Cottco seeks to curb side marketing COTTON

Martin Kadzere Senior Business Reporter
THE Cotton Company of Zimbabwe has more than doubled its buying points ahead of the start of the 2017 marketing season in response to the expected bumper harvest.

The increase in the number of buying points will help farmers shorten their distances while reducing potential loss of the crop through side marketing. Cottco had over the past few years reduced buying points to cut overheads in light of falling output.

Since 2013, Zimbabwe has been experiencing a continuous decline in cotton production and last year produced about 30 000 tonnes, the lowest output since 1992. This year, the country is projected to produce at least 110 000 tonnes of cotton.

Cottco head of operations Mr Max Njanji told The Herald Business yesterday that the company will have 232 buying points this season from 106 points last season.

“Since we are expecting higher yields, we want to be closer to farmers and we have added more buying points this season,” he said.

“We do not want our farmers to face the hassles.”

Mr Njanji said the company was also conducting outreach programmes, educating farmers to desist from side marketing.

“We have some ongoing outreach programmes that we are conducting to educate our farmers on the benefits of this programme.”

Last year, Government came up with a three year free input programme to revive the industry, a development which saw thousands of farmers taking up cotton production again.

The scheme has also overshadowed the participation of private players, who for a long time have been accused of providing inadequate inputs while promoting side marketing.

Minister of Agriculture, Mechanization and Irrigation Development Dr Joseph Made recently said farmers would be registered for the next programme after delivering to Cottco.

A recent visit to Muzarabani and Mushumbi areas showed that the crop was in excellent condition with farmers ready to harvest.

“We have never had a good crop like we have this year because we got enough inputs and good rains.

“So we are expecting very good yields,” said Mr John Mungwariri of Muzarabani.

Several farmers in Mushumbi said they had abandoned the crop as credit schemes by private companies left “us with nothing”.

“The programme came as a huge relief because most of the schemes by private merchants were exploitative,” said Mr Trymore Wilson.

“After paying the debts, we were left with nothing, rendering cotton production unviable.”

Mrs Agnes Machando urged Government through its regulatory agencies to safeguard the crop from private companies who may want to “steal” the crop through side marketing.

“As farmers, we need to be disciplined. Let us the deliver the crop to Cottco. But we also want the Government to be on the lookout and severely punish those who may be found promoting side marketing. This is a good programme and it needs to be safeguarded.”

Local leaders said they would do all in their power to ensure the crop is sold to Cottco.

“These private companies only provided poor quality seed, which did not germinate properly.

“So we are saying to our farmers that let’s deliver the crop to Cottco. This practice of side marketing is an act of sabotage and farmers should desist from such practice,” ZANU-PF Mashonaland central provincial chairman for production and labour Mr Jonas Koshiwa said.

Some local leaders in Mbire held a meeting last Friday at Mbire primary and secondary schools, discussing how they could help regulatory agencies to curb side marketing.

Chief Muzarabani, Alfonso Chizu said while the programme was a success this year, its sustainability depended on farmers delivering their crop to Cottco.

“How would we expect Government to provide inputs next season if we side market,” he said.

“We did not receive any support from private companies and we do not want to see them during marketing season.”

Analysts have said the sustainable recovery of the industry remains under threat, largely due to side marketing resulting from inadequate regulatory enforcement to curb the practice.

They said since opening up the industry as a result of the IMF dictated ESAP authorities have failed to control side marketing.

The analysts are of the view that the Agricultural Marketing Authority, which is the regulatory body charged with enforcing cotton legislation in the form of Statutory Instrument 142 of 2009 has “totally” demonstrated a total reluctance to enforce effective deterrent measures or penalties, resulting in chaos in the marketing of the crop.

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