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Cotton companies are offering top-up payments to farmers for higher-grade cotton delivered last season.
The Cotton Ginners Association (CGA), which represents private merchants accounting for about 25% of the country’s cotton production, has confirmed that farmers are receiving additional payments for cotton graded A, B, and C.
Farmers initially receive payment for the lowest grade (D), with further top-ups provided based on the final grade assigned to the cotton.
For the 2024 marketing season, the minimum seed cotton prices are set at US43c per kg for grade A, US39c for grade B, US36c for grade C, and US32c for grade D. CGA said in a statement:
<blockquote>
We are pleased with the progress made in input distribution. We have already provided a portion of the inputs to farmers and are well-prepared for the season.
This, coupled with the top-ups for grade differentials, demonstrates our commitment to supporting farmers.
</blockquote>
At its peak, Zimbabwe’s cotton production reached 351,000 tonnes during the 2010/11 season. However, last season’s drought severely affected yields, causing production to plummet to a record low of just 13,000 tonnes.
More: <a href="https://www.pindula.co.zw/">Pindula News</a>

Pindula News

Cotton companies are giving extra money to farmers for better-quality cotton they delivered last season. Farmers get paid for the lowest grade first, then more money if the cotton is graded better. The prices for different grades are set for the 2024 season. The Cotton Ginners Association is happy with progress in giving out seeds and supporting farmers. Zimbabwe's cotton production dropped a lot last season due to a drought. In the past, the country produced a lot more cotton.

Farmers To Get Top-Up Payments For Cotton Delivered Last Season

The Cotton Company of Zimbabwe (COTTCO) has assured farmers that all seed cotton stored at common buying points (CBPs) will be transported to ginneries by mid-October and that outstanding payments for 2024 will also be processed.
This assurance comes in response to farmers’ concerns that some 2024 seed cotton remains at certain CBPs, with the local currency portion (equivalent to US$0.08) yet to be received.
Stewart Mubonderi, chairman of the Cotton Producers and Marketers Association (CPMA), said that some seed cotton at the CBPs was damaged due to recent rains. He said (via <a href="https://www.herald.co.zw/all-seed-cotton-to-be-in-ginneries-by-mid-october/">The Herald</a>):
<blockquote>
COTTCO has not yet picked seed cotton in some CBPs in areas such as Mutoko, Chiredzi and Binga among others and the cotton was damaged by rains that fell last week.
Farmers have also not been paid their local currency component for the crop plus the grade-based differentials.
</blockquote>
COTTCO’s CEO, Rockie Mutenha, said that 76% of seed cotton has been transported from common buying points (CBPs) to ginneries, with efforts underway to complete the movement by mid-October.
He said 45 to 50% of the local currency owed to farmers has been paid, and although a local bank has a facility to cover the full amount, it is currently facing liquidity challenges but plans to disburse funds soon.
According to a COTTCO report dated September 26, the total intake from all six business units (BUs) was 9,973,909 kilogrammes, with 7,611,788 kilogrammes moved and 2,362,121 kilogrammes remaining.
The Sanyati unit has the highest outstanding amount at 910,302 kilogrammes, followed by Chiredzi, Gokwe, Chinhoyi, Muzarabani, and Kadoma.
The 2023/24 agricultural season was significantly affected by an El Niño-induced drought, leading to an 85% drop in production, from 90,084 tonnes in 2022/23 to just 13,545 tonnes this year.
More: <a href="https://www.pindula.co.zw/">Pindula News</a>

COTTCO promises to move all cotton to factories and pay farmers. Some cotton got damaged by rain but will still be moved. They have paid some money to farmers but still owe more. The CEO says they are working to finish moving cotton by mid-October. Some banks are helping with the money but are facing problems. The drought last year caused a big drop in cotton production. The report shows how much cotton has been moved and how much is left. Don't worry, the cotton will be taken care of soon!

