Cottco promises farmers early payment

COTTCO has promised to pay cotton farmers on time for their deliveries, as part of its new grower centric approach to business operations following a rebranding exercise designed to create value for the sector’s stakeholders.

The cotton firm on Monday embarked on a rebranding programme whose cornerstone entails enhancing farmer viability through timeous payment to farmers after they deliver their crop to the company..

This comes on the back of the Government’s upward review of cotton producer price for the current marketing season in June to US$0,30 plus $32 per kilogramme.

Prior to this review, the Government, through the Agricultural Marketing Authority (AMA), had set the pre-producer price for 2022 at $111 per kg for the crop funded by private companies and $63,23 for cotton produced under state-assisted farming programs.

In his speech at the launch event for the rebranding exercise Cottco chairperson Sifelani Jabangwe told delegates and farmers that farmers would now receive their payment on time going forward.

Farmers have in the last few years endured the agony of being paid late while the value of local currency payments would also have been significantly eroded by inflation by the time the payment is made, a development which saw many farmers threaten to abandon production of the white gold.

“Five-year strategy compiled by our new board is farmer-centric, Cottco is committed to improving farmer viability, as well as ensuring that farmers are paid properly, this is part of our transformation journey that began in February 2022.

“Most significant is the payment modalities for farmers in 2022 and the promptness as directed by the government. Farmers are now being paid 75 percent of their earnings in forex on the basis that the lint output is an export product,” he said.

The new payment modalities have been commended by players in the sector and it is envisaged that the number of cotton-growing farmers will improve.

Cottco’s acting account officer, Munyaradzi Chikasha informed participants that the rebranding exercise would create a platform for a profitable cotton farming business contrary to the deterioration experienced a few years back. “Cottco is transforming to become a vehicle for rural industrialisation and development, the company has awakened and we assure you that cotton farming is going to be lucrative
going forward.

“With this renewed focus we will work towards creating value for our stakeholders,” said Mr Chikasha.
Weighing in on the strategy to ensure viability of farmers the Deputy Minister of Lands, Agriculture, Fisheries Water and Rural Development, Vangelis Haritatos said the Government was committed to ensure that cotton farmers are viable and fairly rewarded for their hard labor.

The Secretary for Provincial Affairs and Devolution, Harare Province, Tafadzwa Muguti implored financiers to back the Cottco’s bid for enhanced beneficiation to increase the returns in earnings from the crop.

“We implore banks to support the value addition initiatives that Cottco has, I am sure we can harness and improve on our current capacity to generate more foreign currency as well as import substitution,” he said.

As part of measures to enhance the productivity of cotton production, the Government is supporting increased yields by sourcing a high-yielding and drought-tolerant hybrid seed in replacement to the current open pollinated variety (OPV).-The Herald