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(NEWZIMBABWE) Cottco to double cotton production

Cottco to double cotton production
12/08/2012 00:00:00
by NewZiana

COTTON Company of Zimbabwe (Cottco) managing director, David Machingaidze has said the plans to double cotton production to 200,000 tonnes of cotton in the 2012/2013 farming season.

The company’s bid to double output shows the sector has not been harmed by a bitter dispute over prices when growers refused to sell their crop this season, unhappy with the prices offered by ginners and merchants.

Cottco’s contracted farmers produced 104,000 tonnes of cotton in the 2011/12 season. Machingaidze said the company would contract 135,000 growers countrywide in the upcoming season compared to 100,000 in 2010.

"We are targeting 200,000 tonnes of cotton in the 2012/2013 farming season. All those who participated in our input credit scheme last year can qualify as long as they have paid their debt," he said.

"We are not able to register new growers, those who benefited last year; registration is underway at all Cottco depots nationwide," he added.

Machingaidze, who is also Cotton Ginners Association chairperson, said the sector was poised for growth despite ongoing challenges in the industry.

"Apart from the current difficulties like the pricing issues and price controls, the future of the country's cotton industry is still bright," he said adding that Cottco would purchase 150,000 tonnes of seed cotton in the 2011/12 marketing season against the company's ginning capacity of 265,000 tonnes.

Blaming poor world market prices, merchants offered between US$0.36 and US$0.50 per kg for this season’s crop which was rejected by the farmers forcing the government to intervene and fix prices at between US$0.77 and US$0.84.

Agriculture minister, Joseph Made warned merchants they would lose their licences if they did not pay the prescribed prices.

"We are not seeking any negotiations. Ginners who do not comply with this position will have their licences cancelled. This is final and there is not going to be any debate,” he said.

Cotton is the country's second largest foreign currency earner in agriculture after tobacco and is a source of livelihood for over 250,000 families in the drier parts of Zimbabwe.

Labels: COTTCO, COTTON, DAVID MACHINGAIDZE

posted by MrK @ 2:17 PM