COTTCO Pledges To Move Seed Cotton To Ginneries And Process Payments To Farmers

The Cotton Company of Zimbabwe (COTTCO) owes farmers nearly US$3 million for cotton deliveries made between 2022 and 2023.
This was revealed by Lands, Agriculture, Fisheries, Water, and Rural Development Minister Anxious Masuka in response to written questions from legislators during a parliamentary session this week. He said (via <a href="https://www.newsday.co.zw/local-news/article/200032907/cotton-farmers-owed-us3m">NewsDay</a>):
<blockquote>
COTTCO is being mindful of the indebtedness to the farmers and engagements with various financiers are underway for facilities to liquidate the outstanding balances.
To date, US$20 917 906 has been paid against a target of US$23 722 509, hence there is an outstanding debt amounting to US$ 2 804 603.
</blockquote>
Over the years, COTTCO has faced difficulties in paying for cotton deliveries due to insufficient funding.
Cotton production in Zimbabwe has been declining as a result of several factors, including drought, climate change, low pricing, outdated crop varieties, and delays in payments.
More: <a href="https://www.pindula.co.zw/">Pindula News</a>

COTTCO, a company in Zimbabwe, owes farmers $3 million for cotton deliveries. The Minister said they are working on getting money to pay farmers. They have paid some money, but still owe a lot. COTTCO has had trouble paying farmers in the past. Cotton production in Zimbabwe is going down because of things like drought, climate change, low prices, old crops, and late payments.

COTTCO Owes Farmers US$3 Million

The Agricultural Marketing Authority (AMA) has extended the 2024 cotton marketing season to 31 July as farmers in different areas still have cotton maturing in their fields.
This year’s cotton marketing season was supposed to run up to 06 July.
Speaking to <a href="https://www.newsday.co.zw/business/article/200029696/cotton-marketing-session-extended">NewsDay</a>, AMA chief executive officer Clever Isaya said that late rains and drought resulted in the late maturing of cotton. Said Isaya:
<blockquote>
We had a delay in the last farming season because of the late rains and the droughts. Right now, there are still farmers in different farming areas who still have their cotton seeds maturing and still preparing for sale…
There were low yields, and it has been challenging, characterised by a late and false start of the rains followed by prolonged dry spells.
</blockquote>
AMA extended the cut-off marketing dates for farmers in Mashonaland Central, Gokwe, Chiredzi, Sanyati, Bulawayo, Chinhoyi, Marondera, and Mutare, with the longest extension ending on July 31, 2024.
Isaya said that cases of side marketing have been relatively few this season due to the quota system implemented earlier this year. He said:
<blockquote>
We have had very isolated cases of side marketing. This season, we implemented the quota system, and it has been very instrumental in dealing with side marketing.
There were very few cases, I think we only recorded only two cases of side marketing.
</blockquote>
AMA implemented a quota system that was based on the level of support each contractor had provided to farmers during the current agricultural season.
Under the quota system, no contractor was permitted to purchase crops outside of their assigned quota, except for self-financed crops.
Meanwhile, AMA set this season’s minimum prices for the “white gold” at US$0,43 per kg for Grade A, US$0,39/kg (Grade B), US$0,36/kg (Grade C) and US$0,32 (Grade D).
More: <a href="https://www.pindula.co.zw/">Pindula News</a>

The cotton marketing season has been extended to July 31 because some cotton is still growing late due to late rains and drought. The extension is for areas like Mashonaland Central, Gokwe, Chiredzi, Sanyati, Bulawayo, Chinhoyi, Marondera, and Mutare. There have been few cases of side marketing this season because of a quota system. The minimum prices for cotton this season are US$0.43 per kg for Grade A, US$0.39/kg for Grade B, US$0.36/kg for Grade C, and US$0.32/kg for Grade D.

Cotton Marketing Season Extended

The 2024 cotton selling season is set to run from 01 to 30 June, with consultations on the grade-based pricing system currently underway.
Speaking during the post-Cabinet briefing in Harare on Tuesday, Information, Publicity and Broadcasting Services Minister, Jenfan Muswere, said that cotton farmers will receive 75 per cent of their payments in US dollars and 25 per cent in ZiG. He said:
<blockquote>
Cabinet advises that the 2024 cotton marketing season will be from 1 to 30 June 2024. Farmers will receive 75% of their payments in US$ and 25% in ZiG.
All outstanding payments by the Cotton Company of Zimbabwe amounting to US$2,65 million and 2,8 million in ZiG will be cleared by 31 May 2024.
The grade-based pricing system will be announced once ongoing consultations are concluded.
</blockquote>
The cotton output is expected to be lower than during the 2022/23 season due to the devastating effects of the El Nino weather pattern.
Last week, the Cotton Company of Zimbabwe (COTTCO), said it has paid the US$21 million it owed cotton farmers, with U$323 642 remaining uncollected despite several notices to farmers to do so.
Cotton is one of Zimbabwe’s major agricultural exports but yields have declined over the years due to several factors.
According to the Agricultural Marketing Authority (AMA), the country’s cotton production increased by 67% to 89,6 million kilogrammes during the 2022/23 farming season.
More: <a href="https://www.pindula.co.zw/">Pindula News</a>

