The Cotton Company of Zimbabwe (COTTCO) says it is taking measures to ensure it does not run out of US dollar notes during the forthcoming marketing season.
The 2023 cotton selling season is just around the corner as it usually commences in May.
Speaking in an interview with <a href="https://www.businessweekly.co.zw/cottco-seeks-cash-guarantees/">Business Weekly</a>, COTTCO acting accounting officer Munyaradzi Chikasha revealed that they were negotiating with its international buyers for the provision of US dollar cash in the event that local banks run out of notes. Chikasha said:
<blockquote>
We have noted that the issue of liquidity could affect us and disrupt the marketing season.
We have approached our customers to bring liquidity so that we avoid disruptions.
We are negotiating the facilities with local banks- our previous experiences show us that they may run out of physical notes and when this happens, it opens pathways for side marketing because a farmer can’t keep the crop waiting for us to get cash.
But that of course comes with guaranteed tonnage that will be supplied to off-takers.
</blockquote>
He said COTTCO has a debt of about US$3 million are negotiating for a debt rollover.
Last season, COTTCO initially expected an output of 116 000 tonnes but the company only bought 48 000 tonnes.
This year, the company is expecting output to reach 100 000 tonnes.
The lowest grade (D) will fetch US40c per kg while the premium grade (A) will be sold at US46c per kg.
Farmers will be paid 85 percent in US dollars and the remainder in local currency at the official interbank rate.
More: <a href="https://www.newsday.co.zw/local-news/article/200009522/ed-demands-re-run-in-violence-hotspots">Pindula News</a>

Pindula News

COTTCO Seeks Cash Guarantees Ahead Of Marketing Season

Southern Cotton, which is wholly owned by Zimbabweans has introduced new cotton varieties amidst declining numbers of people growing the crop. The varieties, May 505 and May 344 are believed to have the potential to double yields relative to current seed varieties.
Southern Cotton operations manager, Mr. Kudakwashe Mabonga said:
<blockquote>The two varieties can produce between 5000 and 6000 kg of cotton per every hectare, compared to the 1500 kg to 2000kgs that current seed varieties produce.
As financers of cotton, we heeded the call by local farmers that a labour-intensive pursuit like cotton farming was no longer lucrative, especially  with the low yields per hectare, and there was need for us to help farmers by developing a variety that would bring better yields, hence our smart partnership with K2 in our synergy, birthing these two new varieties.</blockquote>
Challenges particularly drought, poor funding and pricing experienced by farmers in the current and previous seasons have demoralised a number of farmers who were now contemplating ditching the crop.
However, Cotton Company of Zimbabwe revealed that Zimbabwe’s cotton deliveries reached 100 000 tonnes in 2018 surpassing 2017’s national output of 74 000 tonnes. The country once reached a record high of 352 000 tonnes of cotton in 2013.
More: <a href="https://www.sundaymail.co.zw/white-gold-set-for-major-rebound" rel="noopener noreferrer" target="_blank">The Sunday Mail</a>

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