Cotton Company Went Behind Govt, Offers Govt Targeted Farmers Better Prices

A local cotton firm, Southern Cotton, has reportedly been caught targeting the cotton from farmers contracted by the Government. These farmers are part of the 400 000 farmers which the government through the Cotton Company of Zimbabwe sponsored since 2015.

Side marketing results in companies that would have invested in the crop failing to recoup incurred costs as farmers would have side deals with other buyers.

The Chronicle reports that the Southern is paying $2,40 per kg for cotton against $1,95 per kg the government pegged.

Another issue that emerged from a study by the Chronicle is that the farmers’ database is in disorder as some farmers contracted by Cottco are also appearing as having been sponsored by Southern Cotton.
Reports of side marketing were refuted by the chief executive of Southern Cotton Mr. Caos Nzenze who in an interview said:

We have contracted quite a huge hectarage . . . about 42 000 (ha) and we are buying only from farmers we contracted. We are not targeting anyone’s crop.

Meanwhile, Cotton Producers and Marketers’ Association boss Mr. Steward Mubonderi said his association has taken a position to engage the Parliamentary Portfolio Committee on Lands and Agriculture. Mubonderi said:

We recently visited areas around Murehwa and Chiredzi last week and we are worried about what is happening. We are calling on AMA to ensure sanity prevails.

We are not at war with Southern Cotton as we want to see more investment in the sector. But we are totally against side marketing.

More: The Chronicle

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Murewa is a Town located in Mashonaland East Province in Zimbabwe. Murewa is divided into Murewa North and Murewa South constituencies. Read More About Murehwa

The Cotton Company of Zimbabwe Limited (Ltd) which is popularly known as Cottco is the largest cotton company in the country which buys cotton from farmers and processes it for export. It also helps farmers with inputs under its Input Credit Scheme, distinguishing itself from... Read More About Cottco

Chiredzi is a Town located in Masvingo Province in Zimbabwe. Read More About Chiredzi


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