Cotton Marketing Season Set For June

The Cotton Company of Zimbabwe (COTTCO), says it has paid the US$21 million it owed cotton farmers, with U$323 642 remaining uncollected despite several notices to farmers to do so.
In an update, COTTCO urged farmers to visit the designated collection points to collect the payments. It said:
<blockquote>
This delay in voucher redemption is a cause for concern, particularly in this drought year whereby farmers require financial resources to ensure food security.
Farmers are encouraged to visit business units or designated collection points promptly to access their hard-earned payments.
COTTCO remains committed to ensuring transparency and efficiency in the payment process and encourages farmers to actively engage with the company to access their rightful payments without delay.
</blockquote>
In an interview with NewsDay, Cotton Producers and Marketers Association of Zimbabwe chairman Stewart Mubonderi cotton farmers are still owed US$2,8 million by COTTCO. He said:
<blockquote>
COTTCO had paid US$21 million and the outstanding is US$2,8 million which is worrisome as we are facing drought.
</blockquote>
The cotton farmers were initially owed US$23,6 million by COTTCO. The company had been struggling to settle the payments due to a lack of funding. Added Mubonderi:
<blockquote>
The company has to show seriousness as farmers are facing hardships this year, and giving those vouchers will be easier than what is happening.
On the issue of ZiG which they have not paid, that money needs to be paid to farmers. It will be unfair if that money is not paid on time to farmers.
</blockquote>
Cotton is one of Zimbabwe’s major agricultural exports but yields have declined over the years due to several factors.
According to the Agricultural Marketing Authority (AMA), the country’s cotton production increased by 67% to 89,6 million kilogrammes during the 2022/23 farming season.
More: <a href="https://www.pindula.co.zw/">Pindula News</a>

COTTCO Says It Paid Out US$21 Million To Cotton Farmers

The cotton yield in Zimbabwe for the 2023/24 season is anticipated to be the worst in years, primarily due to the devastating impact of the El Niño-induced drought.
In the previous season, the country managed to produce approximately 90,000 tonnes of cotton. This production was mainly carried out by small-scale farmers who participated in the Government’s free input scheme.
While farmer organizations have not yet finalized their production estimates, they anticipate a significantly reduced harvest for the current year.
Cotton farmers in the cotton belt, specifically in Sanyati (Mashonaland West Province) and Gokwe North and South Districts (Midlands Province), have expressed their concern, expecting a record low cotton yield.
Speaking to <a href="https://www.herald.co.zw/cotton-industry-faces-worst-season-in-years/">The Herald</a>, Tavaziva Munherendi, the leader of farmers in the Gambiza-Machipisa area of Sanyati said:
<blockquote>
This drought is a devastating blow. My expected yield is barely a quarter of what I harvested last year. Some farmers may not even harvest anything at all.
</blockquote>
Elisha Dube, a farmer from the same area, depicted a sombre scene, projecting a meagre yield of only three bales this season—a staggering decline compared to the 27 he reaped last year.
Zimbabwe Farmers Union’s national cotton chairman, Ishmael Pande, also a farmer in Sanyati, pointed out that most of the region last received rains in early January. He said:
<blockquote>
We put in a lot of effort to establish the crop, hoping for a good harvest to benefit the economy and create jobs along the cotton value chain.
Unfortunately, the prolonged dry spell severely impacted the crop. This is a double blow since cotton is a crucial cash crop that thrives in regions like Sanyati.
</blockquote>
Stanford Kambanje, who farms in the Chinyenyetu area of Gokwe North, said the area last received rainfall on 19 January and it has been dry ever since.
Last year, Kambanje earned the prestigious Grower of the Year award after a successful harvest of 57 bales. This year, however, the drought has taken a heavy toll, and he will struggle to even reach four bales.
Gokwe is the country’s largest cotton-producing region, accounting for about 30 per cent of the national output.
Tendai Vherewa from Zhomba, popularly known as Chitekete said she does not expect any yield from the two hectares she planted.
Herdman Siyabuwa Kafunde Simchembo area in Zhomba declared he has never witnessed a drought this severe in his entire lifetime.
Cotton is a major export crop for Zimbabwe. A reduced yield means fewer cotton exports, leading to a decline in export revenue for the country. This can strain foreign exchange reserves and affect the balance of trade.
Moreover, small-scale cotton farmers heavily rely on cotton production for their livelihoods. A poor yield translates to lower income for these farmers. Reduced income can impact their ability to meet basic needs, invest in their farms, and support their families.
Also, companies that supply seeds, fertilizers, pesticides, and other inputs to cotton farmers may experience reduced demand. This can affect their revenue and profitability.
The low yields may discourage investment in cotton farming. Investors may shift resources to other crops or sectors, affecting long-term agricultural development.
More: <a href="https://www.pindula.co.zw/">Pindula News</a>

