Cotton output to go up 89%

NATIONAL cotton output is expected to grow by 89 percent from 74 000 tonnes produced last year to 140 000 tonnes in 2018, the Cotton Company of Zimbabwe (Cottco) has said.
Without the intervention of government through the Presidential Cotton Input Scheme, cotton production was in free fall, with growers producing 28 000 tonnes during the 2015/2016 agricultural year.
“Massive re-engagement and mobilisation meetings by Cottco resulted in farmers accepting the scheme in the 2016/2017 season, pushing the national crop to 74 000 tonnes and 140 000 tonnes in the 2017/2018 season, a growth of 400 percent since inception,” Pious Manamike, Cottco managing director, said.
At its peak, the country produced 350 000 tonnes.
The Presidential Scheme started in the 2015/2016 season aims to revive cotton growing by addressing the issue of high input costs by giving free inputs and paying a viable producer price.
The scheme has seen close to 400 000 smallholder farmers going back to the fields and 400 000 hectares being put under cotton production.
“This has seen the nation benefiting from the foreign currency earnings that have grown from $11 million in 2016 to over $80 million in 2018 and other benefits along the value chain and around the ecosystem. The production volumes and financial benefits remain on a growth trajectory,” he said.
Out of the 140 000 tonnes produced this year, deliveries to Cottco amounted to 125 000 tonnes, a 131 percent increase from 54 000 tonnes produced last year. To date, Cottco commands 89 percent of the industry’s market share.
The cotton industry has battled severe viability and side marketing challenges since the deregulation, which saw the coming in of different players.
“As the number of ginners increased, quality standards were disregarded resulting in the deterioration in quality of the Zimbabwean cotton and we lost our status of producing the best, least contaminated cotton in the world as grading was stopped and new companies stopped rewarding good grades by paying the same price,” Manamike said.
Cotton used to be one of the country’s largest foreign currency earners before production slumped due to viability challenges, resulting from inadequate funding and poor prices.
“The self-destructing side marketing became endemic with most ginners enticing farmers to side market for a better price usually by a few cents,” Manamike said.
Demand for cotton lint and increase in pricing is expected during the 2018/2019 season as China has significantly reduced its stocks.
“The decrease in global stocks will largely come from a drawdown in China’s warehouses. From March through August 2018, the Chinese State Reserve sold more than two million tonnes of fibre, reducing stocks to about 8,6 million tonnes. Ending stocks in China reflect growing mill use in China and may signal the possibility of increased imports in 2018/19. Growing global demand in 2018/19, despite uncertainty about trade policies, may lead to price increases amidst a possible global production decrease,” the International Cotton Advisory Committee said.
Zimbabwe is ranked number 28 out of 77 leading cotton producing countries in the world.
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