathomable levels in recent years.
"At its peak, the cotton industry produced over 350, 000 tons of seed cotton, supporting numerous smallholder families and a range of downstream industries. However, in recent years, production had plummeted to a mere 96 000 tonnes resulting in devastating effects on the national economy," CCOZ chief executive officer Engineer Chris Murove said recently.
He added that the idea was to create a system where cotton farmers can participate meaningfully in the entire value chain, leading to increased wealth generation for themselves.
Employees in local value addition industries such as ginning, spinning/weaving, oil seed crushing, and manufacturing of animal feeds, edible oils, fats, and soaps, will have access to sustainable and well-paying jobs, helping them attain middle-income status, Eng Murove explained.
Although there has been a revival in cotton production due to Government support, which includes the provision of free inputs to farmers, Eng Murove warned that this progress might be short-lived if the support is terminated. This makes it prudent to adopt a farmer-focused industrial model for the sector to address its structural weaknesses and ensure long-term sustainability.
He also emphasised that the Agricultural Marketing Authority (AMA) and Government were spearheading efforts to revitalise the country's cotton industry focusing on restoring farmers' viability through the 'free cotton' scheme and promoting value addition within the sector.
Under the current contract programme, seed cotton produced by farmers belongs to the contractor, preventing farmers from adding value to their crops. To overcome this challenge, a proposal has been put forth to encourage farmers to produce 'free cotton.' This will allow them to gin their own cotton either through toll-ginning arrangements or by utilising their own farm gate ginning facilities.
"The proposal emphasises the need for fair and sustainable contracts for contracted farmers. These contracts should be simple and clearly stating the expectations and obligations of both parties. It is crucial to specify the circumstances under which 'free cotton' can arise and how it will be quantified to avoid any disagreements during the cotton buying season and seed cotton deliveries," he added.
Standardisation of contracts across all contractors is also recommended to ensure fairness within the industry.
For uncontracted or free farmers, focus is on facilitating access to planting seeds and credit from financial institutions like the Agricultural Finance Corporation (AFC). This will enable them to produce exclusively free seed cotton, which they can then value-add. By establishing an orderly industry with reduced risks, lenders will have greater confidence in supporting cotton farmers.
To further promote value addition, granting legal rights to farmers to add value to their free cotton may be vital. CCOZ is therefore pushing for an amendment of the existing regulations, advocating for the recognition of ginning as a farm gate operation. This will empower growers to gin their own free cotton and move up the cotton value chain.
To ensure accountability and eliminate duplication, AMA is constructing a universal cotton farmer database in collaboration with the CCOZ and other stakeholders. The database will capture personal and contact details of both contracted and free farmers. It will also include information on the contracted seed cotton volumes, level of support provided by the contractor, credit suppliers for uncontracted farmers and expected volumes of free cotton to be produced.
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The database will be a tool for monitoring and verification. Farmer representatives, including the CCOZ will have access to the database to assist in identifying ghost farmers, duplicate registrations, and cases where contractors have failed to meet their obligations. By ensuring the integrity and effectiveness of the database through independent audits, accountability and transparency within the industry can be enhanced.
These initiatives are expected to restore order in the industry and instil confidence in lenders, ultimately safeguarding the interests of cotton farmers and encouraging the continued growth of the cotton sector in Zimbabwe.