Zimbabwean Farmers Anticipate Record-Low Cotton Yields

The Cotton Company of Zimbabwe (COTTCO) has paid US$19.3 million to farmers to date, out of the US$23.6 million it owes, the State-run company said in a recent update.
In terms of the local currency debt payment, the company has only managed to settle ZWL$5.4 billion out of ZWL$28.8 billion.
The Zimdollar payments will be made at the prevailing bank rate.
COTTCO also said 168 428 farmers have received inputs, which consist of seed, fertiliser and herbicides for the current planting season.
At least 3 211,48 tonnes out of 4 537 of seed and 15 497,50 tonnes of Compound L have been disbursed to farmers.
Speaking to <a href="https://www.newsday.co.zw/business/article/200021939/cottco-pays-us193m-to-farmers">NewsDay</a>, Zimbabwe Commercial Farmers Union president Shadreck Makombe expressed unhappiness over COTTCO’s failure to pay farmers timeously. Makombe said:
<blockquote>
We are not happy at all with the way Cottco has been run and even as of now, there are some changes, but we are yet to realise the effect of those changes on the ground.
We continue lobbying and advocating for the best for farmers. We continue knocking on their doors… We would want it to improve.
We expect that things will move in the right direction, considering that cotton was known as white gold.
</blockquote>
He said inputs were available but discouraged farmers from further planting saying it’s too late for that. Said Makombe:
<blockquote>
But as for planting, we are now discouraging farmers because we are in the middle of the season, which is a bad season.
Yes, as it stands right now, the Meteorological (Services) Department has told us that there will be rains, and in the past, there were rains, meaning the crop which was (already) planted is doing well because of the rains.
However, we don’t encourage farmers to plant going forward because even those ultra-short season seed varieties can be affected. After all, the season is so short.
</blockquote>
Cotton used to be one of Zimbabwe’s major agricultural export commodities but production of cotton has been on the decline since 2013.
Before 2013, production was between 200 000 and 350 000 tonnes.
However, there has been a notable improvement in production in recent years.
According to statistics from the Agricultural Marketing Authority (AMA), the nation produced 137 702 tonnes in 2021, up from 91 712 the year before.
Production further increased by 67% to 89,6 million kilogrammes during the 2022/23 farming season.
More: <a href="https://www.pindula.co.zw/">Pindula News</a>

COTTCO Yet To Pay US$4.3 Million, ZWL$23.4 Billion To Farmers

The Minister of Lands, Agriculture, Fisheries, Water and Rural Development Anxious Masuka said that the Government does not set prices of cotton between growers and contractors.
Masuka said that as for pricing and payment of farmers whose inputs are funded by the Government, a system has been put in place to ensure that both parties benefit.
He was responding to concerns raised by MPs during a Question and Answer session in the National Assembly. Said Masuka:
<blockquote>
The Government does not set prices or conditions fon how to pay. As a Government, we receive from the contractors, the cost of growing cotton in a specific area, like a Pfumvudza plot.
As for the farmers we give inputs to, that is when we state the price that we expect to buy, but the other private contractors agree on the prices they are going to pay.
Government does not go into contracts with farmers. Farmers get into contracts with the private players.
</blockquote>
Masuka said that this year, eight contractors have engaged and entered into agreements with cotton farmers across the country. He said:
<blockquote>
I said we had a meeting with eight contractors or companies that go out there in the rural areas.
Those eight companies will be interacting with the farmers out there in the rural areas that we represent. So, we expect the country to grow a lot of cotton.
</blockquote>
He said that cotton farmers whose inputs are funded by the Government will get a fair return on their hard work. Said Masuka:
<blockquote>
Government is interested in the pricing of cotton so that there is a fair return for the farmers’ efforts.
Last year we introduced a grid-differentiated pricing system that is sensitive to the hard work that farmers had put in and we started at 40c a kilogramme which is comparable to other jurisdictions in the region.
</blockquote>
Meanwhile, the Government recently summoned the Cotton Company of Zimbabwe (COTTCO) officials to explain why the company is delaying paying the US$6.8 million the company owes cotton farmers.
Last month, COTTCO chief executive officer, <a href="https://www.pindula.co.zw/2023/10/21/cottco-owes-cotton-farmers-millions-of-us-dollars/">Priscilla Mutembwa said that efforts were underway to pay all farmers’ outstanding payments</a> before the onset of the 2022/23 summer cropping season.
Mutembwa COTTCO had paid $16.7 million to farmers, out of $23 million owed, adding that the company was working hard to ensure that arrears to its workers were also cleared.
More: <a href="https://www.pindula.co.zw/">Pindula News</a>

