Word from the market with AMA
The 2022 seed cotton marketing season is upon us, and preparations are at an advanced stage. It is hands-on the deck for all stakeholders in the cotton value chain.
The Agricultural Marketing Authority (AMA) is working closely with all registered cotton contractors or buyers to ensure a smooth and successful marketing season.
The Minister of Lands, Agriculture, Fisheries, Water and Rural Development, Honourable Dr Anxious Masuka has always emphasised the need for discipline in the production and marketing of agricultural products.
As indicated in one of our instalments here, market discipline is the hallmark of a successful agricultural marketing season.
Marketing by its nature requires a well-coordinated approach that considers the aspirations of each stakeholder in the identified value chain. The role of AMA is to facilitate an enabling environment where fair, orderly, and equitable marketing of seed cotton prevails.
The interests of all stakeholders must be considered and protected. In this regard, there have been a series of engagement meetings between AMA and registered seed cotton contractors in preparation for the 2022 marketing season.
All contractors are raring to go and have since finalized their financing models to ensure that timeous payments are made to farmers. Mobilisation of other resources such as transport, scales, bales, stationery, and human capital is all under control.
Critical and central to the successful marketing of seed cotton is the issue of farmer payments, more importantly, the timeous payment of farmers by contractors.
Admittedly, there have been challenges with payments for the last season.
The Government has intervened to ensure that all outstanding payments are cleared without further delay.
The agreed model for the current season is that farmers will receive payments immediately after delivery. Cotton remains a major export earner for the country hence it is important to ensure the profitability and viability of production.
Other important components of the preparations such cotton grading boxes have since been approved with the common buying points (CBPs) having already been designated.
The grower databases have also been finalised and shared with all contractors.
Seed cotton shall be purchased only by licensed buyers from the approved CBPs. Licensed contractors can only purchase seed cotton from farmers they are contracted to and have provided the required inputs.
It is a criminal offense for a contractor to purchase seed cotton from farmers contracted by another contractor. Equally, farmers are also not allowed to sell seed cotton to any other contractor other than to the one they are contracted to.
In essence side-marketing is prohibited, and all stakeholders are advised to adhere to all set rules and regulations. As usual, AMA will deploy its officers at the CBPs to enforce the rules to ensure orderly marketing of seed cotton.
There are currently 5 registered seed cotton contractors who shall be issued with buyers’ licences by AMA upon fulfilling the required conditions namely, Alliance Ginneries, Shawashi Agri, Southern Cotton Company, The Cotton Company of Zimbabwe (Cottco) and Zimbabwe Cotton Consortium.
For the 2022 marketing season, the country is expecting an output of 116 521 000kg according to the second crop-livestock and assessment report. Plans are afoot to increase cotton production next season under the National Enhanced Agricultural Production Scheme (Pfumvudza/Intwasa).
There will be an official opening of the seed cotton marketing season this year and plans are at an advanced stage for the event. The Government will soon announce the actual date of opening of the season and the approved payment modalities.