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
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COMMENT - COTTCO is abusing small scale farmers and should be dragged to court. It is outrageous that farmers could lose their land over a $155 bill. COTTCO is not using the courts. Also, there should be insurance for farmers against drought and other 'acts of God'.
Defaulting farmers lose property
By Takunda Maodza recently in CHIREDZI
FARMERS in Masvingo and Manicaland provinces are crying foul after the Cotton Company of Zimbabwe took away their property and livestock following their failure to honour contracts they entered into under an inputs support scheme.
Cottco supplied farmers with inputs, such as seed, fertiliser and chemicals during the 2009/10 cropping season. The farmers were in turn expected to sell their produce to Cottco, in line with the requirements of the contracts they signed. Cottco managing director Mr David Machingaidze confirmed yesterday that the company was following up on defaulting farmers.
“It is normal company procedure to follow up on any unpaid inputs at the end of the season. We, however, encourage farmers to honour their contracts with cotton merchants. Where there are genuine cases of poor harvests or hardships, we will look at those case by case,” he said.
Mr Machingaidze said it was unfortunate that farmers felt that Cottco was going after them yet the company only wanted to recover what it was owed.
“We are asking farmers who did not deliver the crop to us, in some cases, to pay us for the inputs, in cash while in some instances, they can pay us in any other produce like maize, or livestock.”
Poor rains experienced in some parts of the country this year led to poor cotton harvests, particularly in areas like Mwenezi.
This saw some farmers like Mr Philimon Muchayi of Tavengwa Village under Chief Murove in Mwenezi failing to deliver enough cotton to Cottco despite receiving inputs from the company.
According to Mr Muchayi’s wife, Martha Murira, Cottco gave them seed, fertiliser and chemicals.
“As a result of the drought experienced this year, we had a poor harvest. We failed even to deliver a full bale of cotton (250kg) to Cottco,” she said.
Cottco employees then visited Muchayi’s home and attached their belongings.
“They came here last month and took away our plough, a goat, four metres of wire fence and knapsacks. They were accompanied by the police,” narrated Ms Murira.
She said Cottco workers were threatening to come back to attach more things.
“They have indicated to us that they are coming back to take our cattle if we fail to settle the balance yet when they initially took our belongings we did not agree on the valuation,” Ms Murira added.
Earlier, Cottco had written to Mr Muchayi through its lawyers Matutu, Kwirira and Associates, demanding payment.
Reads the letter: “We act on instructions of the above named (Cottco) who is our client. We are instructed that you owe our client US$100,65 in respect of the value of inputs advanced to you but you failed to pay the same as agreed. We have instructions to demand payment of the same to our client within seven days of the date of this letter. Your payment should include interest, legal costs and collection commission.”
Cottco wants Mr Muchayi to pay US$100,65 (capital debt), US$15,10 (interest at 15 percent) and US$10, 07 (collection commission).
This brings the amount to US$155, 81.
“If no payment is made within seven days we shall instruct the Messenger of Court to come and remove your property for sale. Be advised,” reads the letter, signed by C. Kwirira of Matutu, Kwirira and Associates.
The letter is not dated.
Several other farmers were served with similar letters and Cottco took away their belongings.
Cottco also served Mr Joshua Chuma, a similar letter before it confiscated his belongings.
Mr Chuma owes Cottco US$110,93, being the value of inputs given to him by the company.
Cottco demanded payment of US$168,66 and last week visited Mr Chuma’s home and took away his belongings.
In some of the incidents, Cottco took away building materials such as asbestos roofing sheets.
The Cotton Producers and Marketers Association of Zimbabwe yesterday said hundreds of farmers across the country had lost their property and other valuables to Cottco.
CPMAZ vice national chairman Mr Morris Mukwe said besides Masvingo, farmers in Manicaland and Mashonaland West provinces had also lost their valuables to Cottco.
“In Manicaland province farmers have lost such belongings as blankets, chickens, pigs, donkeys, cattle and household utensils. The goods are being taken away by Cottco and affected areas include Rimai, Chinyamukwakwa, Mariya and Gunira among others,” he said.
Mr Mukwe said the CPMAZ tried to engage Cottco over the issue without success.
“We advise farmers to report such cases to the police and as an association we will take the cases further. The problem is that the farmers are ignorant and the majority of them do not know their rights. Some of them do not even have copies of the agreements they entered into with Cottco,” he added.
Reports from Mashonaland West Province say Olam Zimbabwe, another cotton merchant, is also attaching goods belonging to farmers who failed to honour their contracts after they were given inputs in the 2009/2010 season.
Cottco has been involved in disputes with farmers over cotton prices.
Labels: COTTCO, COTTON, COTTON COMPANY OF ZIMBABWE, CPMAZ, DAVID MACHINGAIDZE, LAND REFORM, LAND RIGHTS
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