Govt Expects Cotton Output To Increase - Minister Masuka

The Government has summoned the Cotton Company of Zimbabwe (COTTCO) officials to explain why the company is delaying paying the US$6.8 million the company owes cotton farmers, reported <a href="https://www.newsday.co.zw/local-news/article/200019469/govt-summons-cottco-over-us68-million-debt">NewsDay</a>.
Speaking during Parliament’s question and answer session last week, Lands, Agriculture, Fisheries, Water and Rural Development Minister Anxious Masuka said the Government expects COTTCO to clear the outstanding US$6.8 million owed to farmers before the end of this month. He said:
<blockquote>
The government is concerned by the delayed payments, which is why we summoned COTTCO officials to get an understanding of why these delays are persisting when others have almost completed paying their contracted growers.
We take their word as COTTCO that they will be able to make good on the outstanding US$6.8 million to farmers before the end of this month as they are now able to sell the cotton.
We had meetings with companies that help farmers like the Zimbabwe Farmers Union and others, we will be supervising as Government so that farmers get the necessary inputs and are paid early if they deliver their cotton.
</blockquote>
Last month, COTTCO chief executive officer, <a href="https://www.pindula.co.zw/2023/10/21/cottco-owes-cotton-farmers-millions-of-us-dollars/">Priscilla Mutembwa said that efforts were underway to pay all farmers’ outstanding payments</a> before the onset of the 2022/23 summer cropping season.
Mutembwa COTTCO had paid $16.7 million to farmers, out of $23 million owed, adding that the company was working hard to ensure that arrears to its workers were also cleared.
More: <a href="https://www.pindula.co.zw/">Pindula News</a>

Govt Summons COTTCO Over US$6.8 Million Owed To Cotton Farmers

The Cotton Company of Zimbabwe (COTTCO) says it still owes farmers about 30 percent of payment for deliveries made by farmers last season, reported <a href="https://newziana.co.zw/2023/10/19/cottco-working-to-clear-farmers-debt-official/">New Ziana</a>.
Speaking to journalists recently, COTTCO chief executive officer, Priscilla Mutembwa said that efforts were underway to pay all farmers’ outstanding payments before the onset of the 2022/23 summer cropping season. She said:
<blockquote>
We are trying to improve the production as well as how we can be more prepared to be able to work better with the farmers in terms of input distribution and farmer payments.
We still owe some farmers about 30 percent of the amount that has been delivered which we are currently working on very vigorously with both the Reserve Bank of Zimbabwe and our partner banks as well as the Ministry of Finance.
</blockquote>
Mutembwa said to date, COTTCO has paid $16.7 million to farmers, out of $23 million owed, adding that the company was working hard to ensure that arrears to its workers are also cleared.
She said COTTCO has not yet distributed free Pfumvudza/Intwasa cotton inputs to farmers around the country. Said Mutembwa:
<blockquote>
We have not started the distribution of free inputs, but we have prepared as much as we can; we normally distribute after the end of October, we are also waiting for some of the inputs to arrive, so we are not too late. We are currently working on making sure that we are prepared.
</blockquote>
Some farmers in cotton-growing areas such as Muzarabani and Gokwe have abandoned the crop due to low prices and late payment for their deliveries by COTTCO.
More: <a href="https://www.pindula.co.zw/">Pindula News</a>

COTTCO Owes Cotton Farmers Millions Of US Dollars

The 2023 cotton marketing season has been extended to the end of this month to allow farmers to complete delivering their crop.
Deliveries currently stand at over 86 000 tonnes but are expected to reach 100 000 tonnes, doubling the harvest from last year (48 000 tonnes).
Agricultural Marketing Authority (AMA) business director Jonathan Mukuruba told <a href="https://www.herald.co.zw/cotton-marketing-season-extended-to-end-of-month/">The Herald</a> that the extension of the marketing season is meant to ensure that all farmers complete delivering their crop. He said:
<blockquote>
We received requests that there are some other areas that did not finish delivering their crop hence we have decided to extend the marketing season to the end of August to ensure that all farmers complete delivering their crop.
</blockquote>
Statistics released by AMA show that the four cotton buyers purchased 85 920 590 kg of seed cotton valued at US$28 440 927 and $22 885 283 553 in local currency.
The increase in cotton production this season has been attributed to the provision of free inputs by the Government and the classification of cotton as an export crop this season.
This year, cotton farmers are paid 85 percent of their total sales in United States dollars and the remainder will be paid in Zimbabwe dollars at prevailing interbank exchange rates upon delivery of the crop at any COTTCO buying point.
More: <a href="https://www.pindula.co.zw/">Pindula News</a>

Cotton Marketing Season Extended To End Of August

Lands, Agriculture, Fisheries, Water and Rural Development Minister Anxious Masuka has called for stiffer penalties for individuals or companies engaged in the side marketing of cotton.
Speaking during the launch of the 2023 cotton marketing season in Mahuwe on Monday, Masuka said side marketing of cotton should be made a criminal offence so that those found guilty do not escape with a fine but are jailed.
Masuka said jailing side marketers will protect one of the country’s foreign currency earners and source of livelihood for many Zimbabweans. He said:
<blockquote>
Last year, seven side marketing breaches were recorded with the culprits being fined over US$10 000.
In terms of deterrent measures, we must go beyond this and make side marketing a criminal offense.
Jail is the only effective way to curb this practice.
My ministry, through the Agricultural Marketing Authority, continues to implement measures to curb side marketing.
These include the Memorandum of Agreement by all contractors for the establishment of cotton buying points, maintenance of good business practices and registers of each contractor at each buying point.
</blockquote>
Side-marketing is when a contracted cotton grower sells his or her crop to a third party in breach of a legally binding contractual agreement that states that contracted cotton shall only be sold to or bought by the licensed contractor who provided inputs to such a grower.
In 2013, side marketing almost collapsed the cotton industry after private merchants stopped financing farmers due to poor debt recovery.
The following year (2014), output plunged to 28 000 tonnes, the lowest in nearly two decades.
The Government intervened by providing farmers with free inputs under the Presidential Free Inputs programme.
<a href="https://www.herald.co.zw/jail-terms-proposed-to-end-cotton-side-marketing/">The Herald</a> reported that almost 350 000 farmers were contracted to grow cotton under the Presidential Inputs Scheme last year.
250 000 hectares were put under cotton and 152 000 tonnes are expected this season.
More: <a href="https://www.pindula.co.zw/">Pindula News</a>

Side Marketing Of Cotton Should Attract Jail Terms - Minister Masuka

The Agricultural Marketing Authority (AMA) says more deterrent measures are still needed to curb the side-marketing of cotton by farmers.
Speaking to <a href="https://www.sundaymail.co.zw/new-ama-in-fight-against-cotton-side-marketing">The Sunday Mail</a>, AMA chief executive officer Clever Isaya said side marketing remains a big threat to the cotton sector.
He said AMA has since signed memoranda of understanding (MOUs) with cotton contractors to contain the practice through agreed fines and penalties. Said Isaya:
<blockquote>
Cotton is a strategic crop in the country and the second-largest foreign currency earner after tobacco.
Therefore, its value chain has to be protected. We are currently in the process of identifying common buying points which our farmers will use during the marketing season.
AMA clerks will be deployed to these points to monitor the process and ensure that there are no side-marketing activities.
</blockquote>
He said all contractors are required by law to buy from their contracted farmers only.
Side marketing is when growers sell their produce to third parties in breach of contractual agreements that bind producers to sell their yield to the contractor who would have provided inputs to the grower.
There are varied reasons why side marketing of crops is now rife in the market but it mainly stems from lower producer prices set by the government and the contractors.
Cotton is typically harvested between April and July. The process of cotton harvesting involves picking the mature cotton bolls from the plants by hand or machine.
More: <a href="https://zero.pindula.co.zw/">Pindula News</a>

Authorities Seek To Curb Side-marketing Of Cotton

Members of Parliament have expressed concern with the Cotton Company of Zimbabwe (Cottco)’s inability to pay farmers for their 2022 deliveries, reported <a href="https://www.zimlive.com/mps-flag-cottco-for-paying-farmers-using-groceries/">ZimLive</a>.
The legislators also bemoaned Cottco’s tendency to use groceries to pay farmers for their cotton.
Speaking in the National Assembly last week, Kambuzuma legislator Willias Madzimure (CCC), demanded that the government cotton merchant treats cotton farmers with dignity. Madzimure said:
<blockquote>
The issue of giving farmers groceries and sometimes equipment to use in the fields does not augur well for farmers.
When farmers deliver produce, they are expecting to get their money in cash so that they will then decide on their own what they want to use the money for, instead of them being asked to go to a shop and pick up groceries or implements.
</blockquote>
Gokwe-Kabuyuni legislator Spencer Tshuma (ZANU PF) noted that cotton farmers were now failing to pay school fees for their children.
Responding to the lawmakers, Acting Agriculture Minister Felix Mhona confirmed farmers have been paid using groceries.
He, however, added that farmers were never forced to accept groceries saying it was a voluntary arrangement between the parties. He said:
<blockquote>
I think the time when that was happening was more of a voluntary programme where one would opt to get groceries. Of late, this is not happening.
Where people were actually getting groceries in terms of payment, going forward and as it is now, the government is going to pay farmers their hard-earned money and not in the form of goods.
</blockquote>
Mhona also acknowledged that payments to cotton farmers had been delayed and said the government was looking into the issue to ensure that the farmers are paid.
Finance Deputy Minister Clemence Chiduwa said cotton farmers were owed more than US$28 million. Said Chiduwa:
<blockquote>
Last week but one is when we agreed that in order for us to pay out that money, we are paying US$5 million per week.
So, I expect that in the following week, we will be able to pay all the outstanding money in tranches of US$5 million per week.
</blockquote>

MPs Criticise COTTCO For Paying Farmers Using Groceries

The Reserve Bank of Zimbabwe (RBZ) has increased the foreign currency retention threshold for cotton farmers to 85 per cent for the 2023 cotton marketing season.
Previously, cotton farmers were retaining 75 per cent of their foreign currency earnings. The other 25 per cent was being sold to the central bank at the auction rate.
The RBZ advised the Agricultural Marketing Authority (AMA) of the new development. It said:
<blockquote>
Following the Monetary Policy Statement issued on February 2, 2023, we write to inform you that with effect from the 2023 season, cotton growers shall be paid 85 percent of their sales in foreign currency.
The remaining balance of 15 per cent shall be paid to the grower in local currency through bank transfers at the prevailing interbank market rate.
Considering this measure, cotton merchants shall draw down from offshore and sell 15 per cent of their proceeds to RBZ at the prevailing interbank rate.
The foreign currency payment to cotton farmers shall be net of foreign currency loans accessed for the purpose of financing seed cotton production.
</blockquote>
AMA chief executive Clever Isaya welcomed the development, saying the onus is now on farmers to do their part.
According to a <a href="https://www.sundaymail.co.zw/cotton-farmers-to-retain-85pc-in-forex">Sunday Mail</a> report, the new producer prices for cotton are US46c for grade A, US43c for grade B, US41c for grade C and US40c/kg for grade D.

Cotton Farmers To Retain 85 Per Cent In Forex - RBZ

Zimbabwe’s cotton output declined by over 50% last season, statistics from the Agricultural Marketing Authority (AMA) show.
In the 2021/22 season, farmers produced 57 000 tonnes of the crop as compared to 137 762 tonnes produced during the 2020/21 marketing season, a 59% drop.
AMA chief executive officer, Clever Isaya, told NewsDay that the sharp decline in cotton output is attributable to flooding and a cold spell in May. He said:
<blockquote>
Heavy rains and floods at the beginning of this season leached soils, then erratic rains which were received thereafter up to December (affected crops).
In January 2022, we had Tropical Storm Ana which caused destruction to both crops and animals, a cold spell quickly set in in May 2022 which affected ball splitting of cotton.
</blockquote>
Isaya also said payment delays in the previous season had “frustrated” some farmers while “non-destruction of ratoon crop in some instances perpetuated pest and disease prevalence.”
Payment problems have dogged the cotton sector in recent years, in some cases farmers have been given groceries for the “white gold”.
Last week the government announced new pre-planting producer prices for cotton farmers.
Cotton prices per grade will range from US$0.40 per kg for grade D to US$0.46 for grade A. | <a href="https://www.newsday.co.zw/agriculture/article/200006505/cotton-output-declines">NewsDay</a>

Cotton Output Declines By Over 50%

The Cotton Company of Zimbabwe (COTTCO) says it will pay cotton farmers all they are owed before the start of the next season.
Recently, COTTCO said it had paid ZWL$1 billion and US$9.9 million to cotton farmers, with more than 50 000 tonnes having been paid for.
The producer price for the current marketing season is US$0.30 plus $32 for each kilogramme delivered.
Addressing cotton farmers at the Harare Agricultural show last week on Friday, COTTCO’s acting accounts officer, Munyaradzi Chikasha, said:
<blockquote>
We promise to give you inputs on time so go and prepare. We want to achieve better results next season.
All outstanding payments will be done soon so we are urging farmers to continue with cotton farming next season. Our hope is to have over 400 000 farmers next season.
About 237 000 farmers grew cotton this year compared to 387 000 last year. We appreciate the great effort you are doing in farming.
We urge you to continue doing hard work. We also applaud Government for introducing foreign currency payments to our farmers.
</blockquote>
Cotton Producers and Marketers Association of Zimbabwe president Stewart Mubonderi urged COTTCO to avail farming inputs so that farmers can plant on time. | <a href="https://www.herald.co.zw/cotton-farmers-to-get-outstanding-payments/">The Herald</a>

COTTCO Promises To Clear All Payments To Cotton Farmers Soon

Cotton farmers in Manicaland province have demanded payment in cash for their products to avoid the extra charges incurred when using mobile money platform, EcoCash.
With cotton harvesting now at 80 per cent in the province, the farmers feel that using mobile money platforms will eat into their profits.
The farmers’ concerns were articulated by Manicaland Agritex livestock and crop production officer Cephas Mlambo. He said:
<blockquote>While it is easy for a person in the urban areas to transact using EcoCash, the system can become very complex for people in communal areas and some farmers in those areas do not understand how the system operates.
Deceitful business people end up ripping off farmers by charging extra money for transacting using EcoCash.</blockquote>
<h4>More: <a href="https://www.herald.co.zw/pay-us-in-cash-say-cotton-growers/" rel="noopener noreferrer" target="_blank">The Herald</a></h4>

Cotton Growers Loath EcoCash Payments

Farmers in the semi-arid Gokwe district in the Midlands province have lost all hope of any harvest after a brutal mid-season dry spell that destroyed their cotton crop.
Gokwe district is renowned for growing cotton in areas that include Nembudziya, Nemangwe, Chitekete, Manoti and Sengwa Bridge.
Villagers of Gokwe North and the Nembudziya area have are now counting their losses and are apprehensive of the future as they are now struggling to find water for domestic use and provide for their domestic animals after most of the rivers and boreholes dried up.
A villager from Rashai Village, Makore ward 12 told New Zimbabwe.com that they are now walking seven kilometres to the nearest waterhole. Said Munyuki:
<blockquote>We now have to accept that there is a drought this year. All rivers have dried up and our maize fields and cotton fields have also been scorched. I really don’t think a farmer this side will be able to harvest even a bale of cotton the situation is very bad I tell you.</blockquote>
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<li><a href="https://zero.pindula.co.zw/gokwe-farmers-protest-against-chief-njelele-over-the-murder-of-colleague-by-illegal-settlers/">Gokwe Farmers Protest Against Chief Njelele Over The Murder Of Colleague By Illegal Settlers</a></li>
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More: <a href="https://www.newzimbabwe.com/gokwe-hit-by-a-dry-spell-cotton-farmers-give-up-hope-of-harvest/" rel="noopener" target="_blank">NewZimbabwe.com</a>

Gokwe North Cotton Farmers Hard Hit By Drought

In an interview with The Herald, Agriculture Minister Joseph Made threatened to bring all cotton marketing activities under Government control following reports that there are private buyers who are encouraging farmers to sell the crop to Mozambique where they are being paid in cash.
Said Made:
<blockquote>There are companies that we understand are encouraging farmers to sell cotton across the borders, If these companies continue to do that; as Minister of Agriculture, I have the power to invoke the control of the crop. If those who are directly involved in supporting the growing of the crop go into the position of undermining the Presidential Cotton Input Scheme, I will not hesitate to invoke a crop control measure. I would like to warn that companies that are doing that (encouraging surreptitious exports) are undermining the well-being of the country, they are undermining the resuscitation of industry, they are undermining the value chain of this country. We will not allow that.</blockquote>
He also told the Annual National Agribusiness Conference that they are working on laws to make facilitating cotton to be sold across Zimbabwe’s borders illegal.
More: <a href="http://www.chronicle.co.zw/cotton-companies-under-investigation/">Chronicle</a